2012/211/EU: Council Decision of 13 March 2012 amending Decision 2011/734/EU addressed to Greece with a view to reinforcing and deepening fiscal surveillance and giving notice to Greece to take measures for the deficit reduction judged necessary to remedy the situation of excessive deficit

‘2 The adjustment path towards the correction of the excessive deficit shall aim to achieve a general government primary deficit (deficit excluding interest expenditure) not exceeding EUR 2037 million (1,0 % of GDP) in 2012, and primary surpluses of at least EUR 3652 million (1,8 % of GDP) in 2013 and EUR 9352 million (4,5 % of GDP) in 2014. Following the debt exchange, these targets for the primary deficit/surplus are consistent with an overall deficit of EUR 14811 million (7,3 % of GDP) in 2012, EUR 9462 million (4,7 % of GDP) in 2013 and EUR 4499 million (2,2 % of GDP) in 2014. To this aim, an improvement in the structural balance of at least 10 % of GDP will have been achieved over the period 2009-2014. Proceeds from the privatisation of assets (financial and non-financial assets), as well as all transfers related to the Eurogroup decision of 21 February 2012 with regard to the income of euro zone national central banks, including the Bank of Greece, stemming from their investment portfolio holdings of Greek government bonds shall not reduce the required fiscal consolidation effort and shall not be counted in the assessment of these targets.

3 The adjustment path referred to in paragraph 2 is consistent with an annual change in the general government consolidated debt of EUR - 26954 million in 2012, of EUR 6775 million in 2013 and of EUR 1492 million in 2014.’;

‘7a Greece shall adopt the following measures without delay: (a) a reduction in pharmaceutical expenditure by at least EUR 1076 million in 2012; (b) a reduction in overtime pay for doctors in hospitals by at least EUR 50 million in 2012; (c) a reduction in the procurement of military material by EUR 300 million (cash and deliveries) in 2012; (d) a reduction by 10 % in the remuneration of elected and related staff at local level in 2012 and a reduction in the number of deputy mayors and associated staff in 2013 with the aim of saving at least EUR 9 million in 2012 and an additional EUR 28 million in 2013; (e) a reduction in the central government’s operational expenditure, and election-related spending, by at least EUR 370 million (compared to the 2012 budget), of which at least EUR 100 million in military-related operational expenditure, and at least EUR 70 million in electoral spending; (f) a reduction in operational expenditure by local government with the aim of saving at least EUR 50 million in 2012; (g) cuts in subsidies to residents in remote areas, and cuts in grants to several entities supervised by the ministries, with the aim of reducing expenditure in 2012 by at least EUR 190 million; (h) a reduction in the public investment budget (PIB) by EUR 400 million in 2012. This reduction in the PIB budget will not have any impact on projects that are co-financed by structural funds (including TEN-T projects); (i) changes in supplementary pension funds and pension funds with high average pensions or which receive high subsidies from the budget, and cuts in other high pensions, with the aim of saving at least EUR 450 million in 2012 (net after taking into account the impact on taxes and social contributions); (j) cuts in family allowances for high-income households, with the aim of saving EUR 43 million in 2012; (k) ministerial decisions to complete the full implementation of the new wage grid in all the pertinent entities, and legislation on the modalities for the recovery of wages paid in excess as from November 2011; (l) the amendment of Articles 3 and 21 of Law 4038/2012 so that the conditions to extend the instalment plans for overdue taxes and social contributions are revised: instalment plans will only apply to existing overdue amounts below EUR 10000 for individuals and EUR 75000 for corporations. Tax payers applying for an extended instalment plan should disclose all their financial statements to the tax authorities; (m) a framework law, with an in-depth revision of the functioning of secondary/supplementary public pension funds aimed at stabilising pension expenditure, guaranteeing the budgetary neutrality of these schemes, and ensuring medium- and long-term sustainability of the system.’;

’10 Greece shall adopt the following measures by the end of September 2012: (a) a draft budget for 2013 in line with the primary surplus target established in Article 1(2); (b) rules and procedures for centralised purchasing/framework contracts for frequently purchased supplies or services at central government level with the obligation for ministries and central government bodies to source via these contracts and optional use for regional entities.

11 Greece shall adopt the following measures by the end of December 2012: (a) the final adoption of the budget for 2013 in line with the primary surplus target established in Article 1(2); (b) legislation streamlining the procedure for submission and approval of supplementary budgets.’.

This Decision shall take effect on the day of its notification.

This Decision is addressed to the Hellenic Republic.