This is Memorandum No2

These are the basic decisions that have been agreed in the so-called Memorandum No2.

TAXES AND SPENDING

• Greek leaders have agreed to spending cuts worth 1.5pc of gross domestic product (GDP) this year, or €3.3bn (£2.77bn). By Thursday morning, savings had been agreed to cover all but €300m of that amount.

• The cuts include €400m from public investment, €300m from the defence budget and €300m from pensions.

• In June, whichever government is in charge following expected elections will have to specify additional austerity measures worth €10bn for 2013-2015.

• Greece will be given an extra year, until the end of 2015, to meet a primary surplus target (excluding interest payments).

Bank recapitalisations

• Banks with major problems will be recapitalised with common voting shares while those with lesser problems will be recapitalised with bonds convertible into shares with restricted voting rights.

Labour reform

• The minimum wage will be cut by 22pc. However, this will not drag down the entire wage scale, applying only to new hires. New entrants into the labour market, i.e. those getting their first job, will receive a sub-minimum wage 30pc below the current minimum wage, which now stands at about €750 (this is around 590 euros after tax). Those under 25 will be affected the most.

• About 15,000 state workers will be placed in a “labour reserve”, meaning they will be placed on partial pay and dismissed after a year.

• The government aims to cut the state sector workforce by about 150,000 people by 2015.

Source: Reuters

Greek news portal Capital.gr has a link for the full draft text here. (some pages are missing – no explanation why).

UPDATE: Here’s a more complete version from Greek web news portal in.gr

A possible explanation for the missing page 20 (one of the missing pages from Capital.gr is a handwritten note saying “Goodbye debt, Goodmorning poverty”. It’s still unknown who’s notes these were.

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