HTML PUBLIC "-//W3C//DTD HTML 4.01 Transitional//EN"L 320/28
EN
Official Journal of the European Union
3.12.2011
DECISIONS
COUNCIL DECISION
of 8 November 2011
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
(2011/791/EU)
THE COUNCIL OF THE EUROPEAN UNION,
take measures for the deficit reduction judged necessary
to remedy the situation of excessive deficit at the latest
by the deadline of 2014. The Council established the
following adjustment path for the deficit correction:
Having regard to the Treaty on the Functioning of the European
government deficits not exceeding EUR 18 508 million
Union (TFEU), and in particular Article 126(9) and Article 136
in 2010, EUR 17 065 million in 2011, EUR 14 916
thereof,
million in 2012, EUR 11 399 million in 2013 and
EUR 6 385 million in 2014.
Having regard to the recommendation from the European
Commission,
(5) Decision
2010/320/EU
had
been
substantially
amended
several times (
Whereas:

2 ). Since further amendments were to be

made, it was recast, on 12 July 2011, by means of
Council Decision 2011/734/EU ( 3 ) in the interests of
clarity.
(1) Article 136(1)(a) TFEU foresees the possibility of
adopting measures specific to the Member States whose
currency is the euro with a view to strengthening the
coordination and surveillance of their budgetary
discipline.
(6) In
September
2011,
it
became
evident
that,
taking
into
account budgetary execution until that September, with
unchanged policies, the 2011 target for the deficit would
(2) Article
126
TFEU
establishes
that
Member
States
are
to
be missed by a significant amount which would jeop
avoid excessive government deficits and sets out the
ardise the overall credibility of the programme. In
excessive deficit procedure to that effect. The Stability
October 2011, the Greek government announced
and Growth Pact, which in its corrective arm implements
measures aimed at minimising the slippage in the 2011
the excessive deficit procedure, provides the framework
budget and presented a draft budget for 2012 aimed at
supporting government policies for a prompt return to
respecting the ceiling for 2012 established by Decision
sound budgetary positions taking account of the
2010/320/EU. These measures will become law by the
economic situation.
end of October 2011. Extensive discussions on these
measures have taken place between the Hellenic
authorities and the Commission’s services.
(3) On
27
April
2009,
the
Council
decided,
in
accordance
with Article 104(6) of the Treaty establishing the
European Community (TEC), that an excessive deficit
existed in Greece.
(7)
In the light of the above considerations, it appears appro
priate to amend Decision 2011/734/EU in a number of
respects, while keeping unchanged the deadline for the
(4) On
10
May
2010,
the
Council
adopted
Decision
correction of the excessive deficit,
2010/320/EU ( 1 ) addressed to Greece under
Article 126(9) and Article 136 with a view to reinforcing
and deepening the fiscal surveillance and giving notice to
( 2 ) Decision 2010/486/EU (OJ L 241, 14.9.2010, p. 12); Decision
2011/57/EU (OJ L 26, 29.1.2011, p. 15); Decision 2011/257/EU
(OJ L 110, 29.4.2011, p. 26).
( 1 ) OJ L 145, 11.6.2010, p. 6.
( 3 ) OJ L 296, 15.11.2011, p. 38.

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EN
3.12.2011 Official
Journal
of
the
European
Union L
320/29
HAS ADOPTED THIS DECISION:
ETA, ODDY, National Youth Institute, EOMEX, IGME,
OSK, DEPANOM, THEMIS, ETHYAGE and ERT, and 35
other smaller entities;
Article 1
Article 2 of Decision 2011/734/EU is hereby amended as
follows:
(j) a ministerial Decision specifying the disability criteria
on the attribution of disability pensions, consistent
(1) the following paragraph is inserted:
with achieving the MTFS saving objectives;
‘6a. Greece
shall
adopt
and
implement
the
following
measures without delay:
(k) a law to freeze the indexation of main and supple
mentary pensions through 2015;
(a) a reduction in tax exemptions, in particular the tax-free
personal income thresholds, with the aim of increasing
revenue by at least EUR 2 831 million in 2012;
(l) finalisation
of
the
positive
list
for
pharmaceuticals
that
establish prices charged to social security funds;
(b) a permanent levy on real estate, collected through elec
tricity invoices, with the aim of collecting at least EUR
1 667 million in 2011, and EUR 1 750 million per
annum from 2012 onwards;
(m) transferring to the privatisation fund "Hellenic Republic
Asset Development Fund" (HRADF) the following
(c) an immediate implementation of the revised wage grid
assets: Alpha Bank (0,619 % of shares); National Bank
for civil servants, thereby contributing to a reduction in
of Greece (1,234 % of shares); Piraeus Bank (1,308 % of
expenditure of at least EUR 101 million in 2011, and
shares); Piraeus Port Authority (23,1 % of shares); Thes
with a carry-over of at least EUR 552 million for 2012,
saloniki Port Authority (23,3 % of shares); Elefsina,
additional to savings provided in the MTFS through
Lavrio, Igoumenitsa, Alexandroupolis, Volos, Kavala,
2015. This reform shall cover all general government
Corfu, Patras, Rafina, Heraklion port authorities
employees, except those covered by special wage
(100 %); Athens Water and Sewerage Company
regimes. These net savings take into account the
(27,3 %); Thessaloniki Water and Sewerage Company
impact of this measure on income tax and social
(40 %); Regional state airports (transfer of concession
contributions, as well as bonuses to be paid to
rights); off-shore natural gas storage facility "South
specific employee categories;
Kavala" (transfer of rights of current and future
concessions); Hellenic motorways (transfer of
economic rights of current and future concessions);
(d) a cut in main and supplementary pensions, as well as
Egnatia odos (100 %); Hellenic Post (90 %); OPAP, SA
in lump sums paid on retirement, with the aim of
(29 %); four state buildings;
saving at least EUR 219 million in 2011 with a
carry-over of EUR 446 million in 2012, additional to
savings provided for in the MTFS;
(n) appointing the legal, technical and financial advisors for
(e) capping at 5
% of its deposits spending by the Green
at least 14 of the privatisations that are planned until
Fund, with the aim of saving EUR 360 million in 2012;
end-2012;
(f) ministerial decisions or circulars concerning the
measures on excise on natural gas, heating oil and
(o) based on a dialogue with social partners and taking
vehicle taxes provided for in the MTFS;
into account the objective of creating and preserving
jobs and improving firms’ competitiveness, adopting
further measures to allow the adaptation of wages to
(g) ministerial decisions to uniformly regulate health
economic conditions. In particular: the extension of
benefits provided by the several social security funds;
occupational and sectoral collective agreements and
the so-called favourability principle shall be suspended
during the period of application of the MTFS in such a
(h) legislation for the collection of the solidarity surcharge
manner that firm-level agreements take precedence over
through withholding tax;
sectoral and occupational agreements; firm-level
collective contracts may be signed either by trade
unions or, when there is no firm-level union, by
(i) ministerial decisions that initiate the closure, merging
work councils or other employees’ representations, irre
or substantial downsizing of entities. This affects KED,
spective of the firms’ size.’;

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L 320/30
EN
Official Journal of the European Union
3.12.2011
(2) paragraph 7 is amended as follows:
(k) to strengthen expenditure control: appointment of
permanent financial accounting officers in all
Ministries;
(a) point (a) is replaced by the following:
(l) publication
of
a
medium-term
staffing
plan
for
the
‘(a) a budget for 2012 in line with the MTFS targets and
period up to 2015 in line with the rule of 1
the deficit ceilings set out in this Decision; update
recruitment for 5 exits which applies to general
and publish information on the several measures
government as a whole without sectoral exceptions;
provided for in the MTFS; and the tax and expen
transfer of about 15 000 staff currently employed
diture legislative acts that are necessary to
by various government entities to the labour
implement the budget at the same time of the
reserve, and placement of about 15 000 in pre-
budget;’;
retirement. Staff in the labour reserve, and in pre-
retirement, are to be paid at 60 % of their basic
wage (excluding overtime and other extra
(b) point (d) is replaced by the following:
payments) for not more than 12 months. This
period of 12 months may be extended up to 24
months for staff close to retirement. Payments to
‘(d) assessment of the results of the first phase of the
staff while in the labour reserve are part of their
independent functional review of central adminis
severance pay;
tration which will result in an action plan for the
implementation of operational policy recommen
dations. These recommendations shall determine
how to achieve a more streamlined and effective
(m) revision of the list of heavy and arduous
public service, to define clear responsibilities and
professions and reduction in its coverage to less
command lines of ministerial departments, elim
than 10 % of employment. An in-depth revision
inating overlapping competences, and to improve
of the functioning of secondary/supplementary
inter- and intra-ministerial mobility; finalisation of
public pension funds, including welfare funds and
the ongoing functional review of existing social
lump-sum schemes, with the aim of stabilising
programmes;’;
pension expenditure, guaranteeing the budgetary
neutrality of these schemes, and ensuring
medium- and long-term sustainability of the
system. The revision shall achieve: a further
(c) the following points are added:
reduction in the number of existing funds; the elim
ination of imbalances in those funds with deficits;
the stabilisation of the current spending at
‘(i) appointment of advisors for the other privatisation
sustainable level, through appropriate adjustments
transactions planned for 2012 and not included in
to be made from 1 January 2012; and the long-
point (n) of paragraph 6a; acceleration of state land
term sustainability of secondary schemes through a
ownership registration and secondary legislation on
strict link between contributions and benefits.’;
tourism housing and on land use; establishment
and operation of a new General Secretariat of
Public Property working together with the newly
merged KED/ETA (real estate management and
(3) in paragraph 8, the following points are added:
tourism real estate institutions, respectively),
which are to prepare real estate for privatisation
of commercial and tradable assets. The aim is to
improve the management of real estate assets, clear
‘(c) undertaking of the second phase of the existing func
them of encumbrances and prepare them for
tional review of social programmes which include a
privatisation; creation of six real estate portfolios
more detailed review of specific programmes, aiming
by the HRDAF; adoption of the legal act on the
at reducing excessive fragmentation, generating savings
transfer to the State of the mobile and immobile
and creating efficiencies;
assets of entities that are closed;
(d) coverage of all medical acts by e-prescribing (medicines,
(j) the
reform
of
revenue
administration,
through:
the
referrals, diagnostics, surgery) in both national health
activation of a large-taxpayers unit; the removal of
system (NHS) facilities and providers contracted by
barriers to effective tax administration by imple
EOPYY and the social security funds; production of
menting the key reforms of the new tax law,
detailed monthly auditing reports by NHS facilities
including replacing managers who do not meet
and by providers; association of a lower cost-sharing
performance targets, reassessing tax auditors’
rate to generic medicines that have a significantly
qualifications; the operation of the newly created
lower price than the reference price (lower than 60 %
fast-track administrative dispute resolution body
of the reference price) on the basis of the experience of
to deal rapidly with large dispute cases (i.e. within
other Member States; publication by the social security
90 days); the centralisation of the functions of, and
funds of an annual report on medicine prescription;
the merging of, at least 31 tax offices;
adoption by all hospitals of commitment registers;

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EN
3.12.2011 Official
Journal
of
the
European
Union L
320/31
(e) move towards a new centralised procurement of phar
pensions and social transfers (in a manner that will
maceuticals and medical goods for the NHS through the
preserve basic social protection); reduction of defence
Supplies Coordination Committee with the support of
spending without prejudice to the defence capability of
the Specifications Committee, using the uniform coding
the country; and restructuring of central and local
system for medical supplies and pharmaceuticals;
administrations; adjustments to special wage regimes;
specification of further rationalisation of pharmaceutical
spending and operational spending of hospitals, and
(f) in order to strengthen expenditure control, adoption of
welfare cash benefits.’.
legislation streamlining the procedure for submission
and approval of supplementary budgets; continuation
of the process of establishing commitment registries,
Article 2
which shall cover the whole general government.’;
This Decision shall take effect on the day of its notification.
(4) the following paragraph is added:
Article 3
‘(9)
Greece shall adopt the following measures by the end
This Decision is addressed to the Hellenic Republic.
of June 2012:
(a) Preparation of the measures to be adopted at the same
Done at Brussels, 8 November 2011.
time as the 2013 budget and at the same time as the
2014 budget, initiation of a review of public expen
For the Council
diture programmes, with the aim of identifying
measures amounting to 3 % of GDP. The review shall
The President
draw on external technical assistance and shall focus on
J. VINCENT-ROSTOWSKI

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