11 Aug. (EIRNS) The Greek households and businesses have lost no less than EU122 billion, a figure that is more than half of the country’s current estimated EU200 billion Gross Domestic Product while personal consumption has declined by no less than 53%. This is the direct result of cuts in salaries and social benefits, increased taxes, withdrawal of bank deposits, drop in bank liquidity and the general collapse of the economy.
According to figures from the Greek Finance Ministry these are the statistics:
Public sector salary cuts between 2009 and 2013 amounted to EU9.3 billion as the government cut the budget for salaries by a third from EU31 billion to EU22.1 billion and will fall to EU21.7 billion in 2014.
The budget for pensions, health and benefits was reduced from EU49 billion in 2009 to EU39.1 billion in 2013 and will be reduced to EU38.5 billion in 2014.
Public consumption has collapsed by 53% from EU20.8 billion to EU9.6 billion at the end of 2014.
Public and private sector salaries have on the average been reduced on the average of 30%.
Because of the bankrupt banking system, lending has fallen by EU34 billion, while deposits declined by EU75 billion, with one-third of this sum being spent on current consumption requirements and the payment of taxes.
On top of this, the government still owes EU6.8 billion in rebates to businesses, according to a report in ekathimerini.com.
Because of budget cuts, municipalities cannot afford lifeguards. There have been 125 drowning deaths, mostly at beaches. The total could top 370 be the end of the year. Drowning has been the second highest cause of accidental deaths after road accidents. Some of these deaths were no doubt suicides, since it is known people will go to the beach and drown themselves so it does not appear to be a suicide.