ECONOMY

Bill for drastic state cuts

This month, the government needs to prepare and table in Parliament the bill providing for the closure of six state companies, the merger of five state corporations and the drastic downsizing of public broadcaster ERT (pictured), which will also pave the way for layoffs.

The updated agreement between Athens and its international creditors suggests that the surplus staff in the broader public sector will need to remain on a labor standby status for 12 months, receiving just 60 percent of the basic salary.

It is only after that period that employees will be assessed by the Supreme Council for Personnel Selection (ASEP), provided they have not found a job in the private sector.

If they are still deemed superfluous, they will then be dismissed.

The state companies affected by the new bill employ no fewer than 7,000 people.

The government?s deal with its creditors also provides for the closure of another 40 smaller state bodies and the merging of a further 25.