Recommendation for a COUNCIL DECISION 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
Date: 2012-11-30
Institutions: European Commission
Subjects: Greece, budgetary control, budgetary equilibrium, debt reduction, financial aid, gross domestic product, institutional reform, public debt, reflation, structural adjustment, tax reform

EUROPEAN 
COMMISSION 

Brussels, 30.11.2012  
COM(2012) 738 final 

Recommendation for a 

COUNCIL DECISION 

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 

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EXPLANATORY MEMORANDUM 

Measures concerning the coordination and surveillance of the budgetary discipline of Greece 
and the setting out of economic policy guidelines for Greece are defined in Council Decision 
2011/734/EU on the basis of Articles 126(9) and 136 TFEU. Greece has been recommended 
to take measures to correct the situation of excessive deficit by 2014 at the latest, ensuring an 
improvement in the structural balance of at least 10 percentage points of GDP over the period 
2009-14. 

Compliance  with  the  decision  is  relevant  not  only  in  the  context  of  the  excessive  deficit 
procedure, but also in the context of the financing to Greece by the euro-area Member States, 
through the Greek Loan Facility and the European Financial Stability Facility (EFSF). 

The 2012 general government deficit is expected to have reached €13.4 billion respecting the 
€14.8  billion  deficit  ceiling  prescribed  in  th e  Council  Decision.  The  general  government 
deficit  is  expected  to  be  have  reached  6.9%  of  GDP,  well  within  the  7.3%  of  GDP 
government deficit ceiling for 2012. The primary deficit target for that year is set to be missed 
by about 0.5% of GDP. The overall outcome reflects lower interest payments than planned, 
following the debt exchange in March 2012.  

For 2013, Greece adopted on 11 November a budget ensuring the continuation of the  fiscal 
consolidation,  through  measures  aimed  at  ensuring  savings  of  about  5%  of  GDP.  It  also 
adopted on 7 November a Medium Term Fiscal Strategy including measures which ensure a 
further  reduction  in  the  deficit  in  subsequent  years.  Greece  has  taken  effective  action  in 
compliance with Council decision 2011/734/EU. Greece has ensured an improvement in the 
structural balance in 2009-2012 which is already larger than the at least 10 percentage points 
of GDP over the period 2009-14 recommended by the Council. Greece is estimated to have 
improved its structural deficit by 13.9 percentage points of GDP from a 14.7% deficit in 2009 
to an estimated 1.5% deficit in 2012. 

Economic  activity  is  currently  projected  to  be  much  weaker  than  expected  when  Decision 
2012/734/EU was adopted in March 2012. The Greek economy is in its fifth consecutive year 
of  recession.  According  to  the  Commission  services'  2012  Autumn  Forecast,  real  GDP  is 
projected  to  contract  by  6.0%  in  2012  and  by  4.2%  in  2013  -  against  4.7%  and  0.0% 
respectively in the previous Council Decision -, followed by growth of only 0.6% in 2014. In 
contrast,  the  Council  Decision  of  March  2012  was  based  on  growth  resuming  already  by 
2013.  The  marked  worsening  of  the  economic  outlook  reflects  the  political  uncertainties  in 
Greece during the double elections, a weakening of external demand, and the effects of delays 
in programme implementation and disbursement on public and private financing. 

This marked worsening of the economic scenario implies a corresponding deterioration of the 
outlook for public finances given unchanged policies, and makes it difficult to complete the 
correction  of  the  excessive  deficit  by  2014,  as  requested  by  the  Council  in  its  decision 
2011/734/EU. Given the adverse economic conditions, an extension of the adjustment period 
is  warranted.  In  particular,  the  deadline  which  was  set  in  the  Council  Decision  for  the 
correction  of  the  excessive  deficit  in  Greece  needs  to  be  extended  by  2  years  to  2016.  The 
fiscal targets towards the correction of the excessive deficit should be defined on the basis of 
the  general  government  primary  balance  in  nominal  terms.  For  2012  the  primary  deficit 
should be EUR 2,925 million (1.5% of GDP), for 2013 the primary balance should be EUR 0 
(0%  of  GDP),  for  2014  EUR  2,775  million  (1.5%  of  GDP),  for  2015  EUR  5,700  million 
(3.0% of GDP) and for 2016 EUR 9,000 million (4.5% of GDP) 

Taking into account these developments, which reinforce the necessity for the government to 
deliver  an  ambitious  package  of  reforms,  the  policy  conditionality  in  the  Memorandum  of 

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Understanding  of  the  economic  adjustment  programme  of  Greece  needs  to  be  updated.  The 
conditionality  concerns  not  only  the  fiscal  consolidation  measures,  but  also  those  measures 
needed to enhance the growth-friendly nature and to minimise any negative social impact. 

Taking  into  account  agreed  initiatives  by  euro  area  Member  states  to  improve  the 
sustainability of debt and certain debt-reducing measures considered by Greece, as well as a 
narrowing  of  the  budget  deficit  and  stronger  nominal  GDP  growth  resulting  from  structural 
policy  measures,  the  debt-to-GDP  ratio  is  expected  to  peak  in  2013.  The  debt-to-GDP  ratio 
would start declining from 2014 onwards to reach under 160% of GDP in 2016. This should 
improve  the  sustainability  of  the  debt  trajectory,  without  altering  the  fiscal  path  for  the 
primary surplus. 

The Commission has adopted a Recommendation for a Council Decision amending decision 
2011/734/EU and has transmitted it to the Council. 

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Recommendation for a 

COUNCIL DECISION 

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 

THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  on  the  Functioning  of  the  European  Union,  and  in  particular 
Article 126(9) and Article 136 thereof, 

Having regard to the recommendation from the European Commission, 

Whereas: 

(1) 

(2) 

(3) 

(4) 

(5) 

(6) 

1 
2 
3 
4 
5 

Article  136(1)(a)  of  the  Treaty  on  the  Functioning  of  the  European  Union  (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. 

Article  126  of  the  TFEU  establishes  that  Member  States  are  to  avoid  excessive 
government  deficits  and  sets  out  the  excessive  deficit  procedure  to  that  effect.  The 
Stability  and  Growth  Pact,  which  in  its  corrective  arm  implements  the  excessive 
deficit  procedure,  provides  the  framework  supporting  government  policies  for  a 
prompt return to sound budgetary positions taking account of the economic situation. 

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. 
On  10  May  2010,  the  Council  adopted  Decision  2010/320/EU1  addressed  to  Greece 
under Article 126(9) and Article 136 TFEU with a view to reinforcing and deepening 
the  fiscal  surveillance  and  giving  notice  to  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  2014  as  the  deadline  for  correcting  the 
situation of excessive deficit, and annual targets for the government deficit. 

Council Decision 2010/320/EU was substantially amended several times. Since further 
amendments  were  to  be  made,  it  was  recast,  on  12  July  2011,  by  Council  Decision 
2011/734/EU2  in  the  interest  of  clarity.  This  decision  was  amended  a  first  time  on  8 
November 20113. 
On  13  March  20124,  following  a  recommendation  from  the  Commission,  Council 
Decision  2011/734/EU  was  again  amended  in  a  number  of  respects,  including  the 
fiscal adjustment path, while keeping unchanged the deadline for the correction of the 
excessive  deficit5.  The  decision  confirmed  the  recommendation  that  Greece  would 

OJ L 145, 11.6.2010, p. 6. 
OJ L 296, 15.11.2011, p. 38. 
Council Decision 2011/791/EU (OJ L 320, 3.12.2011, p. 28). 
The latest amendment being Council Decision 2012/211/EU of 13 March (OJ L 113, 25.4.2012, p. 8). 
Council Decision 2012/211/EU of 13 March (OJ L 113, 25.4.2012, p. 8). 

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(7) 

(8) 

(9) 

have to take measures to correct the situation of excessive deficit by 2014 at the latest, 
ensuring an improvement in the structural balance of at least 10 percentage points of 
GDP over the period 2009-14. 

According to Article 5(2) of Regulation (EC) No 1467/97, if effective action has been 
taken  in  compliance  with  Article  126(9)  TFEU  and  unexpected  adverse  economic 
events with major unfavourable consequences for government finances occur after the 
adoption  of  that  notice,  the  Council  may  decide,  on  a  recommendation  from  the 
Commission, to adopt a revised notice pursuant to Article 126(9) TFEU. 

Economic  activity  is  currently  projected  to  be  much  weaker  than  expected  when  the 
latest amendment to Council Decision 2011/734/EU was adopted in March 2012. Both 
real and nominal GDP are expected to be at much lower levels in 2012 and 2013. The 
recent  revision  of  the  Greek  national  accounts  in  October  2012  revealed  a  steeper 
contraction  of  real  GDP,  as  compared  to  the  underlying  figures  in  the  Council 
Decision. According to the Commission services' 2012 Autumn Forecast, real GDP is 
projected to contract in 2012 by 6.0% and by a further 4.2% in 2013 - against 4.7% 
and  a  growth  of  0.0%  in  the  Council  Decision,  for  2012  and  2013,  respectively  - 
before  growing  by  0.6%  in  2014.  This  marked  worsening  of  the  economic  scenario 
implies  a  corresponding  deterioration  of  the  outlook  for  public  finances  given 
unchanged policies.  

In  2012,  the  general  government  deficit  is  expected  to  have  reached  6.9%  of  GDP, 
well  within  the  7.3%  of  GDP  government  deficit  (ESA95  basis)  ceiling  for  2012 
established  by  the  Council  Decision.  In  nominal  terms  the  2012  general  government 
deficit is expected to have reached €13.4  billion compared with a €14.8 billion deficit 
ceiling prescribed in the Council Decision. The primary deficit however is expected to 
be slightly higher than the targeted 1.0% of GDP because of the deeper-than-expected 
recession.  Greece  is  estimated  to  have  improved  its  structural  deficit  by  13.9 
percentage points of GDP from a 14.7% deficit in 2009 to an estimated 1.5% deficit in 
2012. Greece has thus ensured an improvement in the structural balance in 2009-2012 
which is already larger than the at least 10 percentage points of GDP over the period 
2009-14 recommened by the Council. On 11 November 2012, the budget for 2013 was 
adopted by the Greek parliament, bringing savings of more than €9.2 billion, over 5% 
of  GDP.  The  2013  budget  forms  part  of  the  Medium-Term  Fiscal  Strategy  (MTFS) 
2013-2016  that  was  adopted  by  the  Greek  Parliament  a  few  days  earlier  on  7 
November 2012. The MTFS and the relevant legislation to implement it set out a very 
sizeable and front-loaded fiscal consolidation amounting to over 7% of GDP by 2016, 
with  a  comprehensive  set  of  structural  measures  underlying  a  substantial  fiscal 
consolidation. Taking into account these developments, the policy conditionality in the 
Memorandum  of  Understanding  of  the  economic  adjustment  programme  of  Greece 
needs  to  be  updated.  The  commitment  undertaken  by  Greece  concern  not  only  the 
fiscal consolidation measures, but also those measures needed to enhance the growth-
friendly nature and to minimise any negative social impact. Overall therefore Greece 
has  taken  effective  action  in  2012  to  reduce  its  deficit  in  compliance  with  Council 
decision 2011/734/EU.  

(10)  The  general  government  consolidated  debt  is  expected  to  have  declined  by  €11.1 

billion  in  2012  against  €  26.95  billion  set 
in  the  Council  Decision.  This  is  due  to 
lower-than-expected  privatisation  receipts,  a  lower-than-expected  consolidation  of 
interest 
government  debt  and  worse-than-expected  cash-accruals  and  other 
adjustments. Owing to a lower nominal GDP following the statistical data revision and 
in the light of worse macroeconomic prospects, the debt-to-GDP ratio is likely to rise 

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to  162.5%  in  2012.  Agreed  initiatives  by  euro  area  Member  states  to  improve  the 
sustainability of debt and certain debt-reducing measures considered by Greece should 
improve the sustainability of the debt trajectory, without altering the fiscal path for the 
primary  surplus.  Taking  also  into  account  a  narrowing  of  the  budget  deficit  and 
stronger nominal GDP growth resulting from structural policy measures, the debt-to-
GDP  ratio  is  expected  to  peak  in  2013.  The  debt-to-GDP  ratio  would  start  declining 
from 2014 onwards to reach below 160% of GDP in 2016.  

(11)  Despite  the  effective  action  undertaken,  the  marked  worsening  of  the  economic 
scenario implies a corresponding deterioration of the outlook for public finances given 
unchanged policies and makes it difficult to complete the correction of the excessive 
deficit  by  2014,  as  requested  by  the  Council  in  its  decision  2011/734/EU.  Given  the 
adverse  economic  events,  an  extension  of  the  deadline  for  the  adjustment  period  is 
warranted. In particular, the deadline that was set in the Council Decision needs to be 
extended  by  two  years  to  2016.  Under  a  revised  Economic  Adjustment  Programme 
path, the primary balance targets should be set at 0%, 1.5%, 3% and 4.5% of GDP for 
the four-year period 2013-2016. The revised path means that the general government 
budget  balance  will  fall  below  3%  of  GDP  in  2016.  Notwithstanding  the  extension, 
however, the fiscal effort needed to achieve the target remains very large in 2013-14, 
and  heavily  frontloaded.  This  revision  of  the  deadline  will  therefore  maintain  the 
credibility of the programme, while considering the economic and social impact of the 
consolidation and the need to maintain confidence on the capacity of the government 
to address the fiscal challenge.  

(12)  Each  measure  required  by  this  Decision  is  instrumental  in  achieving  the  required 
budgetary adjustment. Some measures have a direct impact on the budgetary situation 
of Greece while the others are structural measures that will result in improved fiscal 
governance and a sounder budgetary situation in the medium term. 

(13)  The very severe deterioration of the financial situation of the Greek Government has 
led euro area  Member States to decide to provide stability support to Greece, with a 
view to safeguarding the financial stability of the euro area as a whole, in conjunction 
with multilateral assistance provided by the International Monetary Fund. Since March 
2012,  support  provided  by  the  euro  area  Member  States  takes  the  form  of  both  a 
bilateral Greek Loan Facility and a loan from the EFSF. The lenders have decided that 
their  support  shall  be  conditional  on  Greece  respecting  Decision  2011/734/EU  as 
amended by this Decision. In particular, Greece is expected to carry out the measures 
specified in this Decision in accordance with the calendar set out herein, 

HAS ADOPTED THIS DECISION: 

Decision 2011/734/EU is hereby amended as follows: 

1. 

Article 1 is replaced by the following: 

Article 1 

'(1)  Greece shall put an end to the present excessive deficit situation as rapidly as 

possible and, at the latest, by the deadline of 2016. 

(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  2,925  million  (1.5%  of  GDP)  in  2012,  and 
general  government  primary  surpluses  of  at  least  EUR  0  million  (0.0%  of 
GDP) in 2013, EUR 2,775 million (1.5% of GDP) in 2014, EUR 5,700 million 

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(3.0% of GDP) in 2015 and EUR 9,000 million (4.5% of GDP) in 2016. These 
targets for the primary deficit/surplus imply an overall ESA-government deficit 
of 6.9% of GDP in 2012, 5.4% of GDP in 2013, 4.5% of GDP in 2014, 3.4% of 
GDP in 2015 and 2.0% of GDP in 2016. These numbers could be estimated to 
translate  into  an  improvement  in  the  cyclically-adjusted  primary  balance  to 
GDP  ratio  from  4.1%  in  2012  to  6.2%  in  2013  and  at  least  6.4%  of  GDP  in 
2014, 2015 and 2016 and into a cyclically-adjusted government deficit to GDP 
ratio at -1.3% in 2012, 0.7% in 2013, 0.4% in 2014, 0.0% in 2015 and -0.4% in 
the 
2016,  reflecting 
privatisation of financial and non-financial assets, transactions related to bank 
recapitalisation, as well as all transfers related to the Eurogroup decision of 21 
February  2012  in  regard  to  income  of  euro  zone  national  central  banks, 
including the Bank of Greece (BoG), 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. 

interest  payments.  Proceeds  from 

the  profile  of 

(3)  The  adjustment  path  referred  to  in  paragraph  2  would  be  consistent  with  a 
general government consolidated debt ratio to GDP of 172.5% in 2013, 171.4% 
in 2014, 166.2% in 2015 and 157.3% in 2016.  

2. 

In Article 2, the following paragraph is inserted after paragraph 10: 

'10a.  Greece shall have adopted the following measures without delay and at latest 
by [date of adoption of the decision]: 

(a) 

(b) 

(c) 

(d) 

(e) 

(f) 

(g) 

the  budget  for  2013  and  the  medium-term  fiscal  strategy  (hereinafter  MTFS) 
through  2016  as  well  as  the  measures  as  described  in  the  Annex  IA  to  this 
Decision  and  the  respective  implementing  legislation.  The  MTFS  shall 
elaborate on the permanent fiscal consolidation measures which ensure that the 
deficit ceilings for 2012-2016 as established by this Decision are not exceeded 
and that the debt-to-GDP ratio is put on a sustainable downward path; 

the  presentation  of  an  updated  Privatisation  Plan  to  Parliament  and  the 
publication of a semi-annual update of the Asset Development Plan; 

the transfer to the portfolio of privatisation assets of the HRADF of the full and 
direct  ownership  (shares  or  concession  rights)  of  Egnatia  Motorway  and  the 
regional ports of Elefsina, Lavrio, Igoumenitsa, Alexandropolis, Volos, Kavala, 
Corfu, Patras, Heraklion, and Rafina; 

ensuring  the  line  Ministries  and  other  relevant  entities  provide  the  General 
Secretariat for Public Property with full access to the inventory of all real estate 
assets owned by the State; 

the  amendment  and/or  the  repeal  of  statutory  provisions  of  state-owned 
enterprises  (PPC,  OLP  and  OLTH  port  authorities,  HELPE,  EYATH  and 
EYDAP,  ports,  etc.)  that  diverge  from  private  company  law  regarding  any 
restrictions on voting rights of private shareholders;  

legislation to define the role and qualifications of the Secretary General of the 
Tax  Administration  and  for  the  Minister  of  Finance  to  delegate  decision-
making powers to the Secretary General; 

the  deployment  of  experienced  tax  auditors  towards  activities  serving  the 
immediate  revenue  imperatives,  making  fully  operational  key  enforcement 
areas  as  the  large  taxpayer  unit  by  transferring  100  auditors,  establishing  one 

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(h) 

(i) 

(j) 

functional unit for high-wealth individuals and high-income self-employed and 
staffing  the  unit  with  50  experienced  tax  auditors  directly  accountable  to  the 
Secretary General of the Tax Administration; 

a Council of Ministers act (replacing the Council of Ministers act adopted on 
29 October 2012), aiming at strengthening the Budget execution and enhancing 
the  sound  fiscal  management,  and  including,  beyond  the  provisions  in  the 
original  Council  of  Ministers  act,  additional  provisions:  (i)  establishing  that 
Memoranda of Cooperation are signed by end-December of each year between 
the Ministry of Finance and the other Ministries or between the Ministries and 
managers  of  the  supervised  entities  (thus  covering  the  entire  General 
Government);  (ii)  strengthening  the  current  balanced  budget  constraints  for 
Local  Governments  in  order  to  be  more  effective,  including  corrective  and 
sanctioning mechanisms; (iii) strengthening the current monitoring system for 
state-owned  enterprises  (SOEs),  introducing  an  enforcement  mechanism  in 
case  of  deviations  from  the  specific  targets  identified  for  each  SOE;  and  (iv) 
setting  the  framework  for  defining  specific  targets  for  the  coverage  of 
operational  commitment  registers  for  Local  Governments  and  SOEs  to  be 
established  by  December  of  each  year;  it  shall  also  include  a  framework  for 
correcting transfers from central government to address deviations from targets 
within the year and possibly in the following years while ensuring that arrears 
are  not  increasing;  it  shall  make  explicit  that  the  proceeds  from  the 
privatisation of government assets are paid directly into a segregated account to 
monitor  cash  flows,  avoid  diversion  of  official  financing  and  secure  a  timely 
debt servicing; it shall set automatic cuts in expenditures to be applied as a rule 
when targets are missed, while ensuring that arrears are not increasing; 

a  set  of  measures  to  improve  the  current  financial  situation  of  the  National 
Organisation for Healthcare Provision (EOPYY) and ensure that the budgetary 
execution  is  closer  to  a  balanced  budget  in  2012  and  2013,  including:  (i) 
streamlining  the  benefit  package;  (ii)  increasing  cost-sharing  for  healthcare 
delivered  by  private  providers;  (iii)  negotiating  price-volume  agreements  and 
revising case-mix agreements with private providers; (iv) revising the fees for 
and number of diagnostic and physiotherapy services contracted by EOPYY to 
private  providers  with  the  aim  of  reducing  related  costs  by  at  least  EUR  80 
million in 2013; (v) introducing a reference price system for reimbursement of 
medical  devices;  and  (vi)  progressively  increasing  the  contributions  paid  by 
OGA members to the average of those paid by other members of EOPYY; 

the  following  measures  related  to  the  reimbursement  of  medicines:  (i)  a 
legislation  to  control  pharmaceuticals  spending  that  activates  contingency 
measures (including e.g. a cross-the-board cut in prices), if for any reason the 
claw-back  is  not  able  to  achieve  the  target.  Such  measures  shall  produce 
equivalent  amount  of  savings;  (ii)  a  ministerial  decree,  setting  the  new  claw-
back threshold for 2013 (EUR 2.4 billion for outpatients); (iii) the update of the 
price list and the positive list of reimbursed medicines notably by reimbursing 
only  the  cost  effective  packages  for  chronic  diseases,  by  moving  medicines 
from the positive to the negative and over-the-counter lists and by introducing 
the  reference  price  system  developed  by  the  National  Organisation  for 
Medicines (EOF). These lists must be updated at least twice a year in line with 
Council  Directive  89/105/EEC;  and  (iv)  The  substitution  of  prescribed 

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medicines  by  the  lowest–priced  product  of  the  same  active  substance  in  the 
reference category by pharmacies (compulsory "generic substitution").' 

3. 

In Article 2, paragraph 11 is replaced by the following:  

‘11.  Greece shall adopt the following measures by the end of December 2012: 

(a) 

a tax reform of the personal income tax and corporate income tax that aims at 
simplifying  the  tax  system,  broadening  the  tax  base  and  eliminating 
exemptions and preferential regimes; 

(b) 

the  necessary  primary  and  secondary 
implementation of the Privatisation Plan; 

legislation 

to  ensure 

the  swift 

(c) 

the establishment of a regulatory framework for water companies; 

(d)  measures 

to 

improve 

introducing  performance 
assessments, improving the use of risk assessment techniques, and establishing 
and reinforcing specialist debt management units; 

tax  administration, 

the 

(e) 

(f) 

(g) 

(h) 

(i) 

the  preparation and  publication  of a plan for the clearance of arrears owed to 
suppliers by public entities and of tax refunds; 

the  finalisation  of  the  implementation  of  the  reform  of  the  functioning  of 
secondary/supplementary  public  pension  funds  and  the  unification  of  all 
existing funds in the public sector domain;  

a  legislation  to  extend  the  application  of  the  5%  rebate  on  pharmaceutical 
companies (which exists for hospital-priced medicines) to all products sold in 
EOPYY pharmacies; 

an  increase  of  the  share  of  the  generic  medicines  to  reach  35  percent  of  the 
overall volume of medicines sold by pharmacies; 

the  assignment  of  internal  controllers  to  all  hospitals  and  the  adoption  by  all 
hospitals of commitment registers.'  

4. 

In Article 2, the following paragraphs are added: 

‘12.  Greece shall adopt the following measures by the end of March 2013: 

(a) 

issue a Ministerial Decree for the adjustment of end-user prices for low-voltage 
customers; 

(b)  update  of  MTFS,  including  setting  binding  3-years  expenditure  ceilings  for 

(c) 

(d) 

government subsectors; 

adopt Staffing plans for line Ministries; 

establish  a  significantly  more  autonomous  tax  administration  and  specify  the 
degree  of  autonomy,  governance  framework,  accountability,  legal  powers  of 
the head of the tax administration and the initial staffing of the organization; 

(e) 

issue  and  make  public  a  new  fully-fledged  anti-corruption  plan  for  civil 
service, including special provisions for the tax and customs administration. 

(f)  make fully operational a standard procedure for revision of legal values of real 
estate  to  better  align  them  with  market  prices  under  the  responsibility  of  the 
Directorate of Capital Taxation; 

(g) 

transfer forty new real estate assets (identified as "real estate assets lots 2 and 
3" in the Privatisation Plan) to the HRADF.' 

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'13.  Greece shall adopt the following measures by the end of June 2013: 

(a) 

achieve the target of 2 000 tax auditors fully operational; 

(b) 

adopt a new tax procedures code; 

(c) 

ensure  all  central  purchasing  bodies  use  e-procurement  for  all  their  tendering 
procedures.' 

'14.  Greece shall adopt the following measures by the end of September 2013: 

(a) 

the government will adopt the necessary legislation with a view to introducing 
a structural budget balance rule with an automatic correction mechanism.' 

5. 

The annex to this decision is added as annex IA to Decision 2011/734/EU. 

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

Article 2 

This Decision is addressed to the Hellenic Republic. 

Done at Brussels,  

Article 3 

For the Council 
The President 

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Annex: 

'Annex IA: 

Medium-Term Fiscal Strategy 2013-16 measures 

The  additional  measures  included  in  the  medium-term  fiscal  strategy  (MTFS)  through  2016 
are the following: 

1. 

2. 

3. 

4. 

5. 

6. 

7. 

8. 

9. 

10. 

11. 

Rationalisations in wage bill by at least EUR 1,100 million in 2013, and additional 
EUR 247 million from 2014 onwards.  

Savings in pensions by at least EUR 4 800 million in 2013, and additional EUR 423 
million from 2014 onwards. 

Cuts  in  the  state's  operational  expenditures  by  at  least  EUR  239  million  in  2013 
and additional EUR 285 million from 2014 onwards. 

Savings  from  rationalisation  and  efficiency  improvements  in  education-related 
expenses by at least EUR 86 million in 2013, and additional EUR 37 million from 
2014 onwards.  

Savings  in  state-owned  enterprises  by  at  least  EUR  249  million  in  2013  and 
additional EUR 123 million from 2014 onwards. 

Cuts in operational defense-related expenditure producing savings by at least EUR 
303 million in 2013, additional EUR 100 million from 2014. 

Savings  in  healthcare  and  pharmaceutical  expenditure  by  at  least  EUR  455 
million in 2013, and additional EUR 620 million from 2014 onwards. 

Savings from rationalisation of social benefits by at least EUR 217 million in 2013, 
additional EUR 78 million from 2014 onwards. 

Cuts in state transfers to local governments by at least EUR 50 million in 2013 and 
additional EUR 160 million from 2014 onwards.  

Cuts  in  expenditure  by  the  public  investment  budget  (domestically-financed 
public  investment)  by  EUR  150  million  in  2013  and  additional  150  million  from 
2014 onwards. 

Increases in revenue by at least EUR 1 668 million in 2013 and additional EUR 1 
820 million from 2014 onwards. 

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