Labour and Insurance Ministry will make every endeavour to save €7b by 2015, as it will carry the heaviest burden of the mid-term purification program. Although the figures are in dispute, the ministry seeks to cut costs by at least €4b and increase revenue by €3b. According to Minister Louka Katseli, the goals can be achieved through five sets of policies with no unpleasant surprises in central governing level ruled out, according to sources.
The first objective is to fight uninsured labour and the improvement of collectability in revenues. According to Louka Katseli, uninsured labour is at 26%, the highest in OECD countries, which have an average of 6%. The ministry aims to reduce it to 12% in the next four years.
However, figures from the “legal” labour are not very optimistic. According to official data for the January-February 2011 period, IKA, the largest social security organization in Greece, recorded a decrease of 13% in revenues compared the corresponding period of 2010. Moreover, OAEE insurance organization has raised decreased by 1.62% contributions for the two-month period.
The improvement of the monitoring mechanism and the grant of privileges will help the ministry to improve revenues. This includes the new debt settlement, the implementation of labour card and the upgrading of Federation of Hellenic ICT Enterprises. Labour Minister estimates an amount of about €2.4b to be raised by 2015.
Another key point would be the improvement of the performance of the insurance funds’ assets. On the expenditure side, the cutting of pharmaceutical expenditure has already reported significant results, as prices have dropped by 20% since last September, while the electronic prescription in all insurance funds is expected to contribute in this area.
Although Finance Ministry sources note that savings of €2.5b are expected through the rationalization of allowance policy, Labour Ministry officials comment that the reduction does not apply to changes in benefits for those who need them.
The first objective is to fight uninsured labour and the improvement of collectability in revenues. According to Louka Katseli, uninsured labour is at 26%, the highest in OECD countries, which have an average of 6%. The ministry aims to reduce it to 12% in the next four years.
However, figures from the “legal” labour are not very optimistic. According to official data for the January-February 2011 period, IKA, the largest social security organization in Greece, recorded a decrease of 13% in revenues compared the corresponding period of 2010. Moreover, OAEE insurance organization has raised decreased by 1.62% contributions for the two-month period.
The improvement of the monitoring mechanism and the grant of privileges will help the ministry to improve revenues. This includes the new debt settlement, the implementation of labour card and the upgrading of Federation of Hellenic ICT Enterprises. Labour Minister estimates an amount of about €2.4b to be raised by 2015.
Another key point would be the improvement of the performance of the insurance funds’ assets. On the expenditure side, the cutting of pharmaceutical expenditure has already reported significant results, as prices have dropped by 20% since last September, while the electronic prescription in all insurance funds is expected to contribute in this area.
Although Finance Ministry sources note that savings of €2.5b are expected through the rationalization of allowance policy, Labour Ministry officials comment that the reduction does not apply to changes in benefits for those who need them.
source: CAPITAL
