For Many Greeks, Here's What Austerity Will Look Like

Jeff Cox CNBC June 29, 2011

Skip navigation #headerOverlay{ color: #ccd6df; font-size:11px; line-height:130%; } #headerOverlay strong{ color: #ffd226; } #headerOverlay a {color:#ccd6df;text-decoration:none;} #headerOverlay a:hover {color:#ffd226;} #headerOverlay a:visited {color:#ccd6df;} #headerOverlay a:visited:hover {color:#ffd226;} Symbol Lookup onloadAutoSuggest(); var pgValue = "CNBSEB"; var cmsKeyWord = "alternative investing"; var cmsNewPG = "CNBWAB"; if ((cmsKeyWord.length > 0) && (cmsNewPG.length > 0)) { var newPG = cmsNewPG.split(';'); var group = cmsKeyWord.split(';'); if (newPG.length == group.length) { var description = cnbc_pagedesc.toLowerCase(); for(var x = 0; x < group.length; x++) { var keyWord = group[x].split('|'); for (var j = 0; j < keyWord.length; j++) { if (description.indexOf(keyWord[j].toLowerCase()) != -1) { pgValue = newPG[x]; j = keyWord.length; x = group.length; }}}}} if (cnbc_DARTFlag=="new") { cnbc_DARTAdCall(88,31,pgValue); } else { dapMgr.enableACB("SearchBox88x31",false); dapMgr.renderAd("SearchBox88x31","&PG=" + pgValue + "&AP=1071&PN=CNBC",88,31); } cnbc_displayUsername("cnbc_usertime","cnbc_username");RegisterSign InMember CenterSign OutRegistercnbc_toggleUserState();HOMENEWSMARKETSEARNINGSINVESTINGVIDEOCNBC TVCNBC 360CNBC PROU.S.Asia-PacificEuropeEconomyEnergyGreenTechnologyBlogsWiresSlideshowsSpecial ReportsCorrections if (cnbc_DARTFlag=="new") { cnbc_DARTAdCall(728,90,"CNBGE7"); } else { dapMgr.enableACB("USNewsBlogs728",false); dapMgr.renderAd("USNewsBlogs728","&PG=CNBGE7&AP=1390&PN=CNBC",728,90); } NetSometimes the Shark Jumps You var cnbcSubHeaderId = document.getElementById('subheader_'+ 38911124); cnbcSubHeaderId.innerHTML = document.getElementById('renderReaderContent').innerHTML; Email: document.write("");document.write("NetNet"+"@"+"cnbc.com");document.write('');Call: 201-735-iNet (4638)Text Message: Text NETNET followed by your tip to 26221. if (cnbc_DARTFlag=="new") { cnbc_DARTAdCall(300,900,"CNBGE3"); } else { dapMgr.enableACB("USNewsBlogs300x250",false); dapMgr.renderAd("USNewsBlogs300x250","&PG=CNBGE3&AP=&PN=CNBC",300,900); } Current DateTime: 11:48:58 29 Jun 2011LinksList Documentid: 38910464Expiration DateTime: 6/29/2011 11:51:44 AM cnbc_commentCountMapObj.cnbc_commentCountMap_put("", "38910464_1","cnbcCommentsTxt" ); Why Barack Obama's Hedge Fund Tax Hike Won't Work cnbc_commentCountMapObj.cnbc_commentCountMap_put("43580626", "38910464_1","cnbcCommentsTxt" ); cnbc_commentCountMapObj.cnbc_commentCountMap_put("43580626", "38910464_1","cnbcCommentsTxt" ); Would Better Capital Requirements Have Prevented the Financial Crisis? cnbc_commentCountMapObj.cnbc_commentCountMap_put("43579396", "38910464_2","cnbcCommentsTxt" ); cnbc_commentCountMapObj.cnbc_commentCountMap_put("43579396", "38910464_2","cnbcCommentsTxt" ); Former Fed Economist: Financially the US Government May Actually Be in Worse Shape Than Greece cnbc_commentCountMapObj.cnbc_commentCountMap_put("43576347", "38910464_3","cnbcCommentsTxt" ); cnbc_commentCountMapObj.cnbc_commentCountMap_put("43576347", "38910464_3","cnbcCommentsTxt" ); Will The Greeks Revolt Against Austerity? cnbc_commentCountMapObj.cnbc_commentCountMap_put("43577529", "38910464_4","cnbcCommentsTxt" ); cnbc_commentCountMapObj.cnbc_commentCountMap_put("43577529", "38910464_4","cnbcCommentsTxt" ); For Many Greeks, Here's What Austerity Will Look Like cnbc_commentCountMapObj.cnbc_commentCountMap_put("43577308", "38910464_5","cnbcCommentsTxt" ); cnbc_commentCountMapObj.cnbc_commentCountMap_put("43577308", "38910464_5","cnbcCommentsTxt" ); Former Lehman Brothers Chief Arrested for Forging A Prescription for Oxycoton and Ritalin cnbc_commentCountMapObj.cnbc_commentCountMap_put("43576431", "38910464_6","cnbcCommentsTxt" ); cnbc_commentCountMapObj.cnbc_commentCountMap_put("43576431", "38910464_6","cnbcCommentsTxt" ); Bank of America: Talking Tough, Then Settling cnbc_commentCountMapObj.cnbc_commentCountMap_put("43576346", "38910464_7","cnbcCommentsTxt" ); cnbc_commentCountMapObj.cnbc_commentCountMap_put("43576346", "38910464_7","cnbcCommentsTxt" ); 'Little Cayman Island on the Great Plains' cnbc_commentCountMapObj.cnbc_commentCountMap_put("43574808", "38910464_8","cnbcCommentsTxt" ); cnbc_commentCountMapObj.cnbc_commentCountMap_put("43574808", "38910464_8","cnbcCommentsTxt" ); Goldman's Feminine Side cnbc_commentCountMapObj.cnbc_commentCountMap_put("43567962", "38910464_9","cnbcCommentsTxt" ); cnbc_commentCountMapObj.cnbc_commentCountMap_put("43567962", "38910464_9","cnbcCommentsTxt" ); Kleptocracy, Venture Capital and Your Verizon Wireless Contract cnbc_commentCountMapObj.cnbc_commentCountMap_put("43568138", "38910464_10","cnbcCommentsTxt" ); cnbc_commentCountMapObj.cnbc_commentCountMap_put("43568138", "38910464_10","cnbcCommentsTxt" ); NetNet Discovers an Implicit Racial Prejudice cnbc_commentCountMapObj.cnbc_commentCountMap_put("43565622", "38910464_11","cnbcCommentsTxt" ); cnbc_commentCountMapObj.cnbc_commentCountMap_put("43565622", "38910464_11","cnbcCommentsTxt" ); Why France's Rescue Plan for Greece Won't Work Either cnbc_commentCountMapObj.cnbc_commentCountMap_put("43564919", "38910464_12","cnbcCommentsTxt" ); cnbc_commentCountMapObj.cnbc_commentCountMap_put("43564919", "38910464_12","cnbcCommentsTxt" ); Email of the Week: A Revolution in Greece Is Possible cnbc_commentCountMapObj.cnbc_commentCountMap_put("43563992", "38910464_13","cnbcCommentsTxt" ); cnbc_commentCountMapObj.cnbc_commentCountMap_put("43563992", "38910464_13","cnbcCommentsTxt" ); Go to the Mall Or Goodwill Hunting? cnbc_commentCountMapObj.cnbc_commentCountMap_put("43563986", "38910464_14","cnbcCommentsTxt" ); cnbc_commentCountMapObj.cnbc_commentCountMap_put("43563986", "38910464_14","cnbcCommentsTxt" ); Constitutional Scholar: Treasury Can Pick and Choose What Bills to Pay If We Crash Into Debt Ceiling cnbc_commentCountMapObj.cnbc_commentCountMap_put("43563985", "38910464_15","cnbcCommentsTxt" ); cnbc_commentCountMapObj.cnbc_commentCountMap_put("43563985", "38910464_15","cnbcCommentsTxt" ); New Mega-Bank Capital Requirements Could Create Systemic Risk cnbc_commentCountMapObj.cnbc_commentCountMap_put("43561597", "38910464_16","cnbcCommentsTxt" ); cnbc_commentCountMapObj.cnbc_commentCountMap_put("43561597", "38910464_16","cnbcCommentsTxt" ); cnbc_commentCountMapObj.cnbc_commentCountMap_put("", "38910464_1","cnbcCommentsTxt" ); Current DateTime: 07:55:37 29 Jun 2011LinksList Documentid: 39085620FacebookTwitterRSSCurrent DateTime: 07:55:37 29 Jun 2011LinksList Documentid: 38852222John Carney

Runs this joint.

Cadie Thompson

Really, really runs this joint.

Kate Kelly

Reports on the major Wall Street firms, trading, and regulation.

Jeff Cox

A staff writer with CNBC.com, covering the gamut of issues affecting the stock market and the economy.

Lori Spechler

A Senior Editor at CNBC, commodity trader in a former life.

Lori Ann LaRocco

A Senior Talent Producer at CNBC.

Nicole Lapin

Runs the graveyard.

Current DateTime: 11:48:46 29 Jun 2011LinksList Documentid: 38910635Expiration DateTime: 6/29/2011 11:51:35 AM cnbc_commentCountMapObj.cnbc_commentCountMap_put("", "38910635_1","cnbcCommentsTxt" ); Obama: Eliminate Tax Breaks For Rich, But Not Middle Class cnbc_commentCountMapObj.cnbc_commentCountMap_put("43577532", "38910635_1","cnbcCommentsTxt" ); cnbc_commentCountMapObj.cnbc_commentCountMap_put("43577532", "38910635_1","cnbcCommentsTxt" ); For Many Greeks, Here's What Austerity Will Look Like cnbc_commentCountMapObj.cnbc_commentCountMap_put("43577308", "38910635_2","cnbcCommentsTxt" ); cnbc_commentCountMapObj.cnbc_commentCountMap_put("43577308", "38910635_2","cnbcCommentsTxt" ); Why Barack Obama's Hedge Fund Tax Hike Won't Work cnbc_commentCountMapObj.cnbc_commentCountMap_put("43580626", "38910635_3","cnbcCommentsTxt" ); cnbc_commentCountMapObj.cnbc_commentCountMap_put("43580626", "38910635_3","cnbcCommentsTxt" ); What Happens in Greece Now? A Quick Guide cnbc_commentCountMapObj.cnbc_commentCountMap_put("43576577", "38910635_4","cnbcCommentsTxt" ); cnbc_commentCountMapObj.cnbc_commentCountMap_put("43576577", "38910635_4","cnbcCommentsTxt" ); Obama Healthcare Law Backed by US Appeals Court cnbc_commentCountMapObj.cnbc_commentCountMap_put("43580214", "38910635_5","cnbcCommentsTxt" ); cnbc_commentCountMapObj.cnbc_commentCountMap_put("43580214", "38910635_5","cnbcCommentsTxt" ); Apple May Offer Older iPhone for Free in Fall: RBC cnbc_commentCountMapObj.cnbc_commentCountMap_put("43578057", "38910635_6","cnbcCommentsTxt" ); cnbc_commentCountMapObj.cnbc_commentCountMap_put("43578057", "38910635_6","cnbcCommentsTxt" ); What Would Happen If Greece Defaulted cnbc_commentCountMapObj.cnbc_commentCountMap_put("43425042", "38910635_7","cnbcCommentsTxt" ); cnbc_commentCountMapObj.cnbc_commentCountMap_put("43425042", "38910635_7","cnbcCommentsTxt" ); Slideshow: America's Healthiest Housing Markets cnbc_commentCountMapObj.cnbc_commentCountMap_put("42557873", "38910635_8","cnbcCommentsTxt" ); cnbc_commentCountMapObj.cnbc_commentCountMap_put("42557873", "38910635_8","cnbcCommentsTxt" ); Billionaire at the Center of Natural Gas Bidding War cnbc_commentCountMapObj.cnbc_commentCountMap_put("43576853", "38910635_9","cnbcCommentsTxt" ); cnbc_commentCountMapObj.cnbc_commentCountMap_put("43576853", "38910635_9","cnbcCommentsTxt" ); What Country Is the Safest Place to Invest Your Money? cnbc_commentCountMapObj.cnbc_commentCountMap_put("43563754", "38910635_10","cnbcCommentsTxt" ); cnbc_commentCountMapObj.cnbc_commentCountMap_put("43563754", "38910635_10","cnbcCommentsTxt" ); cnbc_commentCountMapObj.cnbc_commentCountMap_put("", "38910635_1","cnbcCommentsTxt" ); » HelpCurrent DateTime: 07:55:37 29 Jun 2011LinksList Documentid: 38851925Subscribe to this RSS feed

Stay up to date with NetNet.

setDefault('cnbc_textbody');For Many Greeks, Here's What Austerity Will Look LikePublished: Wednesday, 29 Jun 2011 | 10:53 AM ET Text Size By: Jeff CoxCNBC.com Staff Writer window.fbAsyncInit = function() { FB.init({appId: 'your app id', status: true, cookie: true, xfbml: true}); }; (function() { var e = document.createElement('script'); e.async = true; e.src = document.location.protocol + '//connect.facebook.net/en_US/all.js'; document.getElementById('fb-root').appendChild(e); }()); var sUrl = window.location; var str = '' $(".fbButton").html(str); //alert("1 :::: " + jQuery("#ssShare").length); Twitter cnbc_createTwitterURL();LinkedIn addthis_pub = 'cnbccomrssfeeds'; addthis_hide_embed=false; addthis_options = 'linkedin, digg, delicious, google,facebook,more'; More Share

Aris Messinis | AFP | Getty ImagesRiot policemen arrest a demonstrator as they clash with protesters during a 48-hour general strike in Athens.If you think you've got it tough living in America, just be glad you're not going to be in Greece as that nation begins to confront the true reality of austerity.

With the Greek Parliament's approval Wednesday of measures designed to bring the country's disastrous finances under control comes an array of measures that would make Zeus weep.

From a 15 percent cut in public wages to cigarette and alcohol taxes to Social Security reductions and means testing, the Greek measures will instill pain, necessary though it may be, for years to come.

It's all being done for the sake of helping the country meet its 340 billion-euro debt burden.

Even with the stringent measures, Greece still will be in a heap of trouble, especially considering how much growth could be hampered by tax increases and sharp spending cuts.

"If prevailing is to be considered a success, then the Greek Parliament will prevail and will send tax receipts through the floor rather than skyward, and will prevail in spinning an already dizzy national spirit into a national spirit of economic despair," Dennis Gartman, hedge fund manager and author of The Gartman Letter, wrote this morning.

"If that is prevailing," he added, "we'd want no part of it."

Gartman details the 30 or so measures taken in taxation and cuts in the public sector, defense and benefits, along with a slew of privatization measures, the government will be taking.

Here are 10 of the most onerous:

Taxes will increase by 2.32 billion euros this year and 3.38 billion, 152 million and 699 million in the three subsequent years. There will be higher property taxes and an increase in the value-added tax (VAT) from 19 percent to 23 percent. Luxury levies will be introduced on yachts, pools and cars and there wi