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01 March 2012

FT: Greek parliament backs healthcare cuts


The Greek parliament has approved a package of healthcare cuts, completing legislation demanded by international lenders in return for a second €130 billion bailout only hours ahead of a key meeting of eurozone finance ministers.

Lawmakers backed the cuts by 213 votes to 58, with another 12 deputies abstaining. The vote came one day after the governing coalition, backed by the conservative and socialist parties, pushed through a fresh round of wage and pension cuts by a similar two-thirds majority.

A government official said the two packages covered the bulk of the fiscal and structural reforms which were due to pass by the end of February, but that some administrative measures remained to be completed “in the next few days”. The €3.3 billion package of spending cuts and structural measures is aimed at cutting the deficit this year by around 1.8 percentage points of national output, reducing the primary deficit below one per cent of output.

Healthcare reforms would cut spending by around €1 billion, partly by replacing expensive branded drugs with cheaper generic versions. Doctors at state hospitals staged a 24-hour strike on Wednesday in protest against changes in procurement and measures to streamline hospital management.

Full article (FT subscription required)



© Financial Times


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