Council decision 2010/320/EU of 10th May -- or what Greece agreed to do to get bailed out...

In May the EU Council agreed to provide the much-needed bail-out, thereby offering a solution to the matter of Greece's sovereign debt problem.

This decision comes with some duties on either side: one side promises to provide bail-out money (EU partners & IMF) while the other vows to implement certain deficit-curtailing measures.

Salient bits of this decision are reproduced below.

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

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 2014. Article2 1.Greece shall adopt the following measures before the end of June 2010: a) a law introducing a progressive tax scale for all sources of income and a horizontally unified treatment of income generated by labour and capital assets; b) a law repealing all exemptions and autonomous taxation provisions in the tax system, including income from special allowances paid to civil servants; c) the cancellation of the budgetary appropriations in thecontingency reserve, with the aim of saving EUR 700 million; d) the abolition of most of the budgetary appropriation for the solidarity allowance (except a part for poverty relief)with the aim of saving EUR 400 million; e) a reduction of the highest pensions with the aim of saving EUR 500 million fora full year (EUR 350 million for 2010); f) a reduction of the Easter, summer and Christmas bonuses and allowances paid to civil servants with the aim of saving EUR 1 500 million for a full year (EUR 1 100 million in 2010); g) the abolition of the Easter, summer and Christmas bonuses paid to pensioners, though protecting those receiving low pensions, with the aim of saving EUR 1 900 million for a full year (EUR 1 500 million in 2010); h) an increase in the VAT rate, with a yield of at least EUR 1 800 million for a full year (EUR 800 million in 2010) That's it for now, folks. Unfortunately there's more to the above.