Fight disinformation: Sign up for the free Mother Jones Daily newsletter and follow the news that matters.

The New York Times reports on the latest draft budget from Greece:

The draft budget spells out about $10 billion in spending cuts and savings for 2013. About one-quarter of that would come through reductions in civil servants’ salaries and social welfare benefits, and about 15 percent through cuts in spending on health, defense and local authorities, the government said.

….The draft budget is expected to be revised significantly because it must be approved by the country’s troika of foreign lenders — the European Commission, the European Central Bank and the International Monetary Fund — before it can be submitted for a parliamentary vote. The troika is insisting on further cuts in the public sector — including laying off public servants, a political third rail in Greece and other European countries — while the coalition government has been pushing back.

….The negotiations are taking place against a backdrop of unrelenting, depression-level conditions in the Greek economy, which the draft budget predicted would contract by 6.5 percent this year and by 3.8 percent in 2013 — far more than the troika’s earlier estimates and about 25 percent below its peak before the crisis struck. The budget says unemployment is expected to rise to 24.7 percent from 23.5 percent this year.

Just for perspective, this is about a 10% cut in total government spending. The U.S. equivalent would be a cut of about $350 billion in federal spending and another $200-300 billion in state and local spending. All against the backdrop of an economic catastrophe that rivals the Great Depression in scope and will be made even worse by the proposed spending cuts.

If you happen to be wondering why Greeks are rioting in the streets, this is why. You might be too if this were happening to your economy.

MOTHER JONES NEEDS YOUR HELP

We have about a $200,000 funding gap and less than a week to go in our hugely important First $500,000 fundraising campaign. We urgently need your help, and a lot of help, this week so we can pay for the one-of-a-kind journalism you get from us.

Learn more in “Less Dreading, More Doing,” where we lay out this wild moment and how we can keep charging hard for you. And please help if you can: $5, $50, or $500—every gift from every person truly matters right now.

payment methods

MOTHER JONES NEEDS YOUR HELP

We have about a $200,000 funding gap and less than a week to go in our hugely important First $500,000 fundraising campaign. We urgently need your help, and a lot of help, this week so we can pay for the one-of-a-kind journalism you get from us.

Learn more in “Less Dreading, More Doing,” where we lay out this wild moment and how we can keep charging hard for you. And please help if you can: $5, $50, or $500—every gift from every person truly matters right now.

payment methods

We Recommend

Latest

Sign up for our free newsletter

Subscribe to the Mother Jones Daily to have our top stories delivered directly to your inbox.

Get our award-winning magazine

Save big on a full year of investigations, ideas, and insights.

Subscribe

Support our journalism

Help Mother Jones' reporters dig deep with a tax-deductible donation.

Donate