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I note that in a second instance the IMF states that:

Since wages and social benefits constitute 75 percent of total government expenditure, this means that the public wage and pension bills have to be reduced

Was this there all along? Anyway this again is not true literally, if the Eurostat numbers are anything to go by. It turns out that wages+pensions and +social services are around 72,2% of non-interest expenditure, compared with 71.5 approximately for the Eurozone as a whole and 75.5% in Germany. If this is said to explain why the cuts are inevitably on wages, pensions and services, then it ignores that 40% of public employees have temporary contracts and not renewing these contracts (or a large part of them) would also have the desired effect (I'm not even getting into the hospitals mess, an area where the relevant budget could be slashed in half and services improved if one had a plan). Not to mention of course that raising revenue could do the trick nicely as well. As we have seen above.

This literally false and certainly misleading statement is also mentioned by D. Strauss-Kahn himself in an interview of his posted in the IMF's site.

The road of excess leads to the palace of wisdom - William Blake

by talos (mihalis at gmail dot com) on Wed May 26th, 2010 at 12:20:17 PM EST

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