Poroshenko Wants Drastic Cuts for Pensioners, the Sick and Children

They're going to privatize the entire country

Thu, Dec 11, 2014
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Saving Ukraine, one frozen pension at a time...

This article originally appeared at German Economic NewsTranslation by Google Translate


The first budget of the new government in Ukraine provides dramatic cuts in the social system. The country is likely to face a massive wave of privatization.

Ukraine wants to avoid at all costs the state bankruptcy. The public money will only last for a few weeks. The IMF sees a hole of 15 billion dollars, which is to be filled in the short term. The EU wants to invest in additional new money, but even the extent of the financial -Bedarfs surpised.

The government of Prime Minister Arseniy "Jaz" Yatsenyuk has now submitted its initial budget. The document was leaked ( here the Ukrainian version ). Whether it is genuine, should be assessed not doubt. But Yatsenyuk had prepared the country for major changes several days ago. The news agency Ukrinform reports that the Economic Committee of the Parliament of Rada has recommended to adopt the program.

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The program is actually a bankruptcy declaration in which the Ukrainian state in fact the social contract aufkündigt as Simon Black of Sovereign Man Blog says. As actions are primarily affect those who need the state the most: pensioners, patients and children.

Specifically, the program seeks to:

The training period will be shortened from 11 to 9 years old. Education is no longer funded by the State but is to be privatized.

There is no free lunch for more children in schools and for patients in hospitals. The health sector is to be partially privatized.

Benefits for pensioners will be deleted. Women are supposed to work 10 years longer, men 5 years. All pensions are to be frozen. This is especially hard, as Ukraine can expect the catastrophic economic situation with high inflation.

In the public sector there is to be massive cuts: judges, prosecutors and the police need with significant job cuts expected.

The Parliament is to be reduced from 450 members to 150 members.

At the same time the tax system should be simplified. Small and medium enterprises will be exempt for two years completely by taxes. If this measure is not feasible, the government wants to introduce a flat tax with which these operations are to be relieved.

The thrust of the new economic strategy is clear: the most important parts of the state functions are to be privatized. The new Minister of Finance of Ukraine, Natalia Jaresko, a US investment banker, had pointed out several months ago to the many favorable opportunities, now in Ukraine to invest in. The Economic Development and Trade Minister comes from investment banking.


 

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