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Over the coming days drastic measures will be announced for the Greek public sector, with "cuts" of ministries, organizations, departments, autonomous bodies and all public structures in general, which will in some cases exceeds 60%, and furthermore a second "tsunami" wave in the labor reserve is also expected, which will drag 50% of ministry staff.

The first to be laid off are part of the 300,000 employees in the narrow public on low administrative positions, with secondary education or approaching retirement age. At the same time structures, powers and costs are dramatically reduced, and much of the public sector is assigned to the private one. In the beginning private companies will take over the supporting structures of the ministries.

After cutting the debt the government decided to proceed with unprecedented and profound structural changes in the public sector, as required in the special report of the Organization for Economic Cooperation and Development (OECD), handed to the Prime Minister George Papandreou and the responsible Minister Dimitris Repas on 21^st of October. The final text of the report highlights the urgent need for changes because, as everyone points out the fiscal problem is inextricably related to the struggling public sector.

"If this does not change none of the measures related to fiscal policy will have any effect" clearly state experts from OECD. The lack of reforms in public administration, which led to complete blocking of the investments, places Greece lower and lower in the rankings of the World Bank Doing business, which measures the competitiveness of economies in the world. The country occupies 141^st place out of 180 countries participating in the rankings.

Greek state in figures:

• 15 ministries
• 75 primary and special secretariats
• 4000 Division (50% have 0-3 employees)
• 20,000 authorities
• 23,000 entities
• 700,000 civil servants who work in them

1. Cutting 60% of the structures
   
   The structures of the state will be reduced to 60%. The current rate - 30% becomes at this stage the starting point. Dozens of offices, directorates, departments and organizations are removed, merge, and disappear from the map, while eliminating duplication and harmonizing all executive functions.

   Institutions and organizations, which "hold out" will be required to implement specific program to simplify procedures and reduce the bureaucratic ones, so as to reduce the "labyrinth" in the country with 25% in 2012. The value of Greek bureaucracy is estimated at 6.7% of the GDP, while in the other EU countries this figure is 3%.

   2. The staff cut in half
   
   The entire structure of the supporting state structures is removed and passed into the hands of private companies (records, payment of salaries, supplies, technical assistance, tracking mechanism of the services). 50% of the employees in these support structures will be cut. Administrative staff dealing with payment of salaries, keeping records, handing summonses, computer technicians, suppliers, hygienists and others will lose their jobs.

   3. Conditions for the money

   From now on every state service, which relies on state money will have to give an accurate report about how it spends its money. There’s no more money to waste and the services that do not give a precise statement of expenditure, will be closed.

   Costs will be related to the objectives and a very strict control network will be established. Nobody will be able to take government money, unless they can prove exactly where they will spend their budget and what will be the results of its costs. The creation of program budgets becomes therefore compulsory for each ministry and service.Soon there will be no cost which the central government does not know where it went.

   State agencies and organizations that fail to submit such a plan of action and use of the money, will initially lose money and personnel, and will subsequently be closed permanently.

   The report of the Organization for Economic Cooperation and Development considers to be almost certain that this change will lead to the closure of thousands of government agencies, which currently have no reason to even exist.

   Mechanism for cost control and goals will be directly related to the system for measuring of the effectiveness. Across the public sector is a system of appraisal.

   4. Cutting authorities

   The powers of the state are cut in at a rate, which will exceed 50%. Greek public sector has more than 23,000 authorities! This fragmentation and overlapping of powers is described in the report as "an unprecedented situation." Moreover, they are considered to be one of the reasons that put off investors from Greece.

   Cutting them is associated with the removal of structures, redundancy and cash saving.

   What did the experts see

   Wasteful government, inexperienced entities, dozens of independent bodies, overregulation, abundance of structures, widespread lack of government coordination and great bureaucracy, which is the main factor that deters each investment are the key conclusions in the report of the experts regarding the government maze in Greece.

   "The problems are as serious as the debt of the country and threaten the state with disintegration." This is noted by the group of experts of OECD, finishing its tour in the ministry.

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