Greece's Finance Minister Giorgos Papaconstantinou outlined the final agreement and the additional austerity measures agreed following the tough, as he called them, negotiations with the IMF and European experts.

The measures, whose results are to be assessed every three months, aim to reduce the budget deficit to below 3 percent of gross domestic product by 2014, from the current 13.6 percent of GDP, Giorgos Papaconstantinou said.

The Finance Minister announced deep spending cuts for civil servants and tax increases. He then made it clear that the new austerity measures will also be imposed on the parliamentarians and the Parliament's staff.

The Measures

The new package of measures announced Sunday includes, inter alia:

* rise in VAT rates from 21% to 23%, from 10% to 11% and from 5% to 5.5%

* 10% hike on tobacco, alcohol and fuel taxes

* 10% hike on luxury taxes

* exceptional crisis levy profit-making enterprises

* rise in real estate objective value,

* taxation on buildings outside urban planning

Public Sector Wages

With regard to spending, the new austerity measures aim to cut public wages.

Therefore, the 13th and 14th wages will be readjusted as follows:

* 250 euros extra at Easter

* 250 euros extra for vacations

* 500 euros extra at Christmas

The above will be granted to wages that do not exceed 3000 euros per month.

Benefits given to civil servants will be further trimmed by 8%, while DEKO servants who are entitled to no benefits will see their monthly wages go further down by 3%.

Private Sector

Cuts in the 13th and 14th wages will not extend to the private sector as had been widely feared.

However, the new package of measures includes a rise in the redundancy threshold, compensation cuts. Overtime cost will also be trimmed.

Threshold on Private and Public Sector Pensions

* 200 euros extra at Easter

* 200 euros extra for vacations

* 400 euros extra at Christmas

Pensions given won't exceed 2,500 euros per month.