To: The Right Honourable The European Parliament President Mr. Martin Schulz From: Athinarayanan Sanjeevraja Date: June 19, 2013 RE: Eurozone Member States Government Wage Bill Suggestion: Adopting country specific context of expenditure consolidation and tax expenditure to eurozone fiscal consolidation. Good Morning Mr. President. Let me start by paying my respects to you and through you to. Mr. President. I am writing to the European Parliament since 2009.  M y recommendation to the European Parliament that we need to adopt to the country specific context of expenditure consolidation and tax expenditure to overcome the current challenges because options for expenditure consolidation and tax expenditure differ by country. Fiscal rules are less common in most of the member states. Some member states need to reduce deficits rapidly other have more room for manoeuvre. In addition, analogous fiscal rule do not support major crisis or recession in government financ

This paper exclusively analyses different European Union countries government wage bill and how the government wage bill cuts to help European economies to overcome the current challenges. European Union member states have the mixture of fiscal austerity, raise in unemployment and wage cuts was jump to result in a severe reduction in economic activity. European Union member states fiscal consolidation can accomplish through structural measure, cutting public expenditure such as public consumptions and social transfers than adjustment based on revenue increases. Structural measure particularly pension reform is most enduring effect achieving fiscal consolidation. This paper recommend EU member states would have to phase in pension reforms on the German model to accomplish member states fiscal goals. The paper finds that expenditure based consolidation be inclined to be more successful than revenue based consolidation. But we should not focus principally on reducing the public se