You analyzed the situation correctly.
But since when do gubbermints keep their word?
"Austerity" is when the government has to say, "I know we made promises. I know you made life choices based on what we told you. I know you planned your retirement based on this stuff. But the money isn't there, and we cannot hold up our end of the bargain. Basically, you're screwed."
That conversation is going on across Europe now. In the US, the public service employee unions, Social Security and Medicare/Medicaid -- all of these areas will find the Government saying, "I know what we promised you -- but you're screwed."
Big changes are coming, because there is no money.