Ka­trouga­los says pen­sions will be cut

Kathimerini English - - Focus - ROULA SALOUROU

The much feared up­com­ing pen­sion cuts will not only af­fect those re­ceiv­ing over 1,500 eu­ros per month, but also those who get 1,000 eu­ros or more, and La­bor and So­cial Se­cu­rity Min­is­ter Gior­gos Ka­trouga­los ad­mit­ted yesterday that ev­ery pos­si­ble mea­sure will be taken for pen­sions be­low 1,000 eu­ros (the sum of the main and aux­il­iary pen­sions) not to be af­fected.

That means the gov­ern­ment will in­tro­duce a so­cial se­cu­rity re­form by Novem­ber 15 which will re­verse the ma­jor­ity of the mea­sures voted in the sum­mer, and even those to be voted in the com­ing days as prior ac­tions re­quired for the dis­burse­ment of the 2-bil­lion-euro bailout tranche.

In a re­port pub­lished yesterday, the In­ter­na­tional Mon­e­tary Fund an­tic­i­pates ma­jor cuts to pen­sions and healthcare ex­pen­di­ture in Greece if the third bailout agree­ment is im­ple­mented. This is due to the ag­ing of the Greek pop­u­la­tion at the ex­pense of the so­cial se­cu­rity sys­tem, as is the case in most de­vel­oped coun­tries. Pen­sion cuts will have an av­er­age an­nual rate of 0.5 per­cent from 2015 to 2050, the IMF es­ti­mated, while healthcare spend­ing will drop 0.8 per­cent per year in that pe­riod.

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