Greece to return 1.4 billion euros to pensioners hit during debt crisis

·

Greece will this year return 1.4 billion euros to pensioners whose income was slashed during the financial crisis of the past decade, Prime Minister Kyriakos Mitsotakis said on Wednesday.

Mitsotakis’ conservative government made the decision following a top court ruling which said that some pension cuts imposed in 2015-2016 were illegal.

The Prime Minister said the one-off payment applies only to main pensions – not supplementary pensions or benefits.

The money will be distributed to about 2 million private and public sector pensioners, a government official added.

The decision is expected to burden this year’s budget. Greece’s economy is seen shrinking by up to 10 percent this year due a nationwide lockdown the government imposed to contain the spread of the coronavirus.

“This particular cost touches the limits of the country’s fiscal potential,” Mitsotakis told lawmakers. “There is no room for further provisions.”

Under the terms of three international bailouts in 2010-2015, Greece cut state pensions several times to reduce spending and make the system viable.

The country still has the highest debt-to-GDP ratio in the eurozone and the health pandemic dashed its hopes for strong growth this year.

Its finances are being closely monitored by the country’s international lenders, the European Union and the IMF.

Advertisement

Share:

KEEP UP TO DATE WITH TGH

By subscribing you accept our Terms of Service and Privacy Policy.

Advertisement

Latest News

Jenny Mikakos appointed new Chair of Victoria’s LanguageLoop

The Victorian Interpreting and Translation Services (VITS) LanguageLoop Board has welcomed the Honourable Jenny Mikakos as its new Chair.

Tasmanian Liberal MP Simon Behrakis pushes for ADHD inquiry

Simon Behrakis, Hobart City councillor and newly elected Liberal MP, is leading a parliamentary inquiry into support challenges for ADHD.

Greek Australian Sam Konstas set to debut in Boxing Day Test at the MCG

Sam Konstas takes aim and waits for the ball; takes a step back and bang. It is high, its fast and hits another boundary.

Luna Park launches legal action amid Sydney train strike disruption

Luna Park is taking legal action to ensure its New Year's party proceeds, with industrial action by RTBU threatening to disrupt celebrations.

Kimberly Guilfoyle expresses ‘honour’ to serve as next US Ambassador to Greece

Kimberly Guilfoyle has expressed her gratitude after being nominated by President Donald Trump to serve as the next US Ambassador to Greece.

You May Also Like

Greek minister claims an increase in ICU’s would result in ‘more deaths’

"If we had 5,000 ICUs, this would mean in the normal course of events that we would have a much higher number of dead,” Gerapatritis said.

Top Australian doctor shoots down Pfizer CEO’s claim a fourth COVID vaccine is needed

One of Australia's top doctors has hit back at claims from Pfizer CEO, Albert Bourla, that people will need a fourth COVID-19 vaccine dose.

The Battle of Thermopylae 2500 Year Anniversary Competition

The Greek Herald is launching a competition commemorating the 2500 year anniversary of the Battle of Thermopylae in 480 BC.