Activation of contingency measures brings 8% wage and pension cuts

26 April 2016
680 Views

At the recent Eurogroup, the Minister of Finance Euclid Tsakalotos reached an agreement with Greece’s creditors regarding the contingency measures that have been requested, in order to conclude the bailout review.

This package of contingency measures worth 2% of the GDP, namely 3.6 billion euros, will come into effect the government fails to reach its target for a 3.5% GDP primary surplus by 2018.

Given that the annual state expense for pensions is 30 billion euros and 15 billion euros for public sector wages, an average 8% cut will be required in order to cover the cost of the contingency measures.

It remains to be seen whether the Greek government will manage to support such a deal in Parliament. Should Athens pass the measures, a Eurogroup on the reprofiling of the debt will be called, in turn putting an end to months of instability and uncertainty.

You may be interested

Golden Globe Awards 2021: Borat 2 wins best comedy film
WORLD
shares33 views
WORLD
shares33 views

Golden Globe Awards 2021: Borat 2 wins best comedy film

Panos - Mar 02, 2021

The movie “Nomadland” and the much-discussed sequel to “Borat” were the big winners of the 78th Golden Globe Awards 2021,…

The Turkish research vessel Cesme sails for central Aegean Sea
DEFENCE
shares33 views
DEFENCE
shares33 views

The Turkish research vessel Cesme sails for central Aegean Sea

Panos - Mar 02, 2021

The Turkish hydrographic ship Cesme resumed its survey activities in the Central Aegean from today, March 1st, at dawn. At the first…

Foreign Policy: Who is hot & who is not in the Middle East – Analysis
POLITICS
shares45 views
POLITICS
shares45 views

Foreign Policy: Who is hot & who is not in the Middle East – Analysis

Panos - Mar 02, 2021

On February 22nd, 2021, Politico ran a story revealing the Biden administration is deprioritizing the Middle East. It was an interesting read. Yet…

Leave a Comment

Your email address will not be published.