“Suspension” of supplementary pension cuts

After having first contacted the Troika, Labour minister Yiorgos Koutroumanis announced today during the cabinet meeting that the discussed cuts in supplementary pensions will be postponed for at least one to two months.

Nevertheless, he said that the new changes will be made according to both the mid-term programme and the memorandum and are part of the general structural changes plan concerning the insurance funds.

The present postponement is due to the reactions from within the governmental scheme. In particular, the suspension was decided upon ND member statements saying that they would not vote in favour of the decrease in the supplementary pensions.

Koutroumanis said that the green light for the two-month grace period has been given by the Troika in order for the plan to be tabled and voted on in parliament. Moreover, he said he would welcome relevant proposals and amendments aimed at improvement.

The premier Lucas Papademos agreed completely with the minister, whereas Stavros Dimas from ND appeared moderate.

As Koutroumanis said, the fund merger appears necessary as otherwise, funds will be unable to survive each on their own.