Greater cuts in public enterprises, reductions in supplementary pensions

A new “bombshell” about the measures exploded in the cabinet. According to the briefing of Finance Minister Evangelos Venizelos to cabinet members, the reductions in pensions of public enterprises and banks will be greater than 15% as was initially reported, while there will be cuts in auxiliary pensions.

The dramatic development comes while there is an attempt to find 325 million missing in action, while engaging in discussions in the Working Eurogroup faces difficulties, as the European counterparts are insisting on their request for a signed commitment from political leaders until Monday.

Specifically, the proposal agreed with the Troika provides for a 15% reduction for supplementary pensions from 200 to 300 euros and 20% for pensions above 300 in order to find the meeting point withND.

This is in order to save 325 million euros, as requested by the Troika, besides the 200 to be saved from the cuts in supplementary pensions, while 100 more will come from cuts in funds from public enterprises and banks.

What does this mean? A reduction of 20% in main pensions for those earning 1200 euros in the PPC, OTE, National Bank, Emporiki Bank, Agrotiki, and former Olympic, and a 7% cut for NAT.

Furthermore, there will be cuts from June onwards in the special salaries  by 10%-12% (military, judicial etc) while there will also be cuts in defense spending.

Papademos’ “pedal to the metal”

“We must move very quickly”, he stated during the beginning of the cabinet meeting and asked ministers to remain committed to implementing the decisions made in parliament on Sunday.

“Without prior actions, the implementation and the process of the PSI cannot be approved” clarified the PM, who said that the final decisions for financial support and the new loan agreement will be made in March.

The PM added that the cabinet meeting is taking place in parallel to the Working Eurogroup in preparation for the Eurogroup, while Finance Minister Venizelos distributed a brochure to the ministers with all the prerequisite steps.

In this context, Lucas Papademos confirmed the reports by protothema.gr that he will maintain Makis Voridis' post. The remaining positions will remain vacant, at least according to information so far. The PM described the events in Athens as “disgraceful and unacceptable” and stated that a cabinet meeting will follow in relation to the city’s operation.