Problems with special payrolls and pensions

Today’s meeting of Samaras with Venizelos and Kouvelis did not finalize the measure package of 11.5 billion euros, the implementation of which will attempt to reduce government expenses.

"We did not go into details about the measures. This will happen in the coming days and we will meet again," Venizelos said.

"The treatment of measures is incomplete," Kouvelis said, and took the opportunity to reiterate that he is categorically opposed to the horizontal cuts.

Venizelos' and Kouvelis' statements that the package of measures has not been finalized are on a slightly different wavelength from the view of other government members that only details remain for the adoption of the new package. The main part has been finalized but there are some open issues, such as special payrolls, said Finance minister Yannis Stournaras, who attended the meeting. He added that the baseline scenario does not provide for a reduction in OGA pensions.

Red lines by Venizelos and Kouvelis

"We confirm that there are red lines. These measures should not be horizontal," Venizelos said. He added that there is a limit on low incomes but also "a limit on the middle class, which must not be broken because it is the backbone of Greek society."

"We must tell the truth that additional sacrifices will be required in order for Greek society to stand on its feet again," the PASOK president said, speaking of "internal justice" and the need "to take into account each social group’s contribution to date."

The Democratic Left president said he is also categorically opposed to the prospect of new horizontal cuts. He added that efforts are being made to prevent horizontal cuts and protect low incomes. He continued by saying that this package should be combined with a development program, and that there should be no further bleeding of Greek society.

Regarding special payrolls, Kouvelis said that the debate continues while he opposed the reductions of OGA pensions. Speaking about local government organizations, he said that there should be no further cuts "as in many cases municipalities replace the absentee welfare state."

According to a senior PASOK member, Venizelos called for an overall agreement with the Troika, essentially reverting to an older proposal. Along with the measures, he proposed to have the immediate disbursement of the tranche, an agreement extension and reduction of the debt. The same member said the proposal was welcomed by Samaras and Kouvelis.

At 20:00 there will be a meeting of financial staffs of the parties participating in the government, in order to finalize the measures. PASOK will be represented by Philipos Sachinidis and Yorgos Koutroumanis, while Dimitris Chatzisokratis will represent the Democratic Left.