BUSINESS

No pensions expected to avoid cuts

ROULA SALOUROU

TAGS: Finance

The Labor Ministry’s main plan to save 1 percent of gross domestic product from 2019 pension expenditure provides for reductions even to very low pensions if the recalculation process shows a difference from the original calculation according to the previous method, the so-called "personal difference."

The ministry is trying to avoid having to impose very big cuts – the personal difference is estimated to range up to 40 percent – and sources say it is hoping to cap the reductions at 20 or 25 percent.

The final decisions will be made when the creditors’ representatives return to Athens later this month.

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