Saturday May 23, 2015 Search
Weather | Athens
14o C
09o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Fiscal alternatives of 500 mln sought to plug pay ruling hole

By Sotiris Nikas

The Finance Ministry is seeking permanent measures to the tune of 500 million euros ahead of a formal verdict from the Council of State on the wage cuts imposed on members of the armed forces and emergency services. The countryís highest administrative court has reportedly deemed the wage cuts unconstitutional.

Even though the decision will not be formally issued for at least a few weeks, the countryís creditors have already sent an e-mail to the ministry asking for details on the issue and on the governmentís intentions regarding the shortfall that any compensation will create.

For now the ministry has not said anything formally about how that possible gap in the streamlining program could be covered, citing the lack of a formal verdict. However there is very little room for maneuver and the amount of 500 million euros could come from the imposition of a new tax or a cut to salaries or pensions, while a senior ministry official said the impact of the verdict may in fact exceed 500 million euros.

That only concerns the armed forces and emergency services, with the ministry calculating that another 200 million will be needed to cover the cuts suffered by judges, which were introduced with the same law. Officials are now taking it for granted that if other special wage categories resort to justice over cuts stemming from the same law, they may well secure a verdict in their favor too, which could increase the fiscal shortfall to over 1 billion euros.

In any case, the issue constitutes yet another sticking point in the governmentís talks with its international creditors, with the latter having already estimated 2014ís fiscal gap at 1-1.5 billion euros while the Greek side is proposing measures totaling 1.2 billion to cover the shortfall.

The Finance Ministryís aim is to plug that hole without imposing any harsh measures in the form of salary or pension cuts or new taxes, but that will most likely fail if the need to cover the wage cuts annulled by the Council of State is added to the fiscal gap, even if the decisionís impact is no more than 500 million euros. That in turn is certain to have a political impact that the government will have to face at a time when its parliamentary majority has been significantly reduced.

ekathimerini.com , Wednesday Jan 22, 2014 (23:00)  
Car sales drop a gear on VAT rate uncertainty
Bulk of loan requests comes from food service
Greek yields climb after Riga summit
Georgios Michelis said to be next HFSF chief
Deal no closer following PMís meetings in Riga
Athens believes that Greece could still clinch an agreement with its lenders but probably at the start of June, rather than by the end of this month as it had previously hoped, following the...
Greece to back NATO-led campaign against ISIS, Kammenos says
Greece will join the United States and other NATO members in efforts to defeat militants of Islamic State (ISIS), an issue which is expected to be discussed in the summit of the transatlanti...
Inside News
SOCCER
Greece escapes soccer suspension, FIFA happy with changes
FIFA says it is satisfied with changes made to sporting law in Greece, and has dropped a threat to suspend the country from international competition. In a letter to the government dated May...
SOCCER
Four-goal Panathinaikos thrashes Asteras away
Panathinaikos thrashed Asteras at Tripoli to gain an early advantage in the race for a spot in next seasonís Champions League qualifiers, as the Super League play-offs got under way on Wedne...
Inside Sports
EDITORIAL
Consensus is key
The education bill that has been put forward by Greeceís leftist-led government has to be the subject of extensive public consultation. Even more importantly, it needs to be approved in Parl...
COMMENTARY
The other inequality: how the state spends our money
Growing inequality between rich and poor across the world has rightly become the focus of much investigation and analysis. The Organization for Economic Cooperation and Development underline...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
†RECENT NEWS
1. Deal no closer following PMís meetings in Riga
2. Greece to back NATO-led campaign against ISIS, Kammenos says
3. SYRIZA, ND waver over agreement
4. Nearly 800 irregular migrants detained as EU mulls refugee relocation plan
5. Car sales drop a gear on VAT rate uncertainty
6. Bulk of loan requests comes from food service
more news
Today
This Week
1. Merkel stamps out brief optimism on Greece after Tsipras talks
2. Lessons from Israelís tech miracle
3. Tsipras to meet Juncker on second day of Riga summit
4. Civil aviation staff to hold walkout on holiday weekend
5. Banks will be asked to revise their restructuring plans
6. EOPYY struggles for funding, sees overdue debt rise
Today
This Week
1. The Greek-German breakthrough that didnít come
2. Conspiracy madness
3. Greece came close to not paying IMF
4. National self-awareness put to the test
5. Albanian demarche raises concerns about possible territorial claims over Greece
6. Greek endgame nears for Tsipras as bank collateral hits buffers
†††Find us ...
††... on
Twitter
†† ††... on Facebook ††
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2015, H KAΘHMEPINH All Rights Reserved.