Thursday October 2, 2014 Search
Weather | Athens
27o C
19o 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 country’s 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 country’s creditors have already sent an e-mail to the ministry asking for details on the issue and on the government’s 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 government’s talks with its international creditors, with the latter having already estimated 2014’s 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 Ministry’s 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 decision’s 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)  
ECB holds rates, shifting focus to new purchase plans
Moscovici in charge of budgets seen prompting EU deficits debate
European stocks decline as investors await ECB policy meeting
Attica Bank said to have rejected notable offers
Six face prosecutor for bank robberies, terrorist activity
Six people detained in Athens and Thessaloniki on Wednesday in connection to bank robberies and possible terrorist activity faced a prosecutor on Thursday. The suspects, four Greek men, aged...
Explosive device found at Athens Stock Exchange building
An investigation by the Greek counter-terrorist unit was under way in Athens on Thursday after an envelope containing an explosive device was discovered in the mail room of the Athens Stock ...
Inside News
SOCCER
Rosenberg confident after win over Olympiakos
Malmoe captain Markus Rosenberg scored twice in the Swedes' 2-0 win over Olympiakos on Wednesday and illustrated his confidence in the team after the game. Rosenberg capitalized on slack def...
SOCCER
Rosenberg punishes Olympiakos´s errors at Malmoe
A disappointing Olympiakos got the worst possible result from its clash with Malmoe in Sweden for the Champions League, going down 2-0 on Wednesday due to its own defensive errors and attack...
Inside Sports
COMMENTARY
There´s money, still
The decision reached by Prime Minister Antonis Samaras and his deputy, Evangelos Venizelos, to seek a vote of confidence in Parliament on October 6, is a final attempt to restore order in th...
EDITORIAL
Confidence and corrections
The government must secure a vote of confidence in Parliament. Any other development would see the country enter very turbulent waters. Prime Minister Antonis Samaras and his cabinet must ag...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Rosenberg confident after win over Olympiakos
2. ECB holds rates, shifting focus to new purchase plans
3. Six face prosecutor for bank robberies, terrorist activity
4. Explosive device found at Athens Stock Exchange building
5. Kasidiaris-Kanelli hearing postponed to December 12
6. Pensioners stage rally in central Athens
more news
Today
This Week
1. Doctors, medical employees strike over staff shortages, wages
2. Court to hear Kasidiriaris-Kanelli case
3. Air travel to run smoothly after air traffic controllers' weekend strike deemed illegal
4. European stocks decline as investors await ECB policy meeting
5. Moscovici in charge of budgets seen prompting EU deficits debate
6. Pensioners stage rally in central Athens
Today
This Week
1. Greece may opt for unusual president to avoid snap polls, Venizelos says
2. Woman allegedly buried alive by accident in northern Greece
3. Salaries in Greece continue to slide, dipping 1.4 pct in Q2
4. Should you bet with Kissinger on where the world is heading?
5. Cypriots divided by 1974 war seek Shariah hub
6. The shocking thought of euro-dollar parity
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2014, H KAΘHMEPINH All Rights Reserved.