ECONOMY

Plan to cancel wage cut is put off

The new administration of the Labor and Social Insurance Ministry is changing its tune regarding a partial reversal in cuts to private sector salaries and all pensions. Instead, the Labor Ministry will now focus on averting any further cuts.

Deputy Minister Nikolaos Nikolopoulos said in a radio interview on Wednesday that any correction in reductions will not take place before 2016, at the earliest. ?After the application and the completion of the midterm fiscal plan, we will proceed with the gradual restoration of salaries and pensions,? he stated. ?But that will not be an easy proposition at all,? he added. ?On the contrary, it will be very difficult indeed.?

This backtracking from the pre-election pledges for an annulment of the 22 percent reduction in minimum wages is attributed to the negative stance of the representatives of the European Central bank, the European Commission and the International Monetary Fund — known as the troika — who are about to return to Greece for negotiations with the new government.