ECONOMY

Pensions will not be cut, insists social insurance chief

The government will not back down in its resistance to lenders’ calls for cuts to basic or auxiliary pensions, insists general secretary for social insurance Giorgos Romanias.

“There is pressure on this issue but we are resisting this pressure,” he told Ant-1 TV on Monday morning.

Romanias said the government had no plans to trim large supplementary pensions to meet creditors’ demands. The institutions insist that Greece must apply the so-called zero deficit rule, meaning that the state should not subsidise pension payments.

This was supposed to have led to a cut in supplementary pensions from the start of the year but the government says it does not want to apply the zero deficit rule.