ECONOMY

Katrougalos says pensions will be cut

katrougalos-says-pensions-will-be-cut

The much feared upcoming pension cuts will not only affect those receiving over 1,500 euros per month, but also those who get 1,000 euros or more, and Labor and Social Security Minister Giorgos Katrougalos admitted on Wednesday that every possible measure will be taken for pensions below 1,000 euros (the sum of the main and auxiliary pensions) not to be affected.

That means the government will introduce a social security reform by November 15 which will reverse the majority of the measures voted in the summer, and even those to be voted in the coming days as prior actions required for the disbursement of the 2-billion-euro bailout tranche.

In a report published on Wednesday, the International Monetary Fund anticipates major cuts to pensions and healthcare expenditure in Greece if the third bailout agreement is implemented. This is due to the aging of the Greek population at the expense of the social security system, as is the case in most developed countries.

Pension cuts will have an average annual rate of 0.5 percent from 2015 to 2050, the IMF estimated, while healthcare spending will drop 0.8 percent per year in that period.