NEWS

Gov’t spokeswoman insists pension plan foresees no cuts

gov-amp-8217-t-spokeswoman-insists-pension-plan-foresees-no-cuts

Government spokeswoman Olga Gerovasili on Tuesday sought to defend the government's proposal for pension reform, saying that it foresees no cuts for main or auxiliary pensions.

The proposal, which Athens sent to creditors on Monday foresees no reductions for those who have already retired though those retiring from 2016 onward face cuts of between 15 and 30 percent.

In a televised statement, Gerovasili claimed that pensions will start to increase from 2018 as gross domestic product is forecast to grow as Greece slowly exits a recession.

"In 2010, the average pension was 1,480 euros but when New Democracy and PASOK handed over power it was just 863 euros," Gerovasili said. She called on both parties to assume responsibility and "stop taking the side of the troika."

She underlined the importance of "rallying together to avert the collapse of the social security system" and called on opposition parties to back the government's proposal for an increase in social security contributions to avert further pension cuts.