OAED's 7.5-billion-euro "safari"

A race for the reduction of undeclared work and false benefit claims will be unleashed by the Labour Ministry in order to curb spending and boost revenue, saving 7.5 billion by 2015, was agreed upon at yesterday’s Parliament session, chaired by the Prime Minister.

Of the 7.5 billion, 4.5 will come from revenue growth and 3 billion from spending cuts. The Labour Minister Ms. Louka Katseli and Deputy Minister George Koutroumanis send messages to all concerned that it is not their intention to cut benefits or establish income criteria on unemployment benefits.

However, they hope for a reduction of drug costs from e-prescriptions by 1.4 billion, a shrinkage of the EKAS benefit by 140 million through income criteria becoming stricter, and will step up checks to combat undeclared work, which now reaches 25%. Mr. Koutroumanis has expressed his concern that if one in three does not pay contributions - as is the case  - there will be a future problem with the granting of pensions, even if all other costs are reduced.

The Labour Department expects OAED savings if the electronic crossing points (APR, Employment Agency, IKA) are implemented, and the granting of benefits to the faux-unemployed, who continue to work uninsured and untaxed, is restricted. The ministry will also target fake disability pensions and hopes to increase the income of pension funds through control of undeclared work and the reduction of unemployment by 2012.