"The reduction in pensions could not be avoided"

The PM’s statement during his introductory speech was that “the reduction in pensions could not be avoided”, which was the main point in question during the cabinet meeting ahead of Monday’s Eurogroup.

Addressing his ministers, Lucas Papademos stressed, however, that the impact “is milder than what it appears to be”.

In particular, he explained that “for someone who receives 1500 euros in retirement, his pension is reduced by 12% to an amount of over 1300 euros. It is therefore decreased by 24 euros”.

In addition to the above, Mr. Papademos stated that the measures which were chosen to cover the 325-million hole should have been “fixed and not temporary in nature, ie permanently affecting the costs and thus leading to substantial and permanent reductions in the budget’s deficit”.

The PM also noted that the timeline to promote the prerequisite steps for the implementation of the new program, and in view of concluding the loan agreement, is “particularly pressing”.

Regarding the “Helios” program and the Elliniko former airport issue, he underlined that investment and economic activity will help in accelerating the repayment of the debt.

The cabinet meeting, which discussed the next moves of the government, ended a few minutes after 7pm.

According to the PM’s agenda, a communiqué was given by Deputy Prime Minister Evangelos Venizelos, who provided a briefing on the "prerequisite steps in the new economic program and the implementation of the decisions of the Summit of October 26, 2011."