Stournaras: We are talking about a new type of redundancy
Although PM Antonis Samaras is meeting with Jean-Claude Juncker this Wednesday and with Merkel and Hollande the day after, it seems that the government has still not finalized the 11.5-billion-euro measures for the next two years
According to information, the government is still seeking around 700 million to 1 billion euros. All unresolved issues were on the table in the meeting on Monday evening between Antonis Samaras and Finance minister Yiannis Stournaras.
In his statements after the meeting, Stournaras said "we are talking about a new type of redundancy", and that the full package of measures will be ready early in September, before the Troika’s arrival in Athens.
He added that the meeting with Samaras was of an informative nature, that at this time "they are costing the measures" and that are going through an ongoing process.
The Finance minister’s agenda has various measures, such as eliminating services that issue the salaries of the public sector and giving the same job to individuals. They estimate that this would save 300 to 400 million euros, as about 12,000 people are working to issue the wages of 1,000,000 employees throughout the public sector.
The measures that will be delivered by Stournaras to Samaras will be discussed again with the Troika on September 5 and will include among other things:
- redundancy: 35,000 to 40,000 people will be moved to redundancy and for about three years will receive 60% of their salary
- EKAS: it will be given only to those who are at 65 years of age or more without going into complementary asset criteria. Asset criteria will apply to most social benefits
- retirement age: will rise in cases of early retirement. The overall limit remains at 65 years of age
- cuts in pensions of unmarried daughters
- cap on supplementary pensions
- cuts in the 13th and 14th supplementary pensions
- increase of the required insurance years from 15 to 20
- cut of main pensions from the first euro, probably from 800 euros, with rates ranging from 2% to 15%
- reduction of the lump sum, even retroactively, for those who have already received it, through a special contribution imposed on the main pension.
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