1 billion in equivalent measures if reimbursements to special wage lists are applied

The government plans to get back via other ways whatever amounts it might be forced to give back to the military and security forces personnel, by order of the Council of State.

This surprising statement was made by Deputy Finance Minister Christos Staikouras, who told the Financial Times that if the Greek government were to retroactively return the reductions in special wage lists from August 2012, it would have to seek financial equivalent measures of 1 billion euros to cover the total cost to the budget. In reality, however, the economic team believes that the damage to the budget will probably be much smaller and may not exceed 50 million euros.

Staikouras statement concerned the possibility that the Council of State decision might entrain other special wage lists as well (ESY doctors, judges, university professors, priests), so the total cost to the budget of the three years from 2012 to 2014 could surpass 1 billion euros or 0.5% of GDP. As he said, "if we are forced we will execute this decision, but we will also have to find equivalent tax measures on a permanent basis."

Everything will depend on whether and how the CoS decision will be limited only to deductions made retrospectively in 2012 or if its rationale will be expanded to the extension of the measure of reductions in 2013 or in the future, after the issuance of the court decision of the CoS.

Faced with the decision of the Supreme Court, the Greek government can not take legal action and will be forced to implement it. However, it will wait at least 15-20 days until it is cleared as the Finance Ministry estimates.