GREEK PENSIONS CUTS SINCE 2010 … AND FORTHCOMING MEASURES

TRANSLATED FROM OKEANEWS, 29/08/2012

The Greek government is currently discussing the “necessity” of an additional (additional, additional, additional) cut in pensions and salaries, for the “good” of the country’s financial health,  for the good of the debtors, for the ”reduction” of the debt and for a “return” to growth...(loud applause!)

The coalition’s negotiations don't seem to have gone as well as expected, since Fotis Kouvelis, the leader of the Democratic Left party which obtained 17 seats in Parliament during the recent elections, has announced his refusal to reduce low salaries and pensions. There is no risk, however, of the parliamentary vote not being adopted as long as PASOK stays true to its previous policies - which it subsequently passed on to its longtime enemy, the New Democracy party of Samaras. Together ND and PASOK already hold the majority, and Venizelos declared today: 

“Of course there will be further cuts and sacrifices, but they will be fair.”

Note the use of the term “fair”.  Cue (another) round of applause! It seems that nothing changes in Parliament.
All the same, these discussions provide a good opportunity to review the pension cuts that have been made since the Troïka’s arrival in 2010 and the establishment of the Mordorandum*: an utter folly

·         Start of the hostilities in 2010 with the suppression of the 13th and 14th pension installments, which had been transformed into one payment of 400€ at Christmas and two payments of 200€ for Easter and Summer

·         In August 2010, six months later, pensions above 1400€ were reduced between 3% and 14%. Note that this decision was taken during the holidays.

·         The third round of reductions came in September 2011. Those pensioners receiving more than 1700€ had to endure reductions of between 6% and 10% which were imposed upon them.

·         Two months later, it was even worse: those under 55 years old lost 40% of that part of their pensions exceeding 1000€. The elder (above 55 years old) lost 20% of the corresponding amount.

The next set of measures is likely to be savage:

·         Reductions of 10 – 30% of the lump sum (a sum towards which national insurance contributions are paid as for the pension, but which is paid out in a single lump sum at the cessation of activity) for 23 pension funds. The reduction is likely to be as much as 40% for some funds.

·         A contribution of 1% of the amount of the pension for all those who have already received their lump sum. This contribution will obviously be established independently of the level of the pension and other cuts. This measure is likely to concern around 800 000 workers.

·         The plan being looked at by the Government would reduce all pensions which are above 600 or 700 Euros. The reduction for the lowest pension revenues is expected to be around 1 to 2%. For a pension close to 1000€ there is likely to be a cut of 5%, while for a pension of 2000€ the reduction would be by as much as 20%. For pensions above 2000€ the rate will increase, and a ceiling may be introduced (the talk is of 2500€).

·         Pensions from the OGA (the pension funds  for farmers) could also be reduced

·         An additional levy will be instituted on complementary retirement incomes above 400€. A reduction of 8 to 12% is being discussed when the income does not exceed 1000€, and of 15- 20% beyond that.

·         The unified pay scale will be extended to public utility state-run enterprises (DEKO), which means reductions in salaries of up to 35% (!)

·         Benefits as well as pensions paid to single women will be reduced.

Not to mention of course the fusion and privatization of around fifty public organizations, the dismissal of 150 000 workers between now and 2015 etc., etc., etc., etc.

The farcical electoral pledges that were made (“We will renegotiate with Europe”, “We understand that the people have had enough of austerity”, blah, blah..) risk leaving a bitter taste of treason in the mouth of the population.

The holidaymakers are coming back, Athens is filling back up once again and the first strike has started: that of Athens’ municipal workers. The refuse collectors have indeed attempted to strike this morning but without success: the riot police were waiting calmly to destroy any semblance of demonstration.

After this summer’s incredible heat wave in Athens, the destruction of the social fabric continues its deadly march.

 

 

* ‘Mordorandum’, term first used by Zoe Mavroudi, actress and writer, to designate the ‘Memorandum’ which refers to Tolkien’s Modor in ‘Lord of the Rings’, and associations with the idea of ‘death’.