Govt looks for ‘magic tricks’ to avoid cuts worth 6% to pain pensions

The government’s next steps were discussed during a meeting between ministers and associates, chaired by Prime Minister Alexis Tsipras. Sources state that Tsipras may call a meeting on Wednesday to discuss government planning. Issues focused upon during Tuesday’s meeting included the following:

– The Labor, Social Insurance and Social Solidarity Ministry is tabling a new draft bill on social security reforms to be submitted to Greek Parliament by January 15.

– A solution must be found by February 15 on the non-performing loans to conclude Greece’s first program review in time.

Regarding social security reforms, there were three thorns pinpointed. These are:

a) the replacement rate. The government has proposed 55-70% for main pensions, whereas institutions don’t want replacement of the pension rate to be more than 48%.

b) institutional criteria. The four institutions representing Greece’s creditors (EC, ECB, ESM, IMF) want Labor Minister George Katrougalos to push down the national pension rate to 384 euros per month and not dispurse this until 20 years of employment (not 15) have been covered.

c) an end to the social solidarity pension to 70,000 beneficiaries, mainly low pension earners (20% of total) in March 2016.