By S. Papapetros
Greece’s General Accounting Office estimates the total savings from the latest round of proposed cuts in pensions and welfare subsidies over the 2019-2021 period to reach 7.125 billion euros, one of the most prominent measures entail in a “supplementary memorandum” that was disclosed last week.
The “cookie cutter” for 2019, in fact, will affect 1.1 million pensioners in the country of roughly 11 million residents, with the highest decrease expected to reach 18 percent of annual benefits in certain cases.
Specifically, the breakdown is 2.26 billion euros less in spending for social security payments and welfare bonuses to eligible households in 2019; 2.35 billion euros in savings for 2020 and 2.5 billion euros 2021. Additionally, all remaining pensions rates will remain frozen until the end of 2021.
The latest round of pension cuts were included in an draft omnibus bill tabled in Parliament late Saturday evening, legislation that includes practically all of the140 “prior actions” demanded by creditors in the supplementary memorandum.
According to labor and social insurances ministry sources later on Sunday, the overall pension and welfare benefits cuts will, indeed, total 1 percent of GDP in 2019, as foreseen in the supplementary memorandum.
