Bloomberg News

Greece to Pare Pensions, Cut Defense to Close Gap

February 14, 2012

(Corrects to show pension cuts not part of effort to make up 325 million-euro shortfall and that already approved by party leaders.)

Feb. 14 (Bloomberg) -- Greece’s government will cut pensions at state-owned companies and banks to make up a 625 million-euro shortfall in fiscal measures needed to secure a second bailout package, a government official said.

The cuts to company and bank pensions will equal 100 million euros, while another 200 million euros in savings will come from cuts to auxiliary pensions, said the official, who declined to be named. The details of the 300 million-euro package are already approved by leaders of the parties backing the interim government of Prime Minister Lucas Papademos, he said.

The remainder of the gap, or 325 million euros, will be made up by cutting defense spending and public investment, a separate official said, declining to be named.

To contact the reporter on this story: Antonis Galanopoulos at agalanopoulo@bloomberg.net

To contact the editor responsible for this story: Maria Petrakis at mpetrakis@bloomberg.net


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