Bloomberg News

Greek Government Readies Cuts to Pensions, Wages, Ta Nea Says

August 21, 2012

Greek Finance Minister Yannis Stournaras yesterday presented a 14 billion-euro package of spending cuts to Prime Minister Antonis Samaras, Athens-based newspaper Ta Nea reported, without citing anyone.

The package, which includes cuts of between 2 percent and 20 percent to pensions and as much as a 35 percent reduction in pay for employees in state-run companies, will be finalised in talks with the country’s creditors by Sept. 14, Ta Nea said. The plan includes additional cuts to ensure the government meets the goal of 11.6 billion euros in savings, as reduced wages and pensions will lead to lower tax revenue and payments to social security funds.

Stournaras has prepared alternative measures totalling 1 billion euros in case some options are rejected, Ta Nea said.

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


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