By Stelios Papapetros
Differences over the issue of supplementary pensions between the leftist Greek government and institutional creditors remain unsolved, with the latest late-night meeting in Athens on Sunday evening extending into Monday morning proving fruitless.
The Greek side was represented, among others, by Labor Minister Giorgos Katrougalos, who met with representatives of the so-called “Quartet” – Commission, ECB, ESM, IMF.
According to ministry sources, lenders are demanding cuts in supplementary or auxiliary pensions totaling 800 million euros on an annual basis, while at the same time flatly rejecting the government’s proposal to slap 1.5 percent increase in contributions -- calculated on monthly salary -- paid to social security funds by working people and their employers, 0.5 percent and 1 percent, respectively.
The same source referred to an “absolute impasse”, with creditors dismissing the government proposal for “limited cuts” to monthly supplementary pension bonuses, in tandem with increases in monthly contributions. The government had budgeted its proposal at 350 million euros, along with 200 million from what it calls the better exploitation of funds’ reserves, which it projects will generate 200 million euros a year more in revenue.
Moreover, creditors’’ representatives appeared unified in their rejection of the ministry's proposal. No information was available on Monday as yet on when a new meeting will take place between the “Quartet” and the ministry’s leadership.
