One top Greek government minister on Tuesday expressed a view that scheduled social security cuts - set for Jan. 1, 2019 - may not be implemented after all, saying that such an austerity measure is not "an institutional reform, and that the reduction is unnecessary."
Alternate Foreign Minister Giorgos Katrougalos, who was the relevant labor and social insurances minister when the current coalition government opted for the austerity measure and had it ratified by Parliament, made the high-profile statement during an appearance on a local radio program. The austerity measure aims to fulfill creditor-mandated annual fiscal targets until at least 2023, which the Tsipras government accepted.
Nevertheless, the political "hot potato" entailed in yet another round of pension cuts, expected to affect roughly 30 percent of all pensioners in Greece, is an anathema for the foundering leftist-rightist coalition government, which trails the main opposition party by double-digit percentage points in practically all mainstream opinion polls for a year and a half now.
Despite continuous statements by top ministers of a possible postponement or even suspension of the measure, with Katrougalos' comment being the latest, European creditors have repeatedly and clearly stated over the recent period that "agreed-to reforms must proceed as planned".
"We have agreed to and we will respect, to the letter, that no deviation from institutional reforms will take place. Allow me to again say that a reduction in the personal difference (of pensioners affected by subsequent austerity measures) is not an institutional reform. If it's proved that what the IMF said does not apply, and EFKA (the primary umbrella social security fund) posts a cash surplus and we've also achieved a fiscal target, and assuming that actuarial studies show that the reduction is not necessary, why should a reduction occur?" was the condition-laden assessment by the minister.
