Olli Rehn admits “cuts greater than what were planned”

Olli Rehn admits “cuts greater than what were planned” | tovima.gr

4.1.13

SYRIZA MEP Nikos Hountis considers that “the three-party government made greater cut in salaries and pensions that it had planned for the 2012 budget”, based upon a written reply of European Commissioner for Economic and Monetary Affairs and the Euro Olli Rehn on the matter.

The question Mr. Hountis posed concerned the updated 2012 budget and the Commission’s expectations on income and expenses by the end of 2012. According to Mr. Rehn “the Greek government moved beyond that plans of the 2012 budget, achieving a greater cut in salaries and pensions in the public sector, greater than what the government had agreed upon with the troika”

Mr. Rehn further explains that “the funds made available for salaries and pensions were fewer than what was provided for in the budget, thanks to a greater impact of the new payroll scale and the greater number of pensioners”.

Mr. Hountis also brought attention to Mr. Rehn’s findings of “a significant shortfall in primary government expenses, especially operating expenses and public investments budget”, that “current Commission projects estimate a 1.5% GDP primary deficit, contrary to the 1% target” and that “the current recession is expected to continue in 2013, with the real GDP being reduced by 4.2%, which will have further negative effects on income from social security”.

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