According to the recent agreement with the troika, in cases of judicial decisions resulting in wage increases in the public sector which burden the budget, then equivalent cash measures must be taken, which will affect that very same group benefiting from the judicial decision.
A Ministry of Finances officer explained that should the State Council, for example, rule in favor of a particular work group, then the additional cost cannot be covered by tax hikes or expense cuts. The Finance Minister officer added that a similar measure has been implemented in Portugal.
The officer did not clarify exactly how the additional cost will be covered, however he did reveal that there would be no wage cuts. Other possibilities include freezing promotions. This decision was taken to send a message to any work groups considering claiming any retroactive wage increases.
At present, judicial, academic and military officers have appealed to the high courts, arguing that the significant wage cuts which they have suffered were in violation of the constitution.
