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Reforms shock for pensioners and the young

05 May 2010 / 10:05:14  GRReporter
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Shock rise among all Greeks after the announcement of the five-year program, under which Greece took the package of €110 million, according to the IMF and EU agreement after the promise to make reforms and hoping to avoid certain bankruptcy. Yesterday under pressure from markets and other creditors the government submitted to parliament new urgency tax increases, cuts in wages and pensions, changes in labor relations, pension system, and changes in the functioning of the public sector.

Among the reforms, there are bad surprises as the complete elimination of 13th and 14th pension for all pensioners under 60 years old, but also the elimination of the minimum wage of €735. Moreover, young employees under 25 years of age will have a minimum salary of €595 per month.

"Check for reintegration" of unemployed is one of the new measures, under which every unemployed person who takes social benefits has the right to take this check, which is equivalent to the monetary amount one will take for social benefits. The more time it will remain until the end of social benefits, the more money the unemployed will eventually take, who is on welfare. Companies that will hire an unemployed person, will receive as a monthly bonus from the Office for unemployment the money from the check for the months that remain of the unemployed receiving social assistance.

Reform on the health rights of the unemployed will also apply to free entrepreneurs who for various reasons, interrupted their professional activity and have not worked for a long time.

A proxy will be given to the ministers of finance and of labor to defer repayment of loans to the Office of unemployment and to make changes in the conditions for their payment.

Pensioners will receive reduced pension benefits for Christmas and Easter, which amount to €400 for Christmas and €200 for Easter. To obtain these benefits pensioners should not have passed 60 years of age, and this reform does not apply to insured in the Farmers Fund. Military personnel and disabled are excluded from the required age limitation to receive bonuses as well as those who have been transferred the rights to receive a pension of someone else if they are not over 18, and if they are studying in college or higher until their 24th birthday or they are unable to exercise any profession.

Also, if the pension is more than €2500 a month all Christmas and Easter bonuses are completely cut off.

Tags: Greece politics crisis economy reforms
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