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Court orders Greece to reverse pension cuts

A top Greek court ruled on Wednesday that the government should reverse cuts to private sector pensions it made in 2012 as a condition of its bailout agreement with the European Union and IMF, court officials said.

Greece has implemented waves of pension cuts since 2010 as part of austerity measures agreed with its international lenders to put its finances back on track.

Creditors’ demands for yet more pension cuts are a major sticking point as Athens tries to reach a deal with the EU and IMF over unlocking remaining bailout funds so that it can avoid defaulting on its debts.

The country’s top administrative court, the Council of State, ruled that the 2012 cuts violated Greek law and the European Convention on Human Rights because they deprived pensioners of the right to a decent life.

The ruling, which does not cover the public sector, added that the Greek government should provide aid to pension funds should they lack the finances to pay the pensions – even though Athens agreed with the lenders in 2010 that this would be forbidden.