Greek government under pressure

The growing pressure has fueled speculation about another round of early elections which most government officials have sought to play down.

“If the review is due for completion in May or June, we will be in serious trouble,” stated Finance Minister Eukleides Tsakalotos at the relevant parliamentary committee yesterday. Lenders will not return to Athens if they do not receive specific and acceptable proposals, EU officials note.

The Greek government expects representatives of its four lenders to return to Athens possibly as early as next week with the aim of completing the first bailout review within the ensuing two weeks. Finance Minister Euclid Tsakalotos told MPs it would be disastrous if the review drags on into the summer.

“I expect the institutions to be back soon, maybe at some point next week,” said Tsakalotos. “From the moment that they do return, we will have a two-week deadline to complete the review.”

“If the review is due for completion in May or June, we will be in serious trouble,” he added.

Greece’s lenders ask for stricter measures involving significant reduction in high primary pensions, double pensions, supplementary pensions and lump sum so as to cover the fiscal gap, targeting first those who receive two pensions (lawyers, judges, doctors, engineers, etc.), and pensioners who get a 2,000 euros pension in total, including any widows’ pensions and supplementary pensions.
The proposal of the Greek government is to provide a cap on multiple pensions of 3,600 euros cutting them to 3,000 euros, while lenders ask to reduce the amount to 2,000 euros.