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IMF head: Pensions in Greece too high

Amid increasing scenarios that the IMF is considering participating in the Greek bailout programme, Prime Minister Alexis Tsipras is meeting with IMF Chief Executive Christine Lagarde in Davos, Thursday.

Meanwhile, the head of the IMF said on Wednesday from the Swiss resort that pensions in Greece were much higher than the average in other EU countries, stressing that this was true for all levels of pensions, lower, medium and higher ones. “They were too high and the Greeks had to manage it. Cutting existing pensions is a difficult political dilemma”, she underlined.

“What is the necessary limit for the safety net and what is the threshold beyond which pensions are actually protected?”, Lagarde wondered. The matter of the pensions and whether the Fund is willing to budge is a topic the Greek PM will presumably get some first-hand experience on during today’s meeting with Mrs Lagarde.
International analysts, such as Eurasia, believe that given the tough relations between Lagarde and US President Donald Trump (due to the Venezuelan issue), the CEO no longer wants the IMF to be disengaged from Europe, and by extension Greece.