Greece promises to top up low pensions

The Greek government is to provide 100 million euros to retirees whose pensions are less than 10,500 euros a year. The move comes ahead of the country’s regional elections, seen as a litmus test of the year-old Socialist government, which drafted harsh austerity measures.

Reuters

There was vigorous public opposition to the measures, which were a response to soaring public debt, and were adopted in exchange for a bailout by the European Union and International Monetary Fund.

The 100 million euros set aside for pensioners is the limit available to the government to help segments of the population affected by the austerity measures.

The assistance, to be provided once a year in December, will amount to 300 euros for pensioners whose pensions are less than 7,000 euros and 100 euros for those with pensions up to 10,500 a year.

Greece’s public deficit hit 14 per cent of output last year, which is more than four times the prescribed eurozone limit.

Its pensions have this year been reduced by an average 10 per cent under the austerity programme.