The protracted crisis in Greece is forcing lawmakers to puzzle over a set of measures that could return the country's economy to sustainable development. The assistance that the country receives from European partners cannot fully meet the financial needs of Greece. In addition, in exchange for billions of euros, creditors are demanding to carry out reforms that are painful for the population in the country.
Economic situation in Greece
Greece has been in recession for nearly six years. By the end of 2013, the Greek economy contracted another 4%. In total, since 2008, the economic downturn has been 23%. However, international experts believe that the debt crisis in the country has already passed a critical mark. There is some hope that in the current 2014th year in Greece there will be the first results indicating economic growth.
Still, it is too early to talk about a breakthrough in overcoming the protracted economic crisis in Greece. The contradictions in the Greek economy are difficult to resolve. The previous policy, which allowed the citizens of the country to count on solid assistance from the state in the form of subsidies and high pensions, can no longer be fully implemented. The Greeks have to tighten their belts more and more.
Over the past three and a half years, the country has received about 240 billion euros from European partners. One of the conditions for the provision of this assistance was the obligation of Greece to introduce a strict budgetary savings program. A plan and timetable for these changes were drawn up, but they were often violated. The reason was the numerous protests of the population, which were hit by the reforms.
Reduction of pensions in Greece: a forced measure
As part of the cost-cutting program, the Greek government has developed measures that are aimed at reducing pensions and social benefits, as well as increasing taxes. These measures are forced and dictated by the requirements of the eurozone countries, which are interested in ensuring that the financial assistance allocated by the Greek government is spent rationally.
The program of cuts in the expenditure side of the state budget has hit especially hard on those who live on retirement. For some categories of pensioners, the reduction in the main item of their income was 9-10%. And those who enjoyed the right to the highest pensions may lose up to 20% of their usual annual income in the near future.
The Greek government has been working on a new pension program since 2012. Among the additional measures that directly affect the interests of pensioners, one can note an increase in the retirement age. The state intends to stop sponsoring those who retire very early, such as the police and the military. Such decisions lead to an increase in social tension, but the state has too few other levers that can significantly reduce budget expenditures.
