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Benefits and COLA to be cut

05/09/2011 06:57
The targeting of the social benefits, with which the government will save €200 million, will be based on two pillars.

According to scenarios, the effort focuses on the introduction of income criteria, which will reduce the number of beneficiaries as well as the sum granted.

The measure, which had been agreed between the government and the political parties in July, is expected to affect the benefits for the families with many children, the students and the children.

The social benefits cost around €1300 million per annum and many of them have a catholic character and not a targeted.

The child benefit, for example, is allocated to €104 thousand families while the student benefit is given to 36 thousand students.

“The reforms prepared by the Ministry will exempt the refugee benefits”, Finance Ministry General Manager, Christos Patsalides told StockWatch.

The benefits reach €68 thousand.

“The targeting of the social benefits will be crystallized in conjunction with the other measures of the second package, which will be presented by the Finance Minister on September 15”, he added.

The measures that the government is called to take so as to reverse the unfavourable climate and to convince the foreign markets is the reduction of the deficit to 2% in 2012 and 0% in 2013 and the freezing of COLA.

“For this measure, there is an understanding with the trade unions”, he stressed.

“From the specific measure, the government is expected to save €100 million per annum”, General Secretary of SIDIKEK-PEO, Antonis Neophytou and Deputy General Secretary of PASYDY, Yiannakis Filippou told StockWatch, confirming that the trade unions agreed with the freezing of COLA for two years.

Mr. Patsalides also clarified that there is no issue for the freezing of the surcharges in the public sector for two years or the suspension of payment of the 13th salary.