Pension and wage deal reached

After months of intense negotiation and street protests, Greece’s government has passed several key “austerity” measures to help bring its budget deficit under control. Under the changes, public sector retirement policies will be brought into line with those of the less generous private sphere. Early retirement has been specifically ruled out and the retirement age of women has been raised.

Wages have also been frozen for this year. Increases from 2011 will be strictly in line with official inflation figures for the Euro zone for at least two years.

Protest numbers have dwindled but there is still plenty of anger about the changes. “They are tearing our social security system apart,” one unionist said. “It’s unfair for young people - if they ever manage to get a job, they will retire when they are 100 years old.”

Theodore Coloumbus, vice-chairman of a think-tank closely linked to the budget process, says the changes are vital if Greece is to stay solvent. “The measures passing through parliament are extremely painful but necessary,” he said. “The news in general creates a cautious optimism that Greece will manage to avoid bankruptcy.”

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