Gov't & Greek Uniformed Officers Arrive At Compromise

An agreement was reached between Greece's Deputy Minister of Finances Christos Staikouras and uniformed officer representatives, regarding the money which they are owed, following a State Council ruling which stated that the wage and pension cuts they suffered were illegal.

According to news reports, the uniformed officer representatives demanded that their wages and pensions be restored to what they received in 2012, prior to the illegal cuts, but appeared more conciliatory regarding what they are owed. Both sides agreed for the coalition government to pay back the estimated 550 million euros in installments, with the first one likely to be paid out in August.

While the officers were pleased with this development, the Ministry of Finance is not. In fact it is quite troubled as it must now find the funds without affecting the budget, as per the agreement with the troika.

One scenario could be that the Ministry is considering is to reduce the money owed to the officers by about 170 million euros, in an effort to avoid further exacerbating the projected fiscal gap for 2015 (which is estimated to be 911 million euros.)