Implementing court decisions on pensions will not derail system's financial stability, Mitarakis says

The government intends to comply with court decisions for the back payment of excessive pension cuts but this will be done in a way that does not jeopardise fiscal stability or the existing state insurance system, Deputy Labour Minister for Social Insurance Notis Mitarakis said on Monday.

Talking to the radio station 'Real FM', Mitarakis said the government was waiting for the official publication of the court rulings to examine them in detail and fully intended to respect the court's decision. At the same time, he added, it was working on a new pension system that will replace the so-called 'Katrougalos' law - key elements of which were judged unconstitutional - that would be in line with the Council of State findings.

This would correct the weaknesses of the SYRIZA system with respect to the excessive increase of taxes and social insurance contributions for the self-employed, Mitarakis said. On how back payments awarded by the court's will be paid, the minister said that this will "on no account jeopardise the existing social insurance system".

"It is given that this will be done in a way that does not create fiscal instability," he added.

The intention with regard to the new system was to disconnect the calculation of contributions from taxable income, which he said had led to a large drop in the income declared by the self-employed.

"This month we will be returning 160 million euros to freelance professionals because their previous income declaration was lower than the one before, despite the fact that the Greek economy was showing signs of stability," he pointed out.

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