Greek gov't plan for low-income pensioners, islanders receives mixed response

The Greek government's aid plan for low-income pensioners and islanders who have been hit by refugee flows has received a mixed response within and beyond Greek borders on Friday.

Greek Prime Minister Alexis Tsipras announced his government decided to give 617 million euros (650.76 million U.S. dollars) in one-off special benefits for 1.6 million retirees, after Greece exceeded the 2016 primary surplus target agreed with international creditors.

Ahead of the Christmas holidays, pensioners earning less than 850 euros per month will receive benefits of 300 to 850 euros.

In addition, Tsipras announced the suspension of a rise in value-added tax rise in the islands of the northern Aegean which are bearing the brunt of the refugee crisis.

In a first reaction from Greece's lenders Annika Breidthardt, spokeswoman of the European Commission, told a press briefing in Brussels that the Commission was not aware of the Greek government's plan before the announcement and would closely examine the move.

"The program includes clear commitments to discuss all measures related to program objectives with the institutions in advance," she noted, adding that the Commission took note of Tsipras' commitment to abide by the program's objectives.

"We did not ask creditors' permission for the redistribution of funds deriving from the surplus. They have no right to refuse," Greek State Minister Alekos Flambouraris commented on Greek national broadcaster on Friday, asked whether Athens fears a negative reaction by creditors which could complicate the conclusion of the second review of the bailout program.

In Greece, Thursday's surprise declaration was warmly welcomed as "a step in the right direction" in press statements issued by associations of businessmen, such as the National Confederation of Hellenic Commerce.

The announcement was met with skepticism by others. The largest unions of pensioners responded on Friday with a call for a protest in Athens on Dec. 15.

Speaking to the Greek national news agency AMNA, Pantelis Tatsis, president of the Panhellenic Federation of the Retired Self-Employed, rejected the one-off payout as "breadcrumbs" compared to the 38 billion euros losses Greek pensioners have suffered from several rounds of pension cuts since the start of the crisis in 2010.

Opposition parties have argued that the numbers show that the benefit will be instantly wiped out by the tax hikes and income cuts already introduced or planned for 2017. Enditem