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1st Ld Writethru: Greek lawmakers approve relief measures for pensioners

Xinhua, December 16, 2016 Adjust font size:

Greece's parliament approved on Thursday a one-off Christmas bonus for low income pensioners which has caused the skepticism and dismay among international creditors.

Meanwhile, at least 4,000 retirees from across Greece, braving the cold, were protesting in central Athens against the handout of "breadcrumbs" demanding instead an end to austerity policies and "decent" pensions for all.

With the support of the deputies of the two- partite ruling coalition, as well as some of the opposition parties the bill containing the provision passed with 196 votes in favor in the 300-member strong plenary.

The Left-led government's aim was to secure the broadest possible consensus to show to lenders that the assistance of the most vulnerable groups of Greek society was a cross party request, cabinet ministers explained before the vote.

A week ago, Greek Prime Minister Alexis Tsipras made the surprise proclamation that 617 million euro (646.3 million US dollars) deriving from the 2016 primary budget surplus will be handed out to pensioners earning less than 850 euros per month on December 22.

Athens insists that it was within its rights to decide how to spend the fund, once it has reached and outperformed the fiscal targets set under the bailout agreement.

However Greece's creditors thought otherwise and on Wednesday Eurogroup and the European Stability Mechanism (ESM) announced they are freezing the implementation of the short-term measures for debt relief sealed on December 5 until it is made clear whether Athens' initiative was in line with the agreement.

Addressing the plenary, Interior Minister Panos Skourletis defended the government's decision to offer immediate financial support to the low pension earners.

"The needs of citizens, the needs of pensioners cannot wait (to be covered). Human lives should have priority ahead of the bureaucracy of Brussels," he said.

The conservative main opposition New Democracy (ND) party voted "present", accusing the Greek government of following a blind course.

Presenting the party's arguments, ND deputy Marios Salmas criticized the government of agreeing with the country's creditors on "unfeasible fiscal targets" over many years which will bring harsh austerity measures so that it can receive some debt relief "and then blowing up the deal."

The proclamation of the bonus, which stands at 300 euros to 840 euros depending on the beneficiaries' monthly income, did not receive a warm welcome also by the largest unions of retirees.

The one-off Christmas bonus, under the government's plan, will be distributed to 1.6 million pensioners out of a total of 2.5 million retirees.

White-haired protesters on the Syntagma square were shouting slogans against the plan, saying that it was like a drop in an ocean, after a dozen rounds of austerity policies since 2010 have shrank their income by 30 to 40 percent on average.

Rejecting as "hypocritical" the idea of one-off benefits a few days after the same MPs ratified the 2017 state budget which foresees new tax hikes, they asked for drastic changes in policy to allow breathing space to households again.

"Return the money you have stolen from our pension funds," read banners held by demonstrators.

"We have paid all these funds. We are tired. We have got sick and today they have come to do this? It is unacceptable. I am ashamed. They should be ashamed. Shame!" Filalidis Kostas, President of the pensioners of Chalkida, a city about 60 kilometers north of Athens, told Xinhua. Endit