Greek Council of State rules cuts to army and police wages were unconstitutional

Greece’s Council of State dropped a small bombshell right in the middle of Troika-imposed radical income decreases. The Council of State has reportedly ruled that cuts made to the wages of members of the armed forces, police, coast guards and firemen in August 2012 were unconstitutional and that the government must pay the salaries it withheld back to those affected by the austerity measure.

Τhe decision was reportedly taken unanimously and was leaked to the press on Sunday evening. While the reasoning of the decision is not clear yet, media report that the decision will be officially published within the next two-three months, most likely around April.

While it is not clear how much money the Greek government has to pay back, some media claim the estimated amount was 340,000,000 euro. An amount that definitely cannot be given back as a whole.

Media report that the government may not be obliged to comply with the court decision, but that the ruling opens the way to Greek government in its austerity negotiations with the country’s lenders, the Troika.

Kathimerini has some additional information:

“It was not immediately clear how much the government would have to pay back but the coalition indicated it would wait for the decision, apparently taken by a plenary of judges at the country’s highest administrative court, to be made public.

Administrative Reform Minister Kyriakos Mitsotakis said that the government would respect the court’s decision but that it would have to be made official first.

Health Minister Adonis Georgiadis said that the decision would not change the fact that the coalition is facing severe fiscal constraints.

“No matter how many court decisions there are, we won’t suddenly be able to generate money,” he said on Monday morning.

Groups representing armed forces, police, fire service and coast guard personnel launched their appeal against the wage cuts in January 2013.

The court’s decision is expected to be made public in the next three months.” (ekathimerini)