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IMF insists on pension cuts claiming “Greece must send message to investors”

The International Monetary Fund insists on further pension cuts in Greece citing not fiscal necessities  but claiming the country must send a clear message to investors and the markets. During a briefing  on Thursday, IMF spokesman Jerry Rice said the measure was voted and adopted in 2017 and it is not new.

The position of the IMF is that implementing this measure “will not only improve the long-term prospects of the social security system it will also send a clear message to investors and the markets that Greece remains on the path of reforms,” Rice said.

He added that this move will create the conditions for a most balanced system of social policy as it create fiscal space also for other growth policies and reduction of tax burdens.

“The need to shift to more growth friendly fiscal policy mix is helped by pension reform,” Rice said.

PS I suppose when the measure of broadening the tax-free basis and tax the poor with income below 6,000 euros is due in 2020, the IMF will claim that taxing the poor is a precondition investors put on the table in order to invest in Greece.

Me think: Stupidity prevails where there is lack of fiscal arguments.

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One comment

  1. So basicalky, the IMF big « brain » found THE solution to attract investors : reduce pensions from old people who are already struggling after a life of work and earn a few hundreds of euros ?
    That’s it ? That’s the idea ? They really REALLY take us for fools.
    Argument NOT VALID