Greece allocates additional €3.5b for pensions, wages

Greece will allocate an additional €3.5 billion ($3.9 billion) in 2025 for pension and wage increases, as well as defence spending, Finance Minister Kostis Hatzidakis announced on Monday.

The latest financial boost includes a planned pension increase of up to 2.5 per cent and a rise in the minimum wage. Greek Prime Minister Kyriakos Mitsotakis also outlined a cut in social security contributions as part of the package.

Hatzidakis highlighted Greece’s strong economic growth, projected at 2.5 per cent for this year and next, which surpasses the eurozone average.

The country, recovering from a deep debt crisis that saw a 25 per cent drop in economic output from 2009 to 2018, is benefiting from improved public finances and primary budget surpluses. Additionally, Greece plans to accelerate repayments of bailout loans due to its economic recovery.

Attribution: Reuters

Subediting: Y.Yasser