Stournaras: Restore the 13th and 14th salary will deprive money from the poor

The Governor of the Bank of Greece, Giannis Stournarasagain pointed out his opposition to the 13th and 14th reset wage In the State as well as the corresponding pensions, quoting Athens Voice that “if you add extra salaries and pensions, you will deprive money from the poor, at a time when we have to focus on our social policy, and deprive money of investment in infrastructure.”

As Mr. Yiannis Stournaras explained, “if the 13th and 14th salaries and gifts are returned to pensions, the burden on the economy will be 8 billion euros, ie about 3.5 to 4% of GDP per year, a burden that no budget can withstand.” However, as she said, “a government has the right to spend where it judges its fiscal space. But the money we are talking about is too much. The budget does not stand up. And you tell me: Do central banks have the right to comment on this? And I will answer you that with the institutional memory we have for the reasons that caused the crisis in Greece, we must speak clearly. Adding to the 13th and 14th salary, this means roughly 17%wage increase! Is this justified by a productivity increase? No. All he will do is send the economy to the rocks.

Remember that one of the reasons the Greek economy was in 2008/9 was wage increases well above productivity, increases in the public sector. They sometimes tell me: “You’re very tough.” No. The whole crisis has gone through my back, I have learned and speak openly. I’m not afraid to say it. If this is done especially, it will be the most suicidal move. “

Finally, Mr. Stournaras clarified that he was opposed to the horizontal reinstatement, noting that: “To the poor yes. To vulnerable yes. I am in favor of giving not one but two more salaries to the poor. But not horizontally. “

Source: RES – EIA