Troika back for 11th assessment

By TPN/Lusa, in News · 20-02-2014 11:17:00 · 0 Comments
Troika back for 11th assessment

The troika (International Monetary Fund, European Central Bank and the European Commission) is back in Portugal on Thursday for the 11th regular assessment of the Portuguese bailout and are going to discuss, among other points, permanent measures to reduce pensions.

The need to identify structural measures for the question of the pensions arose after the Portuguese constitutional court rejected the so-called convergence system which anticipated a 10% cut in public sector pensions to bring them closer in line with those in the private sector.

In order to compensate for the €388 million lost through the court decision, the government increased contributions for the state-sector social security system from 2.5% to 3.5%, and expanded extraordinary contributions to workers earning more than €1,000 instead of those earning over €1,350.

As well as pension reforms, negotiations are also going to focus on limiting future electricity price hikes for the final consumer.

The end of the financial and economic assistance programme has a date set, but how the country is going to leave is still being discussed and the government and even international creditoirs all say they are going to wait for April before taking any decision.


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