Bank of Greece Governor Yannis Stournaras has rejected a proposal by socialist opposition party PASOK to reinstate a 13th pension for public sector retirees, describing the measure as “madness.”
Speaking to OPEN TV, Stournaras, who was recently sworn in for a third six-year term as central bank governor, said the reintroduction of the pension bonus, which was abolished during Greece’s financial crisis, is not supported by available fiscal space, making any such move fiscally irresponsible.
“Yes. They will be benefits that don’t have a productivity or fiscal backing. Yes. It will lead again to difficult situations,” he said.
Stournaras argued that any party proposing additional benefits must first identify permanent funding sources. “Today there is a spending ceiling. There is a Stability and Growth Pact, much more rational than previous ones […] but it sets a spending limit,” he said. “Want to give more benefits? Sure. You can do it. Have you taken measures to increase revenue in a permanent way? Have you found a way to reduce other expenses to provide a 13th pension?”
Stournaras described Greece’s economic performance as a “miracle,” while acknowledging that substantial challenges remain. He said the country’s recovery has attracted significant international attention and noted that he has been invited to discuss it in Argentina in November.
