Greece Accelerates Cuts to Wages and Pensions

Sept. 22 (Bloomberg) -- Greek Prime Minister George Papandreou’s government said it will accelerate budget cuts, targeting civil servants’ wages and pensioners to keep emergency loans flowing and avoid default.

Measures announced yesterday following two rounds of talks with the European Union and the International Monetary Fund include: a 20 percent cut in pensions of more than 1,200 euros ($1,650) a month, according to a government statement; pensions paid to those younger than 55 will be shaved by 40 percent for the amount exceeding 1,000 euros and wages will be lowered for 30,000 state employees.

Basically, I can only support cuting the wages and pensions of overpaid public servants. But the fact that they cut it to bail out foreign lenders is not acceptable nor should it be admitted by the Greek voters themselves.

It seems like everybody think it is ok from Greece to default on their nation's pension promises but not on the foreign investors, banks and speculaturs who lent them money?!