As Greece and its lenders make a new push to conclude negotiations that could secure more bailout funding, it is certain that the country’s pension system will prove one of biggest obstacles to a deal.
Greek pension funds have lost 32 billion euros since the beginning of the crisis and are facing a funding gap of 5.1 billion euros but the collection of social security contributions is improving, according to new figures.
The main, and in many cases only, source of income for almost half of Greek households are pensions, whereas they rely on salaries most in just one in three cases, according to a new survey.
One of the main problems the Greek state faced at the start of the crisis was putting right the obvious public administration inefficiencies that had become an undue burden on the country’s finances while also being a source of gross unfairness. An example of this was Greece’s pension system and the poor way in which it was managed.