The Greek debt crisis saw pensions cut by as much as 50 per cent following demands by Greece’s creditors.
A class action case brought forth by pensioners has been successful with the Council of State administrative court ruling on Tuesday that pension cuts imposed during 2015-2016 occurred without the proper legislative procedure. The Council of State ruled for those who petitioned to the courts, but the ruling could pave the way for the return of funds to all 2.5 million pensioners affected by the cuts which were imposed by successive governments during international bailout agreements.
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The ruling could see Greece paying back for pensions worth up to three billion dollars, a blow to the country which is now suffering from the economic impact of COVID-19 following a harsh decade-long recession which saw its economy shrink by a quarter. The pandemic is also expected to see a further 7.5 per cent contraction to its economy.