The chances of returning retrospectives to more than 2,500,000 retirees are rising but in four years, based on five key factors that can bring unpleasant upsets but also … pleasant news.
More specifically, the new data set for the return of billions of euros are passed through the judgments and go as far as the adjustment of the primary surplus target with … in exchange for bold reforms by the next government.
The Return of Retrospectives Depends on the Following Five Factors:
The waiver of the EMFF from the recourse on the reimbursement of the amounts cut off from pensions and gifts makes the amounts due because the claims of the beneficiaries are perfectly legitimate. This development is linked to the government’s political choice to create a problem in the … next government, which has to cut back on saving the sums involved. The EFCA admits the correctness of the decision and is not going to offend it, which proves clearly that there is a central line from the government to … the wave of demands the next one! Indeed, it has been registered with a retired resignation to which EUR 760 was reimbursed in 2013, whereas in May, by Court of First Instance judgments, EIB-EEP was obliged to reimburse to two pensioners amounts of EUR 3,386.54 and EUR 2.323,12 and EUR 3,386.46 and € 1818.18 respectively. Note that for the amounts relating to the period from 1 July to 28 December 2018 interest was also calculated at 6%!
2. Elections and change of government
The current government is not worried about the payment of … broken for the pensioners’ retrospective, as the enforcement of the court decisions will be made by the … followers. Thus, the issue of retrospectives is expected to be high in the political debate and will be of particular interest in how court decisions will be implemented, which are expected to increase dramatically as time passes.
3. Reduce primary surplus
European Neighborhood Party leader Manfred Weber, who is forerunner of a new European Commission president, said after his meeting with New Democracy President Kyriakos Mitsotakis that it is open to the reduction of the primary surplus targets to 2% , as long as there are reforms that will lead to substantial growth. Such an evolution could lead to a “3 billion-euro” reduction of the primary surplus target from 2020. This could make realistic the return for most of the retrospective, which is estimated to be at least 10 billion . euro. If anything, it will be easier … to return the bulk of such an amount.
4. Removal of personal dispute
Cutting pensions to 1,400,000 pensioners has been prolonged for one year and the issue will therefore be reopened with the 2020 Budget. This is vital to achieving the primary surplus target, which by 2022 has been placed at 3.5% of the Gross Domestic Product. The amount that could be saved from such a move amounts to EUR 2 billion and, together with a possible reduction of the primary surplus target, could create conditions for reimbursement to beneficiaries.
5. Tax-free limit
The reduction of the tax-free threshold to EUR 5 685 is now projected to target the primary surplus of 3.5% of GDP in 2020 and beyond. This reduction, coupled with a small reduction in tax rates by the next government and the implementation of the abolition of personal dispute from 1 January 2020, due to the third 2015 Memorandum, would create a financial space for the gradual return of money to the beneficiaries. It is noted that the refund of the possible amounts to be received by the beneficiaries will be subject to a tax charge based on the new tax-free. Recently, it is the case of the retrospective return of those who belong to the “special payroll” (military, security forces, teachers, academics, etc.).
Great Expectations in Stifling Conditions
The number of pensioners hurrying to law firms and labor workers is rising rapidly to write collective actions to establish a claim for reimbursement … of amounts due.
According to a top law firm, so far the lawsuits have been filed for the retroactive claim by pensioners of all insurance funds, as well as active civil servants, for retained salary, main and supplementary pensions, solidarity levy, Christmas and Easter gifts, authorization. It is noted that by June 30th, the lawsuits can be filed in order to guarantee the cuts of the period 2012-2018 and not to be abrogated for at least one semester under Laws 4051/12 and 4093/12. It should be noted that a decision of the Council of State in June 2015 justified the pensioners, so legal claims are up to date, while the government until a few months ago regarded as “legitimate” the claims from June 2015 until the entry into force of the law Catastroge, on 13/5/2016.
Moreover, the government’s line up until now has been that those who have been justified for the past few years … have taken over, while the law of Catastroge “absorbs” cuts and injustices by 2016. According to the workers, this can not be the case, Catastrophus has blown the gaps in the system and simply changed the way pensions are calculated. Pensioners are therefore legally entitled to file legal actions and claim for the period 2015-2018, as the government should have cleared things three and a half years ago.
An additional “push” for hundreds of thousands of retired people is the filing of claims for the equalization of pensions with those who maintain the personal dispute, which has been postponed for one year. It should be noted that the total of retrospectives is estimated at at least EUR 10 billion and their gradual return is at … table, depending on the course of budgetary figures. Indeed, if a new government emerges, which will take as a … gift to reduce the primary surplus to 2% from 2020 onwards, then all possible reimbursements will be open.