ATHENS: Greek lawmakers have agreed to fast-track draft legislation to cancel a major round of pension cuts scheduled to take effect on Jan 1, after bailout lenders agreed they were no longer needed for the country to balance its budget.

A parliament committee voted Thursday to debate the amendments as emergency legislation, canceling articles in a law voted last year that would impose cuts worth 1 per cent of Greece’s gross domestic product.

According to European Commission estimates, the measures would have seen 1.4 million out of Greece’s 2.6m pensioners suffer a monthly loss of at least 14pc.

A key post-bailout target agreed between Athens and lenders is maintaining a primary surplus the annual budget balance before debt-servicing costs of at least 3.5pc.

A recent report said that Greece remains on track to meet that target, a conclusion endorsed by Eurozone finance ministers at a meeting this week.

“We support the decision not to proceed with the pre-legislated pension cuts which are not needed to ensure the long-term sustainability of the pension system or in order to reach next year’s primary surplus target,” European Union Finance Commissioner Pierre Moscovici said after the meeting.

Published in Dawn, December 7th, 2018