EU Commission says Greece should deliver on promised pension cuts

Greece should deliver on the promises it has made to its international lenders under its bailout, the European Commission said on Friday when asked whether Greece was free to forego a planned pensions cut in 2019.

“Our position is crystal clear: pacta sunt servanda. This is the only position you need to look at,” Commission spokesman Alexander Winterstein told a regular news briefing, using a Latin proverb which means “agreements must be kept.”

Greece and its euro zone creditors agreed in 2017 a pension reform under which Athens would cut pensions in 2019. The measures has been approved by the Greek parliament.

The pension reform was one of the key changes required for disbursements of cheap loans to the Greek government which has been cut off from market borrowing in 2010 because of its huge debt. [Reuters]