EU, IMF Insist on Greek Minimum Wage, Bonus Cuts, Mega TV Says

Greece’s international creditors insist the country cut its minimum wage as a condition of the second financing package for it being discussed in Athens, Mega TV reported, citing unidentified ministers who met with Finance Minister Evangelos Venizelos earlier today.

Officials from the European Commission, European Central Bank and International Monetary Fund, the so-called troika, demanded the minimum wage be cut to less than 600 euros ($790) a month and that at least one holiday allowance, the so-called 13th and 14th wages, be abolished, Mega TV said. Pensions paid by supplementary funds should be cut by 35 percent, the Athens- based channel said.

Of 4.4 billion euros of measures needed to meet targets for 2011 and 2012, 1.5 billion euros will come from cuts in health- care and defense spending, Mega said. None of the measures should be from tax increases or new levies, it reported.

To contact the reporter on this story: Natalie Weeks in Athens at nweeks2@bloomberg.net

To contact the editor responsible for this story: Jerrold Colten at jcolten@bloomberg.net

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