Different tricks planned for each verdict on retroactive bonuses

The government is considering ad hoc solutions to tackle the major issue of retroactive claims by millions of pensioners and civil servants.

The response to the decisions expected to be made by the Council of State, which will inflict permanent fiscal costs, will be the introduction of "balancing measures" so as not to affect the budget. By contrast, in the case of any decisions that lead to a one-off burden on the budget, the government is planning to pay the retroactive payments in annual installments so as to reduce the impact on the budget.

Athens further intends to soften the fiscal blow by asking the country's creditors for the exclusion of those retroactive payments from the calculations toward the primary budget surplus target to see whether the country is sticking to its pledges (for primary surpluses of 3.5 percent of gross domestic product every year). The...