Greek debt downrating leads to pension reform

Following rating downgrades by all three of the major ratings agencies, the Greek government has been forced to introduce a raft of fiscal reforms, including changes to its unsustainable pension system.

As part of Greece’s ‘austerity budget’ approved by all 160 members of the ruling socialist Pasok party on Christmas Eve, the government has targeted reducing its budget deficit from 12.7% in 2009 to 9.1% in 2010 as its overriding priority.

One of the key reforms will be tackling the country’s