Greece’s Pensions Remain Key to the Debt Deadlock

Greece’s pension system has become a major sticking point in the bailout talks between the country’s far-left government and its international creditors, with Athens offering little concession on Brussels demands for its overhaul.

The Greek government has pledged to stand firm against implementing further cuts to pensioners’ income, but creditors insist that further austerity is probably necessary if Greece is to pay its bills.

Talks have come down to the wire, with the Greek government and its European lenders yet to reach a compromisethat would release the next tranche of 7.2 billion euros ($8.2 billion) in aid. The key sticking points include reform to the pensions’ system and labor market.