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Unfreezing public salaries cd be 35 bn

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Unfreezing public salaries cd be 35 bn

Attorney General gives opinion ahead of top court hearing

Rome, 04 June 2015, 18:42

ANSA Editorial

ANSACheck

- ALL RIGHTS RESERVED

-     ALL RIGHTS RESERVED
- ALL RIGHTS RESERVED

The State Attorney General's office told the Constitutional Court Thursday that the cost of ruling against a public-sector salary freeze could be at least 35 billion euros for the period 2010-2015. It added that such a ruling would have a structural impact of around 13 billion euros starting from 2016, according documents seen by ANSA and signed by Vincenzo Rago, a member of the State Attorney General's office. The documents were prepared ahead of a hearing into the constitutionality of a public-sector contract-bargaining block and pay freeze in force since 2010 that is scheduled to take place on June 23. A recent ruling by the Constitutional Court against a 2011 law that suspended index-linked rises in higher State pensions caused a major headache for Premier Matteo Renzi's government.
    As a result of that decision, the government is set to give one-off payments to about 3.7 million pensioners in August. This will cost around 2.18 billion euros, compared to the 18 billion euros it would have cost to give a full rebate to all pensioners. The move may come under legal challenges by pensioners demanding a full rebate. In its opinion on the pay-freeze case, the Attorney General's office said that "trade union prerogatives have been safeguarded" despite the move.
    It also reminded the top court that the Constitution says that the State must "guarantee a balance between revenues and expenditure in its budget, taking account of the adverse and favourable phases of the economic cycle". Civil service union FLP, which filed a petition with the Constitutional Court against the freeze, accused the Attorney General's office of exaggerating. "These figures are inflated to put pressure on the court," said FLP Secretary General Marco Carlomagno. "In any case, the money taken away by the freeze on pay and (collective) contract renewals is not part of worker income, making their spending power, which is at the poverty threshold, even more insecure". Another union, CONFSAL UNSA, has also filed a petition with the Constitutional Court, which will be addressed on June 23.
   

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