ATHENS Jan 22 A top Greek court has struck down wage cuts imposed by the
government in 2012 on police and armed forces to comply with the terms of the country's EU/IMF
bailout, court and government officials said on Wednesday.
The ruling by the Council of State, Greece's highest administrative court, could blow a hole
of as much as 500 million euros ($677 million) in the country's finances, a senior finance
ministry official warned, further complicating already stalled talks with international lenders
to release more rescue loans.
Its ruling that a 10 percent wage cut for policemen and soldiers applied in 2012 was
unconstitutional has not been made public but was confirmed by court and government officials
after it was leaked to local media. "They are a core part of the state and therefore deserve
special protection," a senior court official told Reuters on condition of anonymity.
Portugal's constitutional court has also rejected austerity measures agreed by the
government under its bailout.