Insurance Funds Lost 33 Billion Euros During Crisis

Greek Social Security Funds (POPOKP) 30th Congress of Employees, presented figures which show that social security funds in the country have recorded losses of 33 billion euros during the past six years of the financial crisis . At the same time, the funds foresee that their budgets in 2014  will show a deficit that may exceed 2 billion euros. According to Thanasis Kapotas, head of the Federation of Employees in social security funds, the recorded deficit of 33 billions is due to unemployment, which led to a loss of revenues of approximately 7 billion euros. Moreover social security loss in revenues can be attributed to other factors, such as a loss of 3 billions in wage cuts, the loss of social security contributions due to evasion, the undeclared work and flexible employment cases, which generated a 8.5 billion deficit, the reduction of insurance contributions which costs 1.2 billion and the cuts in social benefits which cost 1 billion. The employees in social security funds estimate that the deficit for 2014 will exceed 2 billion euros. More specifically, IKA will record a deficit of 807.9 millions, the Single Auxiliary Social Security Fund (ETEA) a 274 million deficit, the Insurance Organization for the Self-Employed (OAEE ) a 462.7 million deficit, the Agricultural Insurance Organization (OGA) a 181.3 million deficit, and the Public Employees Welfare Fund (TPDY) a 66.2 million deficit.  

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