On Wednesday 3 May, the General Court of the European Union stated that Greek citizens who have suffered a reduction in their pensions as part of the recovery plan cannot reclaim damages or interest from the EU.
Greece has been subject to the financial control of the Eurozone since 2010. On several occasions, it has being forced to reduce the amount of individual pensions in order to comply with the European level adjustment plan created by the Eurogroup, in exchange for financial assistance.
In 2014, around 60 Greek citizens went to the General Court of the EU to demand compensation and interest worth more than €1 million from the Council of the EU, which they accuse of having violated their fundamental rights, as well as the principles of allocating competency and subsidiarity (Sotiropoulou and Others v Council T-531/14).
The General Court rejected the demand for compensation from the Greek citizens. It argues that the decisions of the Council do not encroach on the principles of the allocation of competency or subsidiarity, insofar as these decisions were made in view of enhancing budgetary surveillance in Greece. In a press release, it indicates that, “the disputed decisions are covered by the powers expressly allocated to the Council”.
Although the General Court acknowledges that the European Charter of Fundamental Rights confers rights on European citizens, it is of the opinion, however, that the Council did not exceed the limits of its broad remit of interpretation. It argues that given the deteriorating state of Greek public finances, it was not unjustified to adopt economic measures on different areas of expenditure, including those relating to the Greek pension system. (Original version in French by Mathieu Bion)