Italy to pay 2.2b euros to pensioners in August

[ROME] Italy will pay 2.2 billion euros (US$2.51 billion) to retirees to respect a constitutional court ruling that overturned part of a landmark 2012 reform that cut pension spending, Italian Prime Minister Matteo Renzi on Monday.

Mr Renzi's Cabinet passed a decree to make the one-off payment in August to 3.7 million pensioners, the prime minister told reporters. The majority of the funding is already set aside in this year's budget, Mr Renzi said.

Last month's court ruling has posed a major headache for the government, which has struggled to keep public finances within the limits of European Union budget rules.

REUTERS