Cuts in pensions and salaries for state employees that the Greek Government has planned to unlock critical bailout funds were ruled unconstitutional by a court yesterday, the semi-official Ana news agency reported.

The Court of Auditors unanimously ruled that the reduction in pension benefits, the fifth in the past few years, as well as the elimination of annual bonuses for state employees, were against the provisions of the Greek Constitution.

The Government has circumvented the court’s previous decisions that earlier wage and benefit cuts were unconstitutional, and Finance Minister Yannis Stournaras said after the ruling: “I’m not particularly concerned, I believe the measures will be applied.”

Under pressure from the EU and IMF, the Greek Government pushed through beginning in 2013 an increase in the retirement age from 65 to 67, and a progressive reduction of five to 15 per cent in pensions above €1,000.

The Government is planning €9.4 billion in cuts, which will affect mainly state wages, pensions and benefits that have already been drastically reduced over the past two years.

The cuts are part of an austerity programme worth €13.5 billion overall, which it hopes will be enough to unlock €31.2 billion in rescue funding. Greek Prime Minister Antonis Samaras has said the coffers in Athens will run dry on November 16 – when a three-month treasury bill worth five billion euros must be repaid – unless it receives funds from its latest bailout deal.

Meanwhile another Greek court late yesterday acquitted a journalist accused of a breach of privacy in publishing a list of Greeks who allegedly hold Swiss bank accounts, igniting an uproar in debt-wracked Greece.

Costas Vaxevanis, 46, a veteran TV journalist who now publishes a magazine, had defended his actions saying he was doing his job while ministers responsible for vetting the list for possible tax evasion did nothing for two years.