Greece awaits new round of tax rises and spending cuts
The Greek government plans to announce a third round of tax increases
and spending cuts to alleviate the country’s financial crisis.
Expect an increase in the VAT and the prices of petrol and diesel, and
to make a move to abolish the holiday attention generous bonuses to
staff.
PM George Papandreou over the financial crisis, a situation of war .
The Socialist government has pledged to reduce the budget deficit of
Greece by 12.7% – more than four times the limit under the rules of the
eurozone – was 8.7% in 2010.
He also tried to reduce the 300 billion euro ($ 419bn, 259bn) of debt.
He said that Greece was to avoid a nightmare bankruptcy in which not
the state be able to pay wages and pensions.
Mr. Papandreou has taken some dramatic turns of phrase to describe the
fiscal problems of Greece in recent months, but that was his alarming
so far, says the BBC’s Malcolm Brabant in Athens.
We believe that VAT will be increased by two percentage points, the
prices of petrol and diesel will be increased for the second time in a
month, and that luxury goods are subject to excise tax.
The government plans to abolish the annual paid holiday for civil
servants, says our correspondent.
Minister for Economic Louka Katseli warned that measures to assist
should be socially just.
Doing business in Greece is more likely to react negatively to tax
increases, as they see it, hold such disadvantages, consumer spending
and contribute to a new spiral, says our correspondent.
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