Friday, July 10, 2015

Athens, the Parliament votes on the plan by 13 billion Tsipras says that … – Il Sole 24 Ore

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This entry was posted on July 10, 2015 at 7:12.
The last change is the July 10, 2015 at 21:46.

The greek Parliament met in from 19 (18 Italian) to discuss and vote on the ‘latest plan presented to creditors in the night by Tsipras. The law authorizing the government to negotiate a new agreement for financial assistance by the ESM (European Stability Mechanism), on the basis of proposals made by the executive, was passed in the joint meeting of the four parliamentary committees of Parliament. Will follow the debate, into the night.

The greek prime minister asks for a mandate to deal with the creditors, not to leave the euro. “We are confronted with crucial decisions,” he said in the morning, addressing the deputies of his party. “We have a warrant to rip a better deal than the ultimatum of the Eurogroup, but we have certainly a mandate to lead Greece out of the eurozone.” “In all of this we must be united,” he adds. In Syntagma Square, in front of Parliament, thousands of people gathered in the evening to demand respect for the outcome of the referendum last Sunday, which has rejected the latest proposal of the creditors.

The new proposal is actually very similar to that put forward by the EU and IMF before the referendum is a ploy by $ 13 billion over two years (7.2% of GDP greek) that should prevent the exit Greece and the euro to meet most of the requirements of Europe. Increase the VAT for restaurants (but hotels are 13% pure and electricity 6%), it disappears discount of 30% to the islands, climb the corporate tax from 26 to 28% for an additional revenue of 130 million euro (disappears request to tax the 12% corporate profits exceeding 500 million), will be penalized the baby-pensions and retiring at age 67 by 2022, share the privatization of ports and regional airports. Increase taxation on the operators with increasing the tonnage.

New Democracy, the main opposition party led by former Prime Minister Samaras, has already said he will vote yes as well as probably the Socialists and the party’s pro-EU To Potami. The green light by the Parliament therefore seems obvious: to Tsipras, if anything, the problem is to pass the mandate to negotiate with the EU to its majority of 162 seats out of 300. The radical wing of Syriza has in fact already challenged the plan. Here are the details of the proposals submitted to the creditors by the greek prime minister.

Reform VAT
In the new plan of the government in Athens is planned taxation of VAT to three levels, with medicines, books, art shows and theater to 6%; hotels, energy, fresh food and basic groceries and 13% of processed foods, restaurants and more than 23%. It eliminates the 30% discount on the rates of VAT on the islands, starting with the largest and most famous as Santorini and Mykonos, beginning in October 2015. The remote islands will be offset by other benefits.



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