Athens vote on austerity plan today to launch pension cuts and tax increases – Il Sole 24 Ore

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This article was published on May 8, 2016 at 08:13 hours.
the last change was the May 8, 2016 at 22:31.

Salt, like every summer, the social tension in Greece. Economy Minister greek, Euclid Tsakalotos turned its euro area partners inviting them to approve, extraordinary Eurogroup tomorrow, the reforms undertaken by Athens. “Greece – the minister writes in a letter to his colleagues eurozone – needs a clear statement on the ongoing reforms and those that will be taken and to which the country adheres to regain the confidence of investors and the road to recovery” . Athens needs the tranche of 5 billion with which to pay 20 July the maturing bond ECB for 2.2 billion euro.

Eurogroup The 19 Finance Ministers will have to express their views on reforms in Greece. After months of discussion the reforms put on the plate have not yet fully satisfied with the troika, also because of the differences between the representatives of Brussels and those of the IMF. Last Friday was released a letter from Christine Lagarde, where one of the IMF number pressed on the EU to reopen a discussion on greek debt (including implementation of a possible downward revision of the objective of the primary budget surplus, which is equal to 3 , 5% of GDP for 2018 and that the IMF considers “counterproductive”).

In addition, the IMF’s threat not to attend the third rescue program for Greece from 86 billion if the discussion on the debt will not start tomorrow.

The creditors have asked for additional austerity measures in Athens for 3.5 billion euro could trigger if you do not reach your goals and Tsakalotos noted that “a similar package of measures will be approved by either the current government, nor by another democratic government. ” The greek minister recalled that Athens has already agreed to take steps to EUR 5.4 billion and that Parliament today will vote on the pension reform to stabilize the pension system and new tax measures in the second day of the fourth general strike since the beginning of year He has blocked the information sector, public transport and ferry services to the islands (by blocking some tourists). Athens now has to approve an austerity plan by 3.6 billion on pensions and increase in direct taxes and another cut by 1.8 billion euro subsequently increase indirect taxes. There is a minimum pension with 20 years of contributions to 384 Euros per month, a sharp rise in social security contributions for the self-employed, lawyers and doctors in particular. Also it will be reduced the tax exemption threshold increasing the pressure on the middle class and higher incomes. The government led by Syriza Alexis Tsipras has a narrow majority of 153 votes out of 300 seats.

An openness to the demands of the IMF has come from the German Vice Chancellor and Social Democrat Sigmar Gabriel, who urged ministers eurozone finance to start talks on reducing the greek debt, arguing that it makes no sense “to crush the economic recovery shoots with other austerity measures.”

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