Greek lawmakers approved tax increases and a new privatization fund Sunday and freed up the sale of non-performing loans in exchange for much-needed bailout loans and debt relief. They voted Sunday ahead of a eurozone finance ministers meeting on disbursement of funds. Athens hopes the measures, two days before a key euro zone finance ministers meeting, will help it unlock the funds it needs to pay IMF loans, ECB bonds maturing in July and increasing state arrears. The bill, which is designed to cut state spending, passed with a vote of 153 to 145, with all of the government coalition members in Parliament voting in favor. Leading up to Sunday’s vote more than 2,000 people had gathered outside the Greek parliament protesting against the new measures, Greek police told AFP. Authorities expect additional demonstrations to take place throughout the day as people on both sides of Greece's political divide have criticized the latest austerity proposals. The new measures include fiscal policies that would increase taxes on fuel, tobacco, alcohol, Internet, pay TV, hotel stays, cars, and other basic goods. Greece and its European creditors are locked in talks on how to reduce the country's debt burden, which the International Monetary Fund said must happen if it is to contribute any more of its own funds. The eurozone and International Monetary Fund are struggling to agree on the timing of Greece’s debt repayments, with European countries saying debt relief will be provided “if necessary” at the end of the bailout in 2018. Greece has pledged under its latest EU bailout to bring its primary budget surplus, which excludes debt payments, to 3.5 percent of gross domestic product by 2018. Should Athens fail to reach its fiscal targets, it must resort to the new mechanism to save up to two percent of output in a fiscal year. Source URL |
