More austerity measures

[Maik]

Greece offers to raise value added tax to appease lenders

Greece has offered to raise value-added tax for hotels in an effort to appease EU/IMF lenders and wrap up a bailout review that has held up its plan to quit the unpopular aid programme, government officials said on Monday.

Over the weekend, Athens made the concession on VAT and offered to discuss pension reforms in a bid to convince lenders that it will meet its target for an almost balanced budget next year, finance and labour ministry officials aid.

The head of a body representing the tourist industry - which accounts for about a fifth of Greece's economy - called the plan to raise VAT from 6.5 percent to 13 percent for hotels "economic suicide".

In addition to raising VAT on hotels, the government has also offered to freeze minimum pensions in 2016 and 2017, the PASOK official and a labour ministry official said. It is also willing to discuss gradually increasing the required level of social security payments needed to qualify for a pension to 20 years from 15 years for Greeks born after 1975 and preventing full pension payouts to anyone who retires before the age of 62.

http://uk.reuters.com/article/2014/12/01/uk-greece-bailout-idUKKCN0JF2AE20141201