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Government aims to generate 400 to 500 million euros (1% of GDP) to cover the fiscal deficit for 2017-2018
The negotiations between the Greek government and the institutions quartet are carrying one in an effort to reach an agreement on the bailout review by the end of April.To Vima has been informed that the institutions have accepted the Greek side’s proposal to raise the VAT’s top-tier rate, from 23% to 24%. This will cover the 400 t0 500 million euros (namely 1% of GDP) of the fiscal deficit for 2017-2018.By raising the VAT to 24% the government will avoid having to increase the VAT on private education or the VAT in electricity and water.At present negotiations are also being carried out over the possibility of raising the ENFIA real estate tax and the VAT on magazines, books and newspapers, which is currently 6%.Meanwhile, rumors circulated after Tuesday’s press conference that the Alternate Minister of Finance Giorgos Houliarakis has disagreed with the tax hikes. Close associates of Mr. Houliarakis dismissed the rumored, noting that the Alt. Minister personally coordinated the tax reform plans and measures.
ATHENS, Greece – A senior European official says Greece has failed to reach a deal with bailout lenders before a May 1 target date set by Athens.Negotiators from the International Monetary Fund and European Union institutions are in Athens to try and hammer out new austerity measures under a third international bailout, but failed late Tuesday to overcome differences.
More than 16,000 businesses shut down in Greece in 2015, according to European Commission figures.Since the economic slump of 2008, and the 2010 economic crisis that followed, the private sector in Greece has received a tremendous blow with a total of 244,712 businesses closing down.
QuoteMore than 16,000 businesses shut down in Greece in 2015, according to European Commission figures.Since the economic slump of 2008, and the 2010 economic crisis that followed, the private sector in Greece has received a tremendous blow with a total of 244,712 businesses closing down.http://greece.greekreporter.com/2016/04/27/more-than-16000-businesses-shut-down-in-greece-in-2015/Can't see more austerity improving anything
Quote from: Maik on Thursday, 28 April, 2016 @ 13:02:00QuoteMore than 16,000 businesses shut down in Greece in 2015, according to European Commission figures.Since the economic slump of 2008, and the 2010 economic crisis that followed, the private sector in Greece has received a tremendous blow with a total of 244,712 businesses closing down.http://greece.greekreporter.com/2016/04/27/more-than-16000-businesses-shut-down-in-greece-in-2015/Can't see more austerity improving anythingI agree totally, Maik - this country seems to be intent on self-destruction.
Euro zone finance ministers are expected to meet in the new few weeks to discuss the continuing problems surrounding Greece and its third bailout as the country falls out, yet again, with its lenders.The head of the Eurogroup, Jeroen Dijsselbloem, said on Wednesday that there was no set date for a meeting but that there was a sense of "urgency" over Greece and its fought-over 86 billion euro ($97.6 billion) bailout."I don't have a deadline, although there is a sense of urgency that we all share, so we'll have to see whether it can be next week or ultimately the week after," he told reporters in Paris after talks with French Finance Minister Michel Sapin, Reuters reported.Nicolas Koutsokostas/Corbis via Getty ImagesA meeting to discuss Greece was due to take place Thursday but was canceled due to a lack of progress in identifying the necessary Greek government reform actions. Now, an extraordinary meeting of the Eurogroup is expected to be held ahead of a scheduled gathering on May 24.A major stumbling block between Greece and those overseeing its third bailout program – the Eurogroup, European Central Bank, European Commission and International Monetary Fund (IMF) – is what happens if Greece fails to meet its fiscal targets by 2018.Lenders want a contingency plan enshrined in law that would automatically trigger spending cuts in case Greece fails to meet its fiscal targets, but Greece has said it cannot legislate on a hypothetical event. It has also proposed an automatic "fiscal correction" mechanism that could kick in in such a scenario but the IMF has insis–ted on legislation. Dijsselbloem also commented yesterday that such contingency measures were not unusual.