Monday, May 9, 2016

Grecja.Parlament passed a new austerity package – Gazeta Wyborcza

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09.05. Athens (PAP / dpa, Reuters, Media) - The Greek parliament approved on Monday shortly after midnight local time, the new austerity package, the implementation of which is a condition for receiving the threatened insolvency of the country further assistance from international creditors.

voted in favor of the package, all the deputies of the ruling coalition, which is in the 300-seat parliament, including 153 formed Coalition led by Prime Minister Alexis Ciprasa leftist Syriza group and a small national-conservative party Independent Greeks. Against the package advocated and all opposition parties; four people were absent during the vote.

Passed two days after a heated debate, the bill provides for reducing pension expenditures of 1.8 billion euros, and to obtain further 1.8 billion euros due to changes in income tax. This week, MPs also have to decide on the increase of indirect taxes by a total of 1.8 billion, which will increase the package to 5.4 billion euros.

On Sunday against pension cuts and tax increases under the new austerity package protesting in the capital of Greece in three successive demonstrations of thousands of people.

Premier Cipras warned on Saturday that if no reforms will soon run out of funds to pay pensions. In contrast, a spokesman for Greece's largest opposition party, the center-right New Democracy accused on the same day the government that will lower pensions than reduce the expanded state sector.

legislated tax changes include increasing the tax rate on the highest income - instead of the usual 42 percent. for the annual gross income of more than 42 thousand. euro will be amounted to 45 percent. for income over 40 thousand. At the same time the use of the lowest 22 percent rate will apply to income to 20 thousand. euro, and not so far to 25 thousand. euro.

also increase introduced in 2012 by way of a fairer distribution of the costs of unemployment and paid from the net income of the so-called solidarity tax. His highest rate of increase of 8 per cent. the annual income of more than 500 thousand. euro to 10 percent. on income over 220 thousand euros. The lowest rate of 2.2 percent. They will be loaded with incomes of 12 thousand. up to 20 thousand. euro. Furthermore, 10 to 15 percent. increase the tax rate on dividends.

The pension system will standardize the rules for granting benefits, including the state pension of 384 euro after 20 years of service. Will be reduced supplementary pensions, implement a process of gradual elimination of additives for pensioners on low incomes and will be re-calculate the amount of benefits. It is limited to the possibility of early retirement. The result of these projects will be a reduction in pension expenditure by two percentage points to about 15 percent. gross domestic product in 2019 years.

As reported on Monday the Greek press, changes in indirect taxes, which the government is to propose to Parliament, inter alia, to raise the rate of VAT and the introduction of additional taxes on fuel and tobacco products, from disposable accommodation rooms and the use of the Internet .

The Greek government hopes that through these savings so-called primitive - that is calculated without the cost of debt servicing - budget surplus reached in 2018 agreed with European partners the target of 3.5 percent. GDP, which significantly strengthen the position of Athens on the international capital market. However, the International Monetary Fund believes that the latest package will provide here only a surplus of 1.5 per cent. GDP. According circulating in Greece relations, to increase this rate by two percentage points IMF demands additional reductions of pensions and salaries of state employees and the increase in VAT on electricity, water and other municipal services from 13 to 24 percent.

         


         


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