At an extraordinary session chaired by Prime Minister George Papandreou, the Greek government reached a multi-million agreement with the European Union and the International Monetary Fund to rescue the country from a deep financial crisis.
At an extraordinary session chaired by Prime Minister George Papandreou, the Greek government reached a multi-million agreement with the European Union and the International Monetary Fund to rescue the country from a deep financial crisis. I will do everything to avoid a state bankruptcy. Every resident of Greece will be called upon to make difficult sacrifices to avoid disaster. These sacrifices will give us ‘breathing room’ and time to make necessary changes in the country, said Papandreou.
The Greek government has thus adopted strict measures aimed at saving 30 billion euros in three years, in order to reduce public debt below three percent of gross domestic product by the end of 2014. The new austerity measures, more drastic than those introduced two months ago, were announced to the nation by the Prime Minister. By 2014, salaries in public services will be frozen, and the 13th and 14th salaries, essentially the Christmas bonus and vacation pay, will be lost. Pensioners will lose the same. VAT will increase from 21 to 23 percent, and excise taxes on gasoline and alcohol will rise by another 10 percent.
(www.hrt.hr)
