Greek parliament will reject to ratify the current proposal–will the government fall?

[Свободный Ион]

At the emergency Euro-top in Brussels on Monday, Tsipras and Varoufakis have brought up a ‘final and best’ proposal to be considered by its European ‘partners’ (read: creditors). The country now ‘suddenly’ found 2.7B EUR of savings/income for 2015 and 5.2B EUR for next year. The majority of the gap will be closed by an extensive VAT reform which would result in an additional cash inflow of 1.4B EUR in 2016. The government also wants to reduce the pension payments by 800M EUR, and it’s now specifically including yachts in a ‘luxury tax raise’ which should bring in 47M EUR. The corporate income tax would also be increased again to 29% from next year on.
The European leaders seem to be optimistic about this new proposal and aims to have a binding solution by the normal euro-top which starts on Thursday.
However, not everybody is happy with the new plan, and Prime Minister Tsipras is getting a lot of heat from the Greek parliament and even some hard-liners in his own party have openly declared they will not accept the newest proposal.

@темы: link, Investment watch blog, Greece, economy

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