In the midst of huge public protests, Athens has approved more budget
cuts, tax increases and a new privatization fund to manage almost all
state property in order to get further rescue loans from European
The government hopes to incorporate an extra €1.8 billion in revenue
and get the next tranche of much-needed bailout funds to pay IMF loans,
bonds held by the ECB coming due in July, and decreasing state debt.
European creditors are expected to disburse €11 billion ($12.3 billion)
following an assessment of the country's third bailout program. Under
the terms of the bailout deal agreed last year, the international
lenders will provide as much as €86 billion in aid. “Greeks
have already paid a lot, but this is probably the first time the
possibility of these sacrifices being the last is so evident,” said
Prime Minister Alexis Tsipras to Parliament before the vote. The PM
expects the country’s economy to grow three percent next year.
reforms involve new taxes on alcohol, tobacco, fuel, internet usage,
cars, hotel stays, as well as an increase in the basic value-added tax
rate from 23 to 24 percent.
#Greece's 2y yields drop more than 100bps after austerity vote.
The measures also aim to free up the sale of non-performing loans owned
by Greek banks and to establish a privatization fund controlling the
country’s assets. The fund, controlled by the country's creditors, is
expected to ease the sale of public companies.
The bill was supported by 153 members of the Syriza-coalition with 145
MPs voting against. The step came ahead of a Eurogroup meeting on
Tuesday that is expected to unlock another tranche of money for
As austerity debate nears end, a homeless man walks through an underpass, holding bottle of wine #Greece
Under its current deal with the European Union, Athens is to bring in
a primary budget surplus to 3.5 percent of gross domestic product (GDP)
by 2018. READ MORE: Berlin eases objections on Greek debt relief deal
this month, the Greek parliament passed reforms of the pension and
income tax systems to save Athens another €3.6 billion.
unpopular reforms have resulted in protests across the country.
Thousands gathered outside the parliament building in Athens on Sunday
to rally against the measures. Transport workers staged a 48-hour-strike
in protest of the new tax hikes.