The Greek government has inched closer to a deal that could prevent Greece from a default and an exit from the single European currency after the ruling party, Syriza, put forward proposals to raise VAT and cut the country’s pensions bill.
In addition, the Greek Prime Minister, Alexis Tsipras, has pledged to achieve budget surpluses of one percent this year, two per cent next year and three per cent in 2017.
Corporation tax will also rise, to 29 per cent, while a “solidarity supplement” on the rate of income tax will also rise, bringing in an extra €220m a year.
Tsipras’ concessions increase the chance that Greece’s creditors and the European Union will agree to release further bailout funds, allowing the government in Athens to make the £1.6bn payout it needs to make to the IMF by the end of the month.
Eurozone finance ministers will meet today to discuss whether the Greek deal is acceptable and if the numbers add up.
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