New Greek austerity measures

Yesterday, the Greek government announced a spate of emergency austerity measures, designed to help the country close its yawning budget gap. Half are new taxes, and half are spending cuts, including: Hiking the VAT from 19 percent to 21 percent (worth 1.3 billion euros) One-off corporate tax (1 billion) Cutting "holiday bonuses" by 30 percent ...

LOUISA GOULIAMAKI/AFP/Getty Image
LOUISA GOULIAMAKI/AFP/Getty Image
LOUISA GOULIAMAKI/AFP/Getty Image

Yesterday, the Greek government announced a spate of emergency austerity measures, designed to help the country close its yawning budget gap. Half are new taxes, and half are spending cuts, including:

Yesterday, the Greek government announced a spate of emergency austerity measures, designed to help the country close its yawning budget gap. Half are new taxes, and half are spending cuts, including:

  • Hiking the VAT from 19 percent to 21 percent (worth 1.3 billion euros)
  • One-off corporate tax (1 billion)
  • Cutting "holiday bonuses" by 30 percent (740 million)
  • 2 percent supplemental gas tax (450 million)
  • Freeze on state pensions (450 million)
  • Reducing bonuses and pay by 7  percent for public sector employees (360 million)
  • 2 percent supplemental cigarette tax (300 million)
  • Supplemental electricity tax (250 million)
  • One-off tax on vacation homes and oversized properties (200 million)
  • Cuts to pension subsidies (150 million)
  • Supplemental tax on luxury goods, e.g. yachts and cars worth more than 35,000 euros (100 million)

Other measures include: an additional 1 percent tax on income over 100,000 euros, reducing government overtime hours by 30 percent, cutting public-sector benefits 10 percent, and taxing the commercial activities of churches. And it’s still not quite enough — Greece needs an additional bailout to help it pay off debt due this spring. 

Annie Lowrey is assistant editor at FP.

More from Foreign Policy

The USS Nimitz and Japan Maritime Self-Defense Force and South Korean Navy warships sail in formation during a joint naval exercise off the South Korean coast.
The USS Nimitz and Japan Maritime Self-Defense Force and South Korean Navy warships sail in formation during a joint naval exercise off the South Korean coast.

America Is a Heartbeat Away From a War It Could Lose

Global war is neither a theoretical contingency nor the fever dream of hawks and militarists.

A protester waves a Palestinian flag in front of the U.S. Capitol in Washington, during a demonstration calling for a ceasefire in Gaza. People sit and walk on the grass lawn in front of the protester and barricades.
A protester waves a Palestinian flag in front of the U.S. Capitol in Washington, during a demonstration calling for a ceasefire in Gaza. People sit and walk on the grass lawn in front of the protester and barricades.

The West’s Incoherent Critique of Israel’s Gaza Strategy

The reality of fighting Hamas in Gaza makes this war terrible one way or another.

Biden dressed in a dark blue suit walks with his head down past a row of alternating U.S. and Israeli flags.
Biden dressed in a dark blue suit walks with his head down past a row of alternating U.S. and Israeli flags.

Biden Owns the Israel-Palestine Conflict Now

In tying Washington to Israel’s war in Gaza, the U.S. president now shares responsibility for the broader conflict’s fate.

U.S. President Joe Biden is seen in profile as he greets Chinese President Xi Jinping with a handshake. Xi, a 70-year-old man in a dark blue suit, smiles as he takes the hand of Biden, an 80-year-old man who also wears a dark blue suit.
U.S. President Joe Biden is seen in profile as he greets Chinese President Xi Jinping with a handshake. Xi, a 70-year-old man in a dark blue suit, smiles as he takes the hand of Biden, an 80-year-old man who also wears a dark blue suit.

Taiwan’s Room to Maneuver Shrinks as Biden and Xi Meet

As the latest crisis in the straits wraps up, Taipei is on the back foot.