Greece has managed to agree a budget for 2016 by a margin of 8 votes.
With no end to austerity, the budget includes large spending cuts, pension and tax reforms and the perennial category, tax increases.
Voting on Sunday morning showed 153 in favour and 145 against.
This is the first budget under the Tsipras government. It includes €5.7 billion in public spending cuts, with €1.8 billion coming from pensions and €500 million from defence.
Tax increases are scheduled to bring in more than €2 billion new revenue.
The privatisation of €50 billion of Greek assets forms part of the terms of July’s EU bailout worth about €86 billion. Other terms include slashing pensions and handing over veto power to Brussels veto power on domestic laws.
But within the bailout constraints, spending on hospitals, social welfare and job creation is being increased modestly, according to Mr Tsipras.
He still described the budget as a “difficult exercise” and an “agonising effort”.
Two government ministers withdrew their support of the government during the budget negotiations over discussions about facilitating repossessions of people who cannot pay their mortgages.
Despite austerity measures, debt is forecast to grow to €327.6 billion or 187% of GDP from 180% in 2015.
EU creditors including the European Central Bank and the International Monetary Fund will return to Athens on Monday for further discussions about pension and tax reforms.
Comments
Shouldn't that read: Because of austerity measures, debt is forecast to grow..."?
For example the need to increase added value home grown exports. The Greek Government increasing the non wage bill cost of employment (the social security contributions) that each employer pays - so making a worker 'more expensive' at a time when the finished Greek product when sold overseas must be competitively priced against rival countries equivalents.
In order to pay for the current pensioners and soon to retire pensioners. Note the comment that so many current pensioners retired very early having paid their contributions (if they did at all) in drachmas - yet are now on superb pensions paid out in 'more valuable' euros with many years of life left in them. Now substitute escudos for drachmas.
http://www.ekathimerini.com/204096/opinion/ekathimerini/business/growth-will-require-competitiveness