Greece Getting Ready for EUR 12 B Reforms in 2 Years

Pentioners stand in queue to get part of their pensions outside of a National Bank of Greece branch in central Athens, Greece, 09 July 2015. Photo: BGNES

Greece has been preparing a reform package worth EUR 12 B in 2 years, as reported by Greek daily newspaper Katimerini.

The left-wing government led by PM Alexis Tsipras is now facing a deadline approaching Sunday to submit reform proposals to its EU creditors.

According to local media, a government report has prescribed that instead of the prognosed 0,5% economic growth, the country will encounter a 0,3% recession. Additionally, the reforms worth EUR 8 B planned for 2015 and 2016 need to be increased progressively by EUR 2 B and will eventually reach EUR 12 B.

The measures are yet not final and have not been announced publicly to the Greek society. The majority of people voted with ''no'' on the past week's referendum regarding EU proposed austerity policies.

Last year Greece fell into a deep recession and suffered a decreased GDP and increased unemployment to 25%.

Local newspaper Naftemboriki has described in detailed some of the proposals. Corporate taxes will allegedly increase from 26% to 28%, taxes on luxury goods will follow in by a 10% increase, as well as taxes on processed foods, restaurants, transportation and some health services, offered by the private sector. Hotel taxes are prognosed to mark an increase from 6,5 to 13%, while Greek islands will most probably retain their preferential tax conditions.

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