Dragasakis offers Draghi 14-bln-euros worth of austerity

New austerity measures aimed at unlocking funds for Greece

Deputy Prime Minister Giannis Dragasakis is unveiling new measures during his meeting with European Central Bank Chief Mario Draghi in Frankfurt on Tuesday in an effort to unlock funds required for Greece. The new measures are aimed at yielding 10-12 bln euros worth of revenue  over the next two years, whereas cutbacks worth 1-2 bln euros will also be presented.

Dragasakis will tell Draghi that the Radical Left Coalition (SYRIZA) government already has tax reforms worth 4.5bln euros ready to implement as well as 1.092 bln euros worth of cutbacks for this year.

In an effort to change the course of negotiations, the government is also preparing Plan B for extra revenue worth 1.2 bln euros for this year (5.8 bln euros in total) to cover a “hole” that the International Monetary Fund (IMF) foresaw for a primary deficit worth 1.5% rather than the 1.5% surplus that the government had hoped for.

DRAGHI

Dragasakis measures include: 

– emergency contribution for 500 of the richest Greeks (based on their tax statements)

– an increase to the extraordinary contribution at last year’s levels for those who have income over 30,000 euros per annum

– an increase to luxury tax by 30%

– a duty for overnight stays at islands

– stopping cash purchases and using plastic money for transactions over 70 euros

– joint VAT contributions from 2016 onwards