The discussion between the Greek government and its lenders continued over the weekend in order to reach an agreement on the package of the prerequisite measures including the new indirect taxes, but also to conclude on the final draft on the debt and the automatic correction mechanism of fiscal deficits.

But, even though the new measures are to be voted in the parliament prior the Eurogroup meeting to take place on May 24, it seems that there is still a gap between the government and the institutions regarding the solution on Greek debt and the automatic correction mechanism.

Apart from salaries and pensions, the mechanism of automatic cuts will apply to welfare benefits, state bodies funding, education funding, tax exemptions, Public Investment Program funding.

The package of indirect taxes will include among others VAT hike from 23% to 24%, a 5% fee on telephone bills, 1-2 euros/kg fee on imported coffee,  increase in excise tax and tax on cigarettes, tobacco and electronic cigarettes.