Girish Mahajan

Tenth austerity package (Greece)

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Territorial extent  Greece
Introduced by  Government of Greece
Enacted by  Hellenic Parliament
Tenth austerity package (Greece)
Date passed  1. 15 July 2015 (For: 229; Against: 64; 6 Abstentions) 2. 22 July 2015 (For: 230; Against: 63; 5 Abstentions)
Date assented to  1. 16 July 2015 2. 23 July 2015
Date commenced  1. 16 July 2015 2. 23 July 2015

Since late 2014 The Greek economy has been on terminal decline. The main reason was a result of political instability due to the Greek presidential election. The parliament failed to elect a president and the Cabinet of Antonis Samaras collapsed. The election took place on 25 January 2015 and the left-wing party Syriza won the election. The new government tried to follow an anti-austerity politics with whom the European administrative bodies had disagreed. At the first quarter of 2015 the Greek economy returned to the recession. The deterioration of economy and the deficiency of cash forced the Greek government to agree with European institutions to receive a bailout, the Third Economic Adjustment Programme for Greece known as Third Memorandum. This bailout required the Greek parliament to approve a new austerity package.


First set of measures

The first round of measures was approved by Greek parliament on 16 July 2015. The Greek parliament voted the ratification of the eurozone summit statement. The measures include:

  • Transfer of many products in the high rate VAT (23%). 13% rate covers fresh food, energy bills, water and hotel stays. 6% rate covers medicines and press.
  • Abolition of the VAT discount of 30% for the most touristic Greek islands, after 1 October 2015.
  • Rise of tax of solidarity for incomes over €50.000
  • Corporation tax rise from 26% to 29% for small companies
  • Luxury tax rise
  • Rise of health contributions paid by pensioners (6% from 4% )
  • End to early retirement by 2022 and a retirement age increase to 67
  • Second set of measures

    The second set of measures voted on 23 July 2015. It's about changes of Code of Civil Procedure.


    Tenth austerity package (Greece) Wikipedia

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