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Thirteenth austerity package (Greece)

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Territorial extent
  
Greece

Introduced by
  
Government of Greece

Enacted by
  
Hellenic Parliament

Thirteenth austerity package (Greece)

Date passed
  
1. 8 May 2016 (For: 153; Against: 144) 2. 22 May 2016 (For: 153; Against: 145)

The thirteenth austerity package is a part of the demanding measures that agreed between Greek government and IMF, EU, ECM for the 86-billion-euro bailout, to last summer. The package was voted upon in two rounds. The first rounds of measures passed, on Sunday 8 May, by 153 votes in favour to 144 against, amid demonstrations.

Contents

It includes 5.4 billion euros in pension cuts and taxes reforms. The measures aim to attain savings to meet an agreed 3.5 percent budget surplus target before interest payments in 2018.

The first set of measures

The first rounds of measures mostly comprised pension reform to the tune of 3.6 billions. The measures include:

  • Cuts in new pensions.
  • Reduction the higher pensions
  • Increase the insurance contributions

    • The second set of measures

    The second round of measures comprise new taxes to the tune of 1.8 billions and the creation of a contingency spending cuts mechanism (cutter mechanism). The measures voted on 22 May 2016 by 153 votes in favour and 145 votes against. The tax reform includes:

  • Increase VAT to 24 percent
  • Higher taxes in all fuels
  • A range of new taxes, such as coffee and electronic cigarettes.
  • increase in excise taxes on tobacco and ENFIA tax.
  • Tax on tourists staying in hotels from 2 stars and up.
  • Levy tax in TV subscriptions, landlines and internet broadband connections

    • References

    Thirteenth austerity package (Greece) Wikipedia
    (Text) CC BY-SA


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