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Greek parliament approves budget for 2017

Greek Prime Minister Alexis Tsipras delivers a speech during a parliamentary session to vote on the proposed budget for 2017, in Athens, December 10, 2016. (Photo by AFP)

Lawmakers in Greece have approved the government-proposed budget for 2017, which includes a set of of new, unpopular austerity measures demanded by international lenders.

On Saturday, the Greek parliament passed by a vote of 152 to 146 a budget of continued austerity, which imposes levies of around one billion dollars in extra taxes on cars, fixed telephone services, fuel, tobacco, coffee, and other items.

Public spending on salaries and pensions will also be cut by nearly six billion dollars based on the new budget.

Prime Minister Alexis Tsipras, who strongly supported the cuts, said it would mark Greece’s “final exit” from its nearly decade-long financial crisis. Speaking at the parliament before the vote, Tsipras predicted that 2017 would be a “landmark year” with a 2.7-percent economic growth. He also said the assessment of plans for Greece’s future bailout programs will be completed soon, without additional austerity measures.

The proposed budget is an attempt to comply with the requirements set by the country’s international creditors. Athens has to reduce public spending, facilitate job layoffs, and introduce higher taxes to accumulate enough income to pay off its bailout.

Last July, Greece signed a deal with its creditors — the European Commission, the European Central Bank (ECB), and the International Monetary Fund (IMF) — to receive a EUR 86-billion bailout in exchange for austerity reforms.

The agreement triggered outrage among the Greek public, who recall how Tsipras campaigned on a harsh anti-austerity platform for prime ministership and won their votes but made a U-turn after being elected.

Hundreds of people gather before taking part in a protest march marking a 24-hours general strike over imposed austerity measures in Athens, December 8, 2016. (Photo by AFP)

Greece has already received three bailouts — in 2010, 2012 and this year — worth a total of EUR 315 billion from its creditors following the economic crisis that hit the country back in 2009.

Over the past weeks and prior to the Saturday approval of the new austerity measures, Greece had been the scene of nationwide protests. More protests are expected with the ratification of the budget.

Last week, Eurozone lenders approved a series of short-term relief measures to help Greece repay its huge public debt, which will reach 315 billion euros this year. However, the EU and IMF creditors should conclude a final audit of Greece’s reform next year to allow the country to enjoy fresh bailout funds.


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