The IMF and the EU have put together a Greek bailout package worth 110 billion euros over three years, a diplomatic source said Sunday. Prime Minister George Papandreou announced the loan agreement and warned of "big sacrifices" for Greece.
REUTERS - Greece has pledged to make deeper budget cuts under a new austerity package that was unveiled on Sunday but will take an additional two years to reduce its deficit below European Union limits.
Q&A: The Greek crisis explained
Greece’s new austerity plan
- Bring deficit to below 3% of the nation’s GDP
- Cut budget by 30 billion euros over three years
- Raise VAT ceiling from 21% to 23%
- Raise alcohol and fuel tax to 10%
- Cut public servants two months’ annual bonus
- Freeze salaries and pensions of public sector employees (The government will not touch salaries in the private sector, but changes in employment law are anticipated)
- Raise minimum retirement age to 60 from 57
- Cut public investment projects
- Allocate funds for bailing out banks
Date created : 2010-05-02