|© image: LOUISA GOULIAMAKI / AFP / Getty Images|
After three weeks of opening the banks in Greece on Monday again. However, capital controls remain in place. At the same time the first episodes of the new austerity measures will be felt. Thus, the VAT increases significantly for many products and services of everyday life. Prime Minister Alexis Tsipras presented meanwhile his new team, with which he wants to fulfill the agreements with the international donors.
TOPIC: GREECE IN CRISIS
For the Greek citizens, the government facilitated the conditions for the supply of cash. Since closure of banks on June 29, they were allowed to take off a day 60 euros from ATMs. Now you can also make more money to pay off all at once. However, the upper limit at 420 Euros per week remains. Life is likely to be more expensive for them, however. The VAT rises for certain foods, meals in restaurants and public transport from 13 to 23 percent.
VAT is significantly increased
The Greek press on Sunday listed on the products and services, for increasing the value added tax. In all taverns and bars around 23 percent are due to served drinks and meals in the future. Also for all processed foods is the value added tax in the future 23 percent. This applies, for fresh and frozen meat, fish, coffee, tea or juice. Eggs, sugar, cocoa, rice, flour, dairy products such as ice cream and yogurt become more expensive as well as fertilizer, condoms or toilet paper. The Greek financial press estimated that the increase in VAT to the state by the end could generate 800 million euros in addition.
That was one of the conditions of creditors for the opening of negotiations for a third billion-aid package, now being prepared on which Tsipras with a new Cabinet. The Prime Minister had reshuffled the Cabinet, because had refused in a parliamentary vote on the agreement with the Euro Group allegiance him Minister. Approval of the reforms had received only thanks to the support of the opposition Tsipras. This week in Parliament further vote on the reform package are pending.
Announced tough negotiations
With the transformation of the government to adapt to the new reality, said the new energy minister Panos Skourletis, a close confidant of the prime minister. His successor in the Ministry of Labour, George Katrougalos, announced shortly after the swearing-in ceremony on Saturday to hard negotiations on the new loan program. "Our goal is not simply to rubber-stamp the deal, but decided to fight for the conditions." There are many vague terms in the text. An agreement must be socially just, said the minister, who must bring the demanded by creditors pension reform.
On Monday the government is due to present an initial proposal for the modernization of management. Their inefficiency is one of the biggest obstacles in the implementation of reforms. On Wednesday, Parliament further reform laws must decide. So to speed up court proceedings and the directive on the reorganization and liquidation of banks are implemented.
High approval ratings for Tsipras
Despite the turnaround of Tsipras, the approval ratings for him to remain high. In an election that has brought into play for September or October Interior Minister Nikos Voutsis, it can, according to a survey hope even in the absolute majority. In the left-wing newspaper "Efimerida tone Syntaknon" published collection his Syriza party comes to 42.5 per cent, to just under six per cent more than in the election in January. At that time lacked Tsipras two mandates. The main opposition party New Democracy currently would receive only 21.5 percent. In addition, 70 percent were in favor of the new assistance program, if Greece can thus remain in the euro zone. The talks about to be included in this week.
The European Commission expects an agreement by mid-August. Until then, Greece will get a bridge loan of seven billion euros over a pot of EU financial, because the state coffers in Athens are completely empty. In addition to the country on Monday denied a transfer to the ECB in the amount of 4.2 billion euros and the IMF of more than two billion euros.
Like it? Please share!