Despite 61 per cent of Greeks voting to refuse the austerity measures outlined in the bailout package from its creditors the government has agreed to many of their demands in its latest submission only hours before the deadline was due to elapse.

In a final effort to save their teetering economy the leaders of Greece have agreed to longstanding demands bny their creitors. These include far ranging sales tax hikes, cuts to state speding for pensions, a slew of harsh, budget-tightening measures sure to outrage the citizens of the island nation.

The government of Athens conceded to the demands in its own 13-page, cost accounted, proposals submitted two hours before the midnight deadline.

“The Greek proposal … includes funding of the country’s financing needs .. for three years., debt adjustment and a front-loaded investment package of 35 billion euros,” said a government ssource.

The troika of creditors is now carefully assessing the submission.

The measures put forward by Greece include:

  • Discouraging early retirement, while levering higher health contributions from pensioners
  • Raising sales tax revenue by 1 per cent of GDP
  • Increasing corporate, shipping and luxury tax, while also increasing penalties for tax evasion
  • A sale of public sector shares in the telecom giant OTE, privatising the ports of Piraeus and Thessaloniki
  • Reducing military spending to 100 million this year and 200 million in 2016
  • Abolishing a 30 per cent tax break on wealthy tourist hotspot islands
  • And agreeing to a primary budget surplus target of 1 per cent this year, 2 per cent next year, and 3 per cent for the following two years.

Prime minister Alexis Tsipras will need the authority of the Greek parliament (due to sit on Friday) to negotiate with creditors on the basis of the latest bailout plan.

At the same time the recently submitted proposals will be scrutinised by officials from thU and IMF.

If they are satisfied, they will then present the proposals to the Eurozone finance ministers on Saturday; and again at a full summit of all 28 European Union leaders on Sunday. IThe proposals will be voted on then and the fate of Greece determined.

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