Greece has rejected a counter-offer to its concessions of only a few days ago.

Last night Athens said no to counter-budgetary plans proposed by the IMF-EU troika.

The creditors were demanding an abolition of early retirement in Greece and an increase in retirement age from 62 to 67 by 2022 – instead of the previous 2025.

In addition, sources close to the negotiations said the creditors were pushing for big VAT tax hikes and public spending cutbacks.

The demand was for Value-Added-Taxes to be increased for restaurants from their current 13 per cent to a crushing 23 per cent. But Grecian delegates felt such an increase would kill tourism.

Creditors also wanted to raise corporation tax from its current 26 per cent to 28 per cent.

Plus they insisted defence spending be cut from by 400 million euros, instead of the offered 200 million.

But in an interesting twist these same creditors wanted the specially imposed VAT for residents of the Aegean Islands removed.

Greek Prime Minister Alexis Tsipras reacted with anger. He lashed out at the IMF for rejecting Greece’s latest concessions and hinting their counter-offer was nothing less than extortion.

Tsipras drew the world’s attention to what he claimed was a ‘strange position’ occupied by key lenders within the IMF.

“This strange position maybe hides two things, either they do not want an agreement or they are serving specific interests in Greece.

“The repeated rejection of equivalent measures by certain institutions never occurred before – neither in Ireland not Portugal,” he tweeted, in reference to the previous bailouts of those two countries.

Greece had planned to raise some VAT rates, business taxes, and wanted to increase employee and employer pension contributions to lessen the national budgetary gap.

But not to the extent demanded at the eleventh-hour talks in Brussels.

Leave a Reply

Your email address will not be published.