Greece Accepts Plan of austerity, 4 deciding votes

By Paola Pecora Finally came the news that, while not deprived of sleep, sleep did investors with both eyes open. Especially Europeans.

Greece won yesterday an agreement on an austerity package of 5 years with the European Union and the International Monetary Fund. This agreement could be before a new aid package if the Greek Parliament OKs on austerity measures in the package on Tuesday. An official present at the negotiations told Dow Jones Newswires: "We have a pact after the Greek government agreed to make more spending cuts and some tax increases." Greek Finance Minister Evangelos Venizelos, agreed to lower the minimum taxable income taxpayers from 12,000 euros to 8,000 euros. And they agreed to increase to a maximum of 5% (up 4%) tax on all taxpayers based on income. According to the Greek source, there are "some very small details that must be solved, but the basic framework has been agreed."

Greek Prime Minister George Papandreou on Tuesday called on his counterparts from the EU in the European Union summit two days, to support a new bailout for Greece to cover financing needs through 2014. This rescue is estimated at 100,000 million euros, would be accepted only if the government implements the austerity package of U.S. $ 40,000 million. But if the Greek Parliament does not approve the austerity program this fall and rescue Greece can not meet its debt payments. The approval will also open in July emergency aid of 12.000 million euros (fifth tranche of the bailout agreed in 2010) that Greece needs not to suspend payments in the next two months.

Papandreou tries to take a conciliatory message at the same time threatening to the EU, the IMF and political opponents of the reform agenda when he says that "Greece is committed to continuing the very difficult but very important way of radical changes and more to make the Greek economy to be viable. This is a fight for Greece, a fight for the European currency and across Europe. "

According to the Wall Street Journal, there are no guarantees that the main opposition party wants to support the austerity package. Opposition leader Antonis Samaras said he opposes higher taxes in the Budget measures, and today said: "The current policy implemented by the Socialist government calls for increased rates for an economy that is under unprecedented pressure. We need corrective measures to ensure recovery of the Greek economy and the payment of their debt. " Angela Merkel reminded local and international responsibility: "We appeal to their historical responsibility," reproached aid to Portugal and Ireland: "In difficult situations such as facing the euro have to be together. It has worked flawlessly in Portugal and Ireland and we to try to work in Greece. "



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