Greece votes for big budget cuts to reduce debt
The Greek parliament has voted to adopt big budget cuts designed to lower the country’s high levels of debt.
Greece aims to shrink public debt to 9.1% of overall economic output next year, down from 12.7% this year.
To do this, it has outlined measures to cut public spending and boost revenue by cutting back on red tape.
Concerns about Greece’s high level of debt have led the three main international credit ratings agencies to downgrade Greek government bonds.
Greece’s public debt currently stands at 300bn euros ($428bn; £268bn).
The single-chamber parliament adopted the budget by a large majority, with the 160 Socialist Pasok deputies voting for, and 139 opposition members against.
One opposition member was absent.
Speaking after the vote, Prime Minister George Papandreou said the budget was “a contract to reconquer our credibility”.
“We shall prove our capacity and determination to change this country, to ourselves and to any foreigner who puts in doubt our will,” he continued.
Spending cuts
Last week, Mr Papandreou warned that the country was at risk of “sinking under its debts”, unless it introduced spending cuts.
He outlined a number of measures to reduce debt levels, including a 10% cut in social security spending.
He also announced a 90% tax on the bonuses of senior bank workers.
Other proposals included a cut in defence spending, pay and hiring freezes for public sector workers, and the closure of a third of Greece’s overseas tourism offices.
Source: BBC News
Related posts:
- Greece’s debt reaches 300bn euros
- Obama unveils his $3.6tn budget
- CBI eyes Budget confidence boost
- Lloyds announces 5,000 job cuts
- Addressing Credit Card Debt
Short URL: http://axxanews.com/?p=2653
Posted by Axxa News Team
on Dec 26 2009. Filed under Business.
You can follow any responses to this entry through the RSS 2.0.
You can leave a response or trackback to this entry