Thirteenth austerity package

The Greek parliament late Thursday adopted a new round of austerity cuts which the government hopes will secure a pledge of debt relief and loan disbursements by EU-IMF creditors this month, reported AFP.

Greek lawmakers approved an omnibus bill late on Thursday, required by the country's official lenders to conclude a crucial bailout review and release more aid to the debt-ridden country.

Lawmakers in Greece are starting a four-day debate on a new package of spending cuts that will extend the number of years Greeks have lived under austerity to more than a decade.

The latest round of measures will introduce pension cuts in 2019 and higher income tax in 2020, under an agreement with international bailout lenders for continued rescue funding.

Greece would welcome an International Monetary Fund exit from its bailout program, saying it might help the country conclude a crucial review of its progress without adopting more austerity, a government official said on Friday.

As representatives of the country's international creditors return to Athens Tuesday for a new round of negotiations, the director of the International Monetary Fund's European Department, Poul Thomsen, and its economic counselor and director of research, Maurice Obstfeld, have denied, in an article they co-authored, that the Washington-based organization is asking Greece for more austerity.

Greece is once again in the headlines as discussions for the second review of its European Stability Mechanism (ESM) program are gaining pace. Unfortunately, the discussions have also spurred some misinformation about the role and the views of the International Monetary Fund.

Greece's annual value-added tax losses are roughly equal to the latest package of austerity measures (of 5.4 billion euros), according to European Commission data on the VAT deficit across the European Union, which adds up to 159 billion euros per year.

International lenders asked Greece on Friday to prepare a package of additional savings measures which would be passed into law now but implemented only if needed, to make sure the country reaches agreed fiscal targets.

By Debbie Papadakis

debbiedepapadakis@yahoo.com