Handouts will require sacrifices, Commission report shows

The European Commission's spring forecasts for the Greek economy on Tuesday confirmed that the suspension of a planned reduction to the tax-free threshold is on the table, though it will not be possible without sacrifice on other fronts.

Cautious wording in the spring estimates from Brussels and comments from Economic Affairs Commissioner Pierre Moscovici, made it clear on Tuesday that the scrapping of a planned reduction to the tax-free threshold, as well as the tax breaks planned for 2020 and the additional handouts announced by the government Tuesday will be the object of negotiations with creditors. With European elections on the near horizon, the timing is less than auspicious.

The Commission's document referred to the tax-free ceiling reduction in surprisingly great detail, several months before it is scheduled to go in force, and said it will be discussed in...