Tax cuts not as high as pledged

The government will next month introduce a new set of tax brackets for 2020 incomes, but will take a few steps back from its election announcements to avoid undermining fiscal stability.

The new tax rates, agreed on Wednesday in talks with the country's creditors, are meant to see the budget reach the target for the 2020 primary surplus. Based on that, the benefits for the middle classes are minimal, but cuts for households with two children are significantly greater.

The income tax cuts planned will start from 17 euros per year for annual incomes of 20,000 euros and reach up to 200 euros for families with two children and an income of up to 12,000 euros. Freelance professionals, however, will be significantly better off, as in 2021 - when they pay the tax on their 2020 incomes - they will see their burden eased considerably.

The new tax bill to be submitted in...