Austerity

The International Monetary Fund agreed on Friday to disburse a new loan of 4.6 billion dollars (3.41 billion euros) to Greece and suggested that the government would not have to adopt any new austerity measures this year.

 Creditors to oppose any relaxation of austerity policy even if it comes with offsetting measures

By Prokopis Hatzinikolaou

The Finance Ministry is drawing up a set of measures aimed at lightening tax debts and bringing an end to distortions in tax legislation, to be submitted for discussion with the country’s creditors in mid-July.

New Democracy did not lose Sunday’s elections just because of the government’s economic policy of austerity, as the battle for the European Parliament saw the conservative party in a state of disunity.

Independent Greeks leader Panos Kammenos said on Monday that he would call a party congress to discuss his anti-austerity grouping’s poor showing in the European Parliament elections and forge alliances with other parties.

Ahead of EU elections on May 25, Greece's embattled government faces a first test in municipal and regional elections on Sunday as the country struggles to return to growth following years of economic crisis.

SYRIZA leader Alexis Tsipras, who is the European Left’s candidate for European Commission president, crossed swords in Brussels on Thursday with his rivals for the post in a televised debate.

Vucic's austerity plan for Serbia calls for sacrifice

A smaller public sector workforce and salary cuts are in the works to get Serbia's economy back on track.

"I ask that in the coming period you understand well how much we need these difficult measures," Serbia Prime Minister Aleksandar Vucic said recently of proposed budget cuts.

Aleksandar Vucic was elected as the new head of the Serbian government, vowing that his main goal is economic recovery and warning that austerity measures lie ahead.

By Nikos Konstandaras

Manuel Valls, who became France's new Prime Minister in April, announced a series of austerity measures to reduce public spending.

He said some EUR 21 B would be saved in 2015 under a plan decreasing pensions, social benefits and healthcare expenditures.