Greek government formation, January

Former defense minister Panos Kammenos has defended the political legacy of his Independent Greeks (ANEL) party during its now-defunct coalition with the incumbent SYRIZA leftists, ahead of municipal and European Parliament elections this weekend.

It is unprecedented for mayoral candidates to reject the support of a party and completely dissociate themselves from it, as is now the case with SYRIZA.

It is yet another indication from cadres who are in close contact with local communities that citizens have completely turned their backs on the ruling party.

Less than two weeks before European Parliament elections, Prime Minister Alexis Tsipras on Monday appeared to downplay their significance, suggesting that they would be more like an opinion poll. 

"The night of May 26 will capture trends in the electorate," Tsipras said during an interview on Alpha television channel. 

The tax measures announced by Prime Minister Alexis Tsipras on Tuesday are in the opposite direction to where they should be headed, International Monetary Fund mission chief for Greece Peter Dolman said on Thursday in Athens, as European officials continued to informally express their concerns over the handouts.

Just two days after it was announced, Prime Minister Alexis Tsipras' economic stimulus package - including tax cuts, a reneging on the lowering of the tax-free threshold as of 2020, and a bonus for pensioners - has triggered  concerns in the IMF about a fiscal derailment.

Eurozone officials showed concern after Athens announced plans to cut taxes and raise welfare spending which could breach commitments made by Greece to its creditors, three sources involved in monitoring the country's fiscal situation said.

Greece must attain the fiscal targets is has agreed with its creditors, European Commission Vice President Valdis Dombrovskis said on Wednesday, commenting on the handouts and tax cuts announced by Greek Premier Alexis Tsipras on Tuesday night.

VAT on food in Greece will be reduced from 24% to 13%, Prime Minister Alexis Tsipras said. The energy tax will also be halved, with 13% going to become 6, the Prime Minister promised.

Money for tax cuts will be taken from overcharging tax collection, which is 1.14 billion euros.

Prime Minister Alexis Tsipras on Tuesday announced a series of pension handouts and tax cuts in a last-ditch attempt to shore up support for his leftist SYRIZA ahead of local authority and European elections on May 26, while also declaring measures for 2020.

People watch a TV screen as Greek Prime Minister Alexis Tsipras announces bailout relief measures during a press conference, in Athens, Tuesday. Greece's left-wing prime minister has promised crisis-weary voters a series of tax-relief measures ahead of elections, after outperforming budget targets set by bailout creditors. [AP]