Greece to vote on austerity plan by end of month
The Greek government expects parliament to vote on its medium-term austerity plan, a condition of a new international bailout, by the end of June, a senior government official has said.
A second official poured cold water on any idea of a referendum on the austerity plan, and repeated government assurances that it would not seek early elections despite daily protests against yet more budget cuts.
The government also planned to cut corporate tax – a demand of the conservative opposition – and reduce value-added tax from 2012, the first official said, asking not be named.
However, these measures would not be part of the medium-term economic plan, he told reporters after a marathon cabinet meeting which began on Monday but has continued today.
“Parliament will vote on the medium-term plan by the end of-June. It will be voted on as a single article,” he told reporters.
Dissenters within the ruling PASOK party have demanded that each part of the plan, which includes €6.4bn (£5.7bn) in new austerity steps this year and accelerated sales of state assets to cut the budget deficit, be handled in separate votes.
Voting on the plan as a single package would prevent the doubters from rejecting individual measures such as tax increases or sales of state assets.
The official signalled that the government had offered a concession to the opposition New Democary party, which has demanded a corporate tax cut to stimulate the economy in return for its support for the latest austerity drive.
“In September, there will be a new tax law lowering VAT and corporate tax rates from 2012. The law will be fiscally neutral,” he said, without providing details.