Greece will add a new property tax to austerity measures to help curb its deficit, the cash-short government said on Sunday, according to published reports
Finance Minister Evangelos Venizelos said at a news conference that the property tax would be imposed during the next two years and was approved at a special cabinet meeting that came along with increased concern of a Greek default in coming weeks, Dow Jones newswires reported.
The Socialist government is struggling to ensure the continuation of international rescue loans to keep the country from spiraling into bankruptcy, with auditors from the European Union and International Monetary Fund expected in Athens in coming days to check on Greece’s progress in filling a budget gap estimated at $2.7 billion.
Also moving to stem public anger at lawmakers, Venizelos said Greece would withhold a month’s pay from all elected central and local government officials
Making matters worse is a weakening Greek economy, with Venizelos warning the economy was expected to contract 5.3% this year, worse than the 3.8% decline estimated in May.
Greek Prime Minister George Papandreou on Saturday vowed to meet fiscal targets regardless of the economic slowdown.
As the prime minister gave his speech on the economy in the northern city of Thessaloniki, about 25,000 rioters protested the austerity moves on the streets outside. Nine police officers and 10 demonstrators were reportedly injured, the Associated Press reported.
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