Greek Parliament Approves Austerity-Extending Budget for 2016

Greece’s parliament on Sunday approved the country’s 2016 budget, which projects a flat-lining economy for 2015 and a mild contraction for 2016, featuring more austerity measures due to be introduced.

ATHENS (Sputnik) — In a vote of confidence after a five-day debate in Greece’s 300-seat parliament, the budget was supported by the 153 lawmakers of the coalition government.

For 2016, the approved budget projects a 0.7 percent fall in GDP. Athens expects to save some €2.5 billion ($ 2.7 billion) through spending cuts and plans to increase revenues by €3.2 billion mainly through new and higher taxes.

Public debt is projected to reach 187.8 percent of GDP, or €327.6 billion, in 2016, up from 180.2 percent and €316.5 billion this year. The unemployment rate in the crisis-battered country is expected at 25.4 percent on average for 2015, with no change in 2016.

Athens is struggling to pay off a multi-billion debt to international lenders. In August, the Eurogroup approved a third bailout package for Greece, worth some 86 billion euros, in exchange for additional reforms and unpopular austerity measures, including pension cuts and tax hikes.

On Thursday, Greeks held a general strike protesting against austerity measures, demanded by the country's international lenders.