Greek Finance Minister Lashes Out at IMF Over Increased Austerity Measures

Greece’s finance minister Euclid Tsakalotos said that the austerity measures could lead a third of the Greek population to poverty or social exclusion.

MOSCOW (Sputnik) — Greece’s finance minister Euclid Tsakalotos slammed on Tuesday the claims made by the International Monetary Fund (IMF) that Greece could only modernize post-bailout by increase economic austerity by way of cutting high pensions and introducing more tax cuts to the many Greek households who are exempt from paying income taxes.

"Greek expenditure on both pensions and other subsidies is about 70% of the EU average and 52% of that of Germany. Is it likely when around 45% of pensioners receive monthly payments below the poverty line of €665, and almost four million people, that is more than a third of the population, have been classed as being at risk of poverty or social exclusion, that Greece’s main problem is that pensions and tax credit allowances are too generous?" Tsakalotos siad, as quoted by The Guardian.

Tsakalotos clarified that this high poverty risk is the reason why so many are exempt from paying income taxes. The report says that the finance minister was unsure why the IMF would suggest Greece to consider increasing austerity measures, as this would bring about greater economic and social inequality.

Greece signed a deal with its main creditors – the IMF, the European Central Bank and some eurozone countries – in July 2015 for what is the country’s third bailout package. In exchange for that loan, the government agreed to impose spending cuts and tax increases that have proven unpopular.