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    A man passes graffiti in Athens, Tuesday, July 7, 2015. Greek Prime Minister Alexis Tsipras was heading Tuesday to Brussels for an emergency meeting of eurozone leaders, where he will try to use a resounding referendum victory to eke out concessions from European creditors over a bailout for the crisis-ridden country

    Greece to Face Tax Hikes, High Unemployment, Recession

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    Greece's Gordian Knot: Syriza Tackles Austerity (404)
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    The Greek economy will suffer dramatically following the adoption of a new bailout package from its creditors that stipulates raising of taxes and cutting of salaries and pensions, Paulo Morais, Portugal’s presidential candidate in the upcoming 2016 elections, told Sputnik Brasil Thursday.

    MOSCOW (Sputnik) — On Wednesday night, the Greek parliament voted in favor of the new bailout measures, paving the way for the resumption of monetary aid from its international lenders.

    "I think that the plan, introducing austerity measures, adopted in Greece… is a very cruel plan. And this tax increase will entail a recession and a rising unemployment rate. Drops in wages and pensions will bring Greeks and their families numerous hardships," Morais said.

    These are not the only outcomes of the ratified austerity plan, he emphasized.

    "The plan on privatization, which is also included [in the new agreement] will undoubtedly lead to a loss of all property, which is now owned by the Greek people," Morais added.

    According to him, this is exactly what happened in Portugal over the last few years, where companies were sold "for a song, on sale."

    "I think that Greek politicians should visit Portugal and see the terrible consequences of raising taxes, recession, haphazard privatization," the presidential candidate concluded.

    Greece, along with several Southern European countries such as Portugal, Spain and Italy, was hit by the aftereffects of the 2007-2008 economic crisis, with its overall national debt estimated at some 175 percent of the country’s GDP.

    Greece owes some $270 billion to its major creditors — the International Monetary Fund (IMF), the European Central Bank (ECB) and some eurozone countries — and is unable to repay its current debt without additional external funding.

    Topic:
    Greece's Gordian Knot: Syriza Tackles Austerity (404)
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    recession, unemployment, austerity measures, taxes, debt, Portugal, Greece
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