04:59 GMT29 May 2020
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    Greece could respond to lenders’ demands of deeper public sector cuts with a new referendum on austerity, its State Minister Alekos Flabouraris warned on Tuesday.

    MOSCOW (Sputnik) — Athens has been pressured into cutting pensions and lowering the minimum tax-free income in order to meet its budget commitments to the International Monetary Fund (IMF), demands Flabouraris said were "irrational."

    "At a time, however, when Europe is gripped with such obsessions [over austerity], nothing can be ruled out," he replied to Real News when asked about outlooks for a referendum, as quoted by The Times newspaper.

    "There is no way the government will sign up to irrational demands by creditors," the minister said, speaking of a widening gap between Greece and international lenders.

    Greece has hiked taxes as part of a bailout deal agreed in July 2015. It accepted highly unpopular austerity demands in exchange for $96 billion in aid. The pact comes after 61.3 percent of Greek voters rejected the creditors' proposals.


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