Greek parliament to approve new cuts for 2017

Greece's parliament is to approve a new set of cuts and tax hikes for the next year as Athens struggles to secure fresh funds from international creditors.

The parliament, dominated by lawmakers from the leftist government, is expected to ratify a budget bill later on Saturday that is expected to save some $6.5 billion for the country in 2017.

Greek lawmakers will vote on imposition of extra taxes on cars, fixed telephone service, pay TV, fuel, tobacco, coffee, beer and other items. If the measure is approved, the government will be allowed to cut public spending on salaries and pensions.

Greece hopes the cuts could be satisfactory enough for the European Union (EU) institutions and the International Monetary Fund (IMF) to give Athens the funds it desperately needs to shore up its debt-stricken economy.

The cuts are also meant to facilitate Greece’s return to debt markets by early 2018. That would only be the case if the European Central Bank opens Greece’s access to its quantitative easing (QE), an asset purchase program which currently excludes Athens.

The new budget is highly likely to anger the public and critics of Prime Minister Alexis Tsipras, who came to power in early 2015 on a platform of opposing EU austerity and increasing pensions and salaries. However, he has vowed the public that 2018 will be the end of the economic pressures for the Greeks and the public would feel the result of current painful measures beyond that time.

SS