Greece lays out austerity plan in return for modest debt write-off

10th July 2015


The Greek government has given in to demands from creditors and has set out a proposal of austerity measures in order to gain a modest debt write-off,.


Greek politicians will vote on the 13-page proposal today, that sets out reforms and public spending cuts of €13 billion in order to secure a third bailout that would raise €53.5 billion and mean that Greece can stay in the euro.


Although the Greek people voted no to more austerity and yes to debt relief in a referendum, ministers have capitulated after agreeing the country had no choice but to agree to another round of austerity due to the closure of the country’s banks and an economy that has been pushed to the precipice.


Parliament is expected to vote through the package today but Tsipra’ is expected to face opposition within the ranks of his leftist Syriza party, especially from trade unions and youth groups who had signalled that the referendum was a vote against more austerity measures.


The tougher new proposals are aimed at preventing financial collapse and even an exit from the Eurozone. They include pension cuts and tax rises.


European politicians will scrutinise the proposals ahead of an EU summit on Sunday.


Donald Tusk, who chairs EU summits, said there would be efforts made to address the request for a debt write-off.


‘The realistic proposal from Greece will have to be matched by an equally realistic proposal on debt sustainability from the creditors. Only then will we have a win-win situation,’ he said.



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