Greece seals deal with EU, IMF on austerity plan: sources

ATHENS Thu Jun 23, 2011 3:14pm EDT

Prime ministers, Italy's Silvio Berlusconi (L), Greece's George Papandreou (C) and Britain's David Cameron chat at the start of an European Union leaders summit in Brussels June 23, 2011. REUTERS/Thierry Roge

Prime ministers, Italy's Silvio Berlusconi (L), Greece's George Papandreou (C) and Britain's David Cameron chat at the start of an European Union leaders summit in Brussels June 23, 2011.

Credit: Reuters/Thierry Roge

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ATHENS (Reuters) - Greece has won the consent of a team of EU-IMF inspectors for its new five-year austerity plan on Thursday after committing to an additional round of tax rises and spending cuts, sources with knowledge of the talks said.

"We have a deal," said one of the sources.

Another source close to the negotiations said that a few remaining technical details would be finalized on Friday.

Finance Minister Evangelos Venizelos announced on Thursday Greece's Socialist government would lower the minimum threshold for income tax to 8,000 euros a year, increase the tax on heating oil and impose a one-off solidarity levy on income of between 1 and 5 percent.

(Reporting by Ingrid Melander; Editing by Daniel Flynn)

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Comments (5)
DenverTrader wrote:
I remember when TARP passed. How did that work out?

Jun 23, 2011 3:31pm EDT  --  Report as abuse
FBreughel1 wrote:
@SkinnyCat: That’s a very good point. Maybe the EU should aid the Greek tax office by enforcing banks, including Swiss banks, to share information on Greek owned bank accounts and claim 50 – 80 % damages for illegal tax evasion. The rules are in some cases even harder for everybody else (100 % or jail sentence in some EU countries), so that’s not unfair.

Jun 23, 2011 3:39pm EDT  --  Report as abuse
bworley50 wrote:
TARP worked very well, actually. Any concrete information as to how it didn’t work would be welcomed.

Jun 23, 2011 3:46pm EDT  --  Report as abuse
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