Greek Parliament Set to Vote on Property Tax Changes
Citizens Rely on Austerity Measures to Survive Amid Crisis
Greek lawmakers are expected to make crucial decisions today on the property tax that may serve as the means to convince the International Monetary Fund (IMF) and European Union (EU) to make available an 8 billion euro ($11 billion) loan.
A latest survey revealed more than 70 percent of 1,002 Greek respondents were against the implementation of the property tax, according to a report from Bloomberg. The same opinion poll showed that 59 percent doubted that the government of Prime Minister George Papandreou is capable of avoiding a default.
Papandreou is relying on his Pasok Socialist party to pass the additional property levy which is expected to put more suffering on the populace. Observers believe that the voting will be very close.
Earlier, Finance Minister Evangelos Venizelos has already declared an additional 20 percent reduction in wages aside from the 15 percent for civil service and 25 percent in the broader public sector. Bringing down the tax-free ceiling to 5,000 euros will result in higher taxes for the public.
Greece is confronted with an impending economic downfall if the budget deficit is not resolved.
The property tax will be imposed through electricity bills and provide a yearly profit of 1.1 percent of gross domestic product.
A report from Reuters said majority of Greeks are up in arms against the effect of the cuts and condemning the global banking system. Others are contemplating to leave the country because of the crisis.
The taxes as well as the cuts in employment and pension have taken a heavy toll on small enterprises and pushed unemployment up to almost 40 percent.
General strikes have been scheduled on Oct. 5 and 19 to resist the measures.
"Greece is now facing a moment of truth and needs to implement its savings plan to qualify for the next installment of international aid," according to European Commission spokesperson Amadeu Altafai.
Ministers from the Euro area may not approve the meeting as initially scheduled in their Oct. 3 meet although the Greek government has already said that it needs the funds immediately.
The private sector, which claims that the blown up bureaucracy is the major problem, remains at odds with government employees who are pointing their fingers at corruption and tax evasion as the reason for the country's miserable condition.