Thursday, June 30

Greece seals deal on strict plan: sources

Greece won the approval of a team of EU IMF inspectors to its new strict five-year plan on Thursday to charges committed, said another round of taxes and expenditure cuts, with knowledge of the talks.

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

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

Finance Minister Evangelos Venizelos resigned Socialist Government on Thursday Greece lower the minimum threshold for income tax on 8,000 euros per year, the tax on fuel oil and would a unique solidarity tax on income of between 1 and 5 per cent to impose.

Greeks, seething cuts after two years of belt-tightening in anger to news that pending transaction respond would include the around 3.8 billion euros ($5.4 billion) in new tax increases and expenditure.

Coming via a 10-15 percent reduction on pensions and wages over the past one and a half years, the raft is new average earnings of Venizelos announced measures to further 3-4 percent, cut analysts said.

People on the streets of Athens, that network marketing have protested for weeks in the Government plan by 2015 savings of 28 billion euros, were angry at the measures, which she said to fight once again failed the rampant tax evasion and corruption.

"These measures not fair." A restaurant owner in Central of Athens said Kostas Batsoulis, 37, "Shop owner, who pay their taxes are handled the same way as those who do not know what looks like a cash register,".

"It would be released 10,000 civil servants better, instead of the 1 million private sector employees who are sacrificed to now", he added.

Trade unions and political parties were also quickly slam measures, say that slapping more and more taxes on the middle class by no means was an economy to kick-start that plunged into the deepest recession in 37 years.

"These people have lost their minds," said Ilias Iliopoulos, Secretary-General of ADEDY Union public sector. "These measures are the same people even poorer make beat."

Trade unions have announced nationwide strikes for Tuesday and Wednesday, when the half plan to the Parliament, and to huge protests in Athens and other cities.

Syntagma Square outside Parliament, where protesters against the new wave have strict for weeks was the thousands gathered in the streets Thursday, beating drums and blowing whistles their protest remained but peaceful.

Stathis Anestis, spokesman for the largest Trade Union Federation GSEE, said that the measures were particularly unfair, because they no longer seen as the root of most of the chronic problem of tax evasion, Greece fiscal evil.

He said "This hypocrisy finally needs to stop in Greece". "Declared the rich doctor who sees 20-30 patients per day, an annual income of €5,000 per year and of workers, nothing to hide who is asked to drag the country out of crisis?"

Venizelos, said a number from 1 to 5 percent "Solidarity tax" will be beaten on the annual income of 12,000 euros, independent will be taken with a levy of 300 euros and heating fuel tax as also will increase.

Analysts said that for the average annual Greek income of about 20,000 euros, that means a 700-800 Euro loss, not to mention heating costs and the tax on self-employed persons.

Michalis Mihalides, 33, a press distribution worker has a 3-month-old baby, said his family spending already had to cut, which were very basics to the rounds to come and the new measures to protest him spurring on the streets.

"What bothers me more than anything else is that those figures should be paid is not once again," he said. "It is crazy, me because this crisis is not my fault." "I don't steal."

The main conservative opposition new democracy party, which the 110 billion IMF/EU bailout deal that stored against Greece before the bankruptcy last year, said that the measures will further drive the economy into recession.

"Venizelos deal can be divided into three words: tax, taxes, taxes!" Also those to earning the 570 euros a month. "The measures is still painful and ineffective, battered the middle class and the poor to do," said Ioannis Vroutsis, a spokesman for the new democracy.

Copyright 2011 Thomson Reuters. Click for restrictions.

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