Greece Unveils Stability And Growth Program

by Ulrika Lomas, Tax-News.com, Brussels

18 January 2010

The Greek government has recently unveiled details of its three-year stability and growth program, containing a raft of tax measures designed to get the country out of financial crisis.

Amongst the key measures outlined for 2010 are an end to tax privileges, the adoption of anti-fraud measures, as well as the introduction of an exceptional tax on wealth – measures which aim to increase fiscal revenue for the government by around EUR2.3bn. The government has also recently increased the levy on tobacco and alcohol.

According to Finance Minister George Papaconstantinou, the government’s plan is designed to overcome the huge challenges faced by Greece, to reduce the public debt deficit, and to reduce structural weaknesses.

Referring to the government’s ambitious program as difficult but realistic, Papaconstantinou gave his assurances that the country would reach its objective by every available means. The government aims to reduce the deficit in 2010 by an estimated EUR10.3bn.

Convinced that the program will be approved during the European Finance Ministers meeting on February 15, Papaconstantinou nevertheless announced that additional cuts in spending and increases in tax (in particular value-added tax) would follow if the program failed to generate enough return.

Prime Minister George Papandreou qualified the program as “decisive for the future of the country.”

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