Greece to adopt more cuts, tax hikes for bailout cash

Protestors take part in a demonstration against the reform package in front of the Greek Parliament in Athens on May 22, 2016With more than 10,000 people protesting over a string of unpopular reforms outside the Greek parliament, lawmakers from the ruling leftist party are to approve Sunday night a bill of over 7,000 pages that raises the sales tax cap and introduces a mechanism to slash spending further in case of budget overruns. The contingency mechanism in the new legislation, labelled “the cutter” by Greek media and designed to cut state spending if the country fails to meet fiscal targets, is of chief interest to Greece’s international creditors. Should Athens fail to reach its fiscal targets, it must resort to the new mechanism to save up to two percent of output in a fiscal year.

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