Greece has had painful years: high unemployment and high taxes. At the same time, pensions and wages were massively reduced, countless companies went bankrupt. Hundreds of thousands of Greeks have emigrated, poverty has spread. But now Prime Minister Alexis Tsipras promises relief. Only a few weeks after the expiry of the rescue programs, he announced his compatriots tax cuts. The corporate tax will be reduced from 29 to 25 percent from next year, announced the head of government in a speech in the port city of Thessaloniki.
VAT and real estate tax will also decline in the coming years. The minimum wage should be raised and workers' rights reinstated. A planned reduction in pensions could be waived. For all projects, however, Athens must comply with the fiscal targets agreed with the international donors. "We are determined to comply with the agreement (with the creditors)," Tsipras said.
In August, the heavily indebted country left the bailout of its Euro partners after eight years. Greece was in recession for a long time, which cut its economic power by about a quarter. Since 2010, the country has received aid totaling around € 288 billion from its euro partners and the International Monetary Fund to avert a state bankruptcy.
Trade unions call for demonstrations
After the end of the financial aid programs, the country has to finance itself on the capital market again. Tsipras said in his speech that the Greek economy is expected to grow by 2.5 percent this year. Unemployment fell from 27.5 percent four years ago to 19.1 percent. In another five years, they should be only ten percent.
The unions continue to see the situation critically and called for demonstrations in Thessaloniki. Several thousand people took to the streets in the port city and protested against austerity. "We want jobs and not endless taxes," stood on banners.