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Originally Posted by Ignitionnet
In which case equating them isn't really fair. Greece's public spending has dropped a bunch. Sadly alongside that has come a massive drop in GDP, so it hasn't actually helped.
Are you advocating, having cut public spending by ~20% and taking 1/4th from the Greek economy, more of the same?
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If the problem has been in part caused by employing people in unnecessary public sector jobs then that is where the axe should fall. Or should they be given an eternal pass to spend as much as they like and others will forever be expected to pay for it.
If repaying loans takes so much money , how did they ever think they were going to repay anything. They've already been let off 50% of the debt.
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Lenders' proposals - key sticking points
- VAT (sales tax): A new system to come in from 1 July, with three rates, aimed at boosting annual revenue by 1% of total output (GDP)
- Most goods to be taxed at top rate of 23%, including restaurants and catering and processed foods
- Reduced rate of 13% for basic food, electricity, hotels and water
- Super-reduced rate of 6% for medicines, books and theatre
- End exemptions and eliminate VAT discounts for Greek islands
- Create strong disincentives to early retirement
- Move retirement age up to 67 by 2022
- End Ekas "solidarity" top-up grant that some 200,000 poorer pensioners get - immediate Ekas cut for wealthiest 20% of recipients, and cut completely by 2020
- Pensioners' healthcare contributions to rise to 6%, from 4%
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