Greek Finance Minister Evangelos Venizelos on Sunday announced new budget cuts totaling around 2 billion euros as demanded by the European Union and the IMF in exchange for a rescue package for the debt-ridden country.
Finance Minister Evangelos Venizelos said the tax will be levied over the next two years and will cost citizens an average of euro4 per square meter.
For the country to be able to meet its obligations, “there is a shortfall of about 2 billion euros which must be covered,” he said on Greek television. “And the only effective measure is a special tax on real estate.”
The decision for the new tax was made by the cabinet in Thessaloniki.
In addition, the cabinet has decided to lop off one month’s salary from all elected or appointed state officials, ranging from the President of the Republic to ministry general secretaries, to bring forward the vote on the 2011 budget to October 31 and to enlist the help of Greek shipping companies to support the government’s fiscal reform efforts.
Shortly before holding the press conference where he made these announcements, Venizelos spoke on the phone with main opposition New Democracy leader Antonis Samaras in order to brief him on the decisions of the cabinet.
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