Greece : Summary

From a political perspective, no support package can be offered to Greece without a commitment from its government to drastically reform budgetary spending since without reform there can be no guarantees that Greece will not limp from one crisis to the next. Today Greece has announced a freeze on pensions, a cut on civil servants bonus payments, another EUR2.4 bln spending cuts and a rise in VAT to 21% from 19%.

At 19% the vat has proved to be poorly collected as the Greeks experienced harsh economic times.