Greeks To See No Tax Relief Until Budget Improves
ATHENS, Greece (AP) â¿¿ Greece's conservative-led government can't lower taxes before the public deficit falls further, the prime minister said Thursday, but he pledged to eventually slash the corporate tax rate to a flat 15 percent.
Antonis Samaras made the promise at a meeting in Athens with Irish Prime Minister Enda Kenny, whose country holds the European Union's rotating presidency.
Greece has imposed a series of emergency taxes and spending cuts in exchange for international bailout loans, but the measures hurt economic growth and caused a surge in unemployment and poverty.
Samaras described Ireland as a model for Greece in repairing its public finances."We will follow the exactly the same successful example set by Ireland â¿¿ both for the EU presidency and an exit from the crisis," Samaras said. "It has been my stated aim for years now that I want a unified rate, a flat-rate tax of 15 percent. As we reach our targets that moment draws closer." Corporate profits are currently taxed at a minimum of 26 percent. Kenny called his fellow conservative as "a voice of reality and a voice of progress" in Europe, and repeated his assurance that Ireland would complete its bailout program by the end of the year. Greece's program end in 2016. Later Thursday, about 10,000 people joined a peaceful protest march in central Athens to demand the renewal of collective labor agreements that expire this year. Rescue lenders want the government to set a minimum wage across labor categories â¿¿ effectively canceling the existing practice of negotiated collective pay agreements between unions and employers for different sectors of the economy. Greece's minimum wage was cut last year to 684 euros ($880) per month, according to figures kept by the EU statistics agency, Eurostat.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV