Greece to tighten public spending
Greek Prime Minister Yiorgos Papandreou firmed up his government's commitment to fiscal discipline hours ahead of an expected European Commission approval of the Greek stability and growth programme for the next three years. Papandreou, whose socialist government came to power in the midst of the economic crisis last October, has announced a wage and hiring freeze in the public sector. A new tax bill also goes to parliament next week, he said, in which special tax brackets are abolished and all professions are brought into a uniform sliding scale. It is also expected to tax dividends and offshore companies, and place a special levy on real estate worth more than 200,000 euros. Also under discussion are higher taxes on fuel and raising the retirement age.
Financial Times: http://www.ft.com/cms/s/0/fd11666a-100c-11df-b278-00144feab49a.html