Greek parliament ratifies 2019 state budget, first of post-bailout era

  19 December 2018    Read: 1284
  Greek parliament ratifies 2019 state budget,   first of post-bailout era

Greek lawmakers ratified on Tuesday the 2019 state budget, the first of the country's post-bailout era, which foresees 2.5 percent economic growth in the new year from 2.1 percent in 2018.

With the support of the deputies of the two parties of the Left-led ruling coalition and an MP of a centrist opposition party the budget was approved by 154 lawmakers in the 300-member strong plenary, Greek national news agency AMNA reported.

During a heated debate before the vote which was broadcast on public broadcaster ERT, Greek Prime Minister Alexis Tsipras criticized past administrations of tough and ineffective fiscal adjustment, arguing that his government took over in 2015 a country in dire straits which had lost a quarter of its national wealth and led her to growth.

The 2019 budget is "one of fiscal expansions after eight years of austerity," he said.

"Our vision is clear. It relates to the dynamic growth of the Greek economy and the revival of production, the safeguarding of fiscal stability, the increase of wages and the support and upgrading of the social state, health, education and social solidarity," the Greek leader stressed.

Greece exited this August the third of the harsh bailout programs implemented since 2010 to keep the debt-ridden country afloat and in the euro zone.

Athens can now gradually change the mixture of its fiscal policy to support the weaker social groups which suffered during the crisis, the government has said, pledging relief measures.

On their part, opposition parties said that there is still a heavy burden of over taxation on the shoulders of households and businesses and lack of reforms.

"The fiscal obligations the government has assumed with lenders comprise an informal fourth loan agreement, with unbearable primary surpluses of 3.5 percent to 2022," Greek conservative main opposition New Democracy party chief Kyriakos Mitsotakis said, during the debate.

Greek society remains trapped in austerity, argued labor unions that staged a protest outside the parliament building earlier on Tuesday.

Public expenditure on health and education for example are further reduced, while one in two Greeks has debts to banks and the tax office, the umbrella union of public servants ADEDY noted in a press statement.

 

Xinhua


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