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Greece Set to Face More Austerity Measures

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The Greek parliament has approved new budget cuts and tax increases ahead of a key Eurozone meeting, with finance ministers expected to unblock essential bailout funds, Euronews reports.

The government is trying to negotiate new aid for a debt payment of EUR 3.5 billion, which is due in two months' time.

Premier Alexis Tsipras told parliament Greece was going to fulfill its promises: "European leaders will receive a message tonight, the message that Greece fulfill its obligations, it undertakes its responsibilities. Tomorrow the other side must also take responsibility."

Opposition MPs voiced strong criticism against the new tranche of austerity measures. They include a sharp rise in VAT, higher tax on fuel, tobacco and internet usage and the creation of a state privatization fund.

The ruling coalition voted in favor of the reforms with only one MP against some of the articles on the new privatization fund and a contingency mechanism of spending cuts that will be activated only if Athens would be unable to meet its fiscal targets. Syriza MP Vassiliki Katrivanou later resigned.

But outside parliament hundreds of protesters held a rally, objecting the new series of reforms. 

Earlier this month, parliament approved changes to the pension and income tax system.


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