ATHENS, Greece (AP) â€" Greece will cut spending serve though it won't levy new taxes, a financial apportion pronounced Monday, adding that talks with international debt inspectors on a second rescue package were during a "difficult and critical" stage.
Finance Minister Evangelos Venizelos pronounced spoke after assembly in Athens with officials from the European Commission, a European Central Bank and a International Monetary Fund on how to keep his debt-strapped republic afloat.
"It's not a doubt of either we can levy some-more taxes â€" we cannot. It is not a doubt of either we contingency cut spending some-more â€" we must," Venizelos said. "There is many some-more to be done."
Greeks have already seen several rounds of taxation increases in some-more than dual years underneath austerity measures. Salaries and pensions have also been slashed as a nation struggled to accommodate a terms of a initial general bailout, postulated in May 2010.
That initial euro110 billion ($147 billion) bailout package from Greece's European partners and a IMF came after years of supervision overspending and information forgery annoyed credit downgrades that done it too costly for Greece to borrow. That bailout staved off bankruptcy, though median by it became transparent a loan was not enough.
In October, a second euro130 billion ($174 billion) rescue loan understanding was concluded upon, nonetheless a sum are still being.
The member of a ECB, a European Commission and IMF, on whose assessments Greece's income salvation depends, are approaching to sojourn in Athens for about a week.
"The discussions are formidable and critical. The nation contingency take really critical decisions. There is no room for any evasion," Venizelos pronounced during a news discussion in Athens.
The second understanding forgives about 50 percent of Greece's altogether debt â€" a euro100 billion ($134 billion) â€" by private holders of Greek supervision bonds, on that formidable talks with banks started final month and are approaching to take several some-more weeks.
On Monday, Venizelos also met with Charles Dallara, handling executive of a Institute of International Finance, a tellurian bank lobbying group, who is streamer talks with Athens on a debt writedown.
Greece is streamer into a fourth year of retrogression amid mountainous unemployment, that are hampering a efforts to enclose supervision spending and pierce toward mercantile health.
"The retrogression is worse than any prediction. We are in out third unbroken year of retrogression and streamer to a fourth," Venizelos said. "For this to end, a atmosphere contingency change. Banks contingency feel secure, and we contingency entirely perform a decisions of Oct. 26."
But Venizelos insisted no new purgation measures would be taken subsequent year, as prolonged as Greece entirely implements those it has already committed to.
Preliminary information shows that Greece's economy will substantially agreement by some-more than a central guess of 5.5 percent in 2011. Lagging revenues also meant a supervision will be pulpy to accommodate a necessity aim of 9 percent of GDP this year and a projected primary over-abundance in 2012.
Venizelos indicated this year's targets could be missed.
"The final entertain is a many critical in a bill year (and) unfortunately (it) coincided with a vital spell of uncertainty," he said.
To conflict taxation evasion, Venizelos pronounced Greece would pointer a understanding with Switzerland shortly on potentially fatiguing Greek supports in Swiss bank accounts. The understanding will be identical to agreements Switzerland has with Britain and Germany.
Greek authorities were looking during Greek supports sent to Swiss bank accounts in 2009 and 2010, and were available sum for 2011, Venizelos said. If inconsistencies were found between announced income and income sent to such accounts, afterwards cases would be investigated.
News referensi http://news.yahoo.com/greece-govt-cut-spending-no-taxes-161204479.html
