The Greek parliament has begun its debate on €28 billion in spending cuts and tax increase. Perhaps Greek MP’s should vote against the austerity bill Wolfgang Münchau writes in Financial Times.
Summary: Until last week the austerity vote seemed necessary to avoid Greek default and the destabilization of the global financial system. Last week however, the EU and IMF called for a tax levy of €100 – €300 for the self-employed and a cut in tax-free allowance. The move has angered locals, hurt economic growth, and is likely to crush the national unity that the EU hopes to achieve. The current aid program is politically and economically questionable and the only reason to vote yes would be to prevent an immediate default but Greek MPs have been put in a difficult position by the EU and the IMF.
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