Troika shoots down food VAT reduction

The meeting between the Minister of Finances and the troika representatives lasted about two hours. The main topics were the dismissals from the public sector, privatizations, taxation issues and the fiscal deficit for 2013-2014.

Regarding dismissals, the troika representatives have asked for a list of names of the 2,000 employees who are to leave the public sector by September. At the same time the representatives argued for the strict implementation of the mobility program.

When the Minister of Finances Stournaras open the subject of reducing the VAT in food from 23% to 13%, the representatives explained that there are neither the necessary funds nor the room for relaxing the fiscal adjustment program.

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