Knife on NATO spending and MFA expenditure – equivalent VAT on 5 islands



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Equivalent to the cost of suspending the VAT increase on the five Aegean islands affected by the refugee crisis, Germany has requested the approval of the tranche of 15 billion euros.

Thus, last night, Euclid Tsakalotos presented to the proposal equivalents that will cover the cost of the 28 million euros that constitutes the suspension of the VAT increase in the islands.

According to information, the reductions proposed by Mr. Tsakalotos and Kammenos will come from expenses for NATO, maintenance costs of aircraft and other equipment, health care of employees with public insurance by the supply of equipment pharmaceutical, Payments for Travel Expenses of Staff and Bonds of Other Programs of the Armed Forces.

The Capsun of Germany

It is recalled that yesterday the officials that Germany has issued reserves for the disbursement of 15 billion euros due to a postponement of six months of the VAT increase in the last islands of the Aegean Sea, asking for an equivalent, considering the VAT increase on the five islands as the l 39; one of the 88 prerequisites. dose, which has not been met.

As Mario Senteno admitted, Germany only raised its reservations when the Greek side – that is Euclid Tsakalotos – promised that the government would increase VAT at the end of the year, but that she would find the equivalent for the 28 million.

That is to say that Athens is committed to finding measures equivalent to 28 million euros, despite the fact that it already realizes a primary surplus higher than the target

The head of the European Stability Mechanism (ESM) Claus Recul on his part said that the suspension of the tax increase would be temporary and that at the end of the year the VAT rates on the five islands would be equalized with those applicable in the rest of the territory

It should be noted that the government, after the question GG a decision to suspend the increase of VAT on the five islands affected by the refugee crisis by stating that the suspension would apply until the end of 2018 insisted that the issue was typical and with prolonged extensions as long as the refugee crisis lasted and how long the Prime Minister, this measure will apply.

Commissioner Moscovici tried to feed the impressions, arguing that it did not matter, after the ministers finally turned green, adding that these 28 million are nothing in front of the surplus of 3 , 5%. The essential point is that the government received a very strict and precise message before the end, while the tranche – because of the implications of the VAT issue – will be disbursed in early August

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