Prime Minister Alexis Tsipras unveiled plans to undo several austerity measures that were a condition of Greece’s international bailout, putting his new government firmly on a collision course with its European partners.
In a speech to lawmakers, Tsipras reiterated that Greece would seek a bridge loan from its international creditors until June, refusing to accept an extension of its current bailout, as demanded by European partners.
“We know very well that talks won’t be easy and that we are facing an uphill path but we believe in our abilities,” he said.
Among the changes announced by Tsipras are raising the taxable income threshold; gradually increasing the minimum wage, starting next year; and dropping a recently introduced property tax. He also promised the retirement age wouldn’t be changed.
Greece’s current EUR240 billion (roughly $272 billion) rescue runs out at the end of the month, and the government has warned it could run out of money in weeks unless it can gain access to additional funds.
The Greek government also has said that it wants to change the terms of its funding agreement, which require the new leftist government to adhere to austerity measures agreed to by its predecessors.
But Greece’s partners in the European Union—led by Germany—have insisted that promises made by the previous Greek government have to be kept if Athens wants to receive further assistance.
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