PM pushes reforms talk
Prime Minister Costas Karamanlis promised over the weekend to push through reforms if re-elected in Sunday’s national elections and threw in a property tax cut to help win over voters. Speaking to journalists at the Thessaloniki International Fair (TIF) yesterday, Karamanlis said that he would press ahead with the somewhat painful changes the country needs, such as tackling the creaking pension system. «The pension issue is a big issue and it must be dealt with,» he said. «Dialogue is good but in the end someone has to take decisions. We have the political will to take the decisions that are necessary,» he added. Greece has one of the highest ratios in Europe of retirees living close to or below the poverty line. The country’s pension funds, of which there are about 170, face estimated future deficits collectively of up to 400 billion euros. In his keynote annual economic speech on Saturday, the prime minister said that he would reduce taxes on property transfers if re-elected. An inheritance tax on real estate will be dropped and replaced by a 1-percent levy on the taxable value of the property. It was not immediately clear who exactly would qualify for the new tax rate and what the impact on their pocket would be. Additionally, first home buyers will be completely exempt from taxes. «The aim is to help young people, and particularly young couples, start their lives easier,» he said. The prime minister’s announcements were not expected, as officials at the Finance Ministry have repeatedly stated that the budget cannot stand any additional pressure from costly election handouts. Karamanlis also repeated on the weekend that he rules out forming a coalition government – a move which could lead to new elections if his party does not win enough votes for a majority in Greece’s 300-member assembly. In response to the announcements, PASOK leader George Papandreou said that Greece is currently at a critical stage and promised fairer distribution of national wealth. After the devastating fires that struck parts of southern and central Greece this summer, Papandreou also said his government would up the importance of the environment on the political agenda by creating a separate environment ministry.
