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Παρασκευή, 13 Ιουλίου 2018 12:52

DM cites spending cuts in bid to overcome Berlin's opposition to suspension of measure for islands' VAT rates

Berlin's qualified "nein" to the timely disbursement of the last loan tranche of the current Greek bailout - itself ending on Aug. 20 - apparently generated quick action in Athens less than a day later, with the country's controversial defense minister referring to spending cuts by his ministry in order to retain lower VAT rates on five Aegean isles - at least until 2019.

Berlin's qualified "nein" to the timely disbursement of the last loan tranche of the current Greek bailout - itself ending on Aug. 20 - apparently generated quick action in Athens less than a day later, with the country's controversial defense minister referring to spending cuts by his ministry in order to retain lower VAT rates on five Aegean isles - at least until 2019.

Panos Kammenos, the head of the small right-wing junior coalition partner in the current government, referred to a "restructuring" of military units with their "transfer to the border region and the axing of inactive military bases". His also cited a cut in older defense contracts, all part of breakneck efforts by the Greek side to find 28 million euros in spending cuts, in order off-set the same sum that the VAT suspension would have cost state coffers until the end of the year.

In a bid to portray the urgent defense cuts - via unit transfers and base reductions - in a positive light, Kammenos took to his Twitter account on Friday morning to emphasize that "the islands are the Defense of our Land".