Rehn, Barroso call EU to back financial aid for Greece

21/03/2010

BRUSSELS, Belgium/ATHENS, Greece -- On Friday (March 19th), EU Monetary Affairs Commissioner Olli Rehn urged Union leaders to agree on a plan for financial support for Greece, if one becomes necessary. "It is essential that when we deal with a euro area country there is a European lead and a European responsibility," Rehn said. His call came ahead of an EU summit next week. European Commission President Jose Manuel Barroso also urged for an EU agreement on a rescue plan.

Meanwhile, German Finance Minister Wolfgang Schaeuble said in an interview with Bild am Sonntag weekly that his country would not object to the EU providing bilateral assistance to Athens. "For EU aid to Greece, there is no collective instrument. In case of extreme necessity, there could be co-ordinated bilateral aid on a voluntary basis," Schaeuble said.

The Greek cabinet is expected to table in parliament on Tuesday new tax regulations as part of the austerity measures that should help the country deal with its debt crisis. According to media, the new tax bill foresees a 20% tax rate on the Orthodox Church's income from real estate and 45% tax rate on annual incomes over 100,000 euros. The new "radical" rules will oblige taxi drivers and owners of gas stations and kiosks to issue VAT receipts to customers. (AFP, Financial Times - 20/03/10; Reuters, AFP, Kathimerini, UPI - 19/03/10)