Athens Macedonian News Agency: News in English, 13-03-11

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From: The Athens News Agency at <http://www.ana.gr/>

CONTENTS

[01] Venizelos: Societies can't bear more burdens

[02] Greek GDP shrank 6.4 pct in 2012

[01] Venizelos: Societies can't bear more burdens

He also said that the three parties that comprise the coalition government must agree on specific handlings in order to finish with unemployment, the relief of overindebted households and the initiatives in the real economy.amna

Venizelos noted that during his meeting with the lenders' representatives, the troika appeared more subdued. "All of them, they and their chiefs, can see what is happening," said Venizelos and referred to the Italian elections as well as the fact that "the societies can't bear anything else. This is something new and we must take advantage of it".

The PASOK leader said that the troika has understood that there is no room for additional measures and that the society, the government and the real economy can't bear them.

Also, Venizelos said that it is the troika's huge mistake not to allow the arrangement of debts to the Tax Bureau and the social security funds, from which there would be an inflow of revenues, adding that the banks should not be phobic to an arrangement for overindebted households. He said that a draft law tabled by his party to parliament foresees a better way to deal with the issue.amna

On the possibility of reduction of the VAT rate in the restaurant sector, Venizelos said that when you cut revenues from one source then you must find them from another source, but explained that the reduction in VAT revenues would be counterbalanced by the increased turnover that will result in restaurant businesses.

Venizelos ruled out the possibility of additional taxes on real estate properties adding that we will not proceed with auctions and foreclosures because this is a 'barbarous attitude'.

[02] Greek GDP shrank 6.4 pct in 2012

In current prices, the country's GDP was 47.267 billion euros in the fourth quarter, falling to levels last seen in the second quarter of 2005. The government forecasts an economic recession of 4.5 pct this year.

The statistics service, in a report, said that fourth quarter data were slightly better than initial forecasts (5.7 pct from 6.0 pct) and said that the new falling in the country's GDP reflected both a big fall in private investments and a shrinking consumption. Private investments fell by 10.3 pct in the October-December period, while households' consumption spending fell by 9.6 pct (the general government's consumption spending fell by 5.8 pct). amna

On the other hand, the country's trade deficit shrank by 17.5 pct, with exports falling by 4.8p ct and imports falling by 8.1 pct in the fourth quarter of 2012. Exports of goods rose 2.7 pct and exports of services fell 13.9 pct, while imports of goods fell 8.5 pct and imports of services eased 6.3 pct.

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