Greece vows retirement, tax reforms

February 10, 2010|Associated Press

ATHENS - Greece took further steps yesterday to calm global markets spooked by its debt crisis, pledging to increase retirement ages, accelerate reforms, and reform its ineffective tax system, on the eve of the first nationwide strike against new austerity measures.

Prime Minister George Papandreou told a cabinet meeting that the reforms “must go ahead now . . . with greater speed.’’

“Our primary duty now is to save the economy and reduce the debt, aiming to do so through the fairest possible solutions that will protect - as far as that is possible - the weaker and middle classes,’’ said Papandreou.

Under intense pressure from European Union partners and market speculation - which sharply hiked Greece’s borrowing costs - Papandreou’s center left government has committed to a four-year austerity plan meant to tame a massive budget deficit and soaring debt.

The reforms disclosed so far have angered powerful labor unions, and civil servants have called a nationwide strike today. The walkout will affect state schools, hospitals, tax offices, and local government offices, while Greek airports will be closed to international and domestic flights.