‘Cut don’t tax’: Shares plummet across Europe as IMF clashes with Greece

Stock markets fell sharply across Europe amid signs that a new funding agreement for Greece is in trouble. The Athens stock exchange was down 3.1%, while the Stoxx 50 of top European shares fell 0.7% after the International Monetary Fund (IMF) raised concerns. Greece’s proposed reforms rely too heavily on tax increases which can hurt the economy, the IMF says. It wants more spending cuts because of the possible effect of tax rises on businesses.

This odd stance seems to indicate that either there is no interest in an agreement or that special interests are being backed.

Alexis Tsipras

The new proposals put forward by Athens aim to raise €8bn ($9bn), mostly through new taxes on the wealthy and businesses, early retirement restrictions, VAT increases and a cut in defence spending. Greece’s prime minister Alexis Tsipras, who is in Brussels for talks to try to finalise a debt deal, criticised the international lender’s position but conceded further negotiations were needed before any agreement is reached. He is meeting the heads of key creditor institutions, including the IMF, European Central Bank and European Commission, for talks that were meant to smooth over differences.

The details are what’s left - a small gap. It’ll be over today.

Greek Economy Minister Giorgos Stathakis

Politics greece