Athens: Greek conservative leader Antonis Samaras promised yesterday to cut taxes and increase social spending, without missing the targets set by international lenders, if he wins the May 6 national election.
Samaras, the front runner in the race, has often criticised the terms of the bailout that saved Greece from bankruptcy, and said he would spend ¤550 million (Dh2,66 billion) on social relief if elected.
"Our economic plan's priorities are growth and recovery," he told a crowd of supporters. "Without growth ... the economy will collapse." He has said the bailout terms underestimated the severity of the recession in Greece.
Opinion polls show his New Democracy party coming first, but failing to win outright, forcing Samaras to seek coalition partners to form a government. The only other major party supporting the IMF/EU bailout plan is the Socialist PASOK, running second in popularity.
Samaras, presenting his economic programme two weeks before the vote, said taxes should start falling, starting with a single corporate tax rate of 15 per cent, down from 23 per cent now, to stimulate consumption and hiring and spur economic recovery after five straight years of recession. At some point in the future, the top VAT rate should be cut to 19 per cent from 23 per cent now, and the top income tax rate to 32 per cent from 45 per cent, he said.
This would reverse some of the austerity measures the country agreed to last month to obtain its second EU/IMF bailout in two years, avoid bankruptcy and remain in the euro.
But Samaras said he would respect the aim of cutting the budget deficit to 7.3 per cent of gross domestic product this year and further beyond, from an estimated 9.3 per cent in 2011.
