The critical 2016 budget passed through Greek Parliament after a late night vote that concluded in the early hours on Sunday, a tense debate but no surprises
The budget was supported by the 153 MPs of the SYRIZA/Independent Greeks coalition government, with 145 MPs from the opposition parties voting against and two deputies absent. The vote concluded at around 1.30 a.m. on Sunday following five days of debate in the House.
Six years of austerity
The coalition government presented the draft budget to meet conditions for an unpopular third international bailout enacted in July. As discussion on the draft budget started, strike action took place around Greece protesting the social security reforms included in the new plan for Greece.
Economic forecasts show near zero growth in 2015 and a worsening of the economy in 2016 as Greece enters its sixth year of austerity. The Radical Left Coalition (SYRIZA) ruling party and its junior coalition partner, Independent Greeks (ANEL) enjoy a narrow majority in the 300-seat parliament.
The budget’s targets
The budget forecasts a contraction of 0.7 percent next year. It maintains a primary surplus target of 0.5 percent of GDP in 2016 and projected privatisation revenues of 1.9 billion euros.
Public debt is projected to reach 187.8 percent of GDP in 2016 from 180.2 percent this year.
