(Greece) – New data has been released that shows that Greeks haven’t been spending as much money on food as they had in the past. Greece has been struggling economically since 2008, and they received their first bailout in 2010. The Greek parliament and international creditors have just reached an agreement for their third bailout where Greece is expected to receive an additional 10.3 billion euros in funds.
However, before the creditors agreed to release funds, Greece had to agree to new austerity measures, including pension reforms and tax increases. For the Greek people, this has only added to the austerity measures that have been put in place since the first bailout. It is this tax increases that have led the people in Greece to minimize their spending, and for many, this means that they haven’t been buying as much food. Food spending decreased by 13% in the first quarter of 2016 when comparing consumption with the first quarter results from 2015.
Many look at Greece’s economic difficulty as the result of government overspending, which is one of the reasons why the international creditors have imposed these austerity measures. They believe that Greece needs to control its government spending in order to get a handle on its high debt load. The international creditors have long said that they Greece needs to greatly reduce public spending and increase government revenue. Greece needed this third round of bailout funds to help them make their loan payments.
Although these measures are in place to help secure a stable financial future in Greece, it has caused many Greek people to struggle financially. In addition to reducing spending on food, many people are also having trouble paying their electric bills. The state-run electric company, DEI, has reported that it has about 2.7 billion euros worth of unpaid invoices.
The most recent wave of tax hikes impacts daily incidentals such as food, drinks, travel expensive, cigarettes, telephone use, and television services. This move is designed to help the Greek government increase their revenue. While some of these tax increases will impact the tourist trade while others, such as food, drinks, telephone use, and cigarettes, also cuts into the Greek people’s wallets.
How the current Greek government has been handling the economic crisis has been under much debate. Some believe that they are handling the economic crisis as best as they can, while others are upset by the austerity measures, which has led to labor strikes and protests. Just recently, the house of State Minister Alekos Flambouraris’s was attacked by assailants who used fire bombs and stones as an act of protest.