Consolidation package approved

Members of Parliament have approved a consolidation package worth 2.7 billion euros. Among other measures, it increases the VAT rate from 20% to 23%. A new transaction tax will also be introduced starting next year with ATM withdrawals taxed at 0.8%. Despite internal disputes, the coalition was united during the vote. These measures are expected to generate 500 million euros. The child tax bonus will be reduced, with no bonus for children over 18, and higher-income earners will lose eligibility. The parental pension will be abolished, but workers can donate 2% of their taxes to parents. Social contributions for high earners will increase, while healthcare workers' wages will grow by only 3%. The coalition plans further financial reforms next year, targeting one-third of this package's amount.

Source: TASR