The Greek Parliament should vote on the austerity plan by the end of June. This was claimed by a senior government official in Athens, who prefers to remain anonymous. The new medium-term measures (2012-2015) are a precondition for receiving an additional international aid package. According to the same source, the Executive is also planning to cut VAT and corporate income taxes starting in 2012. These measures, however, will not be included in the forthcoming economic plan and will be fiscally neutral . The aim seems to be to obtain the support of the opposition New Democracy party, which had requested the cut in corporate taxes in exchange for support for the new austerity programme.
Senior officials of the Greek government have clarified that the Executive does not intend to organize any referendum on spending containment. But their prime minister doesn't seem to agree. Prime Minister George Papandreou said he was open to the idea of a law allowing popular consultations: "I am ready to make major changes and in this context, the institution of the referendum could also be used to obtain the maximum possible consensus". According to Papandreou, "the expected changes do not only concern the next vote in Parliament of the measures included in the medium-term financial programme", but also changes in the "political and economic model", in which "cronyism" has dominated so far. However, the prime minister ruled out early elections (his mandate expires in 2013) and pledged to respect the agreement concluded with the country's creditors, the EU and the IMF: "Today, Greece is suffering the repercussions of a general financial instability and this forces us to make difficult decisions, the following days and weeks are crucial”. Papandreou concluded by inviting the deputies "to vote the financial program with a large majority".
