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Greece Sees Economy Rebounding Next Year as New Taxes Kick In

  • Measures worth total 2.6 billion euros in 2017 draft budget
  • Austerity still a struggle for Tsipras’s coalition government
Pedestrians walk through a street market in Thessaloniki, Greece.
Photographer: Konstantinos Tsakalidis/Bloomberg

Greeks are bracing for more belt-tightening next year with a new set of taxes unveiled in the government’s budget plan for 2017, while the economy is seen rebounding after the steepest slump since World War II.

Lawmakers in Athens will be called upon to approve the budget which incorporates measures worth 2.6 billion euros ($2.9 billion). Prime Minister Alexis Tsipras’s government is attempting to balance international creditors’ demands -- which must be met to secure the next loan sub tranche -- with a commitment to voters to cut down on austerity policies. On Monday, riot police used tear gas to disburse retirees who were protesting in central Athens against pension cuts.