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Greece Unveils New Austerity Measures

Friday, March 5, 2010

Designed to generate a further EUR4.8bn for the country’s economy, the Greek government has announced a new wave of austerity measures, including a raft of additional tax measures.

In a determined bid to enable Greece to reach its budgetary objectives this year, the government’s latest austerity programme was approved during an emergency council of ministers meeting.

Government spokesman George Petalotis unveiled details of key fiscal measures contained in the plan, including a 2% rise in the value-added tax rate, from 19% to 21%, which will serve to generate in the region of EUR1.3bn for the government, or 0.5% of GDP.

Taxes levied on alcohol, tobacco, fuel and luxury products are also set to rise. Petalotis announced a 20% increase in the tax levied on alcohol and tobacco, as well as an eight cent per litre rise in the cost of petrol, and a 3 cent per litre rise in the cost of diesel. The price per litre of fuel had already risen by almost 25 cent at the beginning of February. The cost of cigarettes is due to rise by 63%, while the government is also planning a significant increase in property tax.

According to the Petalotis, the government is currently facing an enormous battle ahead, as the Greek economy in its worst state for years, with a deficit estimated at EUR30bn and debt of around EUR300bn.

The tax law containing these new initiatives is due to be adopted shortly by the Greek parliament. In view of the government’s latest proposals, Greek Prime Minister George Papandreou is eager to receive vital support from the European Union, otherwise Athens will seek assistance from the International Monetary Fund.

While the European Commission wholeheartedly welcomed the government’s new programme, Adedy, the country’s main public sector union fiercely criticized the measures, warning that it would take to the streets in protest. Adedy has already called for a 24 hour strike to take place on March 16, and protests have already taken place against the proposed freeze on pensions, also announced as part of the plans.

Nevertheless, having underlined the “catastrophic” situation of the Greek finances and evoked the nightmare of potential insolvency, Prime Minister Papandreou is adamant that these “severe measures” are necessary. Indeed, Papandreou has expressed his full commitment to taking whatever decision necessary in order to avoid the worst, and to save both the country’s economy and independence.

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The Report

Offshore Trusts Guide: Introduction

The History of Offshore Trusts
Development of Professional Competence in the Jurisdictions
What Future for the Trust?
The New Age of Transparency
The Swiss Association of Trust Companies
The Society of Trusts and Estates Practitioners

Offshore Trusts Guide: Jurisdictions

Bahamas

Bahamas: Legal Framework and Formation Rules and Fees
Bahamas: 2006 Private Trust Companies Legislation

Barbados

Barbados: Legal Framework and Formation Rules and Fees
Barbados: Supervisory and Licensing Regime and Fees

Bermuda

Bermuda: Legal Framework and Formation Rules and Fees
Bermuda: Supervisory and Licensing Regime and Fees

British Virgin Islands

British Virgin Islands: Legal Framework and Formation Rules and Fees
British Virgin Islands: Special Trusts Act 2003
British Virgin Islands: The Trustee Act 2003
British Virgin Islands: :Supervisory and Licensing Regime and Fees
British Virgin Islands: New Laws on Private Trust Companies
British Virgin Islands: New Private Trust Company Regulations

Cayman Islands

Cayman Islands: Legal Framework and Formation Rules and Fees
Cayman Islands: Supervisory and Licensing Regime and Fees

Cook Islands

Cook Islands: Legal Framework and Formation Rules and Fees
Cook Islands: Supervisory and Licensing Regime and Fees

Cyprus

Cyprus: Legal Framework and Formation Rules and Fees
Cyprus: Supervision, Licensing and Tax

Gibraltar

Gibraltar: Legal Framework and Formation Rules and Fees
Gibraltar: Legislation, Regulation and Supervision

Guernsey

Guernsey: Legal Framework and Formation Rules and Fees
Guernsey: Trusts Law 2007

Isle of Man

Isle of Man: Legal Framework and Formation Rules and Fees
Isle of Man: Supervisory and Licensing Regime
Isle of Man: Uses Clients and Tax Treatment

Jersey

Jersey: Legal Framework and Formation Rules and Fees
Jersey: Supervisory and Licensing Regime
Jersey: Trusts Amendment Act 2006
Jersey: Foundations

Liechtenstein

Liechtenstein: Legal Framework and Formation Rules and Fees
Liechtenstein: Regulation Supervision and Transparency
Liechtenstein: Characteristics of Liechtenstein Trusts
Liechtenstein: Foundations

Madeira

Madeira: Legal Framework and Formation Rules and Fees

Malta

Malta: Legal Framework and Formation Rules and Fees
Malta: The Trust and Trustees Act 2004

Mauritius

Mauritius: Legal Framework and Formation Rules and Fees
Mauritius: Characteristics of the 2001 Trusts Act
Mauritius: Additional Provisions of the 2001 Trusts Act
Mauritius: Tax Treatment

Monaco

Monaco: Legal Framework and Formation Rules and Fees

Nevis

Nevis: Legal Framework and Formation Rules and Fees

Panama

Panama: Legal Framework and Formation Rules and Fees
Panama: Requirements for Acting as Trust Company in Panama

Seychelles

Seychelles: Legal Framework and Formation Rules and Fees

Turks & Caicos

Turks & Caicos: Legal Framework and Formation Rules and Fees
Turks & Caicos: The Voidable Dispositions Ordinance

Vanuatu

Vanuatu Legal Framework and Formation Rules and Fees




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