March 3, 2010 9:22 PM

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Greek government announces new austerity measures

The Greek government has announced a new package of austerity measures expected to defuse a government debt crisis. The new measures, aimed at saving 6.5 billion U.S. dollars, include a 30-percent cut in their holiday bonus for civil servants, tax hikes of two percentage points on fuel and cigarettes. Value-added tax is up from 19 to 21 per cent. Prime Minister George Papandreou said the decisions were necessary for the survival of the country and the economy.

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