Greece must continue to implement reforms to put its towering debts on a sustainable path, German Finance Minister Wolfgang Schaeuble said Saturday, on the sidelines of the International Monetary Fund's meetings in Washington.
"Greece can and must still do more," he said. Athens must cut a further 5.4 billion euros (6.1 billion dollars) to keep government finances in line with the most recent rescue package, agreed last year with Greece's international creditors, according to the (dpa).
Pension cuts and tax hikes are reportedly on the table. The Greek government says it will pursue necessary legislation before the end of April.
This week in Washington, IMF economists emphasized the need for Greece to broaden its tax base.
The country's income tax only applies to the top 45% of households, who have seen high tax rates only rise since Greece first sought an international bailout in 2010. By comparison, Portugal only exempts the bottom 2% of income taxpayers, and the eurozone average threshold for income taxation is 18% , the IMF said.