Greek deal foresees 30 bn euro in cuts: Finmin

ATHENS: Greece has agreed a package of austerity measures with the EU and IMF under which it will cut the deficit by 30 billion euros over three years, Finance Minister George Papaconstantinou said on Sunday.

Papaconstantinou said the agreement foresaw Greece's budget deficit falling to below 3 perent of gross domestic product (GDP) in 2014. Debt was expected to rise to over 140 percent of GDP and then fall from 2014.

He said the measures included a rise in value added tax (VAT) to 23 percent from 21 percent, a 10 percent hike in fuel and alcohol taxes and a further reduction in public sector salaries and pensions.