IVA (VAT) is set to rise by 3% to 21% and budgets to local authorities are to be cut by €3.5 billion as part of the latest round of austerity measures.
The measures are in return for the loans being provided by the EU. Other measures to be adopted are:
Christmas bonuses suspended for public workers
Unemployment benefit cut from sixth month out of work
30% cut in number of councillors in some areas
Subsidies cut by 20% in 2013 for political parties, unions and workers