Government approves austerity measures

The government on Wednesday approved a series of austerity measures for 2013 including a one percent hike in VAT to 15 and 21 percent respectively, fewer tax reliefs for entrepreneurs and no tax refunds on bio-fuel for farmers. The measures, which have yet to be approved by Parliament and signed into law by the president, should help bring the gap in public finances to below 3 percent of GDP.