ATHENS (Reuters) - The Greek government, which meets to decide new austerity measures on Wednesday, will consider a proposal to trim public sector bonuses by 30 to 35 percent to cut its overall wage bill, government officials said.
"The basic proposal is for cuts of 30 to 35 percent in the Christmas, Easter and vacation bonuses," one senior government official who declined to be named said before the cabinet meeting began at about 8:00 a.m. British time
These cuts could generate savings of about 0.7 billion euros. The cabinet will also consider proposals to raise VAT to 21 percent from 19 percent, another official said.
(Reporting by Athens bureau, writing by George Georgiopoulos; Editing by Toby Chopra)
