Syriza’s surprise plan to axe a lower tax rate for Greeks living far from the mainland has raised fears of a ‘tragic’ cost of living effect and a blow to tourismJust outside the medieval walled splendour of Rhodes’s old town, tourists and locals sip iced coffees at the pavement tables of the Gran Caffe restaurant and bar. Its owner, islander Seltsouk Atakli, is laughing and joking with customers. “Keep smiling is what I always say,” he shrugs. “But sometimes a smile is not enough.”As the latest proposed deal to avoid Greece’s bankruptcy threatens to unravel, a row is raging on Rhodes and several other Greek islands over fears that they are being unfairly targeted. To the surprise of locals, one of the government’s proposals to its creditors is to get rid of the special lower VAT rate that applies to a number of Greece’s far-flung islands — not just the famous tourist destinations of Mykonos and Santorini, but scores of little-known smaller islands with ageing and depleting populations. Related: Tsipras summoned to Brussels for emergency talks over Greek bailout deal Membership Event: Guardian Newsroom: Can Greece be saved? Continue reading...
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