The budget committee of the German Parliament approved on Wednesday the disbursement of the last loan installment for Greece. Berlin has blocked the disbursement of 15 billion euros in July after the Greek government had announced the postponement of Value Added Tax hikes for five islands hit by the migration crisis.
The revenues losses from the lower V.A.T. on the five islands will be compensated with savings in the defense budget, the German Parliament said in a statement.
Neo-liberal FDP and extreme-right AfD had submitted proposals to reject the disbursement.
The total revenue losses until 31. December 2018 are 28 million euros.
In a report that German finance Ministry had calculated that the revenue losses from the low VAT does not put the target of 3.5% primary surplus at risk.
The European Stability Mechanism had approved the disbursement in July in principle.
After the vote in the German parliament, there is no obstacle for the EMS to disburse the money.
Greece is expected to exit the bailout program, the third after 2010, on August 20.
