The government’s austerity measures have manifested in severe spending cuts across critical sectors, including healthcare, social benefits, government agencies, and civil society. Additionally, regressive tax increases, notably a 1.5 percentage point rise in the basic VAT rate to 25.5 percent, have further burdened the population.
Beyond the questionable economic outcomes, the social costs are becoming increasingly apparent. Projections indicate a 9.2 percent increase in poverty and a 13.6 percent rise in child poverty. After a period of decline, homelessness is once again on the rise, driven by cuts to social benefits and housing services. The government’s dismantling of social housing is also expected to escalate housing costs.