Greece announces $6.5 billion austerity plan

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ATHENS, Greece (AP) — Greece has announced a new austerity plan worth $6.5 billion in savings to deal with the country's unprecedented financial crisis.

Government spokesman Giorgos Petalotis says the measures are split with $3.3 billion in new revenues like taxes and another €2.4 billion in spending cuts.

He said Wednesday the measures include trimming civil servants' annual salaries with a 30 percent cut in their holiday bonuses, freezing pensions and imposing further cuts on stipends and bonuses.

Greece also increased the sales tax from 19 percent to 21 percent and hiked taxes on alcohol, cigarettes, luxury cars, yachts, precious stones and leather goods.