Greek PM defends island VAT exemptions, pension aid

Insisting that his government will never betray its commitment to social cohesion, Prime Minister Alexis Tsipras reiterated Tuesday that islands of the eastern Aegean will be exempt from a value-added tax hike introduced as part of the country's bailout commitments, as they are the ones, he said, that have borne the brunt of the ongoing migrant crisis.

"They are shouldering the burden of reception and hospitality, and, ultimately, the entire burden of Europe. Citizens on these islands must feel sure that the state is looking after them," Tsipras said during a visit to Nisyros, where he announced a series of measures to assist the islands, including the improvement of ferry services and healthcare.

"Greece is an island country and we have to show our support to islanders," he said.

His announcement last week in a televised address regarding VAT hikes on...