The Greek authorities requested on Thursday evening to their creditors – the EU, the ECB and the IMF – a new aid package of € 53.5 billion over three years. In return, Athens proposed, among others, VAT increase, reforming pensions and public administration.
On the night of Thursday to Friday the Greek government published proposals sent to their lenders.
The numbering 13 pages document, which is called “Priority actions and commitments”, Greece agreed to implement almost all the measures, which demanded its creditors on 26 June. Then, Athens rejected these demands and announced that they will organize a referendum – like the AFP.
However, writes the BBC, now Prime Minister Alexis in exchange for Cipras Reform demands a lot more than last month. The head of government wants to restructure Greek debt, as well as 53.5 billion euros to cover the liabilities by the end of June 2018.
The media also about the package of investments for growth in the amount of 35 billion euros. However, according to a source in the Greek Government, which refers to the AFP, the European Commission has already anticipated such a package.
In the document, the Greeks agreed to a “unified system of VAT rates of 23 per cent.”. Raised would be, among others, VAT on restaurant; currently mandatory 13-percent stake. VAT on basic products, electricity, water and hotels would be 13 per cent., And 6 percent. – In the case of drugs, books and theaters.
As noted by AFP, in recent months the VAT hike was a bone of contention between Athens and its creditors.
The Greek government has also proposed increasing the tax on shipping companies and the abolition of tax relief for the islands, starting with those of the richest and most tourist attractions, which demanded the lender. These measures would gradually begin to come into force in October and fully in force until the end of 2016. Relief will remain only on the most remote Greek islands.
Corporate Income Tax (CIT) would increase from 26 to 28 per cent., And farmers would lose their preferential tax treatment, as well as fuel subsidies.
Among the proposals was also included raising the retirement age for women and men to 67 years; for retirement could move those who have completed a minimum of 62 years, but having 40 years of service. This process is carried out gradually until 2022 and would not cover people working in “difficult conditions”, as well as women bringing up disabled children.
The government also predicted deregulation of certain professions, including engineers, notaries and bailiffs.
The authorities in Athens also proposed reducing military spending by 300 million euros by the end of 2016. (100 million euros this year and 200 million – by the end of next year) and establish a rigid schedule of privatization. The government has agreed to sell the remaining state shares in Greek telecommunications company OTE, whose main shareholder is Deutsche Telekom. Also announced tenders for the privatization of the ports of Piraeus and Thessaloniki to October.
The Greek authorities would like to lenders revised targets for the primary surplus of the country for the next four years, since the last days of the economic situation of the country has worsened, mainly after the introduction of controls on movements of capital and the closure of banks. Previously it predicted that Greece will remain a primary budget surplus of 1 per cent. This year, 2 percent. in 2016., 3 per cent. in 2017., and finally 3.5 percent. in 2018.
The government has proposed a series of measures to fight tax evasion and reorganization of the tax collection system. The government is to set up an autonomous agency for the control of tax revenue from the prosecution of tax evasion and the fight against fuel smuggling.
The agency AP says that the package contents have long been required by creditors, but being so far not acceptable for Athens tax increases and cuts in spending on pensions.
The Greek government announced that the parliamentary vote on those proposals will be held on Friday evening. As the agency said Ana, the debate is to begin at 14 o’clock local time (hr. 13 in Poland).
It is “important that institutions (creditors) took them into account in its assessment (request for assistance submitted by Greece – PAP)” – wrote on Twitter spokesman for the head of the Eurogroup Jeroen Dijsselbloema Michel Reijns.
He announced that there would be no comment until the head of the Eurogroup institutions do not evaluate proposals Athens.
On Saturday, the proposals will look at the finance ministers of the euro zone, and on Sunday is planned summit of the Eurogroup and the EU summit, which can either give the green light to start talks about support for Athens or – in the absence of an agreement – to discuss the consequences of a possible Greek default . (PAP)
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