Tuesday, July 14, 2015

Greek crisis: the government Ciprasa against time. A confidential IMF report – Polish Radio


                             After returning from negotiations in Brussels Cipras Alexis began negotiating marathon in Athens. All this in order to get the largest number of MPs to vote for the difficult and painful for the Greeks reforms.
                         

On Monday, after nearly 17 hours of talks, leaders of the 19 eurozone countries agreed on a third aid package for Greece. In the last week threatened with bankruptcy country euro zone had asked for support in the amount of 53.5 billion euros for a period of three years.

At the Brussels summit agreed that the three-year aid program for Greece will amount to 86 billion euros. The money will come from the European Stability Mechanism. According to the agreement, to Wednesday, the Greek parliament must adopt a package of laws introducing the first reform in the country.

As reports from Athens Special Envoy of the Polish Radio Wojciech Cegielski, perhaps as early on Tuesday, the Greek parliament will start work on reforms that he promised in Brussels, Greek Prime Minister. It is not certain, however, if we can push them.

The revolt in the coalition and in the same Syrizie

300-seat parliament ruling Syriza Alexis Ciprasa has 149 deputies (with współkoalicjantem has 162 votes), but in the ranks of the party is growing rebellion.

In Saturday’s vote on granting Head of Government support for further negotiations in Brussels, 17 members Syrizy was a ‘no’. Now another 15 wrote a letter to the Prime Minister, in which warn not to count on them in the upcoming vote on reforms.

In addition współkoalicjant Syrizy, the party Independent Greeks, promises to vote for “no”. – This agreement includes, among others, changes that will lead to the confiscation of houses and changes that are falling constitutional values. On this there is no agreement – said the leader of the Independent Greeks, Defense Minister Panos Kammenos.

Ciprasa will support almost the entire opposition, but still are not sure if it’s enough to parliament approved all the reforms that The European Union ordered the Greeks. It is also not clear whether the controversy will not cause delays, and thus Greece can not meet the Wednesday deadline for adoption of amendments.

Concerns there is not a Greek Interior Minister Nikos Wucis. According to him, the Greek parliament adopt laws necessary for the country to grant a new aid package from the European Stability Mechanism (ESM), although some ruling party MPs preach other opinions.

– Efforts will be decisions that will facilitate the return to normality – assured the head Interior Ministry. He added that there are actions which “offset socially difficult measures” austerity required by lenders.

Greece receives aid, but under certain conditions

In exchange for financial support Athens has until July 15 to adopt a law on: rationalization of the VAT system and widen the tax base, changes in the pension system, the independence of the statistics office ELSTAT and introducing automatic spending brake in case of default the primary objectives of the budget surplus.

Until July 22 Greece has to accept: the Code of Civil Procedure, which is to accelerate processes, while reducing their costs and provisions implementing the Directive on the restructuring and liquidation of banks.

The euro zone also wants to significantly strengthen the proposals reforms planned for the future which Greece has presented itself in the request for a new aid scheme. Athens has accomplished, for example. Labor market reforms, ambitious pension reform, enter the recommendations of the OECD on trade on Sunday, periods of sale, ownership of pharmacies and bakeries, as well as to carry out deregulation of certain professions, eg. In ferry transport sector.

Greeks also recommends the continuation of the privatization operator of electricity transmission networks, as well as a significant expansion of the entire privatization program.

The agreement provides that Greece will report assets worth up to 50 billion euros into a special fund, and the money from the privatization of the property will go on repayment of debt and recapitalize banks (25 billion euros). The document states that 12.5 billion has to go to pay off debts, and 12.5 billion euros for investment in growth and jobs. The fund will be created and managed in Greece by the Greek authorities under the supervision of European institutions.

With the exception of acts adopted in connection with the humanitarian crisis Greeks have to revise the reforms adopted by the leftist government Syrizy that were inconsistent with previous programs prooszczędnościowymi aid.

The euro zone also declared that it is ready to consider additional measures that would facilitate the handling of the Greek debt, for example. deferment of repayments. Excluded, however, nominal debt reduction. Greece confirmed that repay their debts on time and in full.

According to the text of the agreement Greece has also request support from the International Monetary Fund.

IAR, PAP, kk

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