Is the proposal of Greece. Athens agree on much, but demand … – Gazeta.pl

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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.

rejected, now agree

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 Tsipras in exchange for reforms demands much more than in the previous 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 spokesman for the ruling in Greece Syrizy announced that Tsipras will have the support of parliament in negotiations with lenders.

35 billion – already provided. The disputed VAT …

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.

Taxes in the tourism industry up?

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, what They demanded the lender. These measures would gradually begin to come into force in October and fully in force until the end of 2016.

The relief will remain only on the most remote Greek islands. Corporate tax (CIT) would increase from 26 to 28 per cent., And farmers would lose their preferential tax treatment, as well as fuel subsidies.

What even in the proposals?

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.

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 rigid the privatization schedule. 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.

What does he want Greece from lenders?

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.

Earlier expected that Greece will maintain 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. Athens has also appoint an autonomous agency for the control of tax revenue from the prosecution of tax evasion and the fight against fuel smuggling.

agency AP says that a package concluded 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 the proposals will be held on Friday evening. As the agency said Ana, the debate is expected to begin at 14:00 local time (hr. 13.00 in Poland).

Proposal “last minute”

On Thursday evening, 1.5 hours. before the deadline, the Greek authorities sent to creditors – the IMF, the European Central Bank and the European Commission – proposals on the reforms necessary for Athens to receive the next bailout package. About such support from the European Stability Mechanism (ESM), Greece requested on Wednesday.

It is “important that institutions (creditors – ed.) Took them into account in its assessment (request for assistance submitted by Greece – red .) “- wrote on Twitter spokesman for the head of the Eurogroup Jeroen Dijsselbloema Michel Reijns.

He announced that there will be any comments the head of the Eurogroup, until the institutions do not evaluate proposals Athens.

On Saturday, the proposals will look finance ministers of the euro area countries, and on Sunday is scheduled Eurogroup summit 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.

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