In the afternoon the discussion by teleconference
Milan , February 24, 2015 – 9:26
Greece reduce ministries – 16 to 10 – consultants and benefits of Ministers and MPs and will launch a “spending review in every area of public expenditure ‘to’ rationalize ‘the ministries where the expense is not intended to wages and pensions’ amounts to an incredible 56% of the total.” Also will review health spending, but “ensuring universal access.” These strengths of the list of reforms (read the text in English) for an extension of four months of the agreement on the debt that the Minister of Finance greek sent to the European authorities and the IMF around midnight Monday. The list – evaluated in the morning by the European and international institutions responsible for payment in Athens (IMF, ECB and EU Commission) for a first opinion – will be discussed by the finance ministers of the euro to 14 hours Italian, via teleconference. According to EU sources in Brussels, Greece’s creditors (the “old” troika) would be “all satisfied” by the reforms proposed by the government greek.
“Government very seriously”
“The Greeks have submitted the list of measures yesterday, but in later times,” confirmed the president of the Eurogroup, Dutch Jeroen Dijsselbloem , at a hearing Tuesday morning the Committee Economic and Monetary Affairs of the European Parliament. Dijsselbloem has also specified that the one you are working with the government greek “is not a new agreement, but an indication of the reforms on which you want to push, and this new work will take four months.” Responding to questions from MEPs, the president described the efforts of the new government greek “very serious.” Government, explained Dijsselbloem, “has a political vision very different from the previous government. “So, they want some change in the agreement. Now we have to see if the plan guarantees the achievement of the objectives in terms of public finances, financial stability and growth “of Greece. “There must be, however – he continued – a strong co-operation, you can not make unilateral moves at least until that Athens wants new funds from the eurozone.” Dijsselbloem then stressed that Greece iIn ‘institutions (IMF-EU-ECB, ed ) will still be involved, “even without a new program,” because they have interests. ” Without ever using the word “troika”, stressed that “monitoring” of Athens would still be maintained for the exposure of the institutions with the greek debt.
Valid starting point
“For the Commission of the EU list is complete enough to be a good starting point for the successful conclusion of the audit,” a source told Community. “We are greatly encouraged by the strong commitment to combat tax evasion and corruption,” he added.
The reforms
Meanwhile clarifies the contents of the plan that Greece’s Alexis Tsipras and Marxist economist Yanis Varoufakis have signed to secure the valuable funds of the EU, Greece needed to retract the weight of excessive debt and avoid bankruptcy of Athens. The greek government has pledged to reform its tax system, with initiatives for the fight against tax evasion, and to review the pension system, consolidating pension funds and eliminating incentives for early retirement. In particular, the VAT will be reviewed because it has “negative impact on social justice.” The document also provides interventions to control expenditure and reform of public wage increases that new blocks without intervening on dips.
Social measures
The plan contains only two social measures to address the humanitarian crisis: extension of the minimum wage (but “on the amount and timing”, the EU will be consulted, reads the list) and food stamps-energy and health for the poor. Exemptions will be replaced with social measures and the aim is to “ensure that all areas of society, especially the wealthy, contribute a fair share ‘spending. Athens is also committed to ensuring that interventions to contrast the “humanitarian crisis” have not “negative tax effects” and “to have banks that are managed based on sound banking principles and commercial.”
Measures
For the neo Prime Minister will not be easy to maintain the difficult balance between the empty coffers of Athens and policy coherence, but if well in Athens today there is optimism about green light to four more months of economic support, the greek prime minister faces a hardship that is contagious spreads on the left wing of his party.
Dialogue
The list” with a first list of reforms “of the greek government has been sent a letter from the Minister Yanis Varoufakis dell’Eurogrupp the president and representatives of the Commission, ECB and IMF. Additional specifications “are expected before the end of April.” The dispatch was preceded by a “constructive dialogue” between the Greek authorities and the three institutions’ all weekend. ” But – it is emphasized – “the key to a successful conclusion of the” revision “of the program will be ready and determined implementation of all commitments to reform.” In the afternoon, the measures will be discussed in the conference call. If the Eurogroup will give the green light, the 19 eurozone members must approve by the end of the week the extension of the bailout. Some of them, including Germany and Finland, will have to report to Parliament. Meanwhile in Berlin the Ministry of Finance, Wolfgang Schaeuble, has already filed an application for extension of the program of aid to Greece in the Bundestag, the German parliament, on the basis of agreements Friday. The application was lodged with the ‘reserve’ a green light of the Eurogroup. The deadline for the green light is 28 February.
Of ‘Grexit’ do not talk
And that a Grexit – the output of Athens from the euro – “not even talk about it, we are not prepared,” was reiterated today by Jeroen Dijsselbloem. “My goal – he added – is that the Eurozone remains intact: being together is difficult but we have to stick together.” Before he had been Christine Lagarde , director general of the International Monetary Fund, to affirm, in an interview, that “Greece’s exit from the eurozone is not in question.”
The program Salonnico
Monday Greek government sources anticipated that the list would have been inspired in part to the “first pillar” of the “program of Thessaloniki” (promises of Alexis Tsipras announced last September).
In Exchange we toast
The Athens Stock Exchange started in sharp rise: opening very positive (+ 6%), then the stock greek arrived earning 7% and sovereign yields fell by 280 basis points, with strong buying throughout the credit segment. In sharp descent, the spread between 10-year government bonds of Greece and those of Germany. The differential was reduced to 829.6 basis points from 855 of yesterday’s closing. The National Bank of Greece rises by 12%, an 10% Piraeus, Eurobank and Alpha 9%. Very well even the titles of the Public Power Corporation (+ 8%) and Hellenic Telecommunication (+ 7%).
February 24, 2015 | 09:26
© ALL RIGHTS RESERVED
No comments:
Post a Comment