Athens announces: “Having reached agreement with international creditors” – The Republic

MILAN – Greece and its creditors have reached an agreement on the objectives of the country’s budget between this year and 2018, reported in a night government source quoted by the news agency ANA. Coming out from the Hilton hotel, where
negotiations took place, the Minister of Finance Euclid Tsakalotos said that the deal is almost done.
“We are very close,” he told reporters. “There are only a few minor details remained about the priority actions.” Brussels, however, comes a braking: the agreement “is a technical” but lacks the “political” explains a spokesperson stressing that a political assessment will be made in phone calls that President Jean Claude Juncker has plans with German Chancellor Angela Merkel and with the French President Francois Hollande. The Spanish Prime Minister, Mariano Rajoy, has therefore announced that on Friday there will be a Eurogroup.

The agreement on financial goals, however, is an important first step towards a comprehensive agreement on the third package of aid to Greece, worth at least 86 billion euro, which Athens and its creditors are negotiating with the EU, the European Central Bank and the International Monetary Fund under the European Stability Mechanism, for more than two weeks in the Greek capital, and that they hope to achieve very quickly, maybe during the day today.

In 2015 it was decided that the primary deficit of Greece (budget balance, excluding debt payments) will be at least 0.25% of GDP, while the primary surplus will rise to 0.5% of GDP in 2016 and 1.75% in 2017: this is more favorable conditions than those imposed before the referendum on 5 July. The agreement is contained in a document of 27 pages and 35 “priority actions” ranging from taxation to the merchant industry liberalization, the early retirement of tax exemptions to the islands, to be phased out. Certainly, observe analysts are provided “budgetary targets are more realistic than ever before.”

Among the measures demanded by creditors to the government greek there are the changes in taxation on the tonnage of cargo for business merchant, the price reductions of generic drugs, the revision of the social security system. In
package of 27 pages there is also the strengthening of the employees from the department for financial crime agency (SDOE, the equivalent of the Italian Guardia di Finanza ), the gradual elimination of early retirement, the implementation of market reforms on the products offered by the Organization for Economic Cooperation and Development (OECD), the deregulation of the energy market and the implementation of the privatization program already started . Comes the most often requested elimination of tax breaks for the islands, but will start from the end of 2016.

Arguments:

Greece

Greek crisis

international creditors

deficit greek

pil greek

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