Tuesday, August 11, 2015

Greece reached an agreement with creditors on budgetary targets until 2018 – Il Sole 24 Ore

History Article

Close

This entry was posted on August 11, 2015 at 14:00.
The last change is the August 11, 2015 at 14:03.

Agreement reached between Greece and creditors (EU, ECB and IMF) on the objectives of the country’s budget for the years 2015-2018 in view of the third aid plan from 2010, which should provide funding to 86 billion over three years, as part of the European Stability Mechanism. The Eurogroup meeting to give the green light will be on Friday, confirmed the Spanish Prime Minister, Mariano Rajoy, stressing that the Spanish Parliament will probably vote on the package next week.

Greece, has said the government of Athens in a note, because of this huge amount of money and “in exchange for a long list of budgetary measures and reforms” ensures “the coverage of loans and arrears of payment of the state. ” The disaster Greek banks “will be recapitalised before the end of 2015 with an immediate support of 10 billion euro” and without recourse to withdrawals on deposits of savers, as happened in the case of Cyprus in 2013.

The agreement reached in the night provides a primary deficit (fiscal balance, excluding debt payments) of 0.25% of GDP in 2015. In 2016 however will be achieved a primary surplus of 0, 5% of GDP, 1.75% in 2017 and 3.5% in 2018. The memorandum provides for the Greek economy contracted between 2.1% and 2.3% in 2015, a decline of 0.5% in 2016 and a return to growth of 2.3% in 2017.

It remains to define the details, as reported by the Minister of Finance, Euclid Tsakalotos. Remain open, said Tsakalotos reporters after several hours of negotiations, “two or three small issues.” These details concern the privatization fund and the fate of the suffering of the creditor banks.

In the note the government makes sure Tsipras fact that the issue of non-performing loans, which weigh on the balance sheets of banks, will be studied “by a ‘team that will deal with the creditors. ” Would have been avoided, in addition, the sale of bad loans to specialized funds, which would increase the risk of foreclosure of homes for nonpayment of mortgages. The reform of the labor market, finally, will be made “in collaboration with the OECD,” and according to the standards in force “in Western Europe.”

Agreement “technical”, lacks the political
“After weeks of intensive discussions it found a technical agreement, but still lacks a political agreement.” This was stated during the briefing of the European Commission, is the spokesperson Annika Breidthardt. “A technical agreement on the principles -spiega- found. There are still details to be finalized. ” Today “there will still be discussions,” adds Breidthardt, which does not comment “on the details of the technical arrangements.” During the day, it detects the spokesperson of Brussels, “there will be telephone discussions between President Jean-Claude Juncker and President of the French Republic, François Hollande and German Chancellor, Angela Merkel.”

The memorandum of 27 pages
The agreement consists of 27 pages and 35 “priority actions”, ranging from taxation to the merchant industry deregulation, pensions Deferred tax exemptions to the islands, to be phased out, by the end of 2016, according to the daily Kathimerini. The document would mark even the newspaper Hellenic, a substantial shift towards budgetary targets are more realistic than ever before. Among the measures demanded by creditors in Athens there are changes to the tax on the tonnage of cargo for business merchant, the price reductions of generic drugs, the revision of the social security system.

In the package 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.



Permalink

LikeTweet

No comments:

Post a Comment