Greece, Europe believes: bags up and the ECB grants new liquidity – BBC

MARKET

Milan , June 23, 2015 – 10:53

     
     
 

Still rising European stock markets, after the leap triggered by Eve ‘expectation that it will soon find a solution for Greece. Moreover, the Commissioner for Economic Affairs, Pierre Moscovici, has defined “convinced” that an agreement will be found, although there is still work to do. Milan closed + 0.35%, Paris also positive (+ 1.13%) and Frankfurt (+ 0.65%). But Athens is that marked the rise broader: + 6.4%. Right on the front of the Greek, the ECB raised the roof of the emergency liquidity for Greek banks extending new financial oxygen. It is the third increase in three days. In fact, last week the Greeks have withdrawn from their accounts approximately one billion euro a day, a figure that according to the latest estimates fell Monday, between 500 and 700 million.

The proposal

The latest proposal of the government of Athens discussed the Eurogroup in Brussels includes measures for about eight billion euro 2 billion 692 million for 2015 and 5 billion and 207 million for 2016. The proposal, as reported by the online edition of the daily To Vima , would include a primary surplus target of 1% for 2015 and 2 % for 2016. Athens undertook to begin gradually to limit early retirement pensions from 2016 with the intent to eliminate them altogether by 2025 without affecting the so-called special categories (insiders heavy or disabled). The clause zero deficit for pensions, which would produce 500 million

euro from the cuts, will not be implemented. Another brackets VAT reform: three rates (23%, 13% and 6%) that will take effect in July and that are designed to generate 680 million euro (0.38% of GDP) in 2015, and an additional one billion and 360 million (0.74%) in 2016. The government intends to apply the rate of 6% on medicines and books, that of 13% of energy, food and water and that 23% of all the rest. Measures to about 1.8 billion Euros will be implemented in the pension system, representing approximately 0.37% of GDP for 2015 and 1.05% of GDP for 2016. This includes, as already mentioned, restrictions to early retirement (60 million euro in 2015 and 300 million euro in 2016), the increase in pension contributions (Ika) 3.9% (350 million euro in 2015 and 800 million euro in 2016) and contributions to supplementary pensions by 3% to 3.5% (120 million euro in 2015 and 250 million euro in 2016). Additional measures, worth 0.5% of GDP in 2016, include cuts to the defense sector (200 million), tax on television advertising (100 million in 2015 and 2016), increase in the tax on luxury yachts and private (47 million in 2015 and 2016), new taxes on video lottery and electronic gambling (35 million in 2015 and 225 million in 2016) and the taxation of mobile phone licenses (for networks 4G and 5G) which should generate 350 million in 2016.

June 23, 2015 | 10:53

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