The Greek government finally deliver the definitive list of reforms to its European partners on Tuesday for a four-month extension to his plan of financial aid, said today a government source after a day of intense dialogue between Athens and Brussels.
“The list of reforms will be sent tomorrow (Tuesday) to the finance ministers of the Eurogroup,” the official said, referring to the requirement imposed by its European partners in Athens on Friday, he should submit this midnight reform plan.
According to the source, the plan combines social measures such as free electricity and social services for the poor, promised by Prime Minister Alexis Tsipras, during the election campaign, with reforms Structural required by Eurogroup finance ministers to Athens.
The budget plan includes measures like free electricity for 300,000 poor families, free access to health services, food stamps and transportation for poor, and aid for pensioners. The source did not specify the cost of this plan, which depends on the approval of its European partners.
According to the official, the program also proposes a new tax system that is “fairer”, several measures to fight against tax evasion, corruption and smuggling in addition to the imposition of a civil service reform the administration. “We received the list. It is not definitive, so it is too early to evaluate it,” he told AFP a European source.
To finish shaping the roadmap for reform, Brussels is offering “advice” to the Greek authorities, so that their proposals meet the most demanding countries such as Germany and Spain. The aim is to avoid a return to the start box and the specter of a possible Greek exit euro.
“It is up to Athens to decide”
Tsipras and Syriza party advocating the end of the “humiliation” and “vicious circle” of cuts demanded by Greece’s creditors in exchange for the two rescues the country worth 240 billion euros.
At the same time, the tough negotiations with Germany and other partners in the euro area are forcing him to yield. Athens has promised not to take unilateral measures that jeopardize its fiscal targets and had to abandon plans to obtain additional eleven billion euros of funding support from the European Central Bank (ECB).
Tsipras insisted for the weekend that his government has made “significant success in negotiating” to “end the austerity”, but in the executive cracks begin to appear.
The most respected member of SYRIZA, the hero of the anti-Nazi resistance Manolis Glezos, has criticized concessions to the eurozone: “I would like to apologize to the Greek people for taking part of that illusion,” said
The European Commissioner for Economic Affairs. Pierre Moscovici, today called for a “realistic” program, saying it is “logical” that has measures in the philosophy of SYRIZA, but considering “balanced budget”.
“The fundamentals remain them: assistance in exchange for reforms “, today warned the German Foreign Minister Frank-Walter Steinmeier, told Bild . “Now, it’s up to Athens to decide”.
The implementation of reforms will be evaluated in April and the eurozone in theory not disburse the remaining money in the aid program (7,200 million euros, of which 3,600 are from the EU).
Now, Athens “in May probably need money to repay loans 2,200 million, 1,400 of them from the International Monetary Fund,” economists at Berenberg remember.
Among the first Greek proposals, have a plan to combat tax evasion, higher taxes for the wealthy and tough on smuggling of fuel and snuff, proposals that would allow him to enter some 7,300 million euros, according the Bild .
The European Commission, which is next to the IMF and ECB-called “troika” and under whose protection is Greece from 2010, must give its approval. Once the Commission has ruled on the final list, and assuming that give green to the proposals of the Greek government light, the extension would occur as long as it is also approved in the parliaments of several European countries.
Lagarde calls for reforms
The IMF Managing Director, Christine Lagarde, insisted today that a Greek exit Area euro “is not among the options” and highlighted the compromise reached last week between Athens and Brussels to extend financial support in exchange for “deep reforms”. “The exit of Greece is not among the choices and is not being discussed,” Lagarde said in an interview with the newspaper Huffington Post .
The Managing Director of the International Monetary Fund (IMF), which participates in the “troika” together with the European Central Bank (ECB) and the European Commission (EC), said last week that “a point was reached turning when there was the collective determination to listen, build trust and do their best to stay together. “
On Friday, the Greek leftist government of Alexis Tsipras agreed with the Eurogroup expansion of the aid program financial provided to present this week a list of specific economic reforms. Lagarde said the main objective of the agreement “is to maintain stability and growth”.
To do this, he stressed that Greece has to “face reforms very deep “, because” without them, you can not unlock the growth potential of the country. ” “It’s not about austerity or anything,” he said in reference to the demands of cost containment helenas to balance public accounts.
“We have to focus on capitalizing done so far (…) Ha been many conversations, but now we must implement these reforms, “said Lagarde. The agreement with the Eurogroup last week did not include references to figures, but the outline should be concretized by the end of April, when partners assess whether Greece applied measures.
Will then when European partners decide if they start disbursing funds pending rescue, ie 1,800 million euros from the eurozone and the ECB 1,900 million.
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