BRUSSELS euro partners and the international creditors of Greece yesterday approved the list of reforms by the government of Alexis Tsipras to prolong the proceedings to allow four months to rescue the country from starting, but have reservations awaiting more details from Athens.
After a weekend of intense contacts in which several drafts circulated between Athens, Brussels, Berlin and other European capitals, Greece sent creditors a list of their proposed reforms. The three institutions that made up the so-called troika-the European Commission, the European Central Bank (ECB) and the International Monetary Fund (IMF) – concluded, after a first analysis, that the list was sufficiently consistent to begin procedures to prolong formally rescue.
“We feel that ultimately [proposed list] was sufficient and the same view has been upheld by the European Central Bank and the IMF,” said European Commissioner for Economic Affairs and Financial, Pierre Moscovici.
In the paper, six pages and no specific figures, the Greek government is committed to modernizing the tax system and public administration, social security reform, to combat Corruption not reverse any privatization that has already been realized.
After obtaining the approval of the three lending institutions, Ministers of Finance and Economy of the euro zone, the Eurogroup, held a meeting by teleconference convened by the President of the Eurogroup, Jeroen Dijsselbloem, which, in just an hour, gave its approval to list pending Athens concrete commitments.
“It’s a very important first step, after three meetings of the Eurogroup and lengthy discussions, always constructive, sometimes difficult, which have helped us better understand ourselves and move towards a first commitment, “said Moscovici.
For his part, told Dijsselbloem legislators of the European Union that the euro zone could study more relief to the Greek debt if Athens meets all criteria specified in its second bailout, November 2012, “something that has not yet happened.”
For its part, the ECB president, Mario Draghi, warned that “the commitments described by authorities differ from existing program commitments in a number of areas.” In these cases, “we will have to assess when reviewing whether the measures are not accepted by the authorities [Greek] are replaced by measures of equal or better quality to achieve the program objectives,” he added.
In the same vein, the IMF Managing Director, Christine Lagarde, insisted that, in some areas, “including some of the perhaps most important, the list does not offer clear assurances that the government provides undertake the reforms proposed”. Among them, Lagarde said the absence of “clear commitments” on pension reform and VAT, as well as in regard to administrative reforms, privatization and labor market.
Athens will need to submit before the end of April 1 document itemize reforms and how you will apply. Until then, Greece’s creditors continue to analyze the fulfillment of commitments to try to close the fifth and final review of the program of aid to Greece, a move blocked for months.
This step will allow the disbursement of 1.8 billion euro rescue earrings would transfer 1.9 billion euros that Greece claims the ECB, from the yield on Greek bonds as possible.
That extension until the end of June will also give time for the parties to negotiate a “possible subsequent agreement” between the eurozone, the creditor and Greece institutions.
With the approval of Brussels, Tsipras and his finance minister, Yanis Varufakis, they passed the first test in Europe and managed simultaneously contain criticism within their own cabinet. “There was a constructive debate during which some ministers expressed reservations about certain aspects of the list you sent the government the Eurogroup,” said a government source following the Council of Ministers.
The agreement with Brussels took to the Athens Stock Exchange to a dramatic rise from 9.81 percent.
Greece, highly indebted, has managed to avoid the suspension of aid payments totaling 240,000 million.
Taxation policy
Greece pledges to reform VAT, launch a plan of fraud prevention and reducing public spending.
Financial Stability
Athens will use European funds to stabilize the financial sector.
Privatization
The privatization will go ahead and approved review any that are still pending.
Agencies AFP, EFE, DPA and Reuters .
No comments:
Post a Comment