Ainhoa Murga
The Greek crisis could have this week his last act. Athens yesterday faced two key appointments for their future and for the first time in months of tug of war, the haze and uncertainty that characterized the talks between the Greek government and its international creditors took an optimistic tinge yesterday encouraging hopes for an agreement unlock bailout tranche 7,200 million euros to prevent the bankruptcy of the country and leaving the euro. Greece has to pay the IMF 1,600 million euros at the end of this month and, without the help of its European partners, is likely to fail to pay.
Starting Point
While the Eurogroup meeting earlier in the day ended without agreement, the Greek government managed to deliver a set of reform proposals that, in the opinion of the European partners, served as the basis for negotiations on a new meeting this week, once the IMF, the European Central Bank and the European Commission have analyzed in depth the measures.
In its new proposal, Greece finally accepts the fiscal targets set by creditors and fixed the surplus primary (without interest) in 1% by 2015, 2% in 2016, 3% in 2017 and 3.5% in 2018. Moreover, the Greek government offered tax measures for 2.692 million euros this year and 5.207 million in 2016, 1 , 51% and 2.87% of GDP, respectively.
Athens maintains three VAT rates, with an increase in the general tax rate to 23% .Espera raise additional 680 million this year and 1,360 million 2016. In addition, increases of 26% to 29% corporate tax and provides for a special tax for companies with revenues of more than 500 million a year.
But the biggest concession was made in one of its lines Red: the pension reform. The Greek government now proposes tightening early retirement and delay the retirement age to 67 years by 2025, in addition to raising the tax on pensions (rather than lower gross pension). The plan ensures pension savings of 660 million in 2015 and 1,860 million in 2016.
Although the Commissioner for Economic Affairs of the European Union, Pierre Moscovici, said he was “convinced” that Brussels will find solution and that there are “a sound basis for an agreement,” the governments of other member countries such as Germany or Spain, urged caution and minimize expectations of a breakthrough in the talks. For European leaders have much work ahead, including a technical agreement to approve both the Eurogroup and the old troika (IMF, ECB and EC).
The meeting of the Eurogroup gave way to a special summit of heads State and government of the euro area, as noted by German Chancellor Angela Merkel on arrival, had “consultative” character. “The agreement could come later this week,” said the head of the Eurogroup Jeroen Dijsselbloem, possibly at the next regular summit of heads of state and government scheduled for Thursday and Friday, after “a thorough analysis” of the Greek proposal.
The wear of months of fruitless talks has left Prime Minister Alexis Tsipras with a narrow margin of maneuver to the Eurogroup and to his party, Syriza, in the Greek Parliament, which must approve ultimately the agreement. From their ranks already come warnings: “The agreement will have to be compatible with the basic lines of the election manifesto of Syriza or no agreement,” said Greek Deputy Minister of Labour, Dimitris Stratoulis, Reuters
. The optimism for a possible deal left a 9% gain in the Athens Stock Exchange on Monday’s session, especially driven by the banking sector.
More liquidity
The ECB raised yesterday for the third time in six days, the roof of the emergency liquidity (ELA, its acronym in English) that Greek banks can take the central bank to 87,800 million euros.
The European issuer raised the ceiling 1,100 million to 84,100 million, Wednesday, and Friday’s 1.800 million. The ECB will meet again today to assess the situation, Bloomberg said a source familiar with the decision
The frequency of revisions is a sign of the serious situation facing the Greek financial system. Savers Local withdrew about 4,200 million euros from banks in the country last week amid fears that Athens did not reach an agreement with international creditors. According to Reuters reports, requests for cash withdrawals totaled 1,000 million yesterday.
EU PROPOSES MORE INTEGRATION IN THE EURO While
AREA Greek crisis is entering a key phase, the President of the European Commission, Jean-Claude Juncker, yesterday presented a vision which advocates closer to the economies of the monetary zone control, including the creation of a common someday Finance . In a report published in conjunction with the ECB and other EU agencies, the head of the European executive proposed more support for States in trouble, combined with tougher discipline for countries that break fiscal targets. The document recommends steps “quick fix” that could be introduced in the next two years, including the establishment of a common system of bank deposit guarantee and promote competitiveness, plus longer-term ideas, as a Finance the euro zone. The need for economies and budgets converge “inevitably involve share more sovereignty over time,” said Juncker, knowing that the report includes points that generate disagreement
<-.! Banners lower - >
No comments:
Post a Comment