Friday, July 10, 2015

Greece ready to implement more austerity – The Universal

Athens / BRUSSELS European institutions received yesterday from Greece proposals on the reforms being prepared to implement to strengthen confidence between the parties and facilitate an agreement this weekend on its debt crisis.

“The Eurogroup chairman Jeroen Dijsselbloem, has already received the new Greek proposals,” confirmed yesterday by a message on Twitter Michel Rejns spokesman also Dutch Finance Minister.

Rejns noted by the same way it is “important for institutions to consider the proposals in their assessment” and said that “further comment will not be made until the institutions have completed their assessment on July 11, at the Eurogroup meeting.” Greece’s partners hope that these measures, already approved by the government of Alexis Tsipras, the country step forward that allows reconcile positions.

The announcement of the plan, at a time when Greece meets its playpen eleventh day, it came as thousands of people demonstrated in the center of Athens to ask the government to reach an agreement with creditors and ensure the permanence of Greece in the eurozone.

The platform “We live in Europe”, which called concentration, he managed to gather about 4000 people, according to police figures.

The central Syntagma Square, where the seat of Parliament, was the place chosen by the demonstrators, who carried EU flags and shouted slogans in favor of continuing the common currency.

Before Greece sent its plan, the president of the European Council, Donald Tusk, had asked Tsipras “concrete and realistic” proposals, said himself in his Twitter account after talking with Greek premier. Tusk stressed that “Athens realistic proposals need to be accompanied by realistic proposals of creditors on debt sustainability, to create a situation in which everyone wins.”

The details. The proposal approved by the Cabinet and published by the Greek government, provides for a pension savings of between 0.25 and 0.5% in 2015 and 1% from 2016. The proposal is a mixture of the initial statement of 47 pages measures proposed by Athens and the latest reforms published by the European Commission (EC) after the announcement of the referendum last Sunday

It provides for a VAT rate of 6.5% for medicines, books and theater.; 13% for basic and fresh food, hotels, energy and water, and 23% for the rest, including restaurants that currently 13% is applied. The Greek government called for a parliamentary debate today for the mandate of the House to negotiations with partners.

The Aegean islands continue to have a discount of 30% on rates of VAT. Also includes an increase of 26% to 28% of the business tax, while the luxury tax increases from 10% to 13%. As a support to SMEs and freelancers, intends to raise from 10 thousand to € 25 thousand income threshold exempt from VAT.

In return, Athens wants the creditors review the primary surplus targets for the country in the next four years, and funds 53 000 500 million euros to cover debt obligations until June 2018.

In order for this agreement to progress through the ranks of the leftist Syriza in the government, it is essential to make mention of the debt restructuring, as several members have repeatedly insisted.

This issue came yesterday in the European debate and there has been a change in tone between the representatives of the EC, the European Central Bank (ECB) and International Monetary Fund (IMF) as well as in the euro countries.

The German Finance Minister Wolfgang Schaeuble reiterated that an acquittal is impossible, but He spoke of a “reconfiguration” of the debt, while German Chancellor Angela Merkel, rejected what he called a “classic” removed. In turn, Tusk said that a realistic proposal by Greece would have to be matched with an equally realistic proposal on the sustainability of their debt by creditors.

The rescue Athens on Wednesday requested the European Mechanism Stability (ESM) covers a period of three years and the amount would rise to 50 billion euros, according to Greek media, based on the calculation made by the IMF needs of Greece until 2018.

According to local press, the Greek government drew up the application with the help of the French Government. The proposal will be discussed today and tomorrow discussed by the working group of the euro and then by the Ministers of Economy and Finance of the eurozone. On Sunday, the leaders of the eurozone countries are invited to a summit, followed by another meeting which will be the 28 members of the EU to resolve the Greek question. Agencies

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