On Sunday, a solution here is finally in the dispute over the Greece crisis. Athens has submitted its final proposals – and done responding to Brussels.
In short: when the austerity measures and reforms almost everything that had called for the international creditors before the referendum . These include also previously controversial points such as pensions and value added tax. In retirement you will in the future at the age of 67 in Greece (and after 40 years of work at the age of 62), the many exceptions to the early retirement be repaid. Also pensioners will be involved in more of the health-care costs. Syriza had rebelled mainly through the reduction of the supplementary pensions for the poor–but here yielding Tsipras. Was previously the Greek paper always, the measures would be “replaced” “run out” – for the top 20 percent is now now. To sell these cuts in Greece, it will be very difficult for Tsipras. The value added tax as agreed on 23 percent lifted, hotels but – other than demanded by the Government – subject to the reduced rate of 13 percent although no restaurants. Also a red line of the Conservative coalition partners “Independent Greeks” was torn. So far, there’s a discount of 30 percent on the value added tax on tourist islands, this will apply only on a few islands far from the Mainland.
The unpopular real estate taxes, which abolished Tsipras promised raised further at least until 2016. Companies and the self-employed have to make future tax payments in the amount of 100 per cent for the following year. Should the budgetary targets are missed, the Government wants to increase the income tax.
Are there any differences?
Actually only if the reduction in defense spending: Athens offers 100 million euros and another 200 million euros for the next instead of the required 400 million euros for this year. While Tsipras had declared the 400 million themselves for possible in its last proposal – rejected by the creditors – just ahead of the referendum. This point concerns Tsipras mainly back the coalition partner, whose head and Defence Minister Panos Kammenos resists fiercely any deletion in the military. After the islands fall away, the military as a concession but could meet him. Also in the labour market Syriza wants to continue to regulations, again strengthen the unions, for example – the lenders reject, require coordination with the troika in each Act. A new order of salaries in the public sector but performance-related pay is aimed – also a concession of the Syriza Government.
What strategy does Tsipras?
For the acceptance of home – finally the Greeks have rejected the creditor proposals by a large majority – will be especially crucial, which will negotiate Tsipras as consideration for the creditors.
In return for the reforms Athens requested a three-year utility about 53.3 billion euros. That should about cover repayments to the IMF and European Central Bank according to expert estimates this year. A recapitalization or compensation of the expected budget deficit would therefore not be included. Debt relief – as they should be titled at the end are the most important point for Syriza but: debt, debt, debt restructuring. Greece’s public debt is now around 180 percent of gross domestic product (GDP). Originally Tsipras predecessor, had been said to the conservative Antonis of Samaras, a debt cut to 120 percent. In addition, a possible investment package over 35 billion euros with the President of the EU Commission Jean-Claude Juncker has been agreed in advance. It consists mainly of money from the structural funds, that actually belong to Greece, but so far not was unable to retrieve the country due to lack of additional funding.
On Saturday, the Finance Ministers of the Eurogroup on the Greek proposals want to advise. A special summit of EU Heads of State and heads of Government to Greece, to participate also the Finance Minister, is planned for Sunday.