Athens transmitted to Brussels, Tuesday 24 February, a list of commitments on the reforms that the country must commit. This plan has received the green light from the finance ministers of the euro area, thus granting an extension until the summer of the funding program and to avoid the country’s financial asphyxiation.
The document, released public by the Greek government insists repeatedly on “consultation with the institutions” (European Commission, European Central Bank and International Monetary Fund) in the detailed development of its projects, while the government was Alexis Tsipras shown, after his election, much less prepared to deal with its creditors.
The list transmitted Tuesday softens the tone and contains many measures to increase tax efficiency and the structures of the state, but none of the reforms is encrypted.
# A minimum wage attenuated
“The extent and timing” of the increase in the minimum wage, a central government promise, “is be undertaken in consultation with the social partners and European and international institutions, “the document” so as to preserve competitiveness and employment prospects. ” The proposed amount (751 euros) and the date (2016) does not explicitly listed in the list.
# Make employees work longer
Athens wants to “eliminate social pressure and policy to take early retirement, “which led many Greeks to stop early to work, particularly by implementing” targeted support for employees between 50 and 65 years. “
# Support more poor
As the central element Syriza program, the radical left party Alexis Tsipras, they appear at end of document under the title of “humanitarian crisis”. Athens wants to put in place measures “highly targeted” for improving coverage, access to health care, energy supply, access to housing and food for the poor, for example with food stamps food and transport. This entire device was evaluated by Syriza before the Parliamentary January 25, to 1.8 billion.
Also on the program, the decriminalization of indebtedness for small amounts, support the “most vulnerable” can not repay their loans and working with banks to “avoid lay the main homes of auction below a certain threshold” of default.
# Fighting against tax evasion
Since its partners demanded it, the Greek government is committed to “robust efforts” in tax collection and the fight against tax evasion in “full use of the resources electronic and other technological innovations. ” All must target “particularly the wealthiest [in order] to involve them in the right way to finance public policies [and be] no negative impact on social justice.”
The tax code should be modernized, the independence of the central administration of reinforced taxes, expanded its means. The government also provides a mechanism for control against smuggling of gasoline and cigarettes, strengthening the fight against corruption and the establishment of a system for prompt payment of tax arrears and contributions to social security.
# Cut in state spending
The state spending will be reduced. The number of ministries has to go from 16 to 10, benefits and bonuses of ministers, parliamentarians and senior officials be reduced, the salary in the revised public service.
The state also wants to monetize “the market price “for use by the media of radio and television frequencies and reform the rules of public procurement.
# No challenged privatization
privatizations already completed will not be questioned, for those already launched “the government will respect the process in accordance with the law.” Those provided must be “examined with the aim of maximizing long-term benefits for the state.”
Tsipras government ministers had announced shortly after their election they intend to return to more sales courses, such as the site of the former Athens airport and 14 regional airports.
“Out with the austerity”
As of Tuesday morning, the European Commission felt that the list of reforms was “a valid starting point” for Greece and its creditors agree to continue funding the country. The EU executive is particularly encouraging Athens to fight tax evasion commitment.
The Greek authorities will then have until the end of April to finalize the roadmap, in exchange for which they want for an easing of austerity while keeping the country under financial infusion, with the payment of more than € 3.5 billion European side.
The Greek government is serious in its commitment to reforms “said the president of the euro area, Jeroen Dijsselbloem.” But this is just a first step, “the finalization of the reforms from Greece” must be made in close cooperation “with its creditors.
Athens was resigned to request this extension last Friday, after several highly contentious meetings with its eurozone partners, who had raised fears of an output of the countries of the euro area, “Grexit.”
Tsipras “must demonstrate its ability to change the country”
The Greek Prime Minister Alexis Tsipras for his part called a cabinet meeting at midday with his government to study the implementation of this program. “We have decided to end austerity on autopilot,” insisted the Greek Finance Minister Yanis Varoufakis
The creditors of Athens. – Who extended since 2010 some 240 billion euros of loans – require that this program does not undermine the stability of public finances and do not unravel the reforms initiated by previous governments. This forces Alexis Tsipras a delicate balancing act between the electorate and partners of the country, while the first dissonances are heard in the left wing of his party.
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