“As regards the taxation aspect, please keep in mind that the tax burden in relation to GDP in Greece was at 34,2% in 2013 (including real contributions to the social security system), well below the average of 28 countries of the European Union, despite some increases in recent years”. This is what the president of the ECB Mario Draghi writes in a reply letter sent to the Greek parliamentarian Kostas Chrysogonos and published today by the Eurotower.
In relation to the bailout program agreed by the international community with Greece, Draghi underlines how this "included various reforms aimed at improving the tax structure and the overall design of the tax collection system, as well as measures to increase the efficiency of the administration tax to better fight tax evasion. A key goal underlying all of these reforms was social justice and the creation of an environment in which all citizens pay their fair share of taxes and where tax rates as a result can be lower than in an environment where there is a extensive tax evasion.
After Syriza's victory in the Greek elections, Draghi will participate today in a summit on Greece with the Eurogroup president Jeroen Dijsselbloem, the number one of the EU Council Donald Tusk and the leader of the European Commission Jean Claude Juncker.
“There doesn't seem to be much support within the euro area for the cancellation of the Greek debt – said Dijsselbloem -. We have done a lot to curb the pressure on the Greek debt, by reducing interest rates and lengthening the repayment terms, so there doesn't seem to be a great deal of urgency about that."
Meanwhile, the aid plan for Greece has been extended by two months and will expire at the end of February. Before then, Athens should reach an agreement with the Troika to cover budget gaps. Tsipras' victory forces decisions not foreseen by the creditors (EU and IMF). According to Dijsselbloem, "the extension of the aid program is the first thing to be discussed, but it is up to the new Greek government to ask for it". The president of the Eurogroup also believes that it is "premature to talk about debt sustainability: an assessment by the European Commission is needed".
