The Minister of Finance Tsakalotos announced the achievement, after months of negotiations, of a preliminary agreement - which will be ratified in the Ecofin on 22 May - between the Greece and its creditors from the euro area and the International Monetary Fund. The agreement, centered on a package of reforms, will unblock the disbursement of the second tranche of aid which is part of the international bailout scheme.
The agreed measures, which Athens will have to translate into law, are tough: average pension cut of 9% by 2019,increase of the reduced tax exemption limit to 6000 euros from the current 8636 euros, in addition to labor and energy market reforms. The measures aim to obtain the necessary funds to pay the debts maturing in July for 7,5 billion euros.
The goal of the reforms is achieve savings of 2% of GDP; if Athens exceeds the required targets, it will be able to implement policies aimed at reducing austerity, especially in fiscal matters.
Il IMF – which adds to the sovereign creditors of Athens – called on Greece to reach a 2,2% surplus in 2018 and by 3,5% in the period 2019-2021. Subsequently, the surplus target should decrease to 1,5% per year.
The EU foreign affairs commissioner, Pierre, is satisfied Moscovici: “The agreement reached in Athens is very positive after months of complex negotiations: the new efforts agreed by the Greek authorities pave the way for a swift conclusion of the second program review and swift implementation of commitments they will allow the Eurogroup to sign the agreement at the next meeting”.
