The Greek government has sent to Brussels the list of reforms “in the night, but in time”. This was announced by the spokeswoman for the Directorate-General for Economic and Monetary Affairs of the EU Commission.
SPENDING REVIEW
Greece will reduce the ministries from 16 to 10, the consultants and benefits of ministers and parliamentarians and will launch a "spendig review in every area of public spending” to “rationalise” ministries where spending not on wages and pensions “amounts to an incredible 56% of the total”. Will review the health expenditure but “guaranteeing universal access”. The document also provides for a reform of the public employee wages which blocks new increases without however intervening on the minimums.
TAX AND PENSIONS
The Greek executive then undertook to reform its own tax system, with initiatives to fight tax evasion, and to review the pension system, consolidating pension funds and eliminating incentives for early retirement. Athens also plans to review theVAT so that it has no "negative impact on social justice" and avoids "unjustified discounts". The government also says it wants to "ensure that all areas of society, especially the well-heeled, contribute equally" to spending. Words that seem to prelude a property.
HUMANITARIAN MEASURES
According to what has been learned, some proposals launched by Syiriza during the electoral campaign to counter the humanitarian crisis in the country appear in the text. These measures would concern, in particular, food stamps e energy and health care for the poor. A pilot scheme of minimum salary, which would form part of a plan "for the gradual introduction of a new approach to collective bargaining to balance flexibility with fairness", which will be implemented "in consultation with the European institutions". The Government specifies that "the fight against the humanitarian crisis will not have negative effects on the budget".
PRIVATIZATIONS
For the sale of state jewels, which was central to the memorandum signed by the previous Samaras government with the Troika, Greece "undertakes not to withdraw the privatizations already completed and to respect, on the basis of the law, those for which the tender has been launched", but "will review those not yet launched, aiming to improve the long-term benefits for the Government”.
FIGHT AGAINST SMUGGLING AND CORRUPTION
Eradicating smuggled petrol and cigarettes could be worth up to €2,3 billion. On the other hand, it is impossible to quantify in advance the economic return of the fight against corruption, but on this front Syriza enjoys greater credibility (even in the eyes of Brussels) than both the conservatives of Nea Demokratia and the socialists of Pasok, linked to a dense clientele network .
EU COMMISSION: “GOOD STARTING POINT”. TODAY THE EUROGROUP
“From the point of view of Commission, the list is exhaustive enough to be a valid starting point for a successful conclusion of the review – underlined a Brussels source -. We are very encouraged by the strong commitment to fight tax evasion and corruption”.
An opening also came from Jeroen Dijsselbloem: “I think the Greeks are very serious in their commitments – commented the president of the Eurogroup during a parliamentary hearing -. It won't be easy, this is just a first step."
A teleconference meeting of theEurogroup to give the green light to the measures proposed by the Greek government. At that point, the agreement will have to be ratified by a series of national parliaments, including those of countries hostile to Tsipras' plans (such as Germany, Holland and Finland), as well as by the assembly in Athens itself. Only then will the four-month extension to the aid plan agreed on Friday with the Eurogroup be released. According to last week's agreement, the letter of commitments presented today will be a basis on which to elaborate the overall reform plan, which must be launched by April.
THE ATHENS STOCK FLY
After the spread of the news of the sending of the letter, in the morning the Greek price list travels up by five percentage points, with strong purchases on the entire credit sector. Indeed, the National Bank of Greece rose by 12%, Pireus by 10%, Eurobank and Alpha by 9%. Stocks from Public Power Corporation (+8%) and Hellenic Telecommunication (+7%) also performed well.
In clear descent it spread between Greek and German 10-year government bonds. The spread narrowed to 829,6 basis points from 855 at yesterday's close and the 8,92-year rate fell from 8,68% to XNUMX%.
Attachments: Plan Greece.PDF
