Greece will receive no more money until you regain adjustment program
Greece did not receive the next tranche of aid bailout of the second until the euro is satisfied that the reform program is on track and set again and a decision not expected until late August, a senior official said today of the Union Europe.
The heads of the technical delegation “Troika”, formed by the European Commission, the International Monetary Fund and the European Central Bank, have had no contact with the Greek authorities until Thursday, and Monday, the finance ministers of the eurozone will for the first time a discussion with the new Finance Minister Yannis Sturnaras.
This will serve to “guide for him and the troika” that the mission can continue their talks in Athens in late July, the source said.
Greek Prime Minister, Antonis Samaras, pledged Thursday to “accelerate structural reforms” and be more effective in reducing the deficit.
The three parties supporting the government (conservative and center-left Social Democrats) approved this week the new government’s political program which asks the troika “an extension of the period of fiscal adjustment of at least two years, for tax purposes can be achieved without further cuts in wages and pensions. ”
They also agreed not to carry out further redundancies in the public sector not to increase the rate of unemployment is already at 22%.
However, the government plans to meet the requirement of the troika to cut 150,000 jobs of civil servants, covering only one in ten low for retirement and not renewing temporary contracts.
Also aims to reduce VAT on restaurants and other key sectors from the current 23% to 13%.
All these proposals have been delivered to the troika, whose heads of mission shall evaluate and prepare a report to be ready by mid-August, according to Greek media.
Then, the Eurogroup will consider whether the program returns to Greece to the path of fulfilling the commitments acquired in exchange for the second bailout, in the words of senior EU.
“There will be disbursed until the Eurogroup has determined that the program is on track again,” he said.
Greece expects to receive proposals with 1,000 million euros as part of a previous installment of 5,200 million, of which only surrendered in May 4200 one million.
The European source considered to be necessary to include a number of priority actions-actions that the Greek government will have to implement in the short term, to be disbursed.
Moreover, they confirmed that no decision will be made about the bailout requested by Cyprus to the same period, end of August.
Category: Money
