Tuesday, February 24, 2015
It is a difficult birth: After much back and forth Greece presents a list of proposals for reform. The Euro finance ministers agree to this. But still have to approve some countries parliaments.
Green light by the partners for Greece: The finance ministers of the euro group have spoken out on a conference call for an extension of the current aid program. Previously has given its consent for the reform plans submitted by the Greek government, the EU Commission.
The letter says the left-right government of Prime Minister Alexis Tsipras including a restructuring of the tax administration and the pension system. The CSU warned nonetheless facing “air bookings” of the Greeks and called before the parliamentary vote necessary for a critical examination.
The Bundestag must agree to unlocking further auxiliary billions of euro rescue fund EFSF. In addition, money from the IMF and the ECB stands out – a total of 7.2 billion euros. Find the reform proposals of the Greek government is not the consent of the other euro countries, threatens the country soon go bankrupt. The current utility runs only until the end of February.
The Euro finance ministers linked to extend by four months on the condition that the Athens government its reform plans until Monday evening the auditors of the European Commission, the International Monetary Fund (IMF) and the European Central Bank (ECB) and agrees to submit the Euro group. By the end of April, a comprehensive reform plan to be drawn up.
According to Euro group boss Jeroen Dijsselbloem further debt relief for Athens, but possible if the new government complies with all regulations. The IMF missing in the reform list of Athens but in many areas, “including perhaps the most important,” “clear assurances that the government intends to implement the envisaged reforms.”
European Commission satisfied
The European Commission had recommended the adoption of the finance reform proposals. The list of Athens is comprehensive enough enrolled EU Monetary Affairs Commissioner Pierre Moscovici and Vice-President Valdis Dombrovskis to Dijsselbloem.
In the list Greece says action against tax evasion, as well as a modernization of the tax administration. Government spending should be checked in all areas and the efficiency of the central and local governments be improved. Incentives for early retirement will be deleted. The fight against corruption, the government wants to make a “national priority” and combat smuggling of tobacco and petrol stronger.
In addition, Athens promises not to provide completed sales of state enterprises in question. In ongoing disposals the government wants to comply with the applicable laws. Further privatizations states, however, this would be reviewed with a view to the long-term benefits for the state. Minimum wages they want to increase, but first consult with institutions such as the International Labour Organisation. Measures against social crisis in the country should also be no “negative fiscal effects” financed.
Union Group postpones decision
To Greece comes fresh money, the hurdle Bundestag must be taken. Germany stands for almost a quarter of aid loans totaling 240 billion euros.
The Union faction not yet decided, despite the green light from Brussels on the extension of aid to Greece. This is now done in a special meeting of the Group on Thursday morning, said a group spokesman in Berlin. The deputies should be given time to consider the documents from Athens.
The planned actually for Tuesday straw vote was postponed “especially at the request of the CSU party,” said a spokesman country groups. There is still “need for advice on the proposals of the Greek government.” Bundesfinanzminster Wolfgang Schaeuble will inform on Wednesday to the CSU Members separately.
The Bundestag is true on Friday on aid for Greece from. The SPD already signaled approval. Your faction leader Thomas Oppermann expects a large majority for the extended aid to Greece.