New deal is better, says government
- Written by E.Tsiliopoulos
The Greek government is claiming it has achieved a better agreement with the country’s creditors compared with the measures requested by the troika from the previous government, in a document published on Tuesday which compares the result of this negotiation with the talks held in December 2014.
According to the government’s document, this deal achieved:
1) Lower primary surpluses. The surpluses forseen in the agreement are lower than those in the fifth program review by 11 pct. This lowers the fiscal measures which will be implemented by about 20 billion euros.
2) Changes in the timeframe and amounts of the funding. With this deal, Greece covers its entire funding gap until 2019, as well as the arrears of the state. The full amount granted will be 86 billion euros instead of 4 billion as was stated in the fifth program review.
3) The recapitalization of the Greek banks is secured, up to 25 billion euros.
4) Collective labour agreements return.
5) Parallel with the implementation of the measures, the agreement provides for a growth package of 35 billion euros (the “Juncker package”).
6) The legislation on the 100-instalment debt settlement scheme remains in place, with small changes which resulted from its implementation. Until today, 850,000 debtors have participated in the scheme.
This law is completely different from the similar law passed by the previous government, which no tax payer made use of.
7) We prevented the assignment of non-performing loans to distress funds.
8) Greece’s public power grid operator ADMIE and the “small” electricity utility PPC will remain under state control.
9) The law to address the humanitarian crisis remains in force; it’s provisions are being used by about 350,000 citizens.
10) State hospitals will continue to provide free medical examination, without a 5-euro ticket
11) Sunday will remain a holiday for retailers.
12) The provision allowing the sale of non-prescription drugs exclusively in pharmacies remains in force.
13) The new Fund for the Development of State Property will be founded in such a way so that 50 pct of revenues and profits from the development of public assets will return to the real economy and to provide growth.
This didn’t happen with the privatization agency, HRADF, whose profits went 100 pct to the repayment of the country’s debt.
14) The agreement does not provide for inclusion to the English Law or the country’s resignation of its state immunity.
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