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This week minister of economy Georgos Papakonstantinou will meet EU commissioner Joaquin Almunia during the EU sessions of the ministers Council EUROGROUP and during the EU finance ministers Council ECOFIN, which will take place respectively on October 19 and 20. The main topic of discussion will be the measures for decreasing the budget deficit and bringing back the trust and stability in Greek economy.

Some of measures planned by Papakonstantinou are to develop the market by increasing liquidity and attracting new investments – main premises for bringing the Greek economy to live. Also, a program for finances stabilization will take place, which will increase income and will decrease expenses in the public sector.

Planned are structural changes in the tax system and in social security. The reform in the tax system includes increasing profit taxes, mainly of tax payers with income of over €500 000 and of owners with property valued to be over €300 000. The other change will increase the tax value of incomes from commissions, dividends and bonuses.

Decreasing the budget deficit, which is now 12% of the GDP and it is expected to increase until the end of the year, is one of the main problems facing the minister of economy. Georgos Papakonstantinou promised that in 2010 the deficit will decrease to 9.2% of the GDP and the requirement of the EU commissioners is for it to decrease to 3% of the GDP.

On November 3 the EC will announce results from the development in the EU and Greece will be able to excuse the deficit increase only if the GDP for 2009 has decreased with more than 0.3%. “Our goal is to decrease the budget deficit by taking long term and not urgent measures, by balancing incomes and expenses, accompanied by a strong program for effective structural changes,” said minister Papakonstantinou.

Soon Papakonstantinou is starting negotiations with the finance ministers, in order to support his program for economic upsurge. EC commissioner Joaquin Almunia needs to give a four year extension to the deadline for decreasing the state deficit - until 2013.