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Contentious points have already emerged at the start of negotiations between representatives of the creditors and the Greek government. The IMF representative in the supervisory quartet, Delia Velculescu, arrived in Athens yesterday afternoon – last among her colleagues – and the consultations at ministerial level began today. GRReporter points out that there are already four institutions to represent Greece' creditors: the European Commission, the European Central Bank and the International Monetary Fund were joined by the European Stability Mechanism.

The first meeting started at 10:00 this morning with the finance minister Efklidis Tsakalotos and economy Minister Giorgos Stathakis. Because of Athens' reluctance to let creditors' representatives visit ministries, all meetings are held in a hall of the central Athens hotel where they are staying.

According to Greek media, citing sources from the ministry of finance, one of the contentious issues between the two sides is the removal of the 8% 'solidarity' tax rate for incomes over €500,000. According to the sources, the creditors' argument is that this could trigger tax dodging. However, the government has dug its feet on the issue as "this is a political decision related to the redistribution of economic burden among the country's population."

Finance Minister Efklidis Tsakalotos and the Economy Minister Giorgos Stathakis arrive at the meeting with the creditors' representatives, collage: ethnos.gr

Today's meeting is expected to discuss the results of the consultations between the technical teams of the two sides. Yesterday, people from the IMF's permanent representation in Athens headed by the Bulgarian Iva Petrova, visited the ministry of finance, where they discussed with the Greek authorities the following questions:

1. Additional tax. According to the Greek finance ministry, the creditors insist on a unified tax rate of 6% for incomes in excess of €100,000. Other sources have indicated that the creditors have demanded that this rate be validated for incomes above €50,000.
2. The pension system. The creditors insist on:

-       The immediate passing, i.e. In August, of a law abolishing early retirement. The creditors argue that such a law is indispensable and a precondition for other retirement policies. For its part, the Greek government wants to shift the overall reform of the pension system to October this year.

-       Speeding up the increase of the retirement age from 62 to 67 years. For example, it might grow by one year every year instead of six months, as planned in the government's draft.

-       Faster removal of the Pensioners' Social Solidarity Supplement (EKAS). The July 12 agreement provides that the first EKAS reduction affecting 20% of pensioners be introduced in March 2016.

3.  Labour legislation. According to the Greek finance ministry, the negotiations aimed at adopting a new framework for collective agreements by the end of 2015 are already underway. The creditors are adamant that none of the laws already voted be rescinded, and that provisions on collective redundancies should be adopted.

4.  New forecast for the GDP growth in 2015. At the moment, everybody foresees a recession in the range of 3%, at least for this year, and the budget switches to primary deficits.

5.  Taxes in favour of third parties. The agreement from the EU summit provides for the abolition of the taxes in favour of third parties, which are independent of instalments and rationalization of those that are dependent on instalments.

6.  Issuing licenses for companies. The government claims that an interdepartmental commission is being considered to simplify licence issuance.