A real thriller began yesterday, and lasted all day and all night. A deal had to be reached this morning. Athens and its creditors kicked off the talks on Monday, 9.00 pm, and, with a few interruptions, went on until the early hours of Tuesday.
The two sides were trying to overcome their last differences over bad loans, the new privatisation fund, a smaller National Electric Company, the liberalisation of the natural gas market and health care, and the skeleton 27-page text of the new Memorandum.
Kathimerini has the new draft of the Memorandum, which includes a 'heavy' package with preliminary measures to be voted on immediately (probably on Thursday) and another, just as heavy, package of measures to be adopted from October onwards. This might be the reason why Prime Minister Alexis Tsipras wants elections held in September. The new Memorandum describes clearly and comprehensively a huge number of measures, starting from the budget and reaching all the way to the education system.
If Athens and the creditors reach agreement this morning (after midnight, cabinet members vowed this was the only objective of both parties), then most likely on Wednesday the government will submit to the relevant parliamentary committee a bill, consisting of two articles, to be voted in plenary on Thursday. The other option is that the bill will be lodged with the committee on Thursday, and in plenary - on Friday.
The first article of the bill will contain the loan agreement and the new Memorandum and the second (of about 60 pages) - the preliminary measures for the release of the first tranche (with a preferable amount of 25 billion euros).
The preliminary measures to be voted on immediately, as envisaged in the new draft Memorandum, are listed below:
• A more rigorous definition of 'farmer'.
• An increase of the tax on shipping tonnage.
• Changes in the unified real estate tax for 2015.
• Adjustment of the recently adopted tax collection measures.
• Restoration of the prescription drugs regulation.
• Reduction of the prices of generic drugs.
• Scrapping of subsidised fuel for farmers.
• Better distribution of heating fuel in 2016.
• A full review of social security in order to save 0.5% of GDP per annum.
• Restructuring of the state administration.
• Addressing the tax collection setbacks.
• Removal of the 25% limit on salaries and pensions with seizures.
• Lowering to €1,500 of all limits applied in seizures.
• Changes in interest in settlement of obligations to the state by 100 instalments and the exclusion of bad debtors from this change.
• Transfer of the fiscal control structures and personnel to the Greek Financial and Economic Crime Unit (S.D.O.E.).
• A commitment that there will be no other arrangements on tax and insurance obligations.
• Honing of the eligibility clauses for the guaranteed minimum pension after the age of 67.
• Issuance of circulars towards full implementation of the social security law from 2010.
• Phasing out of the exceptions to early retirement.
• Finalising of the VAT regime for islands, with all concessions out of the way by the end of 2016.
• A comprehensive plan for recapitalization, bolstering bank liquidity and dealing with bad loans.
• Scrapping of the law passed on 2 July 2015 on the extension of employment contracts after their termination.
• Implementation of all OECD recommendations from Toolkit Ι (barring non-prescription drugs), and Toolkit ΙΙ, associated with alcoholic beverages and petroleum products.
• Opening of professions like notaries, engineers, etc.
• Reduction of taxes in favour of third parties.
• Cutting of red tape and accelerating licecse issuance for low-risk investments.
• Reform of the energy market, especially that of natural gas, designed to set the stage for full liberalisation in 2018.
• Approval of the privatisation programme already started by the state assets utilisation fund.
• Adoption of EU's best practices for labour costs outside salaries (aid, compensations, travel expenses, etc.) in view of enforcing them from 1 January 2016.
• Adoption of a law on restructuring public transport in Athens.
• Proposal of measures to reduce delays in court decisions.
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