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The Greek government and the representatives of the supervisory Troika are holding a marathon of meetings in order to reach an agreement by Monday, 10 March, when the Eurogroup will meet. The most important obstacle is already the structural reforms and the implementation of the package of tools of the Organization for Economic Cooperation and Development, as according to a senior official from the Ministry of Finance, the battle on the financial "front" is over and there is no problem regarding the year 2014.

A government member even stated, "We have reached the point when we have to take one political decision or another" whereas another representative of the cabinet explained on Monday that, in relation to the issue of the tools of the Organization for Economic Cooperation and Development, "all possible technical proposals have been considered". For this reason, according to the same source, "things are difficult" and "a long way lies ahead of us."

The Troika considers the implementation of the proposals of the Organization for Economic Cooperation and Development as an important structural change that will facilitate the taking of further positive decisions for the country, as stated by a government official, adding that "the measures of the Organization for Economic Cooperation and Development are extremely important." The representatives of the lenders insist on fully implementing the proposals of the Organization for Economic Cooperation and Development and on conducting further reforms. In this connection, a new round of meetings between the Troika and the Ministers of Development, Labour, Health and Administrative Reform will begin on Tuesday.

In this vein, a senior official from the Ministry of Finance stated, "We will attempt to conclude the agreement by Monday." After the marathon of meetings that started at 08:00 pm on Sunday and ended at 02:00 am the next day, an official from the Ministry of Development noted, "There are still issues related to the Ministries of Labour, Health, Development and Administrative Reform."

At the meeting between the Troika and Minister of Development Kostis Hatzidakis, the lenders’ representatives required the full application of the tools of the Organization for Economic Cooperation and Development. An official from the Ministry noted that the Troika is not satisfied with the Greek proposal providing for the application of 80% of the measures of the Organization and asks for more. At the same time, the lenders continue to insist on the implementation of the proposals of the Organization for Economic Cooperation and Development regarding the dairy industry, medicines and books, requiring, at  the same time, more reforms in pharmacies.

In particular, Minister Hatzidakis and the lenders’ representatives discussed the following four issues:

1. The tools of the Organization for Economic Cooperation and Development. This is one of the most important issues in the negotiations because, according to sources, the Troika "is determined to exert strong pressure and is not satisfied with the implementation of 80% of the proposals, as required by the government." The sides have not agreed on the dairy industry, medicines and books, and it is believed that more changes should be introduced in terms of medications, transport and taxes to third parties. Another meeting specifically on these issues is about to take place on Tuesday evening.

2. Simplifying the procedures for the issuance of licences. "We have agreed on a specific text" from the regulatory framework, explained a senior official from the Ministry of Development.

3. Commercial rents. The efforts of the Troika that wants the full liberalization of the professional lease contracts continue. The government does not change its position that has been already legalized.

4. A permanent mechanism for the management of bad loans. The substance of the model that will be applied from 2015 onwards is not different but the schedule for the various activities is under consideration. The income of the borrower is also one of the outstanding issues.

Ministry of Administrative Reform

The meeting between Minister of Administrative Reform Kyriakos Mitsotakis and the Troika discussed the following three issues: specifying 4,000 employees of the Ministry of the Interior to be included in the mobility programme, the probability of this activity being set up as a condition for the granting of another tranche as well as determining the number of employees who will be included in the mobility programme this year.

A senior official from the Ministry of Administrative Reform said after the meeting that the government position on this issue remains firm as it insists on implementing the agreement with the Troika, which is part of the Memorandum. The agreement stipulates the inclusion of 25,000 civil servants in the mobility programme (12,500 of whom this year) and the cutting of 15,000 civil servants (11,400 this year).

The same source however added that "nothing has yet been agreed and we will meet again". A government member indicated, "It will be hard to complete the talks by Friday", noting that "if we cannot agree at the Ministry of Administrative Reform, where things are simpler, imagine the situation with the remaining issues."

The same source however claims that the Ministry has specified 21,000 civil servants from the required 25,000 who it must submit before the verification is completed (the unofficial term being the end of March). In practice, the insufficient 4,000 civil servants who are to be included in the mobility programme should be found by the Ministry of the Interior. "It is difficult to find another reserve at present, due to time constraints. Therefore, they must come from the Ministry of the Interior", states a competent source.

The Troika also requires specific figures on mobility in 2014. "The Memorandum provides that this measure will continue this year too, without specifying any numbers," said a source from the Ministry, adding that this issue is under consideration at present and that the Greek side will endeavor to separate the mobility programme from cuts.

Furthermore, it is unclear whether the Troika will consider as a cut the 1,600 civil servants who have been dismissed on the basis of temporary orders and who will be reinstated in their posts by a court decision. It is believed that their number will reach 2,000, when the process is complete.

Developments in the financial sector

According to the statements by a senior official from the Ministry of Finance, all financial issues have been resolved and no other topics for 2014 have remained open.

Commenting on the distribution of the social dividend of the primary surplus in 2013 another official from the Ministry states, "These resources should be evaluated depending on the amount of the surplus."

Finally, the heads of the Troika will meet on Tuesday with Ministers of Health Adonis Georgiadis and Development Kostis Hatzidakis and will hold talks in the coming days with Minister of Labour Yiannis Vroutsis and Minister of Administrative Reform Kyriakos Mitsotakis.