An agreement between Greece and its creditors appears to be closer than ever, with sources from Brussels detailing that little is left in order to conclude the negotiations. Spanish newspaper El Mundoreported that progress was achieved towards an agreement thanks to the intervention of German Chancellor Angela Merkel.
The same European source notes that the last remaining unresolved issues involve real estate taxation and the VAT rates. The discussions at present are reportedly focused on deciding which VAT rate applies to the various categories of products and services. Food and medication is likely to have a low VAT rate, while hotels and tickets will be taxed more.
Meanwhile, it appears that the controversial ENFIA real estate tax will remain in place in 2015, without any changes, as it may generate up to 2.6 billion euros. The creditors have also requested that it remains in place in 2016 as well.
The Minister of FinancesYanis Varoufakis, who spoke toVima 99.5 FM, revealed that any changes to the tax must be accompanied by alternative measures. He stated that the tax is “repulsive and unacceptable”.
Political negotiation team to convene at noon
The Prime MinisterAlexis Tsiprashas called a meeting of the political negotiation team at his office at noon, in order to discuss the latest developments. Aside from Mr. Tsipras, the team includesYanis Varoufakis,Yannis Dragasakis,Euclid Tsakalotos,Giorgos Stathakis,Spyros Sagias,Tasos KoronakisandChristos Mantas.
A government source toldTo Vimathat while there is an overall improvement on critical issues, there are still a number of unresolved issues. The source specifically argued that the creditors demands that the government withdraws bills, such as ones that reinstated dismissed and suspended civil servants.
The creditors are also demanding changes to the Code of Civil Procedure, regulated professions and the funding of political parties. The government source reported that these changes may have no financial impact, but they will have a social impact.
A new teleconference between Alexis Tsipras, Angela Merkel andFrancois Hollandemay take place on Monday, when the German Chancellor and French President are to meet in Berlin. Athens also estimates that a Eurogroup session may soon be announced.
