The EU, ECB and IMF representatives are expected to return to Greece around the 15th of January to continue the fourth review of the Greek economy that begun in September. The Ministry of Finances’ main goal will be to settle the 2 billion gap in measures deemed necessary to cover the 2014 fiscal gap, which is estimated to be about 13-14 billion euros (including loses from privatizations).
After the troika has completed everything necessary for the payment of the 3.1 billion euro loan installments from the EU and the two 1.8 billion euro loan installments from the IMF by late February, the creditor representatives will return to Athens in June, after the elections for European Parliament.
The Minister of Finances Yannis Stournaras will spend the holidays preparing the plan of the government’s proposed structural measures, in hopes of placating creditor demands, as he has ruled out wage and pension cuts. The biggest difference of opinion is related to the VAT in food and the new real estate tax, with the troika requiring an additional 200 and 400 million euros to cover the respective shortfalls.
Other issues on the agenda include the deregulation of mass dismissals, commercial leases, the reduction of insurance contributions payable by businesses, the abolition of collecting taxes for third parties and determining the number of public sector employees to be suspended and inducted in the mobility scheme in 2014.
The coalition government is also concerned about how it will manage to pass any new structural measures and bills that the troika might demand, with parliamentary majority not being a given after the recent expulsion of Byron Polydoras from New Democracy and disputes of government and party officers on key policies.
