The Greek government is being pressured from Europe into submitting a list of reform and measure proposals that will see public revenue increase and provide financial stability and balance, ahead of today’s critical Eurogroup in Brussels.
After the Finance Minister Yanis Varoufakis’ list of seven proposals was leaked in the press before the weekend, European officials do not seem to be convinced and have warned that greater efforts will be necessary. The EU, ECB and IMF have expressed reservations over these proposals – which include recruiting students and tourists to help expose tax evaders in suspected hot spots – and have urged for the Greek government to call their technical teams to Athens.
In his letter to the Eurogroup president Jeroen Dijsselbloem, Mr. Varoufakis notes that these proposals may be the basis for technical discussions and a first agreement. He underlines that the technical discussions must conclude by the end of April, in order for the review to close and conclude the current program, so that talks for a follow-up agreement may begin.
With the Greek list of reforms not having been discussed at the recent Euro Working Group though, the Greek government does note expect any major decisions to be made in Brussels on Monday. Government sources estimated that the situation remains critical, with everything depending on any Eurogroup decisions and how the ECB will respond.
As such, the government has begun enhancing Mr. Varoufakis’ list of reforms. Amongst the additional measures which the government is prepared to take are the abolition of exemptions from VAT and setting up an online VAT payment platform; completing one or two major privatizations such as the concession of the 14 regional airports; merging pension funds.
