One of the main points discussed between the Minister of Finances Yanis Varoufakis with the IMF director Christine Lagarde in Washington DC on Sunday was the sustainability of Greece’s social insurance system and the effect that it has on the budget.
Although the discussion between the two sides was said to be carried out in a good climate, request to postpone addressing this issue until later in the year was rejected. Furthermore, even if the current review is completed without any measures taken, the insurance system issue will be brought up against in May.
On Tuesday Mr. Varoufakis is to travel to Paris and Brussels. While there are no details announced on his trip, the Greek finance minister is said to meet with European Commissioner Pierre Moscovici and OECD chief Angel Gurria. The goal is to come to an agreement on the Greek government’s reform program by Thursday, specifically the first set of measures to be implemented immediately, with the “deeper reforms” to be debated in the second phase of negotiations that are to conclude in the next two months.
The government spokesperson Gabriel Sakellaridis confirmed that the IMF insisted on changes in employment relations and the insurance system, while sources form the Finance Ministry reject rumors of the IMF demanding specific measures. Mr. Sakellaridis told Real FM that “obviously these matters were discussed and the Greek side and Mr. Varoufakis stressed that the Greek government cannot back down on these issues”.
