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  • The Greek government’s proposal for an agreement with the institutions

    The Prime Minister Alexis Tsipras announced that the Greek government has submitted a proposal for an agreement on a…

    The Prime Minister Alexis Tsipras announced that the Greek government has submitted a proposal for an agreement on a technical level to the institutions, during his visit at the Ministry of Education on Tuesday morning.

    According to the Greek Premier, the proposal was submitted shortly before the meeting in Berlin between Angela Merkel, Francois Hollande, Jean-Claude Juncker, Mario Draghi and Christine Lagarde. Reliable sources have noted that the Greek government was urged to come to an agreement with the ECB and IMF.

    The same sources have also reported that the creditors believe that Greece will need a new loan worth 55 billion euros in order to cover its needs until 2017!

    Sources from Europe also commented that the Greek government’s proposal accepts the imposition of a zero deficit provision in supplementary pension funds, while the VAT reform involves two rates (22% and 11%) for all products and services. Under this proposal there will be no VAT discount for the islands.

    It should be noted that the submitted proposals are for the completion of the current program review and do not include any provisions for the budget gap, which must be covered by further measures. The Greek proposal’s overall aim is to conclude the review in order to receive some of the funding Greece is owed and to avert a default.

    The government has denied To VIma‘s report on the alleged proposal via a new non paper, adding that the official proposal is more in line with the article PM Tsipras recently wrote and published in Le Monde.

    Meanwhile the Brussels Group has arranged to convene at 4pm on Tuesday in order to discuss the latest developments, while a Euro Working Group is rumored to take place on Wednesday, suggesting that an agreement between Greece and its creditors is imminent.

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