The Greek government has two months ahead of it to pass tow series of measures, including the much-debated pension reform and settlements for non-performing loans, in order to collect the remaining 3 billion euros of the first bailout tranche.
Earlier, the head of the Euro Working Group Thomas Wieser spoke of two lists of prior actions and warned that unless the bills are passed and implemented within the next few weeks, then Greece will not receive the necessary funding.
Based on statements from Eurozone officials to Bloomberg, the first list is likely to cover the reforms in public administration and the country’s ailing pension system, while the second list, according to Mr. Wieser, will is associated with financial sector reforms and includes the settlement of non-performing loans (the so-called ‘red loans’) as well as the administration of the Financial Stability Fund.
Additionally the government will be called to substitute or implement a series of difficult measures, such as increased taxes for farmers and abolishing the 30% VAT discount on the first group of islands in the Aegean. Should the government want to replace some of the more controversial measures, such as the 23% VAT rate in private education, it will have to provide alternative measures with an equal fiscal result.
