There is still no agreement between the euro area and Greece, which would allow for the payment of the country billions of euros, but euro zone finance ministers welcomed the current activities of Athens, giving hope for a quick conclusion of the talks.
The head of the Eurogroup Jeroen Dijsselbloem said after Monday’s emergency meeting of finance ministers of the euro area in Brussels, that the implementation of reforms should now enable the completion of the first review of the aid program.
These reforms, but is required is a package of emergency
On the night of Sunday to Monday the Greek parliament approved new austerity package, thus fulfilling part of the conditions for receiving further assistance from international creditors. Eurozone countries and the International Monetary Fund are demanding, however, that Athens also implemented the so-called. a package of emergency, which would take effect if Greece failed to work out a predetermined primary budget surplus (ie a surplus without debt servicing costs).
In the next few days, representatives of institutions representing lenders to see if adopted by the Greeks reforms are in line with the assistance program agreed last summer. These representatives are also based on the political guidelines of the ministers to finalize work on the mechanism of emergency.
On Monday, the Eurogroup gave herbaceous light to prepare it in such a way, as proposed by Greece, which means you will not need to enact reforms before emergency by the Greek parliament, but only to prepare a mechanism that would lead to savings.
This package would be triggered if Greece did not succeed in finding a primary surplus in the budget of 3.5 per cent. in 2018. Dijsselbloem explained that the measures provided for in the mechanism may later be replaced by structural reforms, including increasing revenue to the budget.
Greece waits for loan
The ministers also agreed that the June uprising management privatization fund, which is to help in the sale of assets of Greece in order to repay the debt. The fund is to be fully operational by September.
The Eurogroup agreed that the next meeting on May 24 will address the issue of Greek debt. Earlier on this topic have to talk to the experts who will prepare proposals for solutions, so as to relieve the country in paying obligations. Excluded, however, it is debt relief.
Greece needs the payment of the next tranche amounting to 86 billion euro aid package. Lenders do not want, however, to agree on it until it is finished reviewing the implementation of reforms, which stretches for several months.
The Greek government is under increasing pressure due to the upcoming consecutive payments. In the absence of measures over the country once again hang the specter of bankruptcy and, consequently, the exclusion from the euro zone.
IAR / PAP / agkm
Athens. Thessaloniki, Greece. On Sunday evening (08.05) in Athens and Thessaloniki persistent clashes between the protesters and police. Leftist activists protesting against pension cuts and tax increases. The reform is part of a new package of austerity, which has been adopted by the Greek Parliament. To quell the riot police used tear gas and grenades auditory, protesters responded by throwing stones and incendiary bottles of liquid. The law providing for the reduction of pension expenditure of 1.8 billion euros, and to obtain further 1.8 billion euros due to increases in income tax was adopted after a stormy two-day debate by a vote of 153-143. Next week MPs also have to decide on the increase of indirect taxes by a total of 1.8 billion, which will increase the package to 5.4 billion euros in savings. (Video: RUPTLY / x-news)
No comments:
Post a Comment