The draft of the new MoU

Financial Mirror (Cyprus) - - FRONT PAGE -

The Greek gov­ern­ment and in­sti­tu­tions have reached an agree­ment on the prior-ac­tions and the draft of the new MoU, af­ter a marathon mid­night ne­go­ti­a­tions, writes Michalis Tezaris of In­tel­li­gent News.

The gov­ern­ment will sub­mit the agree­ment to Par­lia­ment likely on Wed­nes­day for a vote on Thurs­day, open­ing the door for the dis­burse­ment of the first tranche of some EUR 25 bln by Au­gust 20. In the mean­time, a Eurogroup on Fri­day will ap­prove the agree­ment and give the green light to the Euro area par­lia­ments to vote for the third bailout pro­gramme to Greece by Au­gust 18.

Kathimerini news­pa­per pub­lished the draft of the new MoU. Ac­cord­ing to the re­port, the fol­low­ing list presents in short the ma­jor prior-ac­tions that should be voted for in Au­gust. It is noted that the new 27-pages MoU in­cludes a huge num­ber of prior-ac­tions and ad­di­tional mea­sures for Oc­to­ber and on­wards. This may ex­plain the fact that the Greek Premier wants elec­tions in Septem­ber, the daily re­ported. should be im­ple­mented.

Ear­lier, in Q3 this year ab­sorbed by one en­tity.

The new su­per-pri­vati­sa­tion fund will be launched by March 2016 but in the mean­time all the pri­vati­sa­tion pro­gramme will be fully im­ple­mented by the in­cum­bent body TAIPED.

There is no pro­tec­tion from fore­clo­sures per­me­ant so­cial safety net is in­tro­duced to sup­port vul­ner­a­ble peo­ple.

In the medium term, the ed­u­ca­tion sys­tem in all stages should be linked with the re­search and de­vel­op­ment.

Greece will im­ple­ment all the re­forms rec­om­mended by OECD (tool­kit 1 and 2).

Pen­sion sys­tem and so­cial se­cu­rity or­gan­i­sa­tions should save 0.5% of GDP per year.

The wage cost and the em­ployed force in public sec­tor should de­cline and be in line with the GDP.

A new mo­bil­ity scheme in the public sec­tor should be in­tro­duced.

all pen­sion

funds should be but a new pro­tect and that will re­duce the debt to out­put ra­tio steadily. 2018 and be­yond: 3.5% of GDP. 2. Tighten the def­i­ni­tion of farm­ers. 3. In­crease the ton­nage tax on ship­ping. 4. Ac­tions to launch the 2015 ENFIA prop­erty tax in or­der to is­sue the bills in early Septem­ber.

5. Cor­rect is­sues with the rev­enues mea­sures re­cently im­planted. 6. Re-es­tab­lish full INN pre­scrip­tion. 7. Re­duce the price of all off-patent drugs. 8. Abol­ish sub­si­dies for ex­cise on diesel oil for farm­ers. 9. Halve heat­ing oil sub­si­dies ex­pen­di­ture in the 2016 bud­get. 10. Launch the com­pre­hen­sive so­cial wel­fare re­view. 11. Ad­di­tional mea­sures of 0.5 to 1.5% of GDP.

1. Elim­i­nate the cross-bor­der with­hold­ing tax in­tro­duced in 2015.

2. Clar­ify that the VAT dis­counts for is­lands will be fully elim­i­nated by end 2016.

3. Leg­is­la­tion on gar­nish­ments: elim­i­nate the 25% ceil­ing on wages and pen­sions and lower all thresh­olds of 1,500 eu­ros, while en­sur­ing in all cases rea­son­able liv­ing con­di­tions.

4. Amend the 2014-2015 tax and out­stand­ing debt in­stal­ment schemes; mar­ket based in­ter­est rates; en­force­ment ac­tion re­gard­ing debtors who fail to pay their in­stal­ment or cur­rent obli­ga­tions on time.

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