The draft of the new MoU
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.
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.