Gov’t upbeat on progress of bailout review

Government officials were upbeat yesterday about the progress of negotiations with foreign bailout monitors, noting that any issues have been effectively tackled by technical teams without the need to seek a political solution as has been the case in the past.

“There are signs of political will from all sides for the negotiation to be completed quickly and efficiently,” one source said.

So far there do not appear to be any indications of a budget gap next year, sources, said, adding that this year’s budget – and a projected primary surplus – will top the agenda of talks today.

One issue that was resolved yesterday concerned trade unions, with government officials agreeing on new regulations that will require at least half of trade union members to back any call for strike action, rather than a third, as the law now states.

Government sources are said to be optimistic about the bailout review being completed by the end of the year. There are concerns, however, about more politically taxing reforms, such as changes to the labor market and the privatization of the Public Power Corporation and gas grid operator DESFA.

In comments during a visit to Ioannina in northwestern Greece yesterday, Prime Minister Alexis Tsipras promised tax relief for Greeks on low and middle incomes at the end of 2018, noting that all signs point toward the required “fiscal space” being created to allow the handouts.

In an interview with Alexis Papachelas on Skai TV on Tuesday, outgoing German Finance Minister Wolfgang Schaeuble said he warned Tsipras while the latter was in opposition that he would not be able to meet his preelection promises to roll back austerity.