Eurogroup finance ministers approved Greece’s reform package on Tuesday, marking the start of discussions as to how to cover the country’s funding gap in two stages (a) the end of April, and (b) the end of July. Sources state that it is still unknown as to how Greece will be able to cover its funding needs.

The agreement could affect the government’s intent to abolish the single property tax (ENFIA), regulate the settlement of overdue debt in 100 installments and create a tax-free salary threshold at 12,000 euros.

The “bridge” deal achieved by the Greek government managed to cancel measures that were included in the controversial e-mail to Greece’s international creditors by former conservative finance minister Gikas Hardouvelis that included an increase to hotel VAT tax, pension reductions and public sector dismissals. In exchange, the government has pledged not to proceed in measures promised during its pre-election campaign.

The bridging deal:

Taxation

1. 1. VAT policy amendment with the elimination of ‘unreasonable’ discounts. Sources also spoke about a possible VAT increase in the Aegean islands though these leaks were later denied.
2. 2. Remove exceptions and exemptions provided by the income tax code and replace these with fairer measures of a social nature.
3. 3. Taxation of collective investment and expenditure from income tax.
4. 4. Tougher legislation on tax fraud and evasion.
5. 5. Control of transfer pricing.
6. 6. Cooperation with European and international authorities to identify properties of undeclared income.

Public Finances

1. 7. Greater budget transparency.
2. 8. Speeding up of arrears from the state to the private sector with tax refunds and pension claims.
3. 9. Enhancing the fiscal council.

Tax Collection

1. 10. Changes to tax and customs administration with the possible incorporation of the Financial Crimes Squad (SDOE) into the General Secretariat of Public Revenue.
2. 11. Facilitating the independence of the General Secretariat of Public Revenue in international selections, appointments, monitoring and replacement of its management.
3. 12. Financial Crime Squad checks on tax fraud and tax debts of social groups that have a high income.
4. 13. The government and the General Secretariat of Public Works (GGDE) will make full use of available technical assistance, such as with the Reichenbach group.

Debt Settlement

1. 14. New legislation for the repayment of tax and insurance debts.
2. 15. Borrowers of small debts (up to 50,000 euros) will be made exempt from criminal prosecution.

Banks

1. 16. Setting the ‘red loans’ in a way that will not affect the capitalization of banks and the financial position of the country.
2. 17. Cooperation with bank management and institutions for the protection of primary residences with a value lower than the given threshold.
3. 18. Measures to support vulnerable households that are unable to service their loans.
4. 19. Extrajudicial arrangements for the restructuring of public debts.

Privatization

1. 20. No cancellation of privatizations that have been completed such as with the OPAP betting agency or the Piraeus Port Organization. The government will respect the process of tenders already launched in accordance to the law.
2. 21. Basic public goods and services (e.g. water, energy, etc.) of privatized companies/sectors will be preserved with the application of legislation by the European Commission.
3. 22. A review of all privatizations that have not been launched.
4. 23. The Hellenic Republic Asset Development Fund will be joined with a number of public organizations and will aim to develop public property assets.

Employment

1. 24. A new approach to collective bargaining agreements with a balance between flexibility and fairness. The goal will be to increase the minimum wage over time in a way that would preserve competitiveness and employment prospects. The extent and timing of changes to the minimum wage will be made in consultation with the social partners and European and international institutions such as the International Labor Organization.
2. 25. To expand and develop existing projects that offer temporary employment to the jobless. To upgrade training programs for the chronically unemployed.

Market Reforms

1. 26. To remove barriers to competition based on data from the OECD.
2. 27. To strengthen the independence of the National Competition Commission.
3. 28. To reduce bureaucracy.
4. 29. To create a system of land zoning across the country.
5. 30. To lift disproportionate and unjustified restrictions to regulated professions so that vested interests can be overcome.
6. 31. To align the electricity and gas market with the better practices of the European Union and national legislation.

Statistics

1. 32. Ensuring the reliability of statistics, especially the institutional independence of the Hellenic Statistical Authority (ELSTAT), by ensuring that the service has the necessary resources required for its work program.
2. 33. Transparency in the appointment of the ELSTAT Chief in September 2015 in collaboration with Eurostat, the European statistical body.

Humanitarian crisis

1. 34. To cover the needs arising from the recent rise in absolute poverty: access to food, shelter, health services and the supply current through highly targeted ‘non-cash’ instruments (e.g. food stamps)
2. 35. Public administration reform in the fight against corruption and bureaucracy (e.g. by issuing a smart card for citizens that can also be used as an ID card in the health system as well as a voucher for food programs etc.)
3. 36. To evaluate the pilot program for the Guaranteed Minimum Income and consider it for nationwide expansion.