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> Economy

Greek govt’s list of reforms ready on Tuesday, waiting with bated breath

Greece is submitting a list of proposed reforms to its debt inspectors on Tuesday morning to get final approval for an extension to its rescue loans

Newsroom February 24 07:33

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The Greek government is getting its list of proposed reforms ready to present to its creditors on Tuesday morning after it was tentatively agreed on Friday to extend the country’s rescue loans by four months. An effort is being made to create an amalgam of budget measures aimed at keeping a lid on debts and improving the economy while also dealing with the humanitarian crisis caused as a result of the austerity program. Internal rifts have opened up within the Radical Left Coalition (SYRIZA) leadership regarding the government’s buckling to the demands of international creditors so that a fiscal deficit can be avoided.

Finance Minister Yanis Varoufakis will submit the list to representatives of international institutions, namely European Economic and Monetary Affairs Commissioner Pierre Moscovici, European Central Bank Chief Mario Draghi and International Monetary Fund Head Christine Lagard. The Eurogroup had set a deadline on Monday for the economic reforms plan to be finalized, however Greece was still putting the finishing touches on its measures while working closely with its Eurozone partners when drawing up its list. An official said that the list would be submitted on Tuesday morning.

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The new plan includes a number of concessions to the Eurozone, causing internal conflict within SYRIZA. The government has stressed that the reforms would at least be decided by Greeks rather than be dictated by foreign creditors that had been the case since 2010. The new reforms are expected to include a clamp down on tax evasion, the settling of overdue debts, dealing with smuggling and corruption. The public sector is expected to be overhauled in an effort to cut red tape. The humanitarian measures announced during the Thessaloniki trade fair would also be included. These envisage relief measures such as free electricity and meals for the poor as well as the protection of people with mortgage arrears.

Prominent SYRIZA members have been skeptical of the government’s list. They believe that the government should honor its pre-election campaign promises.

If all goes well, the green light for Greece to proceed could be given during a teleconference of finance ministers on Tuesday night. If there are objections, especially from the German side that is the largest contributor to Greece’s two bailouts totaling 240 bln euros, then Greece will enter a new cycle of harsh negotiations with its EU partners.

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