Revised Memo demands harsher measures

Cuts in lump sums and public spending

Greece’s creditors have sent a revised Memorandum of Understanding (MoU) to the country’s government demanding a package of harsh measures. According to Greek daily “Kathimerini”, the document sent to the Greek authorities includes the scrapping of tax deductions, a special account for the collection of revenues, a cap on wage spending and the number public servants until 2020. More specifically, the paper demands:

-the readjustment of current pensions according to the new parameters;

-a revision of how the lump sum is calculated;

-a completion of the reevaluation by December 2017;

-the issuing of 35% of pensions applied from May 12 until October without interrupting the normal issue of pensions;

-an immediate issue of a Ministerial executive order for slashing 430 million euros related to the special social solidarity contribution (EKAS);

-a strategic plan for the automatic collection of arrears and seizures by the end of 2017 through the setting up of a special software platform;

-the striking off of all overdue debts that cannot be collected;

-the legislation of electronic transactions by June 2017 via the mandatory use of POS;

-the revision of objective property rates until June factoring in market values;

-the abolition of tax deductions and exemptions that are deemed ineffective by tax authorities;

-the establishment of medium-term (2017-2020) limits for wage expenditure and the number of public servants in line with fiscal targets;

-the adoption of a new law to complete the normalisation of special payrolls to be approved as a prior action by the authorities.