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> Economy

Open fronts with the troika

The troika is in town to discuss discuss pensions, recovery measures and debt settlements, employment issues, the public sector and tax changes

Newsroom July 14 08:42

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Poul Thomsen, Deputy Director of the International Monetary Fund’s European Department, and his team are seeking Greece’s commitment in six sectors. Representatives of the government will meet with the country’s creditors this week – collectively known as the troika – to discuss pensions, recovery measures and debt settlements, employment issues, the public sector and tax changes.

Specifically:

* Today, creditors are meeting with governors of insurance funds to examine the financial state of Social Security, the consolidation process of pensions and the consequences of the abolition of third-party taxes.

* Tomorrow, “red loans” will be tackled during the troika’s meeting with the Public Debt Management Agency (PDMA) that is to include the participation of the ministers of Finance, Development, Justice and Labour, Social Security and Welfare. The government’s goal is to find a solution that will not affect the stability of banks.

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* Possible second-round meetings may take place between Labour, Social Security and Welfare Minister Yiannis Vroutsis with the troika to discuss group dismissals in the private sector.

* In the finance sector, the extent of budget implementation will be judged with alternate Finance Minister Christos Staikouras announcing the details of the budget for the six-month period. At the next meeting with Finance Minister Gikas Hardouvelis, there will be a discussion of the extension of the emergency levy and changes to VAT in 2015 as well as covering the cost of judicial decisions that invalidate Memorandum measures.

* In the public sector, the priority is the new single payroll and 6,500 dismissals of public officials by the end of the year.

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