Prime Minister Alexis Tsipras set out his policy priorities in Greek Parliament on Monday night as he unveiled a tough budget. Tsipras outslined three main objections:

– debt relief
– bank recapitalization
– attracting foreign investments

The new Greek 2016 draft budget includes a package of 7 billion euros worth of new austerity measure as the economy sinks to 2.3%.

The draft budget plan predicts a primary deficit for 2015 at 418 million euros or 0.24% of the GDP. In 2016, however, the situation will be positive with a budget that envisages a budget surplus at 0.5% of the GDP worth 894 million euros.

In order to achive improvement, there will be a series of government cost-cutting interventions including VAT reforms, tax index changes, social security and healthcare reforms (such as increasing social contributions) and the expansion of the Greek state’s taking of OPAP’s profits to 30%.

The biggest victims of “Greek economic recovery” are the unemployed as the recession has created huge turmoil on the job market with declared unemployment predicted to rise from 24.6% in 2014 to 25.4% in 2015 and 25.8% in 2016. Meanwhile, taxpayers and businesses will be called to pay 4.4 billion euros whereas new pension cutbacks are in store so as to achieve a 0.52% surplus.

Tsipras spotlighted four key issues that will be discussed between the government and international creditors:

1. non-performing loans, as the government will seek to avoid the foreclosures of primary homes and the transfer of non-payable funds
2. The readjustment of the labor market with the restoration of collective labour agreements, and the gradual increase of the minimum wage.
3. Keeping the state-owned Public Power Corporation (PPC) under government control
4. The creation of the new fund for the utilization of state assets.

Now, a three-day debate on the government’s policy statements has begun with discussion culminating in a vote of confidence at midnight on Wednesday.