The Greek government will meet with the representatives of the institution on Saturday in Athens, after their quick trip to Brussels to inform the institutions about the draft agreement. Following the phone-tapping of Thomsen-Velculescu talks revealed by Wikileaks last week, they preferred to travel to Brussels so as not to discuss over the phone about the new measures to be included in the agreement.

The meeting will be attended by Finance Minister Euclid Tsakalotos, Economy Minister Giorgos Stathakis, Alternate Finance Minister Giorgos Chouliarakis, Labour Minister Giorgos Katrougalos and the representatives of the institutions.

According to two emails leaked over the past few hours, the initial proposals of institutions show a lack of confidence regarding the measures proposed by the Greek side. The emails mention that IMF believes that Greece cannot bear new recovery measures – this is why the Fund initially insisted on spending cuts – and proposes to reduce the target for a primary surplus of 1.5% of GDP (instead of 3.5% that the government has agreed) and debt relief.

Since, the lenders are not convinced on the efficiency of the recovery measures, they seek to agree on more ‘reliable’ taxes, suggesting a VAT increase in electricity and water bills from 13% to 23%.

According to information, the lenders ask, among others, increase in tax-free amount, VAT hike in electricity and water bills and books and mass layoffs.