Greek PM Alexis Tsipras met with close associates in a long meeting at Maximos Hall, Monday, to conclude on ways to practically implement the automatic fiscal reduction mechanism. According to government sources, the Greek government will have full control of how the mechanism is activated and there will be not foreign interventions or unwanted solutions.

The mechanism provides that cuts in public spending will automatically activated in the event the set primary surplus is put at derailed. Government sources claim the cuts will take effect only after a Presidential decree is issued, an action at the exclusive discretion of the government on particular public spending and revenue codes.

The same sources say figures demonstrating divergence from the surplus target will be based on Eurostat data and not any future estimations. The procedure will involve Eurostat announcing data on the previous year, and if Greece is in line with the set fiscal targets no measures will be activated. In the event Greece fails to reach a set target a Presidential decree is issued which will result in automatic cuts in specific public spending codes.

The activation of the mechanism was provided in the fiscal targets determined last summer, therefore it was not a new memorandum, claim the same sources. The results on the Greek government’s 2016 fiscal performance are expected to be announced in April 2017, which are estimated to definitely covere the 0.5% surplus for the year.

Meanwhile, the Greek government will vote in the second bill with the prior actions Thursday, in an effort to guarantee the first review at the May 24 Eurogroup meeting. the bill will include a package of indirect taxes amounting to 1.8 bln Euros, the ‘red loans’, the Privatisation Fund etc.