Greece’s troika of international lenders are meeting with the government on Tuesday. During the meetings, the officials from the European Commission (EC), European Central Bank (ECB) and the International Monetary Fund (IMF) are set to discuss the 2015 Greek budget with Finance Minister Gikas Hardouvelis. The first meeting is scheduled for 11.30 a.m. at the Finance Ministry followed by a 3 p.m. “check-up” with Health Minister Makis Voridis and the Ministry of Health.

The group of international creditors is in Athens without Poul Thomsen, the Deputy Director of the IMF’s European Department. The lenders’ goal is for Greece to cover a fiscal gap of 2 billion euros and there is pressure for a third bailout loan for 12 billion euros in 2015.

Greek authorities have claimed that Athens could end austerity early. Prime Minister Antonis Samaras had indicated that Greece would not need a new bailout package during his meeting with German Chancellor Angela Merkel last week.

Community sources say that the negotiations are due to be tough with many issues being discussed, such as tax breaks, structural changes to the public sector and the markets, bank stress tests, etc.

Troika wants to discuss

* more cuts to wages in the public sectors to further reinforce the primary surplus. The government appears willing to agree so as to reach a new agreement on tax breaks.
* nonperforming “red loans” and the new bankruptcy code.
* changes to employment relations and pension funds (including the abolition of social welfare funds). The government isn’t interested in mass dismissals.
* long-term fiscal monitoring of the economy, even if the IMF leaves. The government states that it doesn’t need more loans or a new memorandum.

Discussions are to take place in two stages and will be interupted by the annual IMF meeting (October 10-12) and the Eurogroup (October 13-14).