The chances of a compromise solution for Athens, at least at Monday’s Eurogroup meeting, appear slim. Nevertheless, both sides — Athens and its eurozone creditors — have made “noise” over recent days that talks will continue until a solution is found.

‘Non-toxic’ points of compromise

1. Taxation

■ Abolition of tax ameliorations.
■ Combatting tax fraud and tax evasion.
■ Changes to tax settlements and insurance funds for increases in revenue.
■ Restructuring and reinforcing independent tax administration.
■ Tax on group investments.

2. Public administration

■ A new system of payment and unified salary scale for the public sector.
■ Infrastructure evaluation and new organizational chart for ministries.
■ Institutionalization of goals and employee evaluations.
■ Evaluation of fund allocation for public sector.
■ Restructuring plan for public utilities.
■ Improving ‘fiscal rules’ to offer greater financial flexibility to public institutions.

3. Insurance

■ Fund mergers.

4. “Red loans”

■ New debt settlement regulation that differentiates between mortgages and other borrowing.
■ Bank consolidation with the restructuring of problematic portfolios.

5. Bankruptcy Code 
■ Changes to the bankruptcy code and reinforcement of legal mechanisms.

6. Competitiveness

■ Lifting obstacles to competition in wholesale trade, construction, telecoms and electronic trade, based on OECD research — the once vilified OECD “tool kit”.
■ New law for investment licensing.

Red zones – Points of friction

1. The continuation of the annual primary surplus goal of 3-5%. The Greek government wants this cut to 1.5%.

2. Covering the fiscal gap estimated, at 2.6 bln euros, by the troika of Greece’s international creditors from the European Commission, European Central Bank and International Monetary Fund.

3. Insurance:

■  Lifting the retirement age.

■ Limiting early retirement.

■ Zero pension fund deficit.

4. Employment

■ Aligning the framework for mass firings with EU legislation.

■ Harmonizing Greek trade union activities with EU practices.

■ Freezing the minimum wage and collective bargaining for three years.

5. Taxation

■ Restructuring VAT tax and abolishing the reduced VAT rate for islands, etc.

■ No tax exemptions for wages and pensions in 2015.

■ Replacing the joint property tax ENFIA with a new tax for large asset holdings, known as FMAP.

■ Cutting government officials’ perks.

■ Cutting government officials’ wages.

■ Combatting tax evaders and the underground or black/grey economy.

■ Extra revenue for a debt settlement with tax authorities for debts incurred until December 2014.

Bridging Deal

Greek Finance Minister Yanis Varoufakis has consistently sought a 4-to-6-month “bridging deal” that would give Greece leeway to renegotiate its debt. However, his detractors at the institutional European level have charged that details of such a deal are scarce.