European Commission reveals 5.4 bln euros measures

The government does not mention “debt haircut” anymore

After months of negotiations, the unveiling of the 9 billion euros measures and government’s efforts to quickly ‘wrap up’ the agreement with Greece’s lenders concerning the debt relief has started.

While the government is hiding behind Eurostat report and European Commission spring forecast in order to prove that no additional measures are needed, the European Commission report sheds light on the measures agreed during the negotiations which took part in Athens. The other measures of 3.6 billion euros on which the government and the lenders agreed about ten days ago in Amsterdam might be revealed next Monday at Eurogroup meeting which will take place in Brussels.

European Commission report states that about 1.35 billion euros will come from “adjustments” on the payroll of the employees of public sector and tax hikes concerning mainly vehicles, fuel, alcohol and tobacco.

Moreover, the report states that the government will save about 450 million euros by increasing the VAT from 23% to 24%, 1.8 billion euros from pensions – social security and 1.8 billion euros from the new tax rates and tax threshold at 9.100 euros.

In addition, the government does not mention “debt haircut” anymore, but they refer to “indirect practices” (debt stretch, interest subsidy, etc.) on which the lenders had already agreed in the past.