The Radical Left Coalition (SYRIZA) government wants to avert the opinion that the new government is simply following in the tracks of the conservative New Democracy and socialist PASOK coalition.
Negotiations
Finance Minister Yanis Varoufakis’ reforms list was completed in four months and EU partners agreed with the government on a series of matters such as the differentiation of the loan contract from the memorandum and the separation of the memorandum from the framework of austerity. The 4-month interim agreement buys the government time to negotiate. Unlike Finance Minister Gikas Hardouvelis e-mail it places the primary surplus at lower levels than 3% of the GDP (5.5 bln euros). Instead, Greece can now have a primary surplus that takes into account the financial conditions of 2015.
Humanitarian crisis
Hardouvelis e-mail did not take into account the humanitarian crisis. The new agreement provides for free electricity and food for 300,000 families. There is also healthcare for all and a reduction of people’s participation in pharmaceutical supplies.
Corruption
The government is particularly interested in combating smuggling in fuel and tobacco and money laundering. There is stricter legislation regarding the funding of political parties and has put a ceiling on the borrowing allowed.
Taxation
The new government’s goal is for a more equitable tax system with the abolition of tax amnesty and combating tax evasion. Hardouvelis e-mail focused on increases of the VAT tax from 6.5% to 13% in enterprises of the tourism sector, and VAT hikes on islands, something that the new government does not want to see. The previous government wanted to place VAT on betting and increase taxes on tobacco and alcohol.
Employment
Public sector employees dismissed by the private sector will be included in programmed recruitments of this year’s budget and group contracts would be brought back. The Hardouvelis e-mail had included pension cuts and an increase in stamps required for pension rights from 4,500 to 6,000. The contribution to solidarity contributions would have been increased.
Privatization
No more privatizations, but those already in progress would be completed.
