Govt: We have submitted our proposals and are waiting for a response

Greece has submitted its revised proposal on fiscal targets and measures to achieve them, say government sources

Radical Left Coalition (SYRIZA) sources said on Tuesday that they submitted a revised proposal on fiscal targets and the required measures to achieve these, however there has been no response from Brussels yet. “The Greek side has become more optimistic over the primary surplus targets that will help it gain credibility,” said the same sources, noting that the proposal along with two supplementary texts had been sent to European Economic and Monetary Affairs Commissioner Pierre Moscovici on Monday night.

The Greek proposal includes significant improvements in administrative measures to boost revenues with “the most important revision concerning the VAT which will enhance revenues (1.4 bln euros per annum) without increasing the prices of basic goods such as medicine, energy and food.” The goal is to bring in an additional 350 mln euros in relation to the previous plan that was at 900 mln euros.

The new Greek proposal lifts the primary budget surplus by 270 mln euros for 2015. Instead of being at 0.6% of the GDP it will be at 0.75% and from 1.5-1.75% for the next year. This brings the Greek goal closer to the creditors’ calls for a 1% primary surplus for 2015 and 2% for 2016.

Explaining the stance of the Greek government at this stage of negotiations, sources state that the government is “fully committed to maintaining financial stability and following the eurozone’s common rules” without compromising the political mandate received by the people. The government believes that the revised proposals show SYRIZA’s intent to shift the burden of fiscal adjustment away from the low and middle classes to the wealthiest Greeks left untouched by the previous program.