Radical Left Coalition (SYRIZA) government officials said the Greek side has offered all that it can to international creditors (European Commission, European Central Bank and International Monetary Fund). The government now expects for the way to be paved for a Eurogroup decision on Greece. But first, Greece’s creditors, according to the leftists, ease up on:
* A primary surplus at 0.8% of the GDP for 2015 instead of 1.2%-1.4% that the government had initially expected or the 3% target at the start of the year.
* Three VAT rates (7%, 14% and 22% or 23%) instead of one or two rates at 10-11% and 20-21% to yield 3-4 billion per year.
* A new adjustment to the “pay-what-you-want” settlement that ended in March.
* An end to unaudited tax returns and the legalization of undeclared income.
* No cuts in auxiliary pensions but restrictions applied only to new early retirement pensions. The government plan involves around 200,000 employees of public utilities and banks, though lenders want this to apply to an additional 300,000 people who have already acquired pension rights as of 2013.
* A return to collective bargaining contracts and no other changes to the labor regime.
Social security and labor sector issues will be discussed afresh at the Brussels Group meeting that convenes on Tuesday. Government sources believe an agreement by the end of the week is possible.
