Friday April 25, 2014 Search
Weather | Athens
21o C
15o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
PM to unveil new fiscal plan, more taxes

 Papandreou to brief Juncker and pave the way for a second loan package
Jean-Claude Juncker is the prime minister of Luxembourg and the head of the Eurogroup.

Prime Minister George Papandreou is to present Greeceís midterm fiscal plan and its privatization program to the head of the Eurogroup, Jean-Claude Juncker, in Luxembourg on Friday as he hopes to secure not only the June installment of the countryís loan package but the extra funding that will cover an 85-billion-euro gap in public finances over the next three years.

However, the plan that Papandreou is to present will include extra taxes for salaried professionals and pensioners.

Papandreou is expected to provide Juncker with details about his governmentís fiscal plan, which will aim to raise or save an extra 28 billion euros by 2015. He will also set out Athensís plans for selling off state assets. Sources said that the privatizations of state gambling firm OPAP, the Athens Water and Sewage Company and Athens International Airport are to be bumped up to this year in a bid to convince Greeceís eurozone partners that it is taking the program seriously.

Papandreou will also reveal how a new independent agency will oversee the sell-offs.

Final approval is due to come from the Eurogroup meeting on June 20 and any details will be finalized at a European Union leadersí summit on June 24 that will also pave the way for Greece to enter a new three-year loan pact.

Representatives of the EU and International Monetary Fund are expected to wrap up on Friday their inspection of Greeceís public finances and issue a statement saying that approval of further funding for Greece is a prerequisite for the 12-billion-euro June tranche of its loan deal to be dispensed.

Not all the extra funding will come in the form of loans, sources said. The EU and IMF will provide 30-40 billion euros of financing but privatizations are expected to bring in 25 billion euros and about 20 billion euros will come from a voluntary debt reprofiling. Some private investors are expected to accept swapping their Greek bond with new 10- or 15-year notes. The reprofiling will be handled in such a manner as to avoid triggering credit default swaps, sources said.

Meanwhile, the midterm fiscal plan is expected to hit salaried workers and pensioners as the tax-free threshold will be reduced from 12,000 to 10,000 or 8,000. For self-employed professionals, it will go down to 6,000. Also, restaurants and tavernas will have to charge 23 percent value-added tax rather than 13 percent. This measure will be brought in after the summer. Further taxes on natural gas, heating oil, tobacco and soft drinks are also on the cards.

ekathimerini.com , Thursday June 2, 2011 (22:57)  
Work at new Athens cultural center gathering pace
Greece makes request for debt relief as loan tranche approved
New court to deal with major crime, graft cases
More than 20,000 protests since 2010 bailout
Ellaktor lands major Doha metro project
Ellaktor subsidiary Aktor has secured the biggest construction project ever obtained by a Greek company abroad by signing the contract for the study and construction of the Gold Line Undergr...
World seeks produce from Greece
Honey from Greece is considered a worthy wedding present in Japan. Elsewhere in Asia, gifts of Greek melons are wrapped up in packaging normally associated with jewelry. This countryís fish ...
Inside Business
SOCCER
4,000 officers to police Greek Cup final
Police says it will ban mass gatherings in central Athens amid heavy security measures planned for Saturday's Greek Cup final between Panathinaikos and PAOK at the Olympic Stadium. More than...
BASKETBALL
Never underestimate the Greek hoopsters
Olympiakos and Panathinaikos, who between them have won the last three European crowns, won again at home on Wednesday to take their Euroleague play-off series with Real Madrid and CSKA Mosc...
Inside Sports
COMMENTARY
At the mercy of fools
The death of a young man at an Easter lunch in a village near Rethymno on Crete and the very serious injury of an American guest at a Resurrection ceremony on Santorini must not be forgotten...
COMMENTARY
Putting the party above the country
The case of Sabiha Suleiman, the Roma activist whose candidacy for the European Parliament was announced by SYRIZA only to be withdrawn shortly afterward, is an illustration of the leftist o...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
†RECENT NEWS
1. Ellaktor lands major Doha metro project
2. World seeks produce from Greece
3. Eurobank opens book for capital increase
4. Govít presents its growth model for the coming years
5. Work at new Athens cultural center gathering pace
6. Greece makes request for debt relief as loan tranche approved
more news
Today
This Week
1. Ellaktor lands major Doha metro project
2. Putting the party above the country
3. Three missing from cargo ship that went down off Crete
4. Central Athens cleanup a sign of Greece's turnaround
5. Strong card in debt talks
6. Samaras meeting with Dimon key to Greek return to bond markets
Today
This Week
1. Greece startup leaders say they canít break jobless cycle alone
2. Ground-breaking Good Friday mass signals thaw in Cyprus
3. Mayoral candidates clash over Athens mosque plans
4. Putting the party above the country
5. Government looks to kick on
6. Greece offers to help find Turkish F-16 lost in 1996
†††Find us ...
††... on
Twitter
†† ††... on Facebook ††
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2014, H KAΘHMEPINH All Rights Reserved.