Saturday October 25, 2014 Search
Weather | Athens
19o C
12o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Timetable of prior actions for next tranches is set out

 Courts, political instability, recession and vested interests worry creditors
Drug prices will have to be reduced, using the three lowest prices in the European Union per medicine as a yardstick, in order for the March bailout tranche of 2.8 billion euros to be disbursed.

By Sotiris Nikas and Nikos Chrysoloras

The long-awaited report by the European Commission and the European Central Bank on Greece’s economy, issued on Monday in Brussels, describes the prior actions required for 14.8 billion euros in bailout installments to be disbursed by March. However, it also warns of four risks to the bailout program, stressing that any failure would immediately entail fresh austerity measures.

The prior actions required for January are the passage of the tax reform bill through Parliament and an increase in electricity rates. These measures will allow for the disbursement of 9.2 billion euros, out of which 7.2 billion will go toward the recapitalization of banks.

February should see the revision of the midterm fiscal plan and the setting of ceilings on spending for general government entities, particularly local authorities and hospitals, for the next three years. That will see the release of another 2.8 billion.

In March, the government will have to complete its report on human resources at its ministries, which will determine the number of unnecessary staff and the figure of those departing per quarter up until end-2014. Pharmaceutical prices will also have to come down for the next tranche of 2.8 billion euros to arrive in Athens.

European authorities are worried however that legal interventions might hamper some of the measures, as in the case of the special property tax paid via electricity bills, which would demand the introduction of other measures to fill the gap. Other possible obstacles to the program include political instability, a greater-than-forecast recession and the insufficient implementation of reforms in areas which would involve a clash with vested interests.

The state’s reduced ability to enforce the reforms agreed upon is one of the problems cited by the Commission’s Task Force in a different report also presented on Monday. That also identifies the problems of extensive tax evasion and a lack of cash flow.

A senior Commission official admitted on Monday that the measures already agreed on for the reduction of the Greek debt are going to bring it down to 128 percent of gross domestic product in 2020, to secure its decline to 124 percent in 2020 and below 110 percent in 2022. The official added that more measures that have not been specified will have to be taken, but that the eurozone has committed itself to promoting them should this be required. It was through this guarantee that the International Monetary Fund has agreed to tone down its hard stance and allow for the disbursement of the bailout installment.

ekathimerini.com , Monday December 17, 2012 (22:42)  
TAIPED waits for green light from Eurostat
Trade deficit shrinks on big drop in imports
SMEs unable to claim subsidies
Taxes kept growing in second quarter
Athens, Nicosia satisfied by EU leaders´ stance toward Ankara
A reference in Friday’s European Council conclusions calling on Turkey to respect Cyprus’s sovereign rights left Athens and Nicosia content with the outcome of the European Union leaders’ su...
Suspended policeman chief suspect in cousin’s murder
A 27-year-old police officer who has been suspended from duty since 2013 for extortion, is being treated as the chief suspect in a murder committed in a suburb of Piraeus on Thursday. Police...
Inside News
BASKETBALL
A win is a win is a win for Olympiakos
A bad Olympiakos defeated a worse Laboral Kutxa 63-57 to make it two out of two in the Euroleague on Friday. In a game where the two teams had an overall field goal rate of about one in thre...
SOCCER
Panathinaikos snatches point at Eindhoven
Panathinaikos offered its fans a glimpse of its glorious past in European competitions snatching a draw at PSV Eindhoven, on an otherwise bad night for Greek soccer in the Europa League, as ...
Inside Sports
COMMENTARY
Tension for tension’s sake?
It is evident that Turkish President Recep Tayyip Erdogan feeds off tension. He would barely have achieved as much as he has – and prevailed – if he had not been so keen to confront a series...
EDITORIAL
Testing ground
The Regional Authority of Attica is a good testing ground for politicians who appear to thrive on accusations to prove whether they can actually solve major problems of a practical nature. T...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. A win is a win is a win for Olympiakos
2. TAIPED waits for green light from Eurostat
3. Trade deficit shrinks on big drop in imports
4. SMEs unable to claim subsidies
5. Taxes kept growing in second quarter
6. Thessaloniki Port expects 2014 to be record year
more news
Today
This Week
1. Woman killed in tram accident in Floisvo, south of Athens
2. Clocks to go back 1 hour on Sunday
3. Venizelos slams Turkey for 'flagrant violation of international law' off Cyprus
4. ECB vies for third time lucky in European stress tests
5. Cyprus GDP upgrade seen as boosting bailout exit plans
6. ECB bank assessment to show 6-billion-euro capital gap, Citi says
Today
This Week
1. The past, present and future of the Greek debt crisis
2. Greece’s closed society is central to its current malaise
3. Greece must stick to reforms, says Schaeuble
4. At least 11 banks to fail European stress tests, three in Greece, report says
5. Cyprus to block Turkey's EU talks after EEZ violation
6. Samaras’s crumbling Greek exit lacks backing from economists
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2014, H KAΘHMEPINH All Rights Reserved.