ECONOMY

Troika leaves Greece to complete prior actions and 2104 budget ahead of loan release

Troika inspectors who left Athens on Sunday have left the Greek government with two main tasks to complete before they return: to finalize the 2014 national budget and to meet the milestones set for the next bailout tranche of 1 billion euros to be released in October.

Kathimerini understands that the two sides have yet to agree on next year’s budget. The troika does not agree with Athens’s methods for arriving at primary surplus of around 2.8 billion euros, or 1.5 percent of GDP, next year.

Finance Ministry sources said that the difference amounts to about 500 million euros that can be made up from savings produced by structural reforms. The budget will have to be ready by October 7.

The four prior actions that Greece has yet to complete are delivering a final plan on what will happen to state companies EAS, ELVO and Larco. Athens also has to draw up a new code for lawyers, pay of state debts to water companies EYDAP and EYATH and place 12,500 civil servants in a mobility scheme.

Before breaking off negotiations for a few days, the two sides did agree that this year’s primary surplus will amount to no more than 100 million euros.

Greece is aiming to complete its prior actions by October 14, when the Eurogroup will meet to approve the next instalment.