Brussels Group talks to resume Tuesday with VAT, pension topping agenda

Negotiations between Greece and its lenders are due to resume via the Brussels Group on Tuesday.

The two main issues that the technical teams have to tackle are value-added tax and pension reform.

On VAT, the institutions propose that there should be two rates, one at around 23 percent and another at 10. Greece has proposed three rates: 23, 14 and 7.

It is estimated that the changes to VAT could bring in between 500 million and a 1 billion euros, helping to plug the fiscal gap for 2015.

In terms of pension reform, Greece is due to present its plans for scrapping early retirement. Lenders, however, insist that Athens has to adopt the zero deficit rule, ending state subsidies for pension funds.

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