Gov’t preparing proposal for creditors aimed at reviving bailout talks


The government is drafting a proposal for creditors which is aimed at reviving dragging bailout talks, sources have indicated.

The proposal, which the government hopes to present to Eurozone finance ministers on January 26, foresees the extension of the automatic fiscal mechanism — dubbed "the cutter” — to apply through 2020, along with the further reduction of the tax-free threshold and an increase in the middle rate of value added tax.

Dragging out the relaunch of bailout talks is not beneficial for either side, Alternate Defense Minister Dimitris Vitsas told Skai television  on Monday, noting that the delays are chiefly due to the ongoing disagreement between European officials and the International Monetary Fund.

Further discussion is required on the thorny issues of labor relations, fiscal matters and the energy sector, Vitsas said.