ECONOMY

Repayment scheme faces EU objections

repayment-scheme-faces-eu-objections

The government’s plan to launch a 120-installment settlement scheme for debts to the tax authorities and the social security funds is raising concerns in Brussels that Greece’s nascent tax-paying culture will be undermined if it goes ahead. The negotiations over the plan have consequently stalled, resulting in a delay in the submission of the relevant bill.

Sources familiar with the talks believe it will be exceptionally difficult for the government to strike an agreement with its creditors on a payment plan “to the extent promised” and forecast that negotiations will continue in the coming weeks aimed at finding a solution on a less generous basis.

The same sources expect the issue to form part of talks during the next visit of the heads of mission to Athens on May 6-8, following the pattern set during the discussion of the framework for the protection of borrowers’ primary residences.