Representatives of the Greek government will discuss the reforms with those overseeing compliance with the conditions imposed when the bailout agreement was extended. Greek officials are anxious to present reforms that will not conflict with Syriza’s reform program as far as possible. There will be new policies to deal with tax evasion, a huge problem in Greece, as well as measures to tackle corruption. Income-tax increases for the well-off will also be part of the plans. However, there may also be reforms dealing with privatization.
In a sudden reversal of policy, the deputy prime minister reported to Xinhua news agency that it will sell its majority share in the port of Piraeus within weeks. The Syriza government had promised to end a number of privatizations including sale of its 67 percent stake in the Piraeus Port Authority. This move will create more division within Syriza.
Greek deputy finance minister Dimitris Mardas claimed that a solution is coming soon and that euro zone finance ministers could meet and approve the reforms by next Wednesday. EU officials, on the other hand, said that the process could take much longer depending on how long negotiations over the policies took. However, a Greek financial official said that there would be a back and forth over the weekend that would result in a list being finalized by Sunday evening.
The list of reforms presented by the Greek government came with a warning that if negotiations failed and no aid was forthcoming it would stop meeting its debt obligations. This warning may not sit well with creditors and others. Euclid Tsakalotos, Greek international economic affairs minister, said that while Greece wanted an agreement it was ready to go its own way “in the event of a bad scenario”. Tsakalotos said that Syriza was not willing to abandon its anti-austerity policies: “Our top priority remains payment of salaries and pensions. If they demand a 30% cut in pensions, for example, they do not want a compromise…The actions proposed though the reforms list foresee revenues of €3bn for 2015, which under no circumstances will come from wage or pension cuts. The list does not include recessionary measures.”
The reform package foresaw GDP growth of 1.4 percent this year and a primary surplus of just 1.5 per cent just half as much as suggested for the existing bailout package. Officials have warned that Athens could run out of funds by April 9, if an agreement to release further funds is not reached. A euro working group is expected to respond to the reform proposals on Monday. Meanwhile many are expressing distrust in the Greek leaders as reported in this article.
