Accessibility links

Greece Submits List of Reforms in Bid for More Aid

  • Reuters

FILE - The government of Greek Prime Minister Alexis Tsipras has not indicated whether it will pursue more far-reaching reforms than those it listed earlier, which did not impress lenders.

FILE - The government of Greek Prime Minister Alexis Tsipras has not indicated whether it will pursue more far-reaching reforms than those it listed earlier, which did not impress lenders.

Greece has sent its creditors a long-awaited list of reforms with a pledge to produce a small budget surplus this year in the hope that it will unlock badly needed cash, Greek government officials said Friday.

The European Union and International Monetary Fund lenders, informally called the Brussels Group, were to begin discussing the list later in the day, a eurozone official said, although a Greek official said the examination would begin Saturday. Their approval, followed by the blessing of eurozone finance ministers, will be needed for Athens to unfreeze further aid and stave off bankruptcy.

Athens has not indicated whether the latest list will contain a more far-reaching reform program than a previous list of seven reforms on broad issues ranging from tax evasion to public sector reforms, which failed to impress lenders.

The new list includes measures to boost state revenues by 3 billion euros this year, but will not include any "recessionary measures'' such as wage or pension cuts, a government official said.

The list estimates a primary budget surplus of 1.5 percent for 2015 — below the 3 percent target included in the country's existing EU/IMF bailout — and growth of 1.4 percent, the official said.

Prime Minister Alexis Tsipras' left-wing government previously said the list would include measures to improve investor sentiment, tax revenues and judicial reform.

The government is also expected to address some form of pension reform, though it has already excluded any attempt to raise the retirement age or other sensitive measures that would be viewed as cutting pension payouts for austerity-hit Greeks.

It is also expected to include labor reform aimed at fighting the increase in unregistered workers, as well as commitments to allow privatizations to proceed.

The government has backtracked on pledges made in its early days to roll back asset sales, but it still wants to retain management control after selling off stakes.

Athens needs to show its creditors it is committed to structural reforms and that the measures will not derail its budget. Though Athens remains at risk of bankruptcy without fresh aid, publicly the mood in talks between Greece and its lenders has improved in recent days after weeks of acrimony that had raised the risk of a Greek eurozone exit.

The reforms list submission came as Greece's government denied a report in Germany's Bild newspaper that its outspoken finance minister, Yanis Varoufakis, was considering resigning.

A prominent figure in the Greek government who has won fans and angered interlocutors with sharp-tongued attacks against austerity, Varoufakis has kept a markedly lower profile in recent days. But he took to Twitter to deny the reports, saying: "Every time the negotiations heat up, some new rumor of my resignation, demise, etc., springs up. Somewhat amusing.''

XS
SM
MD
LG