The third review of the Greek program (third bailout) now takes “center stage” in the ongoing bailout saga that will, if all goes as planned, end in August 2018.
In the wake of the conclusion of the second review just last month, after nearly a year and a half of delay, the leftist-rightist coalition government in Athens must now implement 113 “prior actions” to achieve the next review, with 95 this year.
According to reports out of the Greek capital over the past few days, the beleaguered Tsipras government aims to avoid a repeat of the gasping negotiations that plagued the second review. The goal is to fulfill most prior actions – called “key deliverables” in a “supplementary memorandum” agreed to with creditors in May — by the autumn, coinciding with the German general election.
In the most “auspicious scenario” entertained by the Greek side, discussion on more detailed medium-term debt relief measures will commence after the German poll and with the third review concluded or nearing conclusion.
Of the 113 “prior actions”, as reported by “N” last month, 50 must be fulfilled by the end of next month, August. Another 45 must be implemented by the end of the year.
Labor sector liberalization is the most politically risky for the Greek government, as one demand is for strikes in the country to be declared only by a majority of all eligible employees, and not by a majority of those present at a general assembly.
Reform of the framework for allocating welfare payments to eligible families also foreshadows spending cuts in this sector, while more so-called “closed professions” must open.
