By N. Bellos
[email protected]
A Eurozone source late this week dismissed press reports, mostly out of Athens, claiming that Greece’s institutional creditors have sent or are sending a letter to the Tsipras government describing a framework for an agreement to finally conclude a second review of the current bailout program.
The same source, who is close to developments regarding the Greek program, merely noted that the Greek side is fully aware that a successful conclusion to the review depends on enacting precautionary fiscal measures. The source directly pointed to a reduction in the annual tax-free threshold, which now hovers at around 8,600 euros, as well as a harmonization of social security benefits among beneficiaries that have similar contributions and years of employment, but who were insured in different pension funds over past decades.
The same source said the specific austerity measures — which the Tsipras government has repeatedly maintained that it will not implement — can either be bundled together or enacted separately, depending on the sum total that will flow into state coffers.
Standing differences over labor sector reforms will be much easier to resolve, sources in Brussels added.
The proposed “calculus” to achieve an agreement by a Feb. 20 Eurogroup meeting would allow Athens to describe the measures as it wants, i.e. a more “detailed” automatic spending cuts mechanism, but would simultaneously fulfill the IMF’s demand that highly ambitious fiscal targets — pushed by European creditors — be rendered achievable.
Nevertheless, distance negotiations are continuing.
