Tuesday, 24 February 2015

Greece submits proposed reforms in bid for loan extension

People receive food handouts in Athens on MondaySyriza is trying to balance efforts to ease austerity while appeasing its creditors
Greece has submitted a list of reform proposals to its bailout creditors, the European Commission says.
The measures include combating tax evasion and tackling the smuggling of fuel and tobacco.
Newly elected Greek Prime Minister Alexis Tsipras is trying to balance satisfying the demands of creditors with meeting his pre-election pledges.
Greece needs approval from international creditors to secure a four-month loan extension.
The so-called troika of the European Commission, European Central Bank and the International Monetary Fund will assess the list before it is discussed by the Eurogroup of eurozone finance ministers later.
Eurogroup President Jeroen Dijsselbloem told a news conference the list had been received late on Monday night and that contrary to news reports there had been no delay.
He said he was not yet able to say whether he had a positive assessment of the list, but added the Greek government was "very serious" about meeting its reform commitments and had demonstrated an "unequivocal commitment to honour its financial obligations".
He said the process would not be easy and the list of reforms was just a "first step" towards rebuilding trust between Greece and European creditors.
Graphic showing how much Greece owes to whom
Sticking points
Drafts of the list will have been seen by European officials in Brussels as they were being drawn up over the weekend, says the BBC's Mark Lowen in Athens.
But aspects of the plan that require new social spending may well be sticking points with creditors, he adds.
Ending primary home repossessions and providing free medical care and electricity for those who cannot pay may become bones of contention - while the eurozone may insist pension cuts and VAT rises should continue, our correspondent adds.
There is little time left to agree an extension to Athens' 240bn-euro (£175bn; $270bn) bailout programme, which is due to expire on Saturday.
Without an extension, Greece could face insovlency and the danger of needing to quit the single currency.
If creditors and finance ministers are happy with the list, it will then be put forward to national governments for agreement before Saturday.
The list will then have to be fleshed out with detailed measures by April.
'Return to dignity'
"Provided Greece avows its obligations and provided there is an agreement in the eurogroup [of finance ministers], the German government would be in favour of the proposed extension," German Finance Minister Wolfgang Schaeuble was quoted as saying.
Greek Finance Minister Yanis Varoufakis told CNN that the list of reforms was "very comprehensive".
"This is a very exciting moment because we are getting to be the co-authors of our fate," Mr Varoufakis said.
"I can assure you that people on the street are elated by this return to dignity of a people, the Greek people, who for five years have been treated as a debt colony."
But the compromises agreed to by Syriza leaders in pursuit of a European deal have already estranged key figures among the party's more radical supporters - including veteran Greek activist and MEP Manolis Glezos, who apologised to Greek people for "taking part in this illusion".
line
Greek economy in numbers
Greek couple look at adverts for rental properties
  • Unemployment is at 25%, with youth unemployment almost 50% (corresponding eurozone averages: 11.4% and 23%)
  • Economy has shrunk by 25% since the start of the eurozone crisis
  • Country's debt is 175% of GDP
  • Borrowed €240bn (£188bn) from the EU, the ECB and the IMF

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