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They are rejecting government proposals for cuts of 1.4 bil euros

They are rejecting government proposals for cuts of 1.4 bil euros

New round of tension in view of the final negotiation with the heads of the Troika, who arrive in Athens this Friday for the 11.5-billion-euro cuts. Just before the crucial meetings of the political leaders who support the government, but also Stournaras’ meeting with Schäuble in Berlin tomorrow, the Troika seems to be rejecting cuts of 1.4 billion euros suggested by the government, and is asking for others.

New round of tension in view of the final negotiation with the heads of the Troika, who arrive in Athens this Friday for the 11.5-billion-euro cuts. Just before the crucial meetings of the political leaders who support the government, but also Stournaras’ meeting with Schäuble in Berlin tomorrow, the Troika seems to be rejecting cuts of 1.4 billion euros suggested by the government, and is asking for others.
 
This new issue that has surfaced threatens to cancel the announced rescue of the salaries of uniformed officers, as the Finance minister is expected to inform their representatives today in their meeting at his office in Syntagma Square. A potential disagreement with the Troika about the proposed measures will pave the way for reductions in OGA pensions by almost 10% (30 euros per month) in order to save 300 million euros.
 
According to information, foreign experts have expressed concern about many of the proposed cuts to operating costs, of which - as they say - they have heard time and again in the past but without anything ever happening.
 
According to the same sources, the Troika seems to question the value of measures such as:
 
-          the cut in pharmaceutical costs by 450 million euros, as it considers that the government will not be able to implement new cuts because EOPPY debts to pharmacists and hospitals have already skyrocketed, and out of fear of causing the complete collapse of the healthcare system and consequently a new round of civil unrest
-          the cut of 500 million euros in defense spending, as the government must find a way so that suppliers would accept deferring payments for arms programs, although the contracts signed by the country have draconian conditions in cases of payment default
-          the cut in consumption and operating costs of the narrow and the broader public sector by 500 million euros. The auditors have "had enough" of pronouncements about fighting wastefulness in the public sector while State debts to private suppliers have reached 7 billion euros and the market is suffocating due to the lack of liquidity
 
Auditors have requested the complete removal of the provision of collecting 2 billion euros from the notorious anti-tax evasion, noting that first the government must implement spending cuts and if the tax collection aim is reached, only then will it be able to withdraw measures from the austerity program.
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