Crucial appointments about VAT and indebted households

The new round of negotiations with the lenders for the tranche of 2.8 billion euros launched by troika's arrival in Athens is at a critical point and the Greek government seems ready to raise the issue of easing the terms of the austerity program to the representatives of the country’s lenders.

In his meeting with troika the Greek prime minister will move under the logic that "we continue to negotiate on whatever is not working."

Samaras’ environment stresses the prime minister will tell the lenders’ representatives that there can be no further austerity measures, insisting on strengthening the country's development prospects by targeting investment and employment growth.

Greek government sources say that the coming months will be crucial for the future of the austerity program as the country is at a crossroads and troika must stop pushing things further, since the Greek society will not be able to bear the pressure.

The main issues are that of the VAT reduction in catering and the excise tax on fuel that has sent its price soaring and consumption on a downward path.

Regarding the issue of redundancies in the public sector, Samaras will insist on promoting the government’s program of availability, considering that beyond any social unrest that can be caused by a wave of layoffs, there will be a question of social stability, if one takes into account the reactions of the other two governmental partners.

The economic team will also present arrangements to relieve the indebted households and a program to transfer funds in order to support and relief the unemployed.

The troikans will meet with finmin Stournaras on Wednesday, and on Thursday with PM Samaras. The meetings are expected to be completed by Sunday, March 10, when troika will leave to prepare an evaluation report the fiscal adjustment program in Greece..