No discount on property taxes by troika

The negotiation between the government and the troika heads presents difficulties, as shown by the first meeting with Finance minister Yannis Stournaras.

Essentially the tranche has once again become uncertain, while troika still keeps its cards closed on the fate of the single real estate tax. It is not talking about discounts to the set targets and opposes any tax cuts under social criteria if it does not receive guarantees first that revenues from property taxes will reach or even surpass the 3.2 billion euros this year.

Thomsen, Masuch and Morse were informed by Stournaras that the basic scenario is to reduce by at least 15-20% the low tax scales of electrified buildings, especially in popular neighborhoods with low area prices.

Auditors reserved to answer the next few days whether they accept or reject the measure. They are fully satisfied that for the most part it will continue to be collected through electricity bills because they do not trust the competence of the state tax mechanism. They were concerned, however, that the government does not even know whether and how other real estate, like land parcels, will be taxed.

Another problem also lies with the cautious attitude of the troika representatives on the issue of the National Bank and Eurobank merger. At yesterday's meeting they seemed to have their own plans for Greek banks, like a separate prior recapitalization of National-Eurobank before their merging.

"We will have daily meetings," Stournaras said after the meeting. Lenders do not seem in a hurry to close the open issues and consider that time passes in their favor and against the bargaining position of the Greek side.