Troika insists on keeping the hike

Troika expresses many concerns about the implementation of the new single tax on real estate in 2014 and refutes the predictions of the Hellenic economic staff for anticipated revenues of 3.17 billion euros.

According to "Kathimerini" this issue, in conjunction with the gaps in different areas of the budget for 2013 – 2014 at more than 2 billion euros, delays in the privatization program and the restructuring of the public sector, are the main factors that Troika’s assessment will not be completed this week.

The representatives of Greece’s lenders ask for a simpler tax system on real estate and an easy process of assessing the taxes. they also believe that the complexity of the project calls into question both the certificate as well as the collection of the relevant taxes.

If the Greek government fails to certify taxes of 3.17 billion euros it will create a gap that will have to be covered by other revenue sources, which is something that currently seems impossible. Instead, there are suggestions to not abandon the current process of collecting the hike on real estate.

Troika also asks that the Greek side find ways to fill the budget gap of 2.1 billion euros for 2013 - 2014 that derived mainly from the non-implementation of the already agreed measures.

The auditors will return to Athens in the middle or end of next week. The goal is for their audit to be completed by July 8, just before the Eurogroup meeting, to avoid any mishaps with Greece’s next funding tranche that will amount to 8 billion euros.