Rushing to meet the prerequisites
Rushing to meet the prerequisites
Skepticism in Greek government for 6.8 billion euros in three installments instead of 8.1 billion in one - Redundancies in the public sector and organization in the tax collection mechanisms
Skepticism in Greek government for 6.8 billion euros in three installments instead of 8.1 billion in one - Redundancies in the public sector and organization in the tax collection mechanisms.
Instead of 8.1 billion euros the Greek government secured 6.8 billion in three installments and with a series of conditions in a short time.
A governmental member said "we went for the best possible scenario but we knew there is a possibility of getting paid in installments. Our negotiating position was weakened because we have not done enough."
So, the disbursement in installments prevailed over a political agreement based on the trust of lenders in the Greek government. Since March, the government expects a reward of its efforts with easing of the fiscal program even on its deadlines. Instead it received partial payment with deadlines for implementation of its commitments.
The priorities of the Greek government once again are identified by Troika and Berlin and it will have to rush to satisfy the condition of redundancies in the public sector.
It should also organize the tax collection mechanism, a subject on which the Greek government also has lagged far behind, and is the main reason why it lost the VAT in catering. The Troikans focused on layoffs, the responsibility of which was transferred to the retired Antonis Manitakis, and not on the delay of the tax reform, the responsibility of which is one of the personal choices of Samaras.
Instead of 8.1 billion euros the Greek government secured 6.8 billion in three installments and with a series of conditions in a short time.
A governmental member said "we went for the best possible scenario but we knew there is a possibility of getting paid in installments. Our negotiating position was weakened because we have not done enough."
So, the disbursement in installments prevailed over a political agreement based on the trust of lenders in the Greek government. Since March, the government expects a reward of its efforts with easing of the fiscal program even on its deadlines. Instead it received partial payment with deadlines for implementation of its commitments.
The priorities of the Greek government once again are identified by Troika and Berlin and it will have to rush to satisfy the condition of redundancies in the public sector.
It should also organize the tax collection mechanism, a subject on which the Greek government also has lagged far behind, and is the main reason why it lost the VAT in catering. The Troikans focused on layoffs, the responsibility of which was transferred to the retired Antonis Manitakis, and not on the delay of the tax reform, the responsibility of which is one of the personal choices of Samaras.
The Greek government will present Troika’s threat for the non-payment of installments in order to pass the layoffs in the public sector more easily. The development on the issue of VAT reduction in catering was negative and even if the reduction were to come in the near future it would not be about the tourist season which is already in its middle.
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