The Greek government is willing to make concessions by pushing back its anti-austerity program in order to secure an agreement with creditors, Greece’s interior minister said.
As loan repayments loom large and state coffers are emptying at an alarming rate, the Greek government is prepared to cross the so-called red lines it had set on negotiations. The red lines refer to pension and labor market reforms and tax laws.
Interior Minister Nikos Voutsis said on Greek television on Saturday that he is confident the government will reach a deal with lenders next week.
“We believe that we can and we must have a solution and a deal within the week,” Voutsis said. “Some parts of our program could be pushed back by six months or maybe a year, so that there is some balance,” he added.
Voutsis said Athens and European partners have agreed on some issues, such as achieving low primary budget surpluses in the first two years. But they still disagreed on value added tax rates, with Greece pushing so any VAT hikes will not burden lower incomes.
The interior minister also said that in political negotiations European partners have agreed that further austerity measures will be counter-productive. “A powerful majority in the political negotiations have shown respect for the fact that there can’t be further austerity strategies for the Greek issue, the Greek problem and the Greek people,” Voutsis said.
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