The negotiations between Greece and creditors on the implementation of the bailout program required reforms have stalled again, thereby delaying the evaluation of the progress made.
The lenders’ technical team working on budgetary figures until 2018 cannot proceed because the crucial issues of security funds and taxation remain open. The Greek government has not yet presented the bills on security funds and taxation.
Lenders insist that there is a fiscal gap for 2016 and additional measures are needed to close the gap. They estimate that with the measures proposed by Athens, there is a minimum gap of 700-900 million euros.
Also, there is a 2-billion-euro fiscal gap for 2017-2018, to which Athens agrees. The particular gap can be addressed by re-evaluating the salaries of public sector doctors, university professors, judges, policemen and military personnel.
On the taxation issue, creditors ask that tax exemptions should be re-evaluated so that Athens can establish a system of “fixed revenues from taxes.”
Regarding the 2016 budget, Athens presented 440 million euros in revenues from an extra levy on electronic gambling. However, creditors found that the particular revenue does not exceed 150 million euros.
Also, creditors ask for specifics on spending cuts of 600 million euros on armaments and social welfare programs that the Greek team has presented.
The Greek side has tabled the issue on the costs of tackling the refugee crisis. According to figures presented by the Greek side, Athens has spent 500 million euros on the refugee issue, having received only 30 million euros from the European Commission.
Furthermore, the Greek side estimates that after the closing of European borders, the cost of the refugee crisis can go up to 600 million euros.
The Greek negotiating team expects creditors to take that into account when calculating the 2016 budget figures.
The lenders technical team replied that this does not pertain to them but it is an issue to be decided by the European Commission. In addition, the International Monetary Fund — one of Greece’s lenders — estimates that the costs of tackling the refugee crisis for 2016 would not exceed 250-300 million euros.
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