Greece’s European lenders estimate that the country needs an even smaller government and a new tax system, and for this reason they are hardening their measures in view of the quarterly audit which will be the “key” to the third rescue plan for Greece.
According to Greek media, Greece’s lenders are prepared to consider as a prerequisite the shutting down of Greek railways (OSE) in order to approve the next tranche and the continuation of the discussions on the following Memorandum.
The list of prerequisites also includes the restructuring of the tax administration with dismissals of several officials, reforms in the tax system and new measures of more than 4 billion euros for 2015 and 2016.
According to a senior EU official, “The biggest problem with the internal deficit and the debt, remains public employment. Greece has two choices: either to increase the state revenues and reduce social transfers or to limit the size of the public sector.”
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