Greece is set to send by Saturday, new proposals on several key issues that remain unresolved in its negotiations with the troika of international lenders. The coalition government hopes that the review will be concluded by the Eurogroup on December 8, according to Kathimerini daily.
The troika’s technical teams are due back in Athens next week, but the heads of the mission have not fixed a date for their return as they are waiting for Greece to make their proposals on several hot issues such as pension reforms, “red loans,” public sector layoffs and labor laws.
Kathimerini understands that these proposals will be sent on Friday or Saturday as the government wants to intensify efforts to conclude the review. If Athens is not able to hit the December 8 target, the next preferable date is December 18, when there will be a European Union leaders’ summit.
Sources say that the Antonis Samaras government will insist on not making any major changes to the pension system, arguing that it is viable even though expenditure on state pensions is due to rise over the next few years. Instead, Greece will propose structural and administrative changes that will not affect pension costs.
The government will also propose not to simplify the process of mass layoffs and will look for a compromise on granting employers the right to enforce lockouts during disputes with workers. The Labor Ministry is also examining changes to union regulations.
In addition, Athens will send the finalized version of the 2015 national budget, which will not include any further austerity measures. It will also forward proposals on a new wage structure in the public sector and the hiring of public employees on a two-year trial basis. The government will also try to reject the troika’s suggestion for changes to the VAT.
The government is hoping that the conclusion of the review will allow an agreement with the eurozone to exit the bailout program at the end of the year. Athens plans to use part of the 11.5 billion euros left over in the state-run bank recapitalization fund (HFSF) to provide a precautionary credit line to back up its return to bond markets.
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