The Greek government is rushing to table new measures and reforms on Thursday to get cabinet approval in an effort to reach a deal with creditors as soon as possible.
The financial team is working feverishly so that the omnibus bill is tabled. The bill will include measures proposed by Finance Minister Yanis Varoufakis and are part of the list of proposals that has been given to creditors.
Prime Minister Alexis Tsipras is trying to appease objections and concerns within SYRIZA and several party meetings have been scheduled. Cabinet and parliament members have expressed concern that the prime minister and the new negotiating team might make concessions to creditors and fail to meet election campaign pledges.
There is also concern that creditors may see the change of the negotiation team as Greece’s intention to back down on several issues, such as privatizations and the continuation of the single property tax (ENFIA).
According to sources close to the negotiations, creditors have reservations regarding the 2015 fiscal gap which is estimated at 4 billion euros, with a primary surplus of 1.5 percent.
Athens is not willing to back down on the red lines it has set, such as tax and labor market laws, insurance and pensions. However, the government has a 770-million-euro payment to the International Monetary Fund due on May 12. It is not certain if Athens can make that payment and meet its domestic obligations — public sector wages and pensions — at the same time.
This makes it imperative that a deal is reached by then and the European Central Bank provides liquidity to the Bank of Greece.
However, Tsipras has to leave Athens for Wednesday’s tripartite meeting with Cyprus and Egypt in Nicosia where energy issues will be discussed. He is due back on Thursday for another cabinet meeting before the bill will be tabled.
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