IMF/EU/ECB have asked for further cost cutting in public enterprises,
faster implementation of privatization program and more efficient measures against tax evasion, and expects political decisions until next week.In the wake of Portugal’s request for a bailout loan, Troika representatives have set a deadline for Greek government until April 15 in order to proceed with political decisions. They also asked to be constantly filled in on any change in the proposed measures and the unsettled yet state deficit.
European Union and European Central Bank representatives are expected to focus in Portugal’s issue. They will be supervised by Servaas Deroose’s team. Deroose, who is well-known in Greece since his statement regarding the €50b privatization program, has been replaced on Wednesday by Jurgen Kruger, as usually requests for rescue loans are already known by institutions and finance ministers.
The immediate departure of the remaining representatives should not be ruled out, according to sources. The prolonged stay was planned to exert pressure on Greek government under the shadow of a possible non-disbursement of the next aid installment. Moreover:
The issue of 2010 and 2011 deficit was not formally on the agenda as the figures are under revision. They expected to be settled by April 26, while an early report of the first quarter deficit will be available on April 10. Provision data show that the revenue problem remains, and the gap reaches €1.5b.
Mid-term package has not been finalized, as Finance Minister’s proposals face strong internal opposition. Troika and Ministry have discussed possible scenarios of measures worth more than €22b, according to sources.
Troika has raised clear objections about revenues issue, which reportedly has been strengthened as a ratio. The government is looking for ways to combat tax evasion and insurance contribution evasion in order to raise more than €10b to avoid implementing further painful measures.
However, Troika expressed doubts, given the unfavorable course of budget execution and requested additional measures in public enterprises. It considers crucial the acceleration of privatization and criticized the fact that no actual movements have been made.
