The government is taking an initiative for dialogue to ask for a consensus of bodies and political parties for the proper measure mix of 2012-2015 demanded by troika. According to the intentions of the financial stuff the measures will have to relate by 2/3 to new cuts of state expenses and by 1/3 to further increase of public revenue.
The plan, as presented by Papakonstantinou in the ministerial meeting, provides for new measures of austerity measures in order to create ever increasing primary surpluses in the state budget from 2012 onwards.
According to the estimates of the ministry, the deficit will fall from 3% in 2013 to 2,6% in 2014 and 1,5% in 2015, but the primary surpluses to reduce debt will run at 5% after 2014 and until at least 2020.
However, at this stage, the government wants to avoid being committed to specific measures that will ultimately be taken in May after the dialogue that will begin immediately. The measures will be included and will be voted on the bill, which the government already wants to raise in response to Merkel's proposal to impose a constitutional clause prohibiting deficits and a new covenant of Competitiveness.
They think that it will send the message to the markets for the continuous intense effort for primary surpluses and deficit decrease over the timetable set by troika. And they seek the broadest possible consensus because they believe that the new law on 2012-2015 measures will bind the New Democracy as opposition, but perhaps as a government in the future.
The financial staff, however, believes that the extension of measures for another year, until 2015, means that the new measures of the period will not bear immediately upon the citizens, since they will last one more year (along with the supervision).
In any case the package of measures fro which Papaconstantinou informed the cabinet today will include:
* 1,5bil revenue from consumer taxes, presumptions and real estate
* 450mil from expenses cuts AND increases in SOE invoices
* 650mil from cuts in several allowances
* 1,5bil from hiring reduction and the enforcement of the Unified Payroll
* 500mil from the restructure of local authorities
* 600mil from overdue debts
* 150mil from green taxes
* 500mil from cuts in the Public Investment Program
* 1,5bil from privatizations
* and 2,5 more from the fight against tax evasion.
The plan, as presented by Papakonstantinou in the ministerial meeting, provides for new measures of austerity measures in order to create ever increasing primary surpluses in the state budget from 2012 onwards.
According to the estimates of the ministry, the deficit will fall from 3% in 2013 to 2,6% in 2014 and 1,5% in 2015, but the primary surpluses to reduce debt will run at 5% after 2014 and until at least 2020.
However, at this stage, the government wants to avoid being committed to specific measures that will ultimately be taken in May after the dialogue that will begin immediately. The measures will be included and will be voted on the bill, which the government already wants to raise in response to Merkel's proposal to impose a constitutional clause prohibiting deficits and a new covenant of Competitiveness.
They think that it will send the message to the markets for the continuous intense effort for primary surpluses and deficit decrease over the timetable set by troika. And they seek the broadest possible consensus because they believe that the new law on 2012-2015 measures will bind the New Democracy as opposition, but perhaps as a government in the future.
The financial staff, however, believes that the extension of measures for another year, until 2015, means that the new measures of the period will not bear immediately upon the citizens, since they will last one more year (along with the supervision).
In any case the package of measures fro which Papaconstantinou informed the cabinet today will include:
* 1,5bil revenue from consumer taxes, presumptions and real estate
* 450mil from expenses cuts AND increases in SOE invoices
* 650mil from cuts in several allowances
* 1,5bil from hiring reduction and the enforcement of the Unified Payroll
* 500mil from the restructure of local authorities
* 600mil from overdue debts
* 150mil from green taxes
* 500mil from cuts in the Public Investment Program
* 1,5bil from privatizations
* and 2,5 more from the fight against tax evasion.
by KOSTIS PIANTZOS
SOURCE: PROTO THEMA
