The scheduled arrival of IMF/EU/ECB officials next week intensifies pressure on Greek government regarding the finalization of additional €22bn budgetary measures and €50 privatization package.
Government should reverse €8bn revenues and further cost cutting of €14bn within the week, examining proposals for new permanent and temporary measures.
However, internal dissidence among top government officials last week revealed the size of the problem. Labour Minister, Luka Katseli cited that €6.5bn and not €8.5bn would be the upper limit of the cost cutting requested by the Finance Ministry, while Health Minister Andreas Loverdos and Education Minister Anna Diamantopoulou, and Development Minister Michalis Chrisohoidis made similar objections.
All ministers will be asked to stick up for their positions when they meet with the troika next week. Troika estimates deviations of €1.8bn in 2011, while has made it clear that further deviations in revenue may bring more measures.
Finance Ministry has already out drawn alternative plans for finding revenues and cutting costs. It also finalizes a list of indicative state-own enterprises and property for privatization, while Finance Minister, Giorgos Papakonstantinou, had successive meetings with his team to organize next movements and fix any pending issues.
Moreover, the Ministry proceeds with the implementing of wage cutting in public enterprises which will apply retroactively from the beginning of 2011, while revenue is considered a crucial point amid scenarios for cabinet shuffle.
The measures that the government will discuss the troika will be finalized on April 15 and will be published for public consultation after the approval of the cabinet. Then, they will be sent to European Union and the International Monetary Fund for approval, before they are introduced before the Parliament.
Government should reverse €8bn revenues and further cost cutting of €14bn within the week, examining proposals for new permanent and temporary measures.
However, internal dissidence among top government officials last week revealed the size of the problem. Labour Minister, Luka Katseli cited that €6.5bn and not €8.5bn would be the upper limit of the cost cutting requested by the Finance Ministry, while Health Minister Andreas Loverdos and Education Minister Anna Diamantopoulou, and Development Minister Michalis Chrisohoidis made similar objections.
All ministers will be asked to stick up for their positions when they meet with the troika next week. Troika estimates deviations of €1.8bn in 2011, while has made it clear that further deviations in revenue may bring more measures.
Finance Ministry has already out drawn alternative plans for finding revenues and cutting costs. It also finalizes a list of indicative state-own enterprises and property for privatization, while Finance Minister, Giorgos Papakonstantinou, had successive meetings with his team to organize next movements and fix any pending issues.
Moreover, the Ministry proceeds with the implementing of wage cutting in public enterprises which will apply retroactively from the beginning of 2011, while revenue is considered a crucial point amid scenarios for cabinet shuffle.
The measures that the government will discuss the troika will be finalized on April 15 and will be published for public consultation after the approval of the cabinet. Then, they will be sent to European Union and the International Monetary Fund for approval, before they are introduced before the Parliament.
source: CAPITAL
