The Greek government attempts to pass a medium
-term plan worth more than €76b, however without revealing any further details.
The multi-bill, which will have been introduced before the Parliament by May 15, is under feverish preparations by the team of Finance Minister. Sources note that it has many similarities with the annual budget.
-term plan worth more than €76b, however without revealing any further details.
The multi-bill, which will have been introduced before the Parliament by May 15, is under feverish preparations by the team of Finance Minister. Sources note that it has many similarities with the annual budget.
The bill provides detailed spending caps per year and ministry, and projections for revenues. It is not clear if the sources of revenues will be described in detail.
This “dull” feature was considered necessary by the state officials, in order to overcome disagreements of several ministers for specific interventions. The efficiency of interventions worth several billion euros through fraud and tax evasion is also questioned.
Everything will be judged next Tuesday, when the first IMF/EU/ECB officials are expected to visit Ministry of Finance.
Sources note that troika will express strong objections, as they expect explicit commitments, while the economic team organizes counterarguments:
* Many adjustments, including arbitrary, single payroll, social benefits, supplementary pensions are not yet ready. Thus, a new “voluntary Memorandum of Understanding” is considered necessary, which will be specified by the competent ministers in time.
* It is estimated that Greek society might not bear a new shock of additional measures. The specification measures for 2011 (to cover the revised deficit of 10.5% of GDP in 2010 and shortage of €1.4b revenue in 2011).
It is very likely that additional measures in 2011 will exceed €3b, pushing the full package to more than €26b, while troika is expected to focus in measures of 2011-2012 and interventions that should be implemented regarding tax evasion and spending restraint.
* The government stakes on the €50b privatization program and development of real estate assets, which have a clear schedule. They will be incorporated in the multi-bill in order to obtain a legal status.
Officials will attempt to provide troika with concrete examples, announcing decisions on public enterprises and real estate assets.
SOURCE: CAPITAL
