The building of Treasury has become a battleground between Greek government and IMF/EU/ECB (troika) representatives, focusing on the progress of 2011 measures.
Finance Ministry attempts to convince the troika that the €3b revenue measures are adequate, but the objections of the international lenders are numerous and more intense than ever. Time is running out, as Friday is the last day of negotiations, ahead of the arrival of troika’s top officials on Saturday.
Sources note that the troika questions the government’s ability to raise funds through fighting of tax evasion in order to cover the gaps of the first quarter of 2011. In addition, it has seen huge deviations in expenditure.
The Ministry of Labour has already admitted that crisis and unemployment have resulted in deviations in revenues of €600m in the organization of insurance of free-lancers (OAEE) and €600m in IKA, the country’s largest social security organization.
The interventions in municipalities and local authorities, which were expected to save €500m, are delayed, while the publication of the progress of public enterprises is expected to be postponed.
In this context, the closure of state deficit below €17b in 2011 is considered impossible, given the high deficit in 2010 (10.5% of GDP). The government unsuccessfully attempts to reverse the sentiment, showing evidence of interventions in the state budget.
The review of Greece’s progress by the troika starts on Saturday, after the arrival of the troika’s top officials: Poul M. Thomsen (IMF), Klaus Masuch (ECB) and probably Matthias Mors (EU).
The faster implementation of the single payroll, increased objective values and income criteria on social benefits are under study, while the equation of tax on oil and heating fuel and the change in VAT rates will be under discussion.
Finance Ministry attempts to convince the troika that the €3b revenue measures are adequate, but the objections of the international lenders are numerous and more intense than ever. Time is running out, as Friday is the last day of negotiations, ahead of the arrival of troika’s top officials on Saturday.
Sources note that the troika questions the government’s ability to raise funds through fighting of tax evasion in order to cover the gaps of the first quarter of 2011. In addition, it has seen huge deviations in expenditure.
The Ministry of Labour has already admitted that crisis and unemployment have resulted in deviations in revenues of €600m in the organization of insurance of free-lancers (OAEE) and €600m in IKA, the country’s largest social security organization.
The interventions in municipalities and local authorities, which were expected to save €500m, are delayed, while the publication of the progress of public enterprises is expected to be postponed.
In this context, the closure of state deficit below €17b in 2011 is considered impossible, given the high deficit in 2010 (10.5% of GDP). The government unsuccessfully attempts to reverse the sentiment, showing evidence of interventions in the state budget.
The review of Greece’s progress by the troika starts on Saturday, after the arrival of the troika’s top officials: Poul M. Thomsen (IMF), Klaus Masuch (ECB) and probably Matthias Mors (EU).
The faster implementation of the single payroll, increased objective values and income criteria on social benefits are under study, while the equation of tax on oil and heating fuel and the change in VAT rates will be under discussion.
