Greek Coalition Leaders Reached Basic Agreement on €11.5 Billion Package

Posted by in Economy

After three hours of consultations, the three political leaders of Greece coalition government managed to reach a basic agreement on the 11-billion-euro cuts-package and the additional 3-billion-euro tax tsunami. Short after the meeting, Finance Minister Yannis Stournaras told the media, that the heads of the three coalition government parties had reached a “basic agreement” on an austerity package for 2013-2014.

Translated into common language, this could mean that Venizelos (PASOK) and Kouvelis (Democratic Left) had maintained objections to some of the 30 austerity measures. But KTG understands that they didn’t. While after previous meetings they were underlining their ‘red lines’ like no to lay-offs in public sector, this time both Kouvleis and Venizelos spoke only of ‘bailout program extension’.

Fotis Kouvelis, told the media that he favor a bailout program extension with a ‘replacement clause’ [if targets won’t be met, a 5% cut in wages will be automatically imposed.]

Evangelos Venizelos spoke also of the program extension necessity, until 2016.

According to the schedule posed by Stournaras,  the measures will be discussed with the Troika on Monday, October 1st, 2012 and with the Euro Zone partners during the Eurogroup meeting on October 8, 2012.

It was not revealed when the package will be submitted to the Parliament for voting. In addition to 11 billion euro that will come from cuts in wages, pensions etc, measures to increase tax revenues will deprive the pockets of taxpayers with additional 3 billion euro.

As for the measures, there is still no official announcement about.