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Rumor and speculation mill work overtime over Greek gov’t proposals to lenders

The rumor and speculation mill is working overtime as usual when negotiations between Greece and its creditors are at a crucial point. After Prime Minister Alexis Tsipras revealed that Greece sent a draft plan to the Troika-Institutions on Monday night, national and international media started to upload on their websites “leakages” from the Greek proposals.

According to “exclusive information”, one Greek news website  reports that the Greek draft was consisting of two parts: one part with the issues agreed at the Brussels Group and one part with the “thorn issues.

Among others, the Greek side allegedly proposed

Value Added Tax 6% or 7%, 11%, 12% and 23%

Accepts to scrap early retirement

Freezing the clause of zero deficit.

Primary Surplus below 1%.

Newspaper To Vima knew that the Greek proposal contained:

V.A.T. at 11% and 23%

Freezing the clause of zero deficit in supplementary pensions

Citing “sources close to 5-leaders Berlin Summit on Monday” To Vima wrote as well that the creditors estimated that by 2017 Greece would need a new package of financial assistance worth 55 billion euro (!).

“Σύμφωνα με τις ίδιες πηγές, η κυρίαρχη εκτίμηση μεταξύ των εκπροσώπων των δανειστών είναι πως έως το 2017 η Ελλάδα θα χρειαστεί ένα νέο πακέτο οικονομικής βοήθειας ύψους 55 δισ. ευρώ.(!)”

To Vima noted further that “the Greek proposals were related to the completion of the current program evaluation process

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and they did not include provisions on the financial gap which should be filled with other measures.

The aim of this Greek proposal is to complete the formal part of the evaluation, in order to have the release a portion of funding and avoid bankruptcy.”

The Prime Ministry dismissed To Vima report saying in a statement that To Vima report had nothing to do with the Greek draft plan sent to the Institutions.

The news coming from the Creditors’ front are similarly vague and are based on rumors, claims and leakage to the press.

One international newspaper reports that the creditors awaiting an agreement to be reached by Friday, another reports that the creditors agreed on the Greek issue at the Berlin Summit, a third cites creditors’ sources who say that the Greek proposal does not contain sufficient measures, a fourth one says that the creditors are preparing their own draft proposal for Greece and a fifth newspaper claims that creditors would give €1obillion to Greece from the fund for banks recapitalization if no agreement by Friday – or something like that, I missed some detail out of excitement.

MNI: Asked whether the creditors also discussed a possible ‘plan B’ in case rejects the political agreement, an EU source said “yes”.

What I have noticed so far is that the Greek issue has in fact created lots and lots of jobs in the print, electronic and digital media across the globe and has produced lots and lots of Greek experts, many of them never met a Greek in their life.

PS And if we will not die under the load of speculation-boredom, we will keep reporting on Greece also after Friday, June 5th.


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