Greek government sent a 47-page long draft plan to the creditors on Monday. In the lost list of austerity reforms the government has among others: privatizations and early retirement, debt restructuring and Primary Surplus 2015-2018, tax revenues, minimum wage and collective bargain. The signals from the country’s creditors were rather negative: not sufficient enough, they say.
German daily Der Tagespiel obtained the Greek government’s Economic Policy Reforms 7/2015- 31/3/2016 and Completion of the Current Program /Staff level Agreement, May 2015 and has it on a pdf document.
Key proposals of the draft are among others:
0.6% of GDP for 2015
1.5% for 2016
2.5% for 2017
3.5% for 2018-2022
Greek government aims at a restructuring of the debt burden for the years to come. According to the reform list, “an optimally legal ans economic solution” should be negotiated together with the European Commission, the European Central Bank (ECB) and the euro bailout fund ESM until 30th June when it comes to the repayment of Greek government bonds, currently still in possession of the European Central Bank. The repayment of debts to the International Monetary Fund (IMF) is to take place in two phases: In the first phase, the IMF debt should be repaid as planned until 30 June. Subsequently, the repayment of the refinancing of the debt of the country is to be adapted, according to the paper.
Different rates on the already in power “Solidarity Tax” will bring €220 million in 2015 and €250 million in 2016.
[KTG’s note: it will charge more on the rich with 6% for annual incomes €100,001-500,000 and 8% for >€500,001. Currently solidarity tax is 4% for all incomes above €50,001.]
Extra Tax on profits of large companies will bring €1 billion.
A Luxury-Tax hike to 13% (from 10% currently) expected to bring €30 million in revenues.
Tax on television advertisements
Value Added Tax
6% for medicine, books, theater
11% for basic and fresh food stuff, energy, water, hotels, restaurants, newspaper, magazines.
23% for other good and services, including some processed food items (jams, bread, meat etc)
Other revenues from Television licenses
Not before 62 years old
Gradually increase to level “before 2010” by 2016.[KTG’s note: Minimum Wage is currently at €580 gross. Before Austerity cuts it was €780]
€11 billion revenues from privatizations by 2020
No home evictions by banks if home is one and only residence, worth no more than 200,000 euro and annual income of debtor up to 35,000 euro and bank deposits up to 15,000.
There are also measures for tax evasion etc.
Summary in German Der Tagespiegel
PS At first sight, the proposals are not bad. For a change somebody plans to tax the rich of this country and not just the usual suspects of zero, low or medium incomes.