Creditors make concessions to Greece, EURO FinMins “revolt” as farce reaches peak

Papers with proposals have been flying around and the eurogroup is reportedly to deal with two separate proposals: the creditors’ proposals prepared on Thursday morning and the latest Greece’ proposals submitted to creditors Thursday. The technical teams were unable to produce one singe paper/proposal to be the basis for the Eurogroup discussion and the European farce has reached a new peak.

The Eurogroup finance ministers face the toughest challenge of their entire political lives, trying to mend edges. But they are apparently overwhelmed and according to latest information from Brussels corridors:

“Several euro FinMins from the German-led block ‘revolted’ saying that they cannot discuss two separate proposal papers.” (via Mega TV)

According to creditors’ proposals obtained by Financial Times, Greece’s lenders made some concessions to Greeks and thus on issues that they had rejected yesterday.

Creditors’ concessions in short:

Allowing Greece to tax online-gaming and tendering 4G and 5G licenses, some Value Added Tax flexibility with 3 rates and ‘basic foods at 13%”

However, they insist on gradual scrapping the low-pensioners poverty allowance (EKAS) and immediate scrapping of 20% of EKAS. They also insist  on implementation of zero-deficit clause on suppl pensions effective as of Jan 1, 2015. They also want scrapping of V.A.T. discount on the islands as of 1. July 2015. Solidarity tax to be integrated into income normal taxation. Scrapping early retirement as of 1. July 2015, gradually raise retirement age to 67 with exemption of “mothers with disabled children” and “heavy and unhealthy professions.”

Creditors’ concessions in long:

9 pages here in pdf

The latest Greek reforms proposal has not been leaked to the press as I write this post.

The Euro Finance Ministers are perplexed and apparently do not know what to do.