Is the Greek government preparing to capitulate to creditors’ demands for additional austerity measures that have to be legislated now or risk to miss the closure or the second review?
The government reportedly tries to come to an agreement with creditors and close the second review thus proposing an alternative:
to be able to use the future primary surpluses without the creditors’ consent.
According to Greek website newsit.gr, the government prepares a last minute proposal.
The government will accept primary surpluses of 3.5% for after 2018 and also accept to legislate now additional austerity measures of 4.5 billion euros.
The trade the Greek government will ask is to will be to secure the right to do what it wants any surplus without having to ask the institutions’ permission first.
In order to calm down reactions by its own lawmakers, the government will ask the creditors to specify the future austerity measures.
It is considered as certain that the future austerity measures will include lowering the tax free allowance. The IMF, although not part of the 3. bailout program demands further pension cuts, although the pensions reforms were concluded last autumn.
The Greek government wants to spend the primary surpluses giving additional adi to vulnerable society groups and to lower taxes.
The current program based on 3. bailout ends in August 2018.
Considering Greece debt as “Unsustainable” the IMF wants more austerity measures.
PS Death by IMF austerity….