Washington, DC.- The head of the International Monetary Fund’s (IMF) delegation in Greece, Poul Thomsen, appeared satisfied with the course of the Greek programme’s implementation.
In a statement on the sidelines of the spring conference of the IMF and the World Bank in Washington, Thomsen said that the Greek government is observing the targets that have been agreed, stressing that “the glass is now more than half full”.
Thomsen further said that the troika “had never approved” the merger between the National Bank and Eurobank and presented it as “no right of involvement” in the affairs of two private entities.
He also appeared satisfied with the recapitalization of the banking sector, but said that he is not pleased with the taxation administration and that the rich and the self-employed professionals must pay more and that there must be greater autonomy for the tax auditing apparatus.
Referring to the public sector issue, Thomsen expressed the view that unproductive staff must go, while stressing at the same time that more measures will not be taken.
Lastly, he said that the IMF’s board will convene for the Greek programme in the second half of May.
Finance Minister Yannis Stournaras, in an interview with the newspaper “Kathimerini tis Kyriakis”, said that in the government’s next contacts with the troika the issue of tax rate (VAT) reductions in food services will be raised, as well as the reduction of the Special Consumption Tax for fuel and the real estate transfer tax.
As regards banks, the Finance minister said he does not share concern over the danger of their Greek character being lost, while as regards the National Bank and Eurobank he said that the next moves will depend on whether they shall cover 10 percent of private participation in recapitalization.
Stournaras also stressed the government’s primary concern to crack down on tax evasion.
SYRIZA
The main opposition Radical Left Coalition (SYRIZA), in an announcement on current political developments, said that (Prime Minister Antonis) “Mr. Samaras and his partners may be trying to convince that ‘the climate is improving’, but reality itself and inexorable data disprove him absolutely”.
SYRIZA added that “the social security funds’ 4 billion deficit, the official unemployment rate of 27.2 percent, the reduction by 3.1 billion of the citizens’ available income, during the 4th quarter of 2012 and the continuation of the recession in 2014 as well bring down to earth even the most naive and leave no margin of doubt for the absolute and disastrous deadlock they are leading us to”.
PASOK
PASOK, a junior partner in the coalition government, on Friday reintroduced a proposal for a comprehensive national reorganization plan, in response to a relevant reference by main opposition Radical Left Coalition (SYRIZA-EKM) leader Alexis Tsipras. The proposal had been presented for the first time by PASOK, ahead of the general elections last May.
A note issued by PASOK referred to the need to set up a mechanism designed to assess the government’s work on a weekly basis, based on a fair distribution of “cost and benefit” between the government partners – namely, a fair distribution of the “unpleasant and pleasant” decisions and initiatives.
“PASOK should not be called to shoulder the burden of painful decisions without having its contribution to issues related with economic growth, investments, social cohesion, etc. highlighted,” according to the note.
PASOK also referred to SYRIZA noting that “its deep internal contradictions and strategic impasses were highlighted this week, particularly, as a result of its leader’s inconsistencies”.
The government’s decision to accept a PASOK proposal to set up a Solidarity Fund to finance the social insurance funds from future revenues coming from the exploitation of hydrocarbons is a positive move, according to the note, clarifying that it was the outcome of an understanding between the three political party leaders in the coalition government.
PASOK referred to its proposal suggesting the transfer of National Strategic Reference Framework (NSRF) funds to projects aimed at tackling unemployment, which was also accepted by the troika, with the European Commissioner responsible for such issues saying that he expects a complete proposal from the Greek government.
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