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Greece bailout: Government unveils reform summary

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Greece bailout: Government unveils reform summary
Greece bailout: Government unveils reform summary

24 February, 2015 : Greece has unveiled an outline summary of reforms demanded by eurozone leaders in order to secure a bailout extension.

The measures include plans to combat tax evasion and tackling fuel and tobacco smuggling.

Greece bailout: Government unveils reform summary
Greece bailout: Government unveils reform summary

Government officials said they were releasing the summary before formally submitting it to guard against leaks to the press.

The list must be approved by international creditors on Tuesday to secure a four-month loan extension.

Greece had previously delayed presenting the reforms by 24 hours after initially agreeing to deliver its proposals to creditors on Monday.

Analysts say the deal’s collapse would revive fears Greece will exit the euro.

The summary released on Monday evening contains measures that had been widely anticipated.

It outlined proposals to trim the civil service and combat corruption.

In addition, it included a commitment to address what Syriza has called Greece’s “humanitarian crisis”.

The far-left party has vowed to spend nearly 60m euros (£44m) on free electricity for the poor and more than 750m euros on a program of meal subsidies.

Such policies are aimed at fulfilling pre-election pledges to help those hit by years of economic crisis.

The main points of the summary of the proposals include:

  • Creating a fairer tax system
  • Combating tax evasion
  • Tackling corruption
  • Targeting fuel and tobacco smugglers
  • Implementing labour reforms on collective contracts and bargaining agreements.
  • Tackling Greece’s “humanitarian crisis” with housing guarantees and free medical care for the uninsured unemployed.

Greece’s creditors – the European Central Bank, the European Commission and the International Monetary Fund – are expected to deliver their verdict on the proposals later on Tuesday, before the reforms are discussed in a conference call with eurozone finance ministers.

Greece agreed an extension to its financial rescue programme with eurozone countries on Friday.

The four-month extension deal is widely regarded as a major climb-down for Prime Minister Alexis Tsipras, who won power in January vowing to reverse budget cuts.

 

Source : BBC

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