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- Alexis Tsipras and Jean-Claude Juncker will meet in Brussels for talks. It is all about the question must fulfill the budgetary targets Greece.
- Exactly in these points, the International Monetary Fund and the Greek government are, however, disagree.
At which points to creditors and Greece are disunited
How can an agreement between the highly indebted Greece and creditors but come into existence? This must Alexis Tsipras and Jean-Claude Juncker fathom. Greek Prime Minister will fly this Wednesday with two confidants to Brussels and meet the head of the European Commission. It now goes mainly to the question must fulfill the budgetary targets Athens
The requirements of the International Monetary Fund (IMF) are clear. Greece is this year a primary surplus, so a positive budget balance net of interest payments, from three percent of economic output to comply. Next year, the IMF calls for 3.5 percent. That would require a new, strict austerity program. The Greek Government maintains, however only a primary surplus of 0.8 percent (2015) and 1.5 percent (2016) to be realistic.
There is also controversy over the reform of VAT. Athens wants three tax rates in the amount of seven, eleven and 23 percent; The IMF, in turn, requires eleven and 22, or ten and 20 percent, the lower rates among other foods. Greece wants the reform only start September – because then the tourism season is over. Thus, but the creditors do not want to resign, they are demanding that the new tax rates engage immediately in order to bring more money into the coffers.
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limitation of wages, abolition of early retirement – Athens on the other hand
There is a debate about numbers – and for privileges. So insists the International Monetary Fund on waivers, which can lead to early retirement abolished. Athens but this time will stretch until 2022; a transitional arrangement should help. In addition, the creditors insist on labor market reforms and to a limitation of civil servants wages. Athens
No wonder is strongly opposed. So that Euro group chief Jeroen Dijsselbloem has hope Athens attenuated to concessions the lender prior to the evening meetings. Although one could discuss the required points from Athens, so Dijsselbloem, but the savings are not negotiable. “There is a misconception that we meet each other halfway,” he said in the Dutch radio.
The euro group chief will travel this evening to Brussels and to attend the meeting with Juncker and Tsipras, it said in Brussels. Athens Premier had declared on Tuesday the new template Athens contains concessions and be a more realistic approach. It is now up to European partners to take it.
In addition, a conference call between Tsipras, German Chancellor Angela Merkel and French President Francois Hollande planned. Merkel and Hollande had voted on Monday evening with Juncker and the tips of the European Central Bank and the IMF a common line.
After all, a little optimism there
Greece must on Friday about 300 million repay euros to the IMF and has indicated that barely money. Therefore, the government is trying to get the last 7.2 billion euros from the current euro rescue program free. But but the Greeks would soon reach an agreement with the creditors.
After all, a little optimism there is on the part of European partners. So said Spanish Economy Minister Luis de Guindos, he was “absolutely sure” that an agreement would achieve. It is quite clear that a Greek exit would not negotiated from the euro zone.
In Athens there are many signs that Tsipras also necessarily a solution wants. He has already tried to convince in their ranks in recent days critics. Tsipras staff made possible dissenters even clear that they could lose their parliamentary seats.
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