Greece has submitted a list of economic reforms to its creditors, as a condition for extending its bailout program for an additional four months. Besides measures against tax evasion, smuggling of fuel and tobacco, and corruption, Greece has also promised to respect privatizations and not to have expenses that hurt its budget.
According to the document seen by Reuters, Prime Minister Alexis Tsipras’s government aims to offer compromises on major issues such as labor reforms and social spending in order to satisfy both European partners and Greek voters.
The minimum wages issue is one of the compromises. Even though the Greek officials promised before the elections to raise the level immediately, they now agreed to make it over time and to consult the partners before they take any decision. Also, the leftist government said it would reform the public sector wage system to ensure that that public wage bill does not rise, while not making any further cuts. On the pension funds issue, Greece is committed to achieve savings, and eliminate loopholes and incentives for early retirement.
The six-page document was sent to the European Union and International Monetary Fund creditors late on Monday and the Euro zone finance ministers will discuss it later on Tuesday. But the initial reaction was positive, encouraged by a strong commitment, according to sources.
“In the Commission’s view, this list is sufficiently comprehensive to be a valid starting point for a successful conclusion of the review,” said a source close to the European Commission, cited by Newsweek.
Greece is trying to get approval from its international creditors to secure a four-month loan extension. The two sides reached a deal on Friday night, averting bankruptcy and keeping the troubled country in the the currency area, and the list of proposed economic reforms will be the base of the talks until the end of April. Prime Minister Alexis Tsipras declared victory on Friday, even though the four-month extension is something the Greek government swore it would never do. He already faced criticism in his own party for failing to fulfill Syriza’s campaign promises.