Greek parliament backed the government’s proposals for reform

11
Jul
11 Jul 2015 In GLOBAL ECONOMIES Comments Off on Greek parliament backed the government’s proposals for reform

Creditors are studying «package» Athens
Brussels agencies:

the Greek Parliament approved overwhelmingly on Saturday to allow the Government of the Greek Prime Minister Alexis Tsipras to negotiate with the international creditors on the basis of reform unveiled the program last week.

A number of left-wing members of the ruling Syriza party, including Speaker of Parliament and Minister of Energy “attendance” which means effectively abstain from voting in a sign of their opposition to the program, which includes tax increases and spending cuts.

But in spite of this split there was no risk of the package endorsed by the pro-European unity of opposition parties.

The voice 251 member approval versus intercept 32 and the Declaration of eight “attendance” while absent from the nine MPs of the meeting.

Furthermore, the heads of the European Commission, Jean-Claude Juncker, the Central Bank and the European Mario Draghi and the euro zone Aorwin Damlom and general manager of the International Monetary Fund Christine Lagarde held consultations on the proposals submitted by Athens.

A source said the meeting, which took place over the phone «to discuss the proposals in preparation for a joint analysis of the euro area», when finance ministers euro zone meeting in Brussels.

The Athens sent proposals on economic and social reforms are essential consideration of creditors (Central Bank EU, European Union and International Monetary Fund) in order to launch negotiations on a new package of aid to avoid bankruptcy of Greece and exit from the euro zone.

In a document of 13 pages entitled «priority commitments actions», the Greek government undertakes to adopt the bulk of the measures proposed by the creditors in June 26 which was rejected by the Greeks in a referendum Sunday. Among the measures proposed by Athens to increase value added tax and the abolition of tax privileges for the wealthier Islands and increase the retirement age that.

He studied Greek parliament reforms provided by the Athens suggestions. In light of the vote in the Parliament will be able to the government to negotiate a package of reforms.

It recognized the government of Prime Minister Alexis Tsipras proposals to creditors two hours before the expiry of the deadline at midnight, hoping to persuade them to resume aid and to avoid the exit of the country from the euro zone.

calls on Greece in the text of its proposals to resolve «settlement» religion General massive of 320 billion euros equivalent to 180 percent of its gross domestic product, in addition to «rescue package of 35 billion euros» allocated to growth.

Having formed to increase the value-added tax point of contention between Athens and creditors during the last months of negotiations, Government Tsipras agreed to «a unified system of rates of value added tax level of 23 percent, including as well as the catering sector» after the value-added tax are limited to 13 percent.
The remaining value-added tax of 13 per cent per basic and electricity, hotels products and 6 percent of the medicines, books and cards theaters.

The government has offered the abolition of tax privileges of the islands (ie cut by 30 percent value-added tax applied years ago) starting with the most affluent islands, which received the largest amount of tourist demand, in accordance with the demands of creditors. As for the retirement age it identifies 67-year-old or 62-year-old after 40 years of work and will increase gradually until 2022.

It is supposed to study the creditors of these proposals «immediately» before putting on the finance ministers euro area, in preparation for the summit extraordinary EU countries the 28 scheduled for tomorrow in Brussels.
The European source said that these reforms can ask creditors of «estimate the value of the assistance program» for Greece. But if the creditors said that this effort is not enough, the summit Sunday, could turn into a crisis summit may be the first station on the road to a Greek exit from the single European currency.

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