Fiscal Measures Hit By Political Crisis
Greek government seems trapped in political turmoil instead of accelerating initiatives, while available funds are estimated to cover needs until late November.
Given that sixth instalment, new loan agreement and MoU are subject to political developments and decisions, the Greek state weighs its strength and the margins to promote tough pending issues.
The awkwardness in the major Greek Ministries was intense yesterday. While a day earlier, the Greek leadership asked for acceleration of measures, now everything is on the cards again.
The calmest officials state that the job must be done at all costs to overcome any shortfalls. But others said that they should wait for the political developments.
The chance of postponing the sixth aid instalment is now increased.
Available funds are sufficient until late November, according to sources, which note that available funds may extend to early December if two auctions of T-bills of €4 billion are successful, VAT revenues increase and EU funds for NSRF arrive.
But to get the next aid instalment, the Greek government should submit the new budget plan providing detailed costing of the measures and implement decisions on labour reserve.
Additionally, Greece should notify on mergers and shutdowns of major utilities including national broadcast ERT, School Buildings Organisation, Hellenic Public Real Estate, etc.
It also has to promote the privatization program, focusing on the extension of agreement of Athens International Airport, while EU Task Force plans to announce an overall plan to stimulate Greek economy and competitiveness.
These pending issues are just the tip of the iceberg. The Troika is expected to arrive in a month for a new review of Greek economy, and decide if new measures are necessary.
Greece plans to announce soon a new tax bill, while the government has also committed to launch initiatives to stimulate competitiveness.
(capital.gr)