EU President says Greece’s creditors must make a ‘realistic’ proposal for managing the debt if Athens delivers a workable programme
Brussels : Greece has submitted new bailout reform plans to an impatient eurozone in a last-ditch effort to save the country’s collapsing economy and its fragile place in the single currency, reports AFP.
With the crisis reaching a climax that could have dire consequences for the global economy, the proposals from Athens landed in Brussels less than two hours before a midnight deadline.
Eurozone officials will now study the details of the plan — which creditors say must include pension and tax reforms — before a make-or-break summit of all 28 European leaders on Sunday.
“New Greek proposals received by Eurogroup president Jeroen Dijsselbloem. Important for (creditor) institutions to consider these in their assessment,” said Michel Reijns, a spokesman for the head of the eurozone finance
ministers.
The radical left government of Greek Prime Minister Alexis Tsipras had spent the day huddling in Athens to produce a plan acceptable to its partners, especially sceptical Germany, in return for billions of euros in loans to keep the country afloat.
EU President Donald Tusk said Greece’s creditors must make a “realistic” proposal for managing the debt if Athens delivers a workable programme, echoing similar calls by the IMF and United States. Greece’s parliament is now set to vote on the reform plan. Anti-bailout protesters gathered in central Athens.
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Pension reforms, VAT included in new proposal
Athens : A settlement proposal sent to creditors includes reforms in pension and value-added tax (VAT) system, reports IANS.
According to the proposal issued on Thursday, Prime Minister Alexis Tsipras’ government offered to cut spending on pensions by 0.25 to 0.50 percent of its gross domestic product in 2015 and one percent from 2016 onwards. The proposal raises restaurant VAT from 13 percent to 23 percent.
The pension reforms would progressively adapt “to the limit of statutory retirement age of 67 years, or 62 and 40 years of contributions by 2022, applicable for all those retiring (except arduous professions, and mothers with children with disability) with immediate application,” the proposal added.
It increases health contributions for pensioners from four percent to six percent and proposes to gradually “phase out the solidarity grant (EKAS) for all pensioners by end-December 2019.”
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