Greek government ministers are launching a new round of meetings in Paris with EU/IMF creditors on Tuesday, hoping to win badly needed tax relief which will help to jump-start economic recovery.
The Greek delegation, being led by Finance Minister Gikas Hardouvelis, aims to convince creditors from the International Monetary Fund, the European Commission and the European Central Bank, that the country deserves a number of tax breaks.
Athens is keen to capitalize on a series of positive economic indicators which suggest the country is set to emerge from a deep recession later this year. Greece reported a primary surplus last year and in April carried out its first medium-term bond sale since the start of the long-running economic crisis.
According to a report in the Greek daily Kathimerini on Monday, officials will be requesting a 50 per cent reduction to a solidarity tax on income, and 20 per cent off a consumption tax on heating oil.
Greek Prime Minister Antonis Samaras also hopes creditors will reward his country’s recent reform efforts with a promise to reduce payments on its debt, either with lower interest rates or longer maturities.
Europe’s statistics agency Eurostat estimates Greece’s debt in 2013 exceeded 318 billion euros (417 billion dollars) or 175.1 per cent of economic output, up from 304 billion or 157.2 per cent in 2012.
Greek officials hope the so-called troika review, which runs until Thursday, will result in the release of the next 3.5-billion-euro tranche of aid prior to the outcome of European Central Bank “stress tests” in banks which are due in the autumn.
Greece is expected to come under scrutiny for failing to quicken the pace of state privatisations, as well as delaying a layoff plan affecting 6,500 state workers by the end of the year.
Fearing protests at home, Samaras had requested that the EU/IMF hold the talks in Paris.
Greece has been granted more than 240 billion euros in bailout loans by the EU/IMF since 2010.
GNA
PDC
