The Prime Minister of Greece, Alexis Tsipras, has put forward an offer of economic reforms that the country’s creditors consider something closer to what they are asking for.

It is the first showing of flexibility from a previously defiant Mr Tsipras, and comes as his country is only days away from an historic default on debt repayments to the IMF.

A firm deal is still some way off; but the offer gives negotiators something to work with at an emergency summit on Monday.

“We are advancing toward an agreement,” said Francois Hollande, President of France.

However the Greek delegation are still resistant to the painful reforms its creditors insist upon, before any further monies are unlocked for their use.

Director of the International Monetary Fund, Christine Lagard, said the Greek offer “lacked specificity. And is still short of everything that we expected.”

As part of the compromise deal Tripras offered close to 8 billion euros ($9 billion) to be accrued through higher taxes and some austerity measures. These will be implemented over two years and directly contradict several of his election commitments.

Greece needs money to meet its debt repayment of 1.6 billion euros ($1.8 billion) on June 30.

Talks will continue between the European Union and Greece at a two-day summit beginning on Thursday, in Brussels.

Markets grew conservatively at the optimistic news. The sharemarket in Athens surged by 9 per cent. And the Stoxx 50 index (made up of top European shares) finished the day up 4.1 per cent.

The run on Greek banks continues as citizens prepare for the worst while hoping for the best.

Tsipras is expected to tighten the rules on early retirement and move more goods into a higher sales tax bracket to meet conditions for the loan extension.

Employers are expected to have to contribute significantly more to social security, thruogh pensions and unemployment funds, to ease the burden on government spending..

And there is likely to be a one-off super-tax for highly profitable businesses.

The current talks centre on the release of the final 7.2 billion euros as part of Greece’s bailout package.

About The Author

Someone you can depend on to respect you and care for your dog. Let me help you give your dog the life it deserves.

Leave a Reply

Your email address will not be published.