Monday September 22, 2014 Search
Weather | Athens
27o C
19o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Germany proposes Greece pay primary surplus into trust account

Details of German Finance Ministry proposals for Greece to give up more of its fiscal sovereignty and come under closer economic control have been made public.

The document, seen by Kathimerini English Edition, proposes measures to build on the agreement between eurozone finance ministers in February that Greeces loan instalments should be paid into an escrow account in order to ensure that the repayment of existing debt is guaranteed.

However, the German document also proposes that any money from a Greek primary surplus should also be paid into the trust account.

A dedicated receipt (such as part of VAT income) in the volume of the requested GRC primary budget surplus could be transferred monthly to the trust account (as earmarking of GRC contribution to debt service), the proposal says.

The volume of the primary surplus is to be defined in the MoU. The trust account and the earmarking of revenue secure the delivery of the primary surplus and therefore the GRC contribution to the debt service.

The document adds that should Greece not achieve a primary surplus, as agreed with the troika, it would have to decrease spending or increase revenue accordingly.

The German plan calls for automatic cuts should targets not be met.

GRC establishes a simple rule for public expenditure. With the agreement of the Troika, cash deficits (deviations from budget plan) automatically lead to spending cuts equally divided through all spending programs (according to their budget share), says the document.

The German Finance Ministry has also called for more external assistance to be provided to Greece to conduct structural reforms by enhancing the role of the EU Task Force.

More intense, compulsory employment of external technical assistance for, among others, administrative capacity building, including for tax collection, corruption reduction, statistics, growth-enhancing investment strategies, use of structural funds, privatization process would further support the implementation of the program, Berlin proposes.

It also suggests that technical assistance should be provided by the World Bank and the OECD.

The document concludes with proposals for growth-enhancing measures.

In order to improve the acceptability of the program by the Greeks, those measures of control-enforcement could be complemented by growth and jobs-enhancing measures. The determining factor for investment and growth will be the rebuilding of confidence. In the short run, growth and jobs perspectives could be strengthened by the release of some structural funds dedicated to the 181 projects of high priority, the German Finance Ministry proposes.

The project of a public bank for investment currently under consideration could also be accelerated to support SMEs and infrastructure projects.

There has been no official reaction to the leaked document from the Greek government.

ekathimerini.com , Wednesday October 24, 2012 (11:40)  
Results of probe into 20 Lagarde list names due soon
Police refute reports of Jihadi training
Govt drafts plan to secure exit from memorandum
Greek commuters have relatively long wait
ANALYSIS
Pegging reforms to debt relief acts
The government appears determined to walk the road of Portugal by tapping the markets to avoid a third bailout loan from the EU and even show the IMF the door. However, it may trip if talks ...
Demand for diesel boosts total fuel sales
After five years (2009-13) of decline, the fuel market returned to positive territory in June, albeit at the marginal rate of 0.3 percent year-on-year, according to official data, capitalizi...
Inside Business
SOCCER
Reds beat Veria to claim league lead
Olympiakos thumped hitherto Super League leader Veria 3-0 on Saturday to go alone on top of the table for the first time after four rounds of games. Four days after putting three past Atleti...
SOCCER
Triumph for PAOK, historic result for Asteras in Europa League
Greek teams produced a patchy record on the opening night of the Europa League group stage on Thursday, as PAOK thrashed Dynamo Minsk, Asteras Tripolis snatched a draw at Besiktas and Panath...
Inside Sports
COMMENTARY
Universities threatened by transfers
The problem arising from the abuse of the Greek university transfer system whereby some students are allowed to move to an institution of their choice instead of the one they were admitted...
EDITORIAL
Capital changes
A sizable part of the middle of the Greek capital has been slated to receive a significant makeover with the implementation of an urban restructuring project which includes turning a key cit...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
RECENT NEWS
1. Reds beat Veria to claim league lead
2. Pegging reforms to debt relief acts
3. Demand for diesel boosts total fuel sales
4. Foreign investors not overly concerned about political risk
5. IMF unhappy over social security debt collection
6. Agenda
more news
Today
This Week
1. IMF unhappy over social security debt collection
2. Foreign investors not overly concerned about political risk
3. Agenda
4. Demand for diesel boosts total fuel sales
5. Pegging reforms to debt relief acts
6. Greece can meet its needs on its own
Today
This Week
1. Greece at bottom of social justice scale among EU28
2. Central Athens traffic restrictions back in force on Monday
3. Greece can meet its needs on its own
4. Lost in the fog
5. Record sum of new debts to the state in August
6. Democracy under Pressure | Live Streaming
Find us ...
... on
Twitter
... on Facebook
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright 2014, H KAΘHMEPINH All Rights Reserved.