Saturday Jul 26, 2014 Search
Weather | Athens
32o C
23o 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)  
MP steps in to get power back on at invalids home
Civil servants who changed contracts to undergo checks
Coalition hopes to avoid restoring armed forces wages in full
Italy adds to calls for FYROM name row to be solved
Trade deficit grows 9.5 pct in Jan-May
Greeces trade deficit recorded a 9.5 percent increase in the January-May period this year compared with the first five months of 2013, data compiled by the Hellenic Statistical Authority (E...
Number of 5-star hotel rooms rises 31.4 percent in four years
The number of rooms at five-star hotels in Greece rose by 31.4 percent from 2009 to 2013, according to a survey conducted by the Research Institute for Tourism of the Hellenic Chamber of Hot...
Inside Business
SOCCER
Ranieri says he has little to change in Greek national team
The Hellenic Football Federation (EPO) presented Claudio Ranieri as the new Greece coach for the next couple of years, after the Italian manager signed his contract in Athens on Friday. I l...
SOCCER
Olympiakos downs AC Milan 3-0 in friendly
Greek champion Olympiakos defeated Italy's AC Milan 3-0 late on Thursday in a friendly match that launched the International Champions Cup in Canada and the US. The result, with goals from A...
Inside Sports
TALK
What lessons can we draw from antiquity?
Our theme is limits. And we are gathered here at this limit of Europe, close the to sea: the limitless, the boundless. And we face all sorts of limits. There are the limits of knowledge fa...
COMMENTARY
Forty years of shortsighted party policies
It is 40 years since the restoration of democracy, and the two main parties which were established in 1974 and determined the countrys fate since then are unable to act their age. For decad...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
RECENT NEWS
1. Trade deficit grows 9.5 pct in Jan-May
2. Number of 5-star hotel rooms rises 31.4 percent in four years
3. Greeks get slightly less downbeat
4. Banks reluctant to issue credit
5. MP steps in to get power back on at invalids home
6. Civil servants who changed contracts to undergo checks
more news
Today
This Week
1. Greek coast guard picks up 77 migrants off Myconos
2. Draghi safety net becoming blindfold as bonds soar
3. Godfather, 35, shot at Karditsa christening dies
4. Aegean Airlines resumes flights to Tel Aviv
5. Thousands of dead fish surface in Lake Pamvotis
6. Police report points to less crime in 2014
Today
This Week
1. Greece seen in third bailout as bonds not enough, economists say
2. Climber dies in Mount Olympus fall
3. Greek sovereign debt at 174.1 percent of GDP in first quarter
4. Unequal after death
5. Hedge fund Dromeus turns Greek tragedy to triumph with 160 pct gain
6. Quadriplegic woman on life support 'dies due to unpaid power bills'
Find us ...
... on
Twitter
... on Facebook
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright 2014, H KAΘHMEPINH All Rights Reserved.