From: MANIOU Panayota <panayota.maniou@europarl.europa.eu>
Date: 11 août 2015 19:31:21 UTC+2
To: GUE-All <DL-GUE-NGL-MEP-ASS-GP@europarl.europa.eu>
Subject: Agreement and vote

Dear all,

very early this morning, after long hours of negotiations, there was an agreement with the institutions. Following this, the Prime Minister has sent a request to the President of the Parliament so that the discussion on the draft law (which is to be tables today) takes place tomorrow on committee level and in plenary on Thursday, followed on the same day by a vote. So, late on the 13th there will be the final vote for the whole agreement.

On the content of the agreement, not being able to fully prepare something in due time, please find below a short non paper as drafted by our colleagues in the Ministry of Finance.

Hoping to be able to get back with more info, thank you for your attention.

Best,

Panayota

Non Paper on agreement 11.08.2015

 

 

1. According to the agreement there will be a mild fiscal adjustment, which will allow the economy to grow. The agreed targets for the primary fiscal balance are:

0,25% of GDP deficit for 2015

0,5% surplus for 2016

1,75% surplus for 2017

3,5% surplus for 2018

The agreement signed by the previous (Samaras-Venizelos) government was asking for primary surpluses of 3% in 2015, 4,5% in 2016 and 2017 and 4,2% in 2018, leaving no room for growth.

The current agreement reduces fiscal surpluses for the next 3 years by 11% of GDP, helping so to avoid 20 billion euro new austerity measures. As a result there will be no new austerity measures in the forthcoming period.

2. The current agreement is ruled by the EU law, while the agreement signed by ND-PASOK government was governed by UK law. Moreover, state immunity is guaranteed, in contrast to previous agreements.

3. The agreement settles debt financing for the next 3 years (until July 2018) and provides necessary funding to settle public payment delays and arrears, so as to improve market liquidity. 

4. Recapitalization of the banking sector will be completed before the end of 2015, with 10 billion euro being immediately available. This is crucial, because after 2015, according to EU directive, there will be a bail-in process in any case of bank recapitalization. Having completed bank recapitalization process until the end of the year ensures there will be no case for deposit haircut. 

5. The government did not consent to the sale of non-performing loans to private companies (distressed securities fund) and insisted in prohibiting, by law, foreclosures of primary residence until the end of 2015. During the autumn government initiatives are to be taken in order to settle permanently the issue of NPLs (to the extent feasible in a “market” of the size of appx. 95 billion euro). For this reason there will be formed a consultation group with the institutions. 

 

6. ADMIE (the Independent Power Transmission Operator) remains a public good, whereas no reference was made to “Small PPC”. There is, of course, commitment to open upthe gas market to competition which, after all, is required byEU directives.

 

7. It is worth noting that the agreement provides as well for a 35 billion euro development package, known as 'Junckerpackage'.

 

8. Labour issues were also discussed.  During negotiations, following a proposal of the government, it was decided that all relevant discussions with the institutions concerning the promotion of legal regulation, are to start in the near future. Yet, it is noted that discussions will take place in collaboration with the International Labour Office (ILO) as well as with highly reputed experts, ensuring so that Greece will not be exempted from the existing framework applying to Western European countries.

 

9. Citizens will not be asked to pay €5 ticket when they visit public hospitals.

 

10. The measures provided for in this agreement are the same – yet with several improvements- with those in the agreement of the ND / PASOK government period that was not materialized. The ND/PASOK government had the obligation to implement those measures so as to completethe fifth review and ensure funding of 4 billion euro. 

 

It was the same set of measures that was brought forward once again by the institutions during the Eurogroup meeting of 25 June 2015, accompanied by a 5 months extension of the previous programme and funding of 7 billion euro.

 

It is today that with the same set of measures, which however has been crucially improved, after the negotiation process, the country secures funding of appx.85 billion euro for the service of the debt as well as settlement of public payment delays and arrears over the next three years.

11. According to the agreement there will be no fire sale of public wealth. A special fund (not like the existing Hellenic Republic Asset Development Fund - TAIPED) will be responsible for its best possible utilization.  

ENDS______

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