Greece very close to positive developments, Greek PM predicts at TIF
Greece was very close to some very positive developments, especially following the last Eurogroup, Greek Prime Minister Alexis Tsipras predicted on Sunday (11/09/2016) during the customary press conference given by Greek prime ministers at the Thessaloniki International Fair (TIF).
He underlined that the solution for the sustainability of Greece's debt cannot depend on the outcome of elections in other European countries and appeared confident that such a solution will soon be found.
During his speech, Tsipras referred at length to pension reforms and a measure to 'freeze' the accumulated debts of those insured with the OAEE pension fund for the self-employed. He noted that Greece was in the midst of a transition following an ambitious reform that would put the pension system "back on the rails" and that the measure for OAEE would give the fund a much-needed respite.
The prime minister was careful to point out that these debts were not being written off but were designed to allow those with mountains of accumulated debt to obtain essential documents showing their debts to the funds were in settlement, while also helping the funds themselves.
He also pointed out that 90 pct of pensioners had not seen their main pensions reduced, despite the opposition's dire warning that this would be impossible, and that only 5 pct suffered drastic reductions, while 10 pct had a small reduction.
Questioned about primary surplus targets and the creditors' refusal to lower these further, Tsipras noted that the present targets until 2018 were those agreed following the negotiations in the summer of 2015. Whether these will stay the same or be reduced after 2018 depended on the decisions taken for Greece's debt on a European and international level, he added.
Negotiating lower primary surplus targets was a feasible goal that the government will strive for and achieve, he said.
"If after 2018 we have the possibility of smaller surpluses, we will have a fiscal space of 3.0 billion euros," he noted, adding that he will come to TIF as prime minister in two years time to outline how this will be allocated. The main goal will be to ease the taxation burden on businesses, on real estate by gradually introducing a fairer property tax, to support the weakest, as well as education and health.
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