Reformation: The challenges for the new Minister of Finance

Reformation: The challenges for the new Minister of Finance

The new "czar" of economy will have critical consultations with lenders and he will have to take important decisions for the country.

Eurogroups, Debt, Troika, and the outcry of citizens on tax burdens, will be among the obligations which the new "czar" will have to face.
In 10 days from today should go to Brussels to participate in the Eurogroup on 19 June, where he will launch a debate to settle the Greek debt.

A few days later, the tripartite committee will make a "declaratory" appearance in Athens, to meet with the new Minister of Finance, but also to give the new "guide lines" in the new economic team.

At the same time, critical Bills under the Ministry of Finance will be discussed in the House, as the one for the foreshore which has raised a storm of protests.
Along with the other Bills and other Ministries (eg small PPC) that are prerequisites, should be adopted in two doses of 2 billion troika (June 1 billion and 1 billion in July).

Tax ... autumn!

Apart from the issue of debt that will "run" all summer and will continue until at least the end of the year, the new economic team will have to close the "holes" in revenue, particularly in the tax, as Stournaras had already announced that he will negotiate a gradual reduction of tax in Greece, marking the end of "memoranda", regardless of whether they will continue in practice, for many years yet.

The largest part of the negotiations will take place in October to November, when together with the budget of 2015, will be submitted and the revised Medium Term Plan by 2017. Then we will be informed about the gaps, if new measures will come and the new requirements of lenders. In the revised memorandum, will be presented the new predictions based on the data of the debt settlement.

But then we will hear about something else, which is a "hidden" thorn: the revenues from privatizations which are off-track (along with tax revenues) are constantly creating "holes" in the budget.

The new Minister of Finance will be faced with something else that has to do with all previous: at the end of the year will be the stress tests of European banks by the ECB.

That time, will be tested the red bank loans, which are "bomb" in the foundations of Greek financial institutions. So then, it will be judged if the Greek banks will need new capital.

Next challenge for the new "czar" is whether he will be able to push banks to provide liquidity to the real economy, to revive the market.