Brussels, 04/04/2013 (Agence Europe) - Representatives of the troika (European Commission, ECB and IMF) are back in Athens to negotiate with the Greek government the payment of a new batch of aid, amounting to some €2.8 billion.
Last month, the troika left Athens empty-handed but in an optimistic mood, urging the government to continue working on various areas needed for the payment of aid that month (see EUROPE 10787). Commenting on the current fact-finding mission, European Commission spokesman Olivier Bailly said: “The troika is Athens, no particular timeline, discussions take time”. A European source suggests, however, that the idea is for the fact-finding mission to conclude ahead of the next meeting of Eurogroup, scheduled for Dublin on Friday 12 April, so that the eurozone finance ministers can decide on payment of the March instalment. Such a decision requires a formal Eurogroup meeting.
In addition to the €2.8 billion of aid, Greece also wants payment of a further €6 billion, €1.8 billion of it from the IMF, for the first quarter of 2013. By the end of May, Greece will have various debts coming due for a total of €6.8 billion, €3.6 of this in April.
Bailly said the rumours in the media about the immediate sacking of 25,000 Greek civil servants, reportedly demanded by the Commission, were unfounded. The memorandum of understanding agreed upon with Greece foresees a slimming down of the civil service by 150,000 by 2015. To achieve this, some 25,000 civil servants will join a “mobility scheme” under which training courses are planned to help them find other jobs.
New property tax. The coalition government under Antonis Samaras announced on Wednesday evening that it had adopted a common position on the highly controversial property tax due to be collected through electricity bills. Greek newspaper Ekathimerini says the tax will be replaced by a general property tax to be levied through electricity bills this year alone. The leader of Democratic Left (Dimar), Fotis Kouvélis, says the tax will include all the other land taxes and therefore will be potentially lower for some property owners.
The troika is expected to discuss the slow process of privatisation. Athens announced on Monday that it has begun the process of selling off the train operator Trainose. A call for tender will be issued at the end of June and the whole sell-off completed by early 2014.
The recapitalisation deadline for Greek banks, which much of the aid to Greece is for, may be extended until the end of May, says Greek Central Bank Governor George Provopoulos, to the delight of the country's banks (see EUROPE 10802). (EL/transl.fl)