The 47-page document which outlines the Greek government’s proposal for an agreement with the country’s creditors was publicized by German magazine Tagesspiegel.
The proposal includes measures worth 1.9 billion euros for 2015, while introducing a 5% to 10% special tax on commercial profits over 10 million euros. The government also aims to collect 220 million euros from the solidarity contribution, 220 million euros from television networks, 120 million euros from ‘KTEO’ and uninsured vehicles, 100 million euros from taxing television commercials and 30 million euros from the luxury tax.
Regarding the VAT reform, the Greek proposal involved three rates – 6%, 11% and 23%. The 6% would cover medicine, books and theatres, the 11% rate would cover newspapers and magazines, basic and fresh food stuff, energy, water, hotels and restaurants, while the 23% rate would cover all other goods and services.
The Greek proposal also includes a gradual abolition of early retirements, which will occur between 2016 and 2025, while increasing the penalties for retirement before the age of 62 by 10%, from the current 6% penalty in effect.
As for the primary surplus targets, the Greek proposal details a 0.6% GDP rate for 2015, 1.5% in 2016, 2.5% in 2017 and 3.5% in 2018. The Greek proposal also includes privatization plans and a series of reforms and measures aimed to open “closed professions” and promote reforms detailed in the OECD’s toolkit.
Finally, the Greek proposal includes a chapter on restructuring the country’s public debt. According to the proposal, the IMF debt will be restructured in order to repay the total amount due in two phases: one by the end of June 2015 and the other in accordance with a subsequent refinancing of Greece’s public debt.
The full 47-page Greek government proposal is available online.
