Prime Minister Alexis Tsipras called a government council meeting on Sunday morning, in order to debate and decide upon the new, revised counter-proposal which will be submitted on Monday.
According to a report by Mega Channel on Saturday, the new proposal falls about 900 million euros short of creditor demands. Efforts are being made to cover the difference via additional taxation.
In the new proposal the Greek government has made further concessions on early retirements and is willing to abolish them as of 2016, saving about 200 million euros annually. The creditors however are adamant and demand their immediate abolition.
The government has also prepared plans for opening closed professions and is considering introducing additional corporate taxes and further defense cuts. The new proposal includes a VAT reform with three different rates, with the tax on electricity and food at 13%. As with the previous proposals, the Greek side wants the new agreement to include a clear provision for funding and settling the debt.
These new reform proposals will be passed on to the President of the European Commission Jean-Claude Juncker for consideration ahead of Monday’s meetings. State Minister Nikos Pappas and the Alternate Minister of International Economic Relations Euclid Tsakalotos are currently in Brussels, with PM Tsipras rumored to travel to the Belgian capital on Sunday evening.
Eurogroup rescheduled for 12:30
Dutch Finance Minister Jeroen Dijsselbloem announced via Twitter that the Eurogroup on Monday has been rescheduled for 12:30 (local time) from 3pm originally. No explanation was given for the change. The critical Euro summit is scheduled for 8pm on Monday.
