The troika representatives Poul Tomsen (IMF), Matthias Mors (EU) and Klaus Masuch (ECB) have arranged a number of meetings with the Minister of Growth Kostis Hatzidakis and the Minister of Administrative Reform Kyriakos Mitsotakis for Thursday and Friday, in order to discuss options for primary residence auctions and dismissals from the public sector.
The pressure on the Greek government is increasing after Tuesday’s meeting with the Minister of Labor Yannis Vroutsis, where the troika representatives debunked the Greek estimation on the 2014 fiscal gaps; the troika has not only doubted Vroutsis’ plan on tackling contribution evasion, but has also insisted on reducing employer contributions, which was agreed upon in the previous bailout deals and is expected to create a new 1-billion-euro deficit.
Mr. Hatzidakis is expecting the troika representatives at 10am today in order to discuss the controversial lift on the ban on primary residence auctions. The Minister of Growth will defend the government stance that it cannot jeopardize the primary residence of the poor and those who have no other assets.
The troika wants to target all homeowners, including those with great assets and huge bank accounts who hide behind various provisions to avoid taxes. The troika will also insist on fully deregulating business leases, with the Ministry wanting to secure old leases and protect new ones for 3 to 6 years.
At noon on Friday the IMF, EU and ECB envoy will head to the Ministry of Administrative Reform. While Mr. Mitsotakis will be called upon to explain why the government has failed to complete the first wave of 12,500 suspensions on time, he will also be asking for an extension for the second wave, which is supposed to be complete by the end of the year.
The troika will also demand explanations for the significant delays in dismissals, with the government having to dismiss a total of 4,000 by Christmas. The troika representatives have recognized only 2,000 of the 2,600 dismissals the Minister claims, rejecting the inclusion of ERT employees and those dismissed on misconduct charges.
