Greece Agrees With Creditors on Review of Rescue Programme

World » SOUTHEAST EUROPE | March 29, 2017, Wednesday // 17:36
Bulgaria: Greece Agrees With Creditors on Review of Rescue Programme BGNES

Greece has reached an agreement with its creditors from the EU and the IMF on key reforms regarding the labour market, cutting expenditures and energy issues, thus moving closer to reaching a preliminary deal concerning the review of the fulfilment of the third rescue programme before the meeting of Finance Ministers of the Euro zone on April 7, reported Reuters, citing sources close to the negotiation process.

According to two unnamed representatives of the EU, Greece will cut expenditures on pensions by up to 1% of GDP in 2019. At the same time, authorities in Athens have agreed to reduce the threshold on the tax-free annual minimum to about EUR 6,000 in order to save more funds amounting to another 1% of GDP.

Regarding labour market reforms, Greece will not be forced liberalise further mass layoffs as initially demanded by the IMF. Collective bargaining, which was partially weakened as part of the necessary reforms envisaged in the rescue programme for 2012, is expected to be restored after the current financial assistance programme ends in the middle of 2018.

It has to be kept in mind that Greece risks becoming insolvent if a final agreement on the review of the third rescue programme is not reached soon.

 

We need your support so Novinite.com can keep delivering news and information about Bulgaria! Thank you!

Southeast Europe » Be a reporter: Write and send your article
Tags: greece, creditors, rescue programme, IMF, EU, pensions, labour market, layoffs, GDP, insolvent, collective bargaining

Advertisement
Advertisement
Bulgaria news Novinite.com (Sofia News Agency - www.sofianewsagency.com) is unique with being a real time news provider in English that informs its readers about the latest Bulgarian news. The editorial staff also publishes a daily online newspaper "Sofia Morning News." Novinite.com (Sofia News Agency - www.sofianewsagency.com) and Sofia Morning News publish the latest economic, political and cultural news that take place in Bulgaria. Foreign media analysis on Bulgaria and World News in Brief are also part of the web site and the online newspaper. News Bulgaria