The government will submit on Thursday at the relevant parliamentary committees a draft bill with the remaining prior actions and the contingency mechanism required for the conclusion of the first bailout review, the Conference of Parliament Presidents announced on Monday.
The aim is to approve the bill at the plenum by Sunday, ahead of the next Eurogroup meeting on Tuesday (May 24). On Wednesday, Finance Minister Euclid Tsakalotos will brief SYRIZA’s parliamentary group on the content of the bill.
In a marathon meeting chaired by Prime Minister Alexis Tsipras on Monday, the government finalized the form of the contingency mechanism which will be activated if Greece misses its targets for primary surpluses. According to government sources, if the target is missed, a presidential decree will be issued that will include interventions to revenues and costs, which will be decided by the Greek government. The issuing of a decree is an obligation included in the deal signed by Greece and its creditors.
If the decree is – for some reason – not issued, then the contingency mechanism will be activated which will allow interventions in all aspects of the economy, excluding sensitive sectors. If the mechanism is activated, it will aim at fiscal targets agreed with the country’s lenders and will be solely based on Eurostat data and not on forecasts. It will also concern a specific adjustment for specific diversions from the targets.
In today’s meeting with Tsipras, the imminent discussion on Greece’s debt was also discussed. According to the same sources, Athens wants the next Eurogroup to announce a specific plan on the basis of the decision taken in the last meeting, which will restore stability in the country and create conditions for a safe investment environment.
(Source: ANA MPA)