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Labor Reforms, Fiscal Gap the Main Issues in Talks Between Government, Institutions, Says EC Source

troika-1Labor reform issues and the fiscal gap in 2018 will be the focus of the meetings between the Greek government and the heads of institutions who will return to Athens on Tuesday for talks on Greece’s second program review, a European Commission official said on Monday.
According to the source, the institutions will also want to discuss the announcements made by Prime Minister Alexis Tsipras on the one-off benefit for low-income pensioners and the suspension of the VAT for the islands.
The aim of the mission will be to achieve a staff-level agreement on the completion of the second review which will not include the issue of primary surplus targets after 2018, the same official said, adding that this is the clear position of the European Commission which is trying to disconnect the review from the ongoing talks on how many years will Greece have to maintain a primary surplus of 3.5 percent of GDP. This aim always “stumbled” on the IMF’s intransigence, the official continued, however the fact that the IMF will participate in the mission has created positive expectations in Brussels. “It remains to be seen if it will arrive with a constructive mood,” the source said.
(source: ana-mpa)

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