Negotiations with the Troika for layoffs and tax evasion

The Greek government is again facing the Troika’s pressure for layoffs, elimination of tax evasion or, otherwise, implementing additional measures and cuts.

After the preparatory consultations with the technical team these past few days, Masuch, Morse and Flanagan began a series of meetings starting with finmin Stournaras, with whom the meeting was completed a few minutes after 12 pm.

The Troika representatives also raised the issue of layoffs in the public sector. The auditors are expected to put pressure on the Greek government for layoffs and do not seem to be convinced so far by the assurances of the Administrative Reform ministry that the normal rate of withdrawals exceeds the goal of reducing public sector staff.

Troika has called for a reduction by 150,000 employees until 2015, while the Greek side claims that after the withdrawals the number will be reduced by 180,000 employees in the same period, so there is no reason for layoffs.

The problem is that the commitments of the memorandum stipulate that 25,000 employees should leave in 2013, 12,500 of which by June. The European Commission and the IMF insist on it.

The two sides also discussed the implementation of the budget, the revenue hole that presents a risk of taking additional measures, harsh measures to combat tax evasion suggested by the the IMF report, privatizations, reduction of pharmaceutical expenditure etc.

The Greek government appears determined to bring a reduction in VAT on catering, fuel taxes and transfers of property, arguing that not only have they "frozen" the market, and thus the flow of revenue to the State coffers, but they are also by far the biggest in the EU.

Meanwhile, opposition in Greece is raising the political tones. SYRIZA stresses that government officials neither want nor can negotiate, KKE says that the talk of renegotiation is tragically funny and the Independent Greeks blame the government for giving in to the demands of the lenders.