Greece rejects creditors’ proposal, leaves room for compromises it says

First entry: 4 June 2015

The five-page draft agreement of the institutions presented to the Greek side does not constitute a basis for discussion in its current form, according to government sources. They expressed, however, the view that it leaves room for compromises in order to allow a deal in the immediate future.
According to Athens News Agency, the same sources said, it is a proposal for an agreement on a technical level (staff level agreement) that reintroduces measures that were out of question in the negotiations at Brussels Group level.
The same sources said that the proposals included measures such as higher VAT on energy, restaurants and medicine, that will generate revenues of 1.8 billion euros in 2015, social security spending cuts of 1 percent of GDP in 2015 and 2016 and abolition of the supplementary pensions of low-pension retirees, known as EKAS, by the end of 2015.
The government sources expressed their content over the primary surplus targets which were set as follows: 1.0 percent in 2015, 2.0 percent in 2016, 3.0 percent in 2017 and 3.5 percent in 2018.
Discussion on debt was 'superficial', the sources said, as the issue is not included in the deal at technical level, while the institutions' proposal on labour issues was not very clear.
The Prime Minister Alexis Tsipras' contacts and technical staff's proceedings will continue on Thursday, possibly not at a Brussels Group level, with the view to reaching a deal before June 14.
The same sources said that the creditors have also proposed an extension of some months in order to implement the agreed measures.
ANA MPA