Troika inspectors left Greece a list of outstanding issues that must be settled before their return to Athens, asking the ministry to speed up procedures for six specific actions.
The first order by the troika concerns the drafting of the 2014 budget, with inspectors estimating that the shortfall will amount to €2.5 billion, against a government estimate for €500 million. Ministry officials expect the estimates of the two sides to converge on €1 billion in the end, and note that Athens has made two proposals for measures and is awaiting the troika’s response.
The government will also have to revise its mid-term fiscal plan, to determine the size of the fiscal gap by 2017, as well as the sectors that will contribute to its coverage.
Then Athens will need to revise its privatisations programme for 2014. The revenues target is yet to be determined, but should range between €3.5 billion and €4 billion in order to avoid any further problems in the Greek bailout programme. The question is how these revenues will be secured.
Another issue is the hole in the funding of the social security funds, whose size has brought a pension cut back to the table.
The fifth order by the troika concerns the implementation of prior actions for the tranche of €1 billion; this mostly concerns the restructuring of loans for defence industries EAS and ELVO and the Larco mining firm.
Finally, the government must decide upon interventions to bring the economy back on the road to growth. The troika has asked for a set of specific measures to rekindle economic activity and combat unemployment.
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