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Greece reform plan offers major compromises
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[February 24, 2015]
By Matthias Sobolewski
BERLIN (Reuters) - Greece has promised not
to roll back any ongoing or completed privatizations and ensure that any
state spending to address a "humanitarian crisis" does not hurt its
budget, according to a document containing its reform plans seen by
Reuters on Tuesday.
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The list of reforms aims to offer compromises on major issues such
as labor reforms and social spending to satisfy both European
partners funding the country and Greek voters who voted in a
left-wing government to end years of rigid austerity.
Greece needed to present its plans as a condition for extending its
bailout program for four months in a deal struck with euro zone
partners on Friday.
On the issue of minimum wages, for example, Prime Minister Alexis
Tsipras's government climbed down from election pledges to raise the
level immediately. Instead it said it would phase in collective
bargaining with a view to raising minimum wages over time and that
any changes would be agreed with partners.
![](http://archives.lincolndailynews.com/2015/Feb/24/images/ads/current/charrons_bch041713.png) Greece also said it would reform the public sector wage system in a
way that would not reduce pay further but would ensure that the
overall public wage bill does not rise.
Athens also committed to consolidating pension funds to achieve
savings, and eliminate loopholes and incentives for early retirement
- in an apparent effort to find a compromise between the
government's objective of avoiding any further pension cuts as
previously demanded by EU and IMF inspectors.
Athens sent the six-page document to its European Union and
International Monetary Fund creditors late on Monday. They must
approve the plans to pave the way for the four month extension.
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Euro zone finance ministers are due to discuss the reforms plan
later on Tuesday in a conference call and initial reaction to the
plan has been positive. A source close to the European Commission
said on Tuesday it was a "valid starting point" for talks over the
bailout.
The list also includes pledges to reform tax policy, review and
control spending in "every area" of government spending. Athens also
promised to ensure its banks are run on sound commercial and banking
principles, in an apparent effort to show that the government will
not interfere in banking operations.
(writing by Deepa Babington; editing by David Stamp)
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