After the programme, Greece will be a country without supervision, Finance Minister Euclid Tsakalotos on Friday said after the agreement with the institutions on the main pillars. In statements after the Eurogroup meeting in Valletta, he said the way was now open for the return of the institutions to Athens.
The minister explained that both the restrictive measures and the positive measures will be legislated over the coming weeks. As regards, the positive package (3.6 billion euros), this will refer to social policy for 2019, changes in Uniform Real Estate Ownership Tax (ENFIA) and tax income for 2020. On the negative measures, he made it clear that they will be activated only in the case that the measures on debt are implemented.
Regarding labour issues, Tsakalotos stressed that the Greek positions on mass layoffs were accepted, as well as on allowing lockouts, while collective agreements will be restored in September 2018.
The finance minister noted that Friday's agreement was the result of a compromise and, as all compromises, will contain both elements that satisfied but also elements that did not satisfy the Greek side and especially the Greek people.
The deal reached in Valletta called for positive measures amounting to 1 pct of GDP to be implemented in 2019 and further 1 pct of GDP in 2020, at the same time as cuts to pensions amounting to 1 pct of GDP in 2019 and tax reforms amounting to 1 pct of GDP in 2020. He noted that the positive measures will be implemented if Greece meets fiscal targets.
The positive measures in 2019 will amount to 1.8 billion euros and chiefly concern spending to alleviate child poverty, housing problems, youth employment issues and action compatible with government policies for growth, contributions to pensioners for medicines and an investment package. The measures in 2020 would focus on tax breaks, such as the ENFIA property tax and income tax, seeking to offset the austerity measures and create the foundation for a social state in Greece, Tsakalotos added.
Regarding labour issues, the minister said that collective bargaining will be restored in September 2018, with the principle of extension and 'best' settlement.