As the world waits, Greece Government is sure of clinching a deal with its creditors this week. It has also said that it is amenable to pushing back parts of its anti-austerity program to make that happen. Greece Government is locked in talks with the EU/IMF creditors for months now and are trying to hammer out a cash-for-reforms deal and pressure is growing for a deal, since Athens risks default without aid from a bailout program that expires on June 30.
According to the Interior Minister Nikos Voutsis, there could be a solution and a deal within the week. He further added that some parts of the program could be pushed back by six months or at the most a year and there will be some semblance of a balance. He was however, not forthright on what parts of the ruling Syriza party’s anti-austerity program could be pushed back. However, the comments revealed eagerness to compromise on pre-election pledges.
Current Greek Prime Minister Alexis Tsipras came to power with promises to negate austerity measures and reintroducing minimum wage level and collective bargaining rights.
The government is in high mood and said a deal will be clinched by Sunday though international lenders are not very optimistic citing past actions like resistance to labor and pension reforms as hindrances for more aid.
As the deadline of June 30 nears, Greece cannot avoid a default unless it receives some kind of aid. The present government of Greece is led by the Syriza party which had promised a major shift from the EU imposed austerity programs.
Voutsis said that there were agreements on a number of issues like achieving low primary budget surpluses in the first two years. However the biggest stumbling block is disagreements on sales tax as Greece feels that any more VAT hikes will ultimately burden the lower income groups.