New blueprint to save Greece

Prime Minister Alexis Tsipras has submitted comprehensive reform proposals to free up a new three-year, €53.5 billion conditional loan from the European Stability Mechanism bailout fund
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PRIMARY SURPLUS

Primary budget surplus: Government tax revenues minus cost of running country, excluding interest on national debt

2015: 1% of GDP, 2016: 2%, 2017: 3%,

2018: 3.5% TOTAL: €17 billion*

*based on 2014 GDP of €179.1bn
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VALUE ADDED TAX

New VAT levels from October. Restaurants up 10% to 23%. Foodstuffs, energy,
water and hotels 13% (hotels currently 6.5%), and 6% for medicine, books and theatre. Tax breaks for tourist islands scrapped by end 2016. Reforms to generate €1.8 billion a year
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PUBLIC SECTOR

Salaries to be cut by 2019. Perks – such as paid leave and travel allowances – adjusted in line with EU norms
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PENSION REFORMS 

End early retirement, standardise retirement age to 67 by 2022. Health contributions to jump from 4% to 6%

€2.7bn in 2015-16
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MILITARY SPENDING

Cut by €100m this year, and €200m in 2016

€300m
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TAX REFORMS

Raise corporate tax rate from 26% to 28%. Farmers to lose fuel subsidies. Luxury tax on recreational boats over five metres up 3% to 13%
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TAX COLLECTION

New autonomous tax revenue agency to streamline collection and combat smuggling. Revenue lost to tax dodgers estimated at €20bn a year Insolvency laws: Amendments aimed to get debtors to pay up loans
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SHIPPING INDUSTRY

Proposed tax on €106bn Hellenic fleet – which in effect pays no tax. Plan likely to fail because owners can register ships’ flags in other countries
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PRIVATISATION

Government to sell off state assets, starting with electricity grid company, regional airports and ports including Pireaus and Thessaloniki
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Source: Greek Reporter

Picture: Panayiotis Tzamaros/ZUMA Press/Newscom

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