EUR/USD - A Greek official says the conference call was constructive

Author: Eamonn Sheridan | Category: News


The conference call has concluded, as noted earlier

Some official comments coming now:

  • Greek official says the conference call was constructive      
  • The official confirms that Tsipras says once again that the creditors' plan cannot be basis for the deal
  • Says optimistic on deal

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It appears there is another meeting scheduled for Monday, and the Greek PM is to address his parliament on Friday

Here is a brief summary of the points of contention still:

Greece wants primary budget surpluses (that is the excess of revenues over expenditure before interest payments are made) of less than 1%  of GDP in 2015, & 1.5% in 2016

  • Creditors want 1%, gradually rising to 3.5% in 2018
  • These are lower than the targets of 3 per cent in 2015 and 4.5 per cent from 2016 onwward that had been foreseen in Greece's existing bailout programme, which has been extended until the end of June
  •  Tsipras has said previously that the two sides were "very close" on primary surplus targets

On VAT - Greece wants a system of three rates for different categories of goods and services, 6%, 11% & 23%

  • Creditors' propose two rates - 11% & 23%

On pensions - Greece has ruled out cuts to pensions

  • Creditors' want Greece to reduce pension spending by 0.5% of GDP this year instead of 0.25 per cent, & 1% 2016

Greece has made efforts to open up its labour market, creditors' do not want these reveresed

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