Trade with Greece
26
tranche:
€
3.24 billion. The question, of course, is:
what came along with this approval?
Washington praised Greece for its progress and
for its full “adaptation” to tough and painful meas-
ures: i.e., the reduction of private sector salaries
and the consecutive austerity packages, which
include expenditure cuts and tax hikes.
On the other hand, though, the IMF expressed its
objections, which focus on two main themes that
constantly appear in the troika’s reports:
● The infamous opening of regulated profes-
sions, and
● the achievement of tax audit targets and, in gen-
eral, the policy for cracking down on tax evasion.
In fact, Greece’s lenders expected many meas-
ures to be taken on these two issues by late
December, albeit in vain. More specifically:
In regard to the opening of regulated markets,
the government had promised lenders that it
would put a series of measures to Parliament,
through the law of ratification of the legislative
decrees and the draft tax law. However, this did
not happen.
The measures would include –in accordance with
the Memorandum– changes in the method for
calculating the social security contributions of
lawyers and engineers and certain representation
expenses; the decoupling of lawyer fees from
legal expenses and reference amounts; changes
in the obligations of professional associations; as
well as a law preserving certain entry barriers for
reasons of public interest (e.g. for weapons deal-
ers, divers and conservators).
In regard to taxation, the only measure that was
taken –and this with a delay of more than a year–
was the appointment of a general secretary for
state revenues. Otherwise, the quantitative tar-
gets regarding audits on high income taxpayers
or large property owners were not met.
It is not a coincidence that Horst Reichenbach,
the head of the European Commission Task
Force, spoke about poor results as compared to
the huge technical assistance his team has
offered to the Ministry of Finance.
Revenues - Deficit 2012: the target
has been met
For the first time, after many years, a revenue tar-
get has been met, notwithstanding the fact that
this target had been twice revised. By the end of
2012 the budget showed:
● A primary surplus equivalent to 1.9% of GDP,
amounting to
€
3.7 billion, against a target of a
€
4.6 billion deficit (2.4% of GDP).
● Net revenues exceeding the target by
€
410
million, although the total revenues of the gov-
ernment budget missed the annual target by
€
687 million, owing to a
€
1.1 billion shortfall in
the Public Investment Budget (PIB).
