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Reaction of Eurogroup to the possibility that pensions are not reduced and finance ministers urge the government to take equivalent measures for reduced revenues that the state will receive from VAT reduced on the islands.
At the ministerial meeting in Brussels, all ministers approved the updated memorandum, with the exception of Germany which, according to Klaus Rellingling, did not ratify it due internal procedures related to the Greek government's decision not to raise VAT on the five Aegean islands
This does not mean, of course, that Greece will not receive the last tranche of 15 billion euros. euros in August. But the Greek government is now pushing for equivalent measures by reducing the amount of reduced VAT – about 28 million euros – from other sources in its budget.
Eurogroup President, Marios Senteno, asked a question about flexibility after the Memorandum, and in particular about the possibility of not reducing pensions, he replied that it is very important in the last phase of the Memorandum, to create confidence for Greece to access markets – the main ingredient of this trust is Greece. the commitments
The final decision and the green light will be given as soon as the ratification of the memorandum updated by the national parliaments is completed.
It is clear that Germany wants to give a message to several recipients, stating that there will be no discounts or facilitation in the postprogramming season. Greece's intention not to reduce pensions, multiple statements on this issue, the surprise announcement by Alexis Tsipras of the non-increase in VAT on the five Aegean islands, have provoked frustration in Berlin.
The German leaders, not wanting to let the bad practices of the past flow, have repeatedly announced that German Minister Sölz has blocked the next tranche, sending the message that everything should be implemented and no change in
In addition, Claus Regling has postponed the postponement of the VAT increase on the five islands as a temporary measure, which will be in effect until December 2018, after which time it will be canceled. increase will be normal. All European officials reiterated that pension cuts were normally agreed in 2019, and the government is committed to respecting agreed and exclusive plans for credibility and the restoration of market confidence
. Greece has pledged to remove 28 million euros from its defense budget to cover the "hole" created by the government's decision not to raise VAT. More specifically, the reductions will cover armament and travel expenses charged to the Department of National Defense budget
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