Alexis Tsipras’ letter to Juncker / Draghi / Lagarde (30-6-2015)


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(pdf: ESM-loan-agreement-prior-actions-amend-30.06.2015-1)


HELLENIC REPUBLIC
THE PRIME MINISTER

Athens, June 30th, 2015

To the President of the European Commission
Mr. Jean Claude Juncker
To the President of the European Central Bank
Mr. Mario Draghi
To the Managing Director of the IMF
Ms Christine Lagarde

Dear Managing Director, dear Presidents,

I  am  writing  to  inform you on  the  position  of the  Hellenic  Republic  towards  the  list of  Prior  Actions  of  the  Staff  Level  Agreement  as  published  on  the  European  Commission website  on  June  28th 2015.  The  Hellenic  Republic  is  prepared  to  accept  this  Staff  Level Agreement  subject  to  the following  amendments,  additions  or  clarifications,  as  part  of  an extension  of  the  expiring  EFSF  program  and  the  new  ESM  Loan  Agreement  for  which  a request was submitted today,  Tuesday June 30th 2015.   As you will  note,  our amendments are concrete and they fully respect the robustness and credibility of the design of the overall program.

1. VAT reform:
Maintain the 30% discount on islands, to be applied to the new rates.

2. Fiscal structural measures:

Gradually increase the advance  payment of individual business  income tax to 100 percent and phase out the preferential tax treatment for farmers (including the subsidies for excise on diesel oil) by end-2017.

Reduce  the  expenditure  ceiling  for  military  spending  by  €200  million  in  2016  and  €400 million  in  2017  through  a  targeted  set  of  actions,  including  a  reduction  in  headcount  and procurement.

3. Pensions:

The 2010 reform will be fully implemented but the 2012 reform (sustainability factor) will be postponed until the new legislative reform is implemented in October 2015.
EKAS will be phased-out by end-2019 but without any immediate action on the top 20% of beneficiaries.
All nuisance charges will be phased out by end-2017, starting from October 31, 2015.

4. Labour markets:

The new framework will be legislated in autumn 2015.

5. Product markets:

Immediately  implement  specific  recommendations  from  OECD’s  toolkit  1  (tourist  rentals,  tourist  buses,  truck  licenses,  code  of  conduct  for  traditional  foodstuff  and  eurocodes  on building materials), toolkit 2 (beverages and petroleum products), and open the restricted professions  of  notaries,  actuaries,  and  court  bailiffs,  liberalize  the  market  for  gyms  and eliminate significant portion of nuisance charges.
Moreover,  in  cooperation  with  the  OECD,  implement  an  ambitious  reform  package including:

  • Create One-Stop-Shop (OSS) services for businesses (best practice analysis, as well as a comprehensive roadmap already prepared and completed in cooperation with the OECD);
  • Conduct immediately a comprehensive competition assessment on specific sectors characterized  by  oligopolistic  practices  (e.g.  construction,  wholesale  trade, agricultural  products,  media,  etc.)  and  adopting  recommendations  accordingly (roadmap and timelines already prepared by the OECD);
  • Implement  immediately  a  comprehensive  strategy  against  corrupt  business practices, for example in the area of public procurement procedures (roadmap and timeline already prepared by the OECD).

ADMIE will be split from the PPC into a separate legal entity under state majority ownership.

Thank you in advance for your support. I look forward to hearing from you.

Alexis Tsipras

Cc  :   – Mr. Jeroen Dijsselbloem, Chairperson of the Board of Governors of ESM and President of the Eurogroup
–  Mr. Klaus P. Regling, Managing Director of the ESM

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