Greek govt faces 'tsunami' of prior actions as negotiations loom with creditors

By G. Kouros

Tight deadlines are again “on the menu” for the Greek government ahead of negotiations with institutional creditors, with the “prize” being the disbursement of a 2.8-billion-euro sub-tranche in bailout loans.

No less than 20 prior actions loom on the horizon, with the first deadline for displaying progress in implementing the measures being a Eurogroup meeting on Sept. 9, given that most of the reforms have already been legislated.

Any possible delays will merely bump back the disbursement, something that the leftist Tsipras government wants to avoid at all costs, given that any delay will also push back talks for a hoped for commencement in negotiations over whatever talks for debt relief.

At least 20 prior actions must be implemented by the end of September, with another 15 by Oct. 31.

Commitments undertaken by Athens include:

• a ratification, in Parliament, of a mid-term fiscal policy for 2017-2020, something that should have been tabled in May
• a streamlining of so-called “special wage scales” for military personnel, the judiciary, university professors, and national health care service physicians, among others, with a total reduction of 300 million euros mandated by 2018
• an analysis of the non-performing loans portfolio, especially in terms of modifying the legal framework for an extra-judicial arbitration process
• implementing reforms cited by the OECD in terms of allowing non-prescription to be sold outside pharmacies
• implementing a “road map” to liberalize the framework governing the occupation of engineers, particularly civil engineers
• simplification of legislation for “one-stop” shops in terms of business licensing
• reforms to boost entrepreneurship and investments through a reduction in red tape
• safeguarding the timely payment, by the state, of arrears to the private sector, and with a higher interest rate for delays