An EU Commission compliance report for the Greek bailout lists 113 "key deliverables" that must be implemented by the second quarter of 2018, with many of the measures given a deadline for completion by the end of this month.
The 71-page document, called the "Compliance Report - The Third Economic Adjustment Programme for Greece", was published exactly a week after the second review of the ongoing third bailout was concluded at the Eurogroup setting.
Essentially the Commission spells out the specific actions and measures that the beleagued leftist-rightist Greek coalition government must take in order to concluding the upcoming third and fourth reviews of the program, which European creditors - and Athens - have promised will be the last.
The deliverables, or "prior actions" are:
June 2017
I. Delivering sustainable public finances
1
Public revenue: IAPR. The authorities will also ensure that the performance contract between the Minister of Finance and the head of the Agency is signed by June 2017
2.3
2
Public revenue: Single social security fund (EFKA) With a view to merging the collection of social security contributions into the IAPR by end-2017, the authorities will produce by June 2017, a policy paper laying out the key features, steps and timeline of this reform.
2.3
3
Public procurement. The Greek authorities will take all necessary measures to establish the Remedies Review Body (first-instance remedies) by June 2017 in view of it starting its operation (submission and review of remedy applications) by June 2017.
2.4.2
4
Public procurement. By June 2017, the authorities will adopt measures to improve the judicial remedies system in the area of public procurement (second-instance remedies), taking into account the establishment of the Remedies Review Body.
2.4.2
5
Public financial management. The authorities will ensure that an independent auditor will be selected by end-June 2017 to audit the government accounts payable and the arrears clearance programme from end-June 2016 up to end-December 2016.
2.4.1
6
Pensions. Recalculate and process pension applications according to the new benefit rules (Law 4387/2016). At least 30% of all pension applications submitted between 13 May 2016 and December 2016 have to be recalculated and processed by end-June 2017
2.5.1
7
Health care: Rationalisation of health expenditure. Develop a plan to restructure academic curricula and specialty training in medicine in order to increase the availability and enhance the training of general practitioners
2.5.2
8
Social safety nets: expenditure reviews. Complete a study for the rationalization of educational benefits by June 2017
2.5.3
II. Delivering sustainable public finances
9
Debt restructuring and insolvency procedures. By end-June 2017, the authorities will register all coordinator positions and adopt all required ministerial decisions to implement the OCW law.
3.2
III. Structural policies to enhance competitiveness and growth
10
Labour market: simplification of legislation. The technical assistance project for the codification of labour laws will be launched by June 2017.
4.1
11
Labour market: undeclared work. By June 2017, develop new risk-analysis rules for targeting inspections.
4.1
Product markets and business environment: Toolkit I recommendations.
By June 2017, the authorities will adopt legislation to further address the OECD recommendation on Sunday trade in line with the Council of State (CoS) ruling
4.2
13
Product markets and business environment: Regulated professions. The Government will submit the presidential decree to the Council of State towards liberalizing the reserved activities of engineers, in agreement with the institutions, by June 2017
4.2
14
Product markets and business environment: Regulated professions. The authorities will, in agreement with the institutions, submit the Presidential Decree on public works engineers' registries to the Council of State, by June 2017.
4.2
15
Product markets and business environment: Regulated professions. To address the external advisor's recommendations on the remaining professions/activities the authorities will adopt by June 2017, a first set of measures to alleviate unjustified and disproportionate restrictions.
4.2
16
Structural funds. The authorities will by June 2017 (i) adopt legislative and administrative acts and/or other appropriate means with equivalent effect to streamline the expropriation procedures under a new unified legislative framework; (ii) submit to the General Secretariat for Digital Policy a project proposal for an integrated geo-spatial and cadastral information system to manage and monitor expropriations including their costings; (iii) streamline and simplify the procedures related to archaeological works by codification of legislation and/or through other appropriate means with equivalent effect, including the application of binding deadlines for the delivery of permits, and (iv) adopt a Joint Ministerial Decision to set up a registry of experts to ensure the supervision of co-financed projects as required by article 28.8 of law 4314/2014.
4.2
17
Structural funds. The authorities will agree with the European Commission at the latest by June 2017 a list of 15 to 20 large, emblematic projects for the period 2014-2020 including timelines from approval to completion.
4.2
18
Network industries: Energy. PPC Financial situation. Following RAE’s recommendation, the PSO level will be adjusted by June 2017, so that the accumulated deficit for PPC will be eliminated following a timeline which is appropriate both for PPC and the consumers, and in any case no later than December 2022.
4.3
19
Network industries: Energy. ADMIE. By June 2017, (ii) PPC will contribute 51% of ADMIE's share capital to HoldCo, (iii) HoldCo will proceed to the formal filing of the listing prospectus with the Hellenic Capital Market Commission; (iv) the transaction will be formally notified to the European Commission for regulatory and merger clearance.
4.3
20
Network industries: Energy. Capacity Mechanism. By June 2017, pre-notify a new capacity mechanism in line with Energy and Environmental Aid Guidelines.
4.3
21
Network industries: Water. The Special Secretariat for Water (SSW) will launch gradually a system of regular collection of information as from June 2017
4.3
22
Privatisation: Asset development plan (ADP). On the key remaining tenders of the ADP HRADF will hire the advisors by June 2017.
4.4
23
Privatisation: Hellenikon. The proposed Integrated Development Plan will be presented to the Central Administration Council and immediately after its formal submission (mid-June) the Secretary General of Public Property will in turn forward this to the relevant ministries for processing according to the relevant laws.
4.4
24
Privatisation: HCAP. The Government will by June 2017 take a formal decision on the transfer of the Hellenic Aerospace Industry to EDIS
4.4
25
Privatisation: HCAP. The General Assembly shall adopt the remaining internal regulations for the remaining outstanding issues of the internal regulations: (a) remuneration and compensation policy for the Supervisory Board (June 2017);
4.4
IV. A modern State and public administration
26
Public administration: Performance assessment. The first assessment exercise on the basis of the reformed performance assessment scheme will be performed by June 2017
5.1
27
Public administration: Allowances. Allowances for dangerous and hazardous work will be aligned with the corresponding European legislation by June 2017
5.1
28
Independent agencies: ELSTAT. The government will by June 2017 in consultation with the Institutions: (i) legislate to facilitate the set up and staffing of the President's office consistent with the Mobility Law; (ii) legislate to give the President of ELSTAT greater autonomy and flexibility in deciding how the organisation's agreed budget should be spent; (iii) increase ELSTAT's budget from January 2018 to facilitate the recruitment and retention of highly skilled staff through the introduction of compensations based on job descriptions, consistent with the unified wage grid legislation; (iv) set up a framework for staff-level agreements to allow ELSTAT to contribute on a cost-paid basis to specific projects of other public bodies; (v) legislate the State indemnification of the ELSTAT President - and other ELSTAT officials acting upon his/her authority - against legal and other costs (including counsel's actual fees and personal financial liabilities) incurred as a result of legal challenges/actions/proceedings taken or threatened against them in relation to decisions made and actions taken (including potential omissions) pursuant to carrying out their official functions in compliance with applicable provisions and rules, statutory or otherwise.
July 2017
I. Delivering sustainable public finances
29
Public revenue: Fight against tax evasion. The new system of cooperation between justice and tax administration is fully operational by end July 2017
2.3
30
Health care: Reducing pharmaceutical spending. Set up a Health Technology Assessment (HTA) committee (July 2017) to prepare the establishment of an HTA centre by July 2018.
2.5.2
II. Delivering sustainable public finances
31
Debt restructuring and insolvency procedures. By end-July 2017, the authorities will complete and enact all remaining implementing actions of the OCW law, as described in the Technical Memorandum of Understanding.
3.2
32
Debt restructuring and insolvency procedures. By end July 2017, the authorities will fully operationalise the profession of insolvency administrators, by completing the enrolment of successful applicants into the relevant registry.
3.2
III. Structural policies to enhance competitiveness and growth
33
Vocational Education and Training (VET) The Ministry of Labour with the support of the Public Employment Service (OAED), the Ministry of Education and relevant stakeholders will by July 2017 launch pilot tenders for a series of major business community-led partnerships for VET, involving sectoral and local employer representative bodies and social partners, targeting initially a total of 4,000 apprenticeship places between 2017-18 and 2018-
4.1
Key deliverable
SMoU
19.
34
Vocational Education and Training (VET) A cohesive and inclusive governance structure for VET will be put in place (JMD) by July 2017, ensuring representativeness of all key stakeholders, providing for the centralised payment, auditing and monitoring of all apprenticeship contracts, and fostering the role of the Public Employment Services Local Offices (KPA) at the local level. Apprenticeship co-ordination committees in the KPAs (OAED) will be established and activated, coordinating their tasks and responsibilities within the framework of the major VET partnerships, taking on board the role of the newly introduced employer counsellors in OAED.
4.1
35
Product markets and business environment: Toolkit III recommendations. The remaining Toolkit III recommendations will be adopted by July 2017 except for eleven recommendations
4.2
36
Product markets and business environment: Investment licencing. The authorities will adopt legislation (primary and secondary) by July 2017, in the quarry sector (second leg of the first round) and the areas selected for the second round.
4.2
37
Product markets and business environment: Ex-post impact assessments. By July 2017, the Government will address the pending recommendations of the ex-post assessments launched in October 2015 and adopt measures accordingly, in agreement with the institutions.
4.2
38
Land use. The authorities will by July 2017 submit to the Council of State a Presidential Decree to harmonise older legislation with Law 4269/2014.
4.2
39
Structural funds. The procedure for the selection of management posts of all European Structural and Investment Funds' structures will be launched with the official publication of the call for interest by July 2017
4.2
40
Privatisation: Hellenikon. The Authorities will (a) launch the public consultation of the Strategic Environmental Impact Assessment Study of the proposed Integrated Development Plan for Hellenikon, no later than one month from its official submission;
4.4
41
Privatisation: HCAP. The General Assembly shall adopt the remaining internal regulations for the remaining outstanding issues of the internal regulations: (b) accounting framework (by July 2017);
4.4
42
Privatisation: HCAP. The Board of Directors of HCAP will fill the vacant posts in the board of HRADF and replace executive and non-executive members if needed, by July 2017.
4.4
43
Privatisation: HCAP. The Board of Directors of HCAP will review by July 2017 the Board of ETAD
4.4
44
Privatisation: HCAP. The Minister will provide the Ministerial Guidance for the Strategic Plan by July 2017.
4.4
IV. A modern State and public administration
45
Justice: E-auctions. For the e-auction platform to be finalized and fully operational, testing and training will be completed by end-July 2017.
5.2
Key deliverable
SMoU
46
Independent agencies: Horizontal review. By end-July 2017, the authorities and independent agencies will amend primary and secondary legislation as appropriate so as to bring horizontal provisions and internal regulations in line with the results of the horizontal review.
5.2
August 2017
I. Delivering sustainable public finances
47
Health care: Execution of clawbacks.EOPYY will offset outstanding clawback amounts for past periods (2013-2015) with accumulated arrears (50% by August 2017).
2.5.2
III. Structural policies to enhance competitiveness and growth
48
Privatisation: DESFA. The nomination of the preferred bidder will be completed by August 2017.
4.4
49
Privatisation: HCAP. The Board of Directors of HCAP will appoint the board of EDIS by mid-August 2017.
4.4
IV. A modern State and public administration
50
Public administration: Mobility. For the implementation of the new mobility scheme, job descriptions will be completed by August 2017
5.1
September 2017
I. Delivering sustainable public finances
51
Public revenue: IAPR. By September 2017, a decision will be taken, in agreement with the institutions, on defining and providing the appropriate level of organic positions for the medium term
2.3
52
Public revenue: Customs. The scanners of the main three international ports shall be made fully operational by September 2017
2.3
53
Social safety nets. New legislation will be adopted by end-September 2017 to specify the design of a means-tested housing benefit.
2.5.3
II. Delivering sustainable public finances
54
Preserving liquidity and capital. If, by end-June 2017, private funds are not available to cover capital shortfalls of less systemic institutions (LSIs) that have been identified in relevant institutions, the BoG will undertake appropriate actions by September 2017.
3.1
III. Structural policies to enhance competitiveness and growth
55
Product markets and business environment: Investment licencing. The authorities will adopt legislation (primary and secondary) by September 2017 in the remaining mining sectors.
4.2
56
Cadastre. By September 2017, the authorities will adopt primary legislation in line with the agreed framework for nationwide cadastral offices.
4.2
57
Network industries: Energy. Gas market. By September 2017, KYSOIP, following RAE’s opinion and also based on the outcome of technical assistance, will adopt a medium term (2017-2020) roadmap, incorporating a detailed action plan, which will lead inter alia to full compliance of the Greek gas market with EU Network Codes' provisions, in particular but not limited to the Network Code on Interoperability6, Capacity Allocation Mechanisms7 and Balancing8 and the manner in which the required IT platforms will be developed and/or procured.
4.3
58
Network industries: Water. The SSW will assess by September 2017 the business plans of the Athens Water Company (EYDAP) and the Thessaloniki Water Company (EYATH) with the support of Technical Assistance.
4.3
59
Privatisation: Egnatia. The Hellenic Republic, with HRADF, will submit to DG MOVE for clearance the new policy for toll pricing to be implemented on the motorway and its vertical axes after the technical advisors of HRADF conclude their study.
4.4
60
Privatisation: HCAP. The Board of Directors of HCAP will replace by September 2017 executive and non-executive members of the Board of ETAD if the preceding review indicates this is needed.
4.4
61
Privatisation: HCAP. The Government with the management of the new fund will take all necessary actions for the transfer of the first group of real estate assets to be identified by the working group and agreed with the institutions (September 2017).
4.4
IV. A modern State and public administration
62
Public administration: Mobility. Implement the new mobility scheme by September 2017
5.1
63
Public administration: Modernisation. Launch the call for all Administrative, Alternate, and thematic Administrative Secretaries of Ministries in September 2017
5.1
64
Public administration: Selection of managers. The call for thematic Directors General will be launched in September 2017
5.1
65
Justice. By end-September 2017, the authorities will amend the Code of Civil Procedure, the insolvency law and other related laws to strengthen the position of secured creditors by aligning the treatment of secured credit with EU best practices.
5.2
66
Independent agencies. By September 2017, the authorities will amend any primary and secondary legislation in line with the results of the horizontal review on independent agencies, including on issues relating to (i) the Hellenic Competition Commission; (ii) the energy regulator RAE and (iii) the Regulatory Authority for Passenger Transport (RAEM).
5.2
October 2017
I. Delivering sustainable public finances
67
Public financial management. Finalise the Chart of Accounts for central government and submit legal documents
2.3
68
Social safety nets: expenditure reviews. Implement the rationalization of educational benefits by October 2017.
2.5.3
III. Structural policies to enhance competitiveness and growth
69
Labour market: industrial action. As a key deliverable for the next review, the authorities will analyse and adopt legislation to increase the quorum for first-degree unions to vote on a strike to 50 percent.
4.1
70
Network industries: Water. By October 2017, the Special Secretariat for Water (SSW) will produce an evaluation report towards the development of a Full Information System.
4.3
71
Privatisation: HCAP. The General Assembly shall adopt the remaining internal regulations for the remaining outstanding issues of the internal regulations: (c) investment policy (by October 2017) and (d) dividend policy (by October 2017).
4.4
IV. A modern State and public administration
72
Public administration: Coordination. By October 2017, (i) develop formal structures within the public administration, to be responsible for the preparation and arbitration of policies; (ii) set up an effective process of inter-ministerial consultation prior to the launching of legislative proposals.
5.1
November 2017
I. Delivering sustainable public finances
73
Health care: Execution of clawbacks. EOPYY will offset all outstanding clawback amounts for past periods (2013-2015) with accumulated arrears (to be completed by November 2017).
2.5.2
74
Social safety nets. Legislate a major reform of the family benefit system by November 2017
2.5.3
75
Social safety nets: disability benefits reform. By November 2017, new legislation for a pilot scheme will be adopted to move from the current impairment assessment to a functional assessment to determine eligibility
2.5.3
76
Social safety nets: expenditure reviews. Design a reform of transport benefits by November 2017, to enter into effect in 2018 following the implementation of the electronic ticket reform by transportation companies;
2.5.3
III. Structural policies to enhance competitiveness and growth
77
Education. By November 2017, the authorities commit to the adoption of the number of teaching hours per staff member, and the ratios of students per class and pupils per teacher to the best practices of OECD countries to be achieved by the beginning of the 2018-2019 academic year.
4.1
78
Product markets and business environment: Toolkit I recommendations. The authorities will fully adopt the pending recommendations on building materials. Specifically, by November 2017, the authorities will harmonise 70 technical specifications and will review 372 technical specifications on building materials.
79
Network industries: Energy. The structural measures to divest PPC’s lignite-fired generation capacity will be finalised through the official submission of the agreed binding commitment offer by the Hellenic Republic to the Directorate General for Competition of the European Commission (DG COMP) by November 2017.
4.3
80
Privatisation: HCAP. The General Assembly will approve the Strategic Plan by November 2017.
4.4
IV. A modern State and public administration
81
Anticorruption. The authorities will amend legislation to fulfil all GRECO's recommendations on the funding of political parties and electoral campaigns within one month after GRECO will have delivered their report.
December 2017
I. Delivering sustainable public finances
82
Tax codes. The authorities will by December 2017: a) review with the aid of technical assistance all business income tax incentives and integrate the tax exemptions, eliminating those deemed inefficient or inequitable; b) review with the aid of technical assistance the tax framework for collective investment vehicles and their participants in line with best practices in the EU; c) codify and simplify the VAT legislation, aligning it with the Tax Procedure Code and eliminating outstanding loopholes, including those identified in the review of the legislation relating to VAT deregistration and reregistration; d) undertake a technical review the ITC provisions after its 3-year application, identifying problems and loopholes and proposing amendments with the objective of clarifying and ameliorating its application and eliminating conflicting provisions, e) review preferential tax treatments for the shipping industry in the light of the indications of the European Commission by January 2018.
2.2
83
Property taxes. The authorities with the aid of technical assistance will legislate to ensure the alignment of property tax assessment zonal values with market prices by December 2017
2.2
84
Public revenue: IAPR. All staff transferred to IAPR will be assessed and allocated to appropriate grades by December 2017
2.3
85
Public financial management. By December 2017, prepare an action plan to improve the management of state guarantees based on the diagnostic carried out previously
2.4.1
86
Pensions. The individual recalculation of the pension benefit under the new uniform rules must be finalised by end-December 2017
2.5.1
87
Pensions. The authorities will further ensure that by December 2017 EFKA can maintain automatic electronic records on service history for retirees.
2.5.1
88
Pensions. The Ministerial Decisions of art. 70.2 and the Presidential Decree of art. 52 must be issued by December 2017
2.5.1
89
Vocational Education and Training (VET). The government will adopt an integrated plan for Human Capital development (with technical assistance) by December 2017, addressing economic growth and supported by the VET Reform.
4.1
90
Product markets and business environment: Regulated professions. To address the external advisor's recommendations on the remaining professions/activities the authorities will adopt follow-up measures to alleviate unjustified and disproportionate restrictions by December 2017.
4.2
91
Network industries: Energy. Capacity allocation and congestion management. For day-ahead market coupling (Italy-Greece and Bulgaria-Greece), Greece will join the EU market coupling project by December 2017.
4.3
92
Network industries: Water. The authorities by December 2018 will develop a strategic plan for SSW that will draw upon the relevant findings of the independent entities review and will adopt or amend legislation to strengthen the governance, administrative capacity and financial autonomy through distinct budgeting in the MTFS.
4.3
93
Privatisation: Hellenikon. The Authorities will (b) issue the draft Presidential Decree for the Integrated Development Plan no later than six months from its formal submission, in accordance with the relevant provision of Law 4062/2012;
4.4
IV. A modern State and public administration
94
Public administration: Modernisation. Complete all appointments by December 2017.
5.1
95
Public administration: Selection of managers. Complete the appointments of thematic Directors General by December 2017
5.1
Q1 2018
I. Delivering sustainable public finances
96
Health care: Rationalisation of health expenditure. EOPYY will change the way it provides primary health care by introducing compulsory patient registration with a family doctor, who will act as a gatekeeper in charge of referrals to specialists. This shall become fully operational (key deliverable) by 1st January 2018
2.5.2
97
Social safety nets: disability benefits reform. The pilot program of the functional disability assessment system will be rolled out by January 2018.
2.5.3
III. Structural policies to enhance competitiveness and growth
98
Labour market: arbitration on collective bargaining. The authorities, in consultation with the social partners, will review the current procedures for mediation and arbitration by February 2018.
4.1
99
Labour market: undeclared work. Complete by February 2018 the automatic exchange of information between the databases of the Ministry of Labour, the Ministry of Finance, SEPE, IAPR, OAED, IKA (EFKA) and the Greek police
4.1
100
Labour market: arbitration on collective bargaining. Taking account of the independent legal report, the authorities will adopt any necessary measures by March 2018, in consultation with the institutions and in compliance with the Council of State ruling.
101
Network industries: Energy. NOME. The first joint assessment by the authorities and institutions will be carried out in January 2018.
4.3
102
Network industries: Energy. Capacity allocation and congestion management. Implement the day ahead, intraday, forward and balancing markets by 1 January 2018.
4.3
103
Privatisation: Hellenikon. The Authorities will (c) complete all key Conditions Precedent (as specified in the Share Purchase Agreement) to pave the way for financial closing (Q1 2018).
4.4
Q2 2018
I. Delivering sustainable public finances
104
Public financial management. Finalise the integration of the Financial Management Information System (FMIS) and the new Chart of Accounts so as to ensure the full use of the FMIS to support implementation of the new Chart of Accounts in the 2019 state budget.
2.4.1
105
Pensions. Harmonise benefits rules. Unify rules on disability and contributory welfare benefits in line with disability benefits reform by June 2018
2.5.1
106
Social safety nets: disability benefits reform. The national rollout legislation will be adopted in May 2018, which will also harmonize all contributory disability and welfare benefit rules including under Law 4387/2016.
2.5.3
107
Social safety nets: disability benefits reform. National implementation will commence by end-June 2018
2.5.3
III. Structural policies to enhance competitiveness and growth
108
Product markets and business environment: Investment licencing. The authorities will proceed with a follow-up phase of the investment licensing reform to be implemented in line with the investment licensing reform roadmap by June 2018.
4.2
109
Privatisation: Egnatia. The Ministers of Infrastructure and Transport and Finance will issue a JMD setting out the new toll policy (April 2018).
4.4
IV. A modern State and public administration
110
Public administration: Selection of managers. In January 2018, the call for all Directors will be launched, and Directors will be appointed by March 2018; by March 2018, the call for all Heads of Division will be launched, and Heads of Division will be appointed by April 2018.
5.1
I. Delivering sustainable public finances
111
Public procurement. The authorities will continue to implement the actions on e-procurement (KHMDHS and ESHDHS) as agreed with the European Commission in the action plan
2.4.2
III. Structural policies to enhance competitiveness and growth
112
Privatisation: Egnatia Until the endorsement of the new toll pricing policy to be applied to all toll stations of the motorway and the vertical axes, the Minister of Infrastructure and Transport, upon completion of construction of any new toll station, shall issue an interim Ministerial Decision putting such stations in operation under the current toll pricing policy;
113
Privatisation: HCAP. The Ministry of Finance, using the technical assistance of HCAP or other expert as it judges appropriate, will review on a regular basis the portfolio of real estate assets belonging to the state as well the portfolio of SOEs (including newly set up SOEs). The State shall transfer to HCAP those complying with the purposes of HCAP.
