By T. Tsiros
[email protected]
Beyond the initial relief in official Athens, whatever "political respite" entailed in finally concluding the second review of the Greek program this month appears as fleeting, as dozens of "prior actions" must be implemented by the end of June and others to follow until the end of the year.
Even the approval of the disbursement of a 7.7-billion-euro loan tranche, set for early next month, isn't enough to cover loan maturities until October, which means that the pending third review of the ongoing program (Greek bailout) must be concluded in record time, compared to previous performances. The second review was concluded between Athens and its institutional creditors with more than a year delay.
Another 800-million-euro portion of the approved tranche is also dependent on the implementation of several "prior actions" over the summer. This loan money is aimed to covering arrears by the Greek state owed to the private sector.
As "N" reported in detail last week, of the 113 "prior actions" left to be implemented before the third memorandum formally ends in August 2018, 95 must be completed and confirmed by the end of this summer, with the first deadline, in fact, being the end of June 2017.
The most prominent measures, officially called "key deliverables" by the Commission, this month include a liberalization of so-called "closed professions" and price hikes on electricity generated under "monopolistic" conditions, i.e. by the dominant and state-run power utility in Greece.
Eighteen actions must be implemented by the end of July 2017, including the operation of an e-platform for auctions of foreclosed properties and the unveiling of an out-of-court settlement process for arrears to the state and banks.
Just four "prior actions" must be completed in August, a month when Greece's public sector traditionally shifts into "neutral". Nevertheless, preparation of a framework to make the transfer of civil servants from one state service to another must be completed, along with the closely watched partial privatization for the state-run natural gas provider (Des.Fa).
No less than 16 "deliverables" are on the calendar for September 2017, the month when the 800-million-euro remainder is scheduled for disbursement, assuming that the measures are implemented.
Reform of the antiquated labor law framework is set for October, with one prominent change mandating that "50 percent+1" of workers must vote in favor of an industrial action to be declared, instead of the standing procedure whereby only a majority of those present at an extraordinary general assembly decide.
