By G. Palaitsakis
[email protected]
No less than 95 out of 113 "prior actions" listed in the ongoing third bailout memorandum must be fulfilled by the current leftist-rightist Greek government by the end December, yet another "Herculean task" for the embattled Tsipras government in order to conclude the third review and keep creditors' "soft" financing coming.
The most pressing prior actions, called "key deliverables" by the EU Commission, include the creation of an independent auditor by monitor the Greek state's payments, especially arrears owed to the private sector.
In terms of the all-important social security reform front, Athens must proceed with a re-calculation of 30 percent of the pension applications submitted between May 13, 2016 and December 2016, in line with revisions - mostly downwards - entailed in a relevant law passed by the government in 2016 (Law 4387).
The government must also proceed with the "rationalization" - the term used in the bailout memorandum - in the health care sector, especially in terms of tertiary medical training, as well as various bonuses allocated in the education system.
The current Tsipras government is the latest Greek administration that is called upon to finally liberalize so-called "closed occupations" in the country, a recurrent demand by creditors and a long-standing recommendation by the OECD. High-profile occupations eyed for easier licensing are civil engineers and public works contractors.
On the "supply side", the Greek side must finalize negotiations and receive the EU Commission's "green light" regarding 15 to 20 major EU-funded public works in the country.
A variety of reforms are slated for the country's energy sector, notwithstanding, a revision of electricity rates and a reduction of the dominant state-run power utility's (PPC) share in the grid operator (ADMIE). Liberalization towards greater private sector involvement is also foreseen for power networks, such as the natgas transmission operator.
Yet another "thorn" in the current bailout that must be resolved is to finally overcome bureaucratic hurdles to allow the Helleniko real estate development project in coastal southeast Athens to finally commence. The project is billed as the biggest property development in Europe at the moment.
Standing obligations also affect Greece's cavernous public sector, as Athens must align heavy and hazardous bonuses in line with the European acquis, as well as continue efforts to combat widespread tax evasion, curb pharmaceutical expenditures and continue the implementation of the "claw back" regime vis-a-vis private health care providers.
