Key points of Athens’ proposal for Eurogroup on Wed.

eurogroupAccording to reports, these will be the main points in FinMin Yanis Varoufakis’ proposal to eurozone partners, to be presented Wednesday during a crucial Eurogroup meeting in Brussels:

A transitional deal until the end of August instead of late May (as originally planned) will be presented at the Eurogroup meeting on Wednesday, Feb. 11, by Athens.

Finance ministry sources also claimed that the Greek program will aim for a low primary budget surplus of 1.5% of GDP (just like in 2014). Moreover, Varoufakis himself on Monday said the leftist government agrees with 70% (!) of outstanding measures envisioned in the often vilified “memorandum”, whereas the rest of the 30% of reforms will be replaced by 10 different measures derived from Athens’ new proposals — focusing on growth and fairness, as the leftist government calls them.

The Greek proposal will also include “10 surprise-reforms”, which will be presented at the Eurogroup. Athens originally planned a transitional deal to carry it to the end of May, but it was decided that the deal should, instead, be implemented until the end of summer. Last week such a deal was dubbed a “bridge”.

In a nutshell, here are the main axes of Athens’ proposal:

1) A Transitional program until September which will include 70% implementation of memoradnum reforms, 30% replaced or cancelled.

2)A reduction in primary surplus goals. The Greek side won’t accept 3% of GDP as a primary surplus goal for 2015.

3)Debt settlement with bond swaps and T-bills, an idea supposedly looked on positively by the ECB

4)Measures on combating the ‘humanitarian crisis’, a leitmotif of leftist SYRIZA campaign language, namely, giving genuinely needy people free power (up to a point), food deliveries etc.

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