Greek hails ‘victory’ as it prepares to submit economic reform plans to EU

Greece is set to submit a list of economic reforms demanded by its creditors to extend the country’s bailout programme. The proposals had to be handed in by Monday evening as a condition of the support from the European Union (EU), the European Central Bank (ECB) and the International Monetary Fund (IMF). The four-month loan extension is subject to the list of reforms gaining approval. The deal was announced on Friday evening following often hostile negotiations in Brussels.

The stakes are too high for the euro area and mostly for Greece, as the country’s economy and especially banking system may face an imminent collapse.

Panos Tsakloglou, a professor at Athens University of Economic and Business

It was painted by the country’s prime minister Alexis Tsipras as a victory for the Greek people though it does little to reduce its financial obligations. The list is understood to contain pledges to raise $3bn more in tax from the country’s top earners and from a crackdown on smuggling. A similar amount would be drawn from back taxes owed to the state by individuals and businesses, Bild said. However, the document is also said to include commitments on raising the minimum wage and protecting pensions.

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