



The much-anticipated bailout deal between Greece and creditors is signed and the Greek government has to implement the following reforms in order to receive the 86 billion euros the three-year program will provide:

Reforms that should be voted and implemented immediately

* Tightening the definition of the term “farmer.”

* Increased tonnage tax for shipping.

* Changes in the single property tax (ENFIA) for 2015. Payment notices should be sent out in September.

* Amendments to the recently adopted revenue measures.

* A return to the previous regulations for drug prescriptions.

* Lowering the price of generic drugs.

* Abolition of privileges for agricultural fuel.

* Better targeting of heating fuel regulations for 2016.

* Full evaluation of the welfare system with an annual target of savings worth 0.5% of GDP.

* Restructuring of public administration.

* Dealing with problems concerning tax collection.

* Abolition of the highest (25%) level of wages and pensions for confiscation.

* Reduction of all limits to confiscations at 1,500 euros.

* Changes to the 100-installment debt settlement regulation and exclusion of those who are bad debtors.

* Transfer of services and personal tax audits to the Financial Crimes Unit.

* Commitment that there will be no other arrangements for tax and social security debts.

* Clarifications of the conditions for eligibility to the payment of the guaranteed minimum pension after 67 years.

* Issuing circulars for the full application of the 2010 social security law.

* Phasing out exceptions on early retirement.

* Clarification of the VAT system for islands, with discounts abolished by the end of 2016.

* The complete plan for recapitalization of banks and handling of non-performing “red loans.”

* Repealing the law on employment contracts adopted on July 2, 2015.

* The implementation of the OECD recommendations from Toolbox I (excluding non-prescription drugs) and from Toolbox II on non-alcoholic drinks and mineral oils.

* The opening of closed professions, such as engineers, notaries, etc.

* Limitation of third-party taxes.

* Reduction of bureaucracy and speeding up licensing for low-risk investments.

* Reforming the energy market, especially natural gas, that will result in full liberalization in 2018.

* Approval of the privatization already undertaken by the Hellenic Republic Asset Development Fund (HRADF).

* Adoption of better EU practices for subsidies and other costs as of January 1, 2016.

* Restructuring the public transport organization.

Reforms required for October

* The second phase of reforms to the social security system.

* Reforms to the tax code.

* The gradual change of agricultural taxation with 20% contribution for 2016 and 26% for 2017.

* Tax for TV advertisement.

* International public tender for television licenses and duties for specific frequencies.

* 30% tax for lucky games and VLTs in the second half of 2015 and in 2016.

* Increased taxation for rent revenues under 12,000 euros per year by 15%.

* Steady abolition of tax exemptions in the shipping sector.

* A permanent reduction of defense spending by 100 million euros this year and 400 million euros for 2016.

* Extension of the temporary volunteer solidarity contribution until 2018.

* Simplification of tax exemptions.

* Restructuring the solidarity tax by 2016.

* Changes to the ENFIA tax so that changes to objective prices in 2016 do not influence the tax target of 2.65 billion euros.

* Measures to combat tax evasion.

* Linking tax contribution with benefits.

* A new OECD toolbox for wholesale trade, construction, mass media, digital trade etc.

* Changes to legislation governing the Hellenic Financial Stability Fund (HFSF).

* Taking irreversible measures for the privatization of the Independent Power Transmission Operator (ADMIE).

* Appointment of an independent task force that will determine the potential for accelerating privatization while assets should be transferred to the new, independent fund.

* Restructuring of the single payroll government that will apply from January 1, 2016, and establishing new ceilings for public employee salaries by 2019.

* Remove all third-party taxes connected with the financing of social security funds by October 31. The funds’ losses will be replaced by reducing benefits or increasing contributions.

* The phasing out of the supplementary funds for low pensions (EKAS) starting with 20% of “higher” low pensions from March 2016.

* Start the discussion with independent bodies and the International Labour Organisation to implement the best European practices in employment, without making any changes in collective bargaining until the end of the year.



