(UPD) – Speaking from the Ministry of Finance following a meeting with Giannis Stournaras, Prime Minister Antonis Samaras confirmed that a deal has been reached between the government and the troika. According to Mr Samaras over 500 million euros from the primary budget surplus will be disbursed to 1 million people including vulnerable groups and uniformed public workers earning less than 1,500 euros a month. Money from the primary surplus will also be used to reduce employer contributions and pay outstanding state debts to private individuals and companies, increasing liquidity in the market and supporting SMEs. He said that the deal proved that no new austerity measures would be needed and that Greece would become a modern European economy.
According to reports following yesterday’s marathon negotiations between the government and the troika, the two sides have reached an agreement that remains only to be formally signed.
The website To Vima, citing exclusive information, is reporting that the troika representative of the European Commission, Matthias Mors informed the 27 embassies of the EU that a deal had been struck between the Greek government and the troika in an unscheduled secret meeting that took place this morning in the offices of the Commission in Athens.
Prime Minister Antonis Samaras is expected to officially announce the agreement with the troika at around 14.00. He is expected to stress the importance of the infamous ‘social dividend’ created by the primary surplus.
According to sources in the Prime Minister’s office, the portion of the primary surplus which will be disbursed to vulnerable groups will reach half a billion euros – short of the 70% which had been the government’s initial commitment.
As well as uniformed public workers and justice officials (for whom there are legal rulings finding previous salary cuts unlawful), the ‘beneficiaries’ of the social dividend will include those on low pensions (with a one-off assistance payment to be given before Easter) and potentially some other segments of vulnerable groups.
A major part of the surplus will be used to pay outstanding debts owed by the state to the private sector, while it is also said that significant assistance will be given to struggling businesses in areas with particularly high unemployment such as Perama (an area near Piraeus).
Furthermore the same sources highlight as positive the extension that appears to have been granted on the issue of mass layoffs (“we will revisit it in the autumn”) and the sale of non-prescription drugs in shops other than pharmacies (“there will be a trial run of three months under today’s framework but with a ceiling on profits”).
The troika also appears satisfied that the outstanding issues have been resolved and that the Greek side is moving ahead with the official announcement. A statement may also be issued by the troika following the formal conclusion of negotiations.
Meanwhile Finance Minister Giannis Stournaras will travel today to Brussels for talks regarding a European banking union.
According to the Finance Ministry the only point that had been outstanding in negotiations was the percentage of the surplus that would be disbursed by the government. The other issues had been resolved.