The 387 page bill, uploaded to the Greek parliament website in 7 PDF files at 3.30am Wednesday night, contains 2 main parts. The first consists of 29 pages detailing 38 ‘prior actions’ that the parliament must approve in order for the first tranche of the bailout to be received. The second part contains the ratification of the third Memorandum of Understanding and the Financial Facilitation Agreement. This third bailout agreement is expected to release up to 86 billion euros.

This is the list of the conditions for the release of the first tranche of funding:

  • Changes to the Bankruptcy Code
  • Changes to the collection code and the rules of debt cancellation to the state
  • Reduction of limits to collateral liability for debts to the state
  • Changes in prosecutions for debts to the state
  • Changes to the 100-installments scheme for debts to the state
  • Changes in the annual financial statements of enterprises
  • Increased advance taxation on businesses
  • Abolition of tax of 26% on imports to avoid triangular transactions via Cyprus,  Bulgaria etc.
  • Reduction of tax exemptions for shipping companies
  • Removal of tax breaks for OPAP (public betting company) agents
  • Restrictions to the tax exemption of farmers
  • Removal of tax credit for rural diesel
  • Reduction in VAT from 23% to 13% for veal
  • Increase in VAT from 0% to 23% for private schools
  • Electronic systems to combat tax evasion and smuggling
  • The Financial Crime unit merges with the semi-independent Secretariat of Public Revenue of the Treasury
  • Increased freedoms for tax assessors
  • Limitation of compensation for external missions of public servants
  • Semi-automatic government spending cuts if the budget doesn’t reach its objectives
  • Immediate implementation of all prerequisites voted for in June for the bridge loan
  • Removal of parafiscal charges
  • Changes in debts to pension funds
  • Changes in the minimum pensions
  • Consolidation of auxiliary funds
  • Increase of retirement age
  • Reductions in drug prices
  • Ceilings in procurement costs of public hospitals and automatic mechanism refunds from Health businesses to the public sector (claw back)
  • Changes to the administration of state run hospitals
  • Changes to sales and special offers in retail sector
  • Energy market liberalization measures
  • Separation of DESFA (Hellenic Gas Transmission System Operator)
  • Liberalization measures to the truck transport market
  • Liberalization measures for the sale of milk
  • Liberalization measures for the sale of bread
  • Liberalization measures for tourist buses
  • Liberalization measures for the tourism sector
  • Liberalization measures to the bailiff profession
  • Liberalization measures to the notary profession

 
The measures that the new memorandum will bring:
 
1. New single payroll in the public sector and the rationalization of non-wage benefits, from January 1, 2016.

2. Changes in the taxation of farmers, starting from the increase in excise duty on diesel, and then to income.

3. Phase out of early retirement: those who are currently 50 will work an additional 5 years.

4. Protection from auctions for vulnerable groups

5. Liberalization of discounts in coastal transport and energy.

6. The opening of closed professions: engineering, notary, actuary and bailiff.

7. Possibility of establishing a pharmacy by a non-pharmacist.

8. Abolition of non-contributory charges in favour of third parties.

9. Completion of the entire privatization program. Immediate progression of the competitions for PPA, THPA and TRAINOSE. (Pireaus Port, Thessaloniki Port, Railway)

10. The modernization of the State, strengthening the Greek administration and its efficiency, and de-politicization of the public sector, should be at the heart of government.

11. Rationalization of non-wage benefits with effect from January 1, 2016.