Reforms Greece must make for its bailout

Reuters has compiled a list of the measures  Greece needs to implement in return for securing up to €86bn in fresh loans:

– Greece to produce primary budget surplus starting 2016.
– Primary budget deficit of 0.25% of GDP in 2015, followed by surpluses of 0.5% in 2016, 1.75% in 2017, and 3.5% in 2018.
– Greek economy to shrink between 2.1% and 2.3% in 2015, contract by 0.5% in 2016, and return to 2.3% growth in 2017.

Some of the “prior actions”, or measures required before bailout aid is disbursed, are expected to include:
– New laws on non-performing loans held by banks.
– Deregulation of the natural gas market.
– Setting up an independent sovereign wealth fund in Greece intended to raise €50bn, three-quarters of which would be used to recapitalise banks and decrease debt.
– Scrapping tax breaks for farmers who now receive subsidised fuel.
– Tighter regulation of a repayment system for individuals owing back taxes to the state.
– A gradual increase in a system under which taxpayers ranging from the self-employed to small businesses pay tax in advance on their forecast income.
– Increase to 6% from 4% of a “solidarity tax” paid by those earning €50,000-100,000 a year.

Greece passed a number of reforms in July including:
– Simplifying VAT rates and applying the tax more widely.
– Cutting back on pensions and making the national statistics agency independent.
– Measures to overhaul the civil justice system
– Adopting EU bank resolution and bail-in rules, applicable from 1 January, 1 2016.

Greece’s bailout agreement is also expected to set a clear timetable for the following measures:
– Ambitious pension reform.
– Reforms covering Sunday trading, pharmacy ownership, milk sales and bakeries.
– Privatisation of electricity transmission network.
– Review of rules on collective bargaining, industrial action and collective dismissals.