Greece readies new list of bailout reforms

Greece readies new list of bailout reforms

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People make their way in a commercial district of Athens during Orthodox Ash Monday holiday in Athens, Monday, Feb. 23, 2015.

Image: Yorgos Karahalis/Associated Press

Caught between its own defiant campaign pledges and pressure from creditors, Greece’s left-wing government will deliver a list of reforms Tuesday to debt inspectors for final approval of extended rescue loans, officials said.

Prime Minister Alexis Tsipras was already facing dissent within his left-wing Syriza party over claims it is backtracking on its recent election-winning promises to ease budget cuts for the recession-battered Greeks.

Two officials linked to the government said the list will be sent to Brussels early Tuesday and will be reviewed at a teleconference of the 19 eurozone finance ministers later in the day.

Greece's Prime Minister arrives for an inner cabinet, to brief it on the Eurogroup meeting and discuss the proposals, at the Greek Parliament in Athens on Saturday, Feb. 21, 2015.

Greece’s Prime Minister arrives for an inner cabinet, to brief it on the Eurogroup meeting and discuss the proposals, at the Greek Parliament in Athens on Saturday, Feb. 21, 2015.

Image: InTime News, Kostas Baltas/Associated Press

Greece and bailout creditors have been in a standoff since Prime Minister Alexis Tsipras’ left-wing Syriza party won general elections last month on a pledge to tear up bailout agreements and seek a massive write off of bailout debts, totalling 240 billion euros ($271 billion).

But they reached a tentative agreement Friday to extend the country’s rescue loan program by four months, avoiding the risk of a Greek default and exit from the euro currency.

The government official said reforms would focus on curbing tax evasion, corruption, smuggling and excessive bureaucracy while also addressing poverty caused by a six-year recession.

A Syriza official in Brussels said that “immediate priority” would be given to the settling of overdue debts, the protection of people with mortgage arrears as well as the ending of foreclosures of first residencies.

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“Creditors will be skeptical. These are notoriously difficult reforms and, in the case of the latter, usually cost money,” said Megan Greene, chief economist at Manulife Asset Management.

“It will be difficult for the Greek government to provide concrete measures for achieving these goals, and they will almost certainly be unable to achieve much before the next round of negotiations in June.”

Tsipras is also facing pressure within his party.

Several prominent Syriza members have publicly said the party should honor its campaign promises.

Environment Minister Panagiotis Lafazanis, an outspoken bailout critic, lashed lead bailout lender Germany for insisting that Athens stick with austerity measures — an effort he insisted would fail.

“Red lines in negotiations cannot be crossed — that’s why they are red,” he told the weekly Real News. “If the Germans choose to push the issue to a rift, they will bring catastrophic consequences on themselves.”

The dissent could complicate approval of the overhauled reforms in parliament, with Syriza lacking a majority and relying on right-wing coalition partner, the Independent Greeks.

A Greek flag is reflected on a glass window of the Finance Ministry in Athens, Monday, Feb. 23, 2015.

A Greek flag is reflected on a glass window of the Finance Ministry in Athens, Monday, Feb. 23, 2015.

Image: Yorgos Karahalis/Associated Press

Government spokesman Gavrill Sakelaridis argued Greece is still locked in tough negotiations with lenders.

“No one can be expected to change everything in three weeks. We haven’t got a magic wand,” he told private Skai television.

Nikos Chountis, the deputy foreign minister, said the government had not abandoned its main goal of easing the country’s debt burden with a write off. Any talks on lightening Greece’s bailout burden would only come later — after the loan extension is approved this week, guaranteeing both sides have time to discuss the issue in depth.

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“The big negotiation will be on whether the national debt is viable or not, and how it will be dealt with,” he told pro-Syriza Sto Kokkino radio.

Monday’s hurried preparations in Athens found Greeks celebrating a public holiday, the start of lent before Orthodox Christian Easter, on a day marked with picnics and kite flying.

Three men eat lagana, a traditional bread for the Orthodox Ash Monday holiday, at Filopappou hill in Athens, Monday, Feb. 23, 2015.

Three men eat lagana, a traditional bread for the Orthodox Ash Monday holiday, at Filopappou hill in Athens, Monday, Feb. 23, 2015.

Image: Yorgos Karahalis/Associated Press

Athens resident Christos Kotsabouyoukos took his young son and daughter to fly their kite on a hill facing the ancient Acropolis, and appeared resigned to more bad news.

“The way we’re living now isn’t nice … Greeks are hungry and they are miserable,” he said. “”If Europe now wants to kick us out, they can kick us out — what can we do?”

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