IMF and Greek government face a tough road ahead

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The IMF is putting the Greek Government in a difficult position yet another time because of its demands. It is unknown who will prevail and it looks like that a “clean exit” from the memorandums will not be easy.

Specifically the IMF demands further cuts in pensions and in non taxable returns in 2019 and not the application of the countermeasures  in order to participate in the Greek program alongside a debt relief.

If this recipe by the IMF passes, theoretically in 2019 when Greece will be headed into elections pensioners will lose up to 2 pensions, since besides the reduction in their revenues by 18% the non taxable income will be reduced to 5.700 euros.

Tax burdens will be incurred to employees, pensioners and farmers up to 650 euros and in the meanwhile the reductions in taxes for business will not be completed or even reductions in ENFIA (tax on property) these measures are part of the countermeasures.

The government is trying to create a story that will give allowances after the end of the program of ESM in 20 of August, but the IMF and the rest of the creditors have other things in their minds.

They understand that further cuts in pensions and in non taxable income in the absence of countermeasures is capable of bringing political upheaval and change in Greece. In the meantime they just document the different opinions and are awaiting for further data regarding growth and budget. Decisive role in the decisions will play the announcements by EUROSTAT at the 23rd of April concerning the positive surplus of 2017 but also of ELSTAT concerning the rate of growth of the economy in the first trimester.

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