The devil hiding in the details of the agreement of the Eurogroup

In one of the well-known decisions reached yesterday by the Eurogroup with regard to the second evaluation of the third memorandum of understanding, saving time with the devil hiding in the details…
What is it that decided you? The troika returns to Athens and Greece accepts the προνομοθέτηση measures after 2018, without clause αναιρεσιμότητας. That is to say, measures that will νομοθετηθούν and will be applied as and to has.
The “cheese” to pass the measures in the comfort of the House is that the result of the agreement will be budget-neutral.
According to the government, that are the citizens on the one pocket you’ll earn from the other. However, in order to implement these measures, Athens will have to catch their targets.
For example, if someone is asked to pay more tax due to a reduction of the tax-exempt, then the income loss will be compensated either through a reduction in the tax rate or by reducing other taxes such as ENFIA, or the VAT for certain products and services.
The Greek side has studied and intends to legislate in respect of the following interventions application 01/01/2019.
Reduction of ENFIA by 35 – 40 % and a total redesign of the tax with a return of F.M.A.E. so the reduction is targeted at low incomes. Of course they will lose the middle class.
Reduction of VAT on energy by 7 units and transfer of the rate from 13% to 6%.
Reduction of VAT to transfers of public and private in 11 units and transport from 24% to 13%.
Reduction of basic food items by 11 points from 24% to 13%.
A review of the insurance contributions of the self-employed.
In each case, however, the devil is in the details, i.e. in the negotiation of the technical branches and the size of the Greek retreat in the reduction of the tax-free, on contributions on pensions and labor. Key detail is that the measures for the reduction of the tax-exempt and the reduction of pensions will be voted now, and will be applied later, regardless of what happens.
In contrast to Athens now has the ability to προνομοθετήσει measures with a development character, and concessions which will enter into force only if it surpassed the financial targets that have been set.
As admitted by the head of the Eurogroup Jeroen Ντέισελμπλουμ and the IMF to reach a final agreement (staff level agreement) must still work to be done at the level of the technical teams in Athens.
Of course, apart from any technical negotiations, pending the appointment tomorrow Wednesday in Berlin, Merkel – Lagarde and Merkel – Juncker, in order to take any decisions for the participation of the Fund in the Greek programme as well as for the primary surplus after 2018, and the medium-term measures for the debt. From this date will be judged virtually and the negotiations that will start next week.