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The Complete Visual Summary Of The "New" Greek Bailout Proposal
A cursory look at the “new” Greek proposal to creditors suggests PM Alexis Tsipras may have sold out the referendum “no” vote in a final, desperate attempt to avert an economic catastrophe and the collapse of the country’s banks which will be cut off from ELA as of Monday morning in the event Brussels and Athens do not come to terms over the weekend.
As Commerzbank's Markus Koch said on Thursday, “the 'No' in the referendum appears to be turning into a 'Yes' from Tsipras."
Here, courtesy of AFP, is the proposal in inforgraphic form:
And even as it does indeed appear that Greeks (not to mention Syriza hardliners) will be forced to stomach a "compromise" that amounts to an outright concession, there are some differences between the “old” and “new” Greek proposals. Here’s Bloomberg with the rundown:
Financing and Debt
Greece is asking for three-year loans of at least 53.5 billion euros ($59.9 billion) to cover its financing needs between 2015 and 2018. It is also seeking debt restructuring and reprofiling of its long-term debt due after 2022. The earlier proposals were in return for a five-month extension of an existing bailout program for loans of as much 15.5 billion euros and didn’t involve any debt restructuring.
Tax Reforms
With few exceptions, the Greek government adopts the creditors’ proposal on sales and corporate tax rates. The government is seeking to eliminate sales tax discounts on islands gradually by the end of 2016 instead of immediately, starting higher-income islands that are popular tourist destinations. It also seeks to keep hotels under a reduced 13 percent rate instead of the standard 23 percent.
Pension Reforms
The government proposes implementing a “zero-deficit” clause for supplementary and lump-sum pension funds, adopted in 2012, from October instead of immediately. While it agrees to phase out a supplementary allowance for low pensions by the end of December 2019, it wants to start phasing-out these benefits from March 2016 instead of starting immediately.
Fiscal and Structural Measures
Greece wants to increase advanced income tax payment on corporate income to 100 percent and gradually for individual businesses by the end of 2017, as part of steps to close loopholes for tax avoidance. It also proposes to eliminate preferential tax treatment for farmers by the end end of 2017. The creditors wanted these steps to be implemented by the end of 2016.
The government appears to backtrack on its own earlier proposals for military spending cuts, offering to reduce spending by 100 million euros in 2015 and 200 million euros in 2016. It had earlier suggested to cut military spending by 200 million euros in 2016 and 400 million euros in 2017. The creditors have sought an immediate cut in annual military spending by 400 million euros.
It offers instead to extend implementation of a luxury tax on recreational vessels in excess of five meters instead of in excess of 10 meters.
Labor Reform
Government insists to legislating changes to collective bargaining agreements this fall; creditors don’t want any changes to already agreed labor framework and demand that any changes be negotiated with the three creditor institutions first -- the European Central Bank, the International Monetary Fund and the EU.
Privatizations
This is where the government appears to fully adopt the creditors’ demand for all agreed sales of state assets to proceed, including transferring the state’s shares in the Hellenic Telecommunication Organization SA to the asset sales fund and selling regional airports under terms already agreed with a venture led by Fraport AG, the winning bidder already selected by the previous government.
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ACROPOLIS NOW! When The Trojan Horse Meets Achilles’ Heel
The visual is of an old broken down government system... Hmmm
As I figured, the can is kicked once again. Nothing is fixed, everything will be worse, but the pain is postponed for a few more years. I don't see where they think only 50 something billion over three years I going to be enough. That's not even going to cover all the interest is it?
Yes, sign cuts into law that will never be implemented. Just pull the plug and default already!!
Totally off topic but I want to make you all aware that Market Watch, basically shut down my account without shutting it down. They still let me log in and post comments and I can see them, If I reply to a comment I can see it post but when I created another account and logged in I couldn't see my other accounts comments. I became suspicious after I received no replies to anything that I posted for the last couple of weeks. So if you are posting and aren't getting any (good or bad) responses most likely they shut you down, without suspending your account. No body can see what you are writting.
You can see mine but you cant see yours? Like two fatties taking a shower together?
Or is it you can see everybody elses, but nobody can see yours? Try sticking a pencil up your ass and wearing some Spanx...Not off topic at all...
I could see my own stuff, but the new account I created couldn't see the old accounts post. So I suspect that no one else could.
"To Iceland or to Zimbabwe, that is the question."
- Bill Shakesmorethantwice
I would reply to your comments here on ZH, but I cannot see them.:)
how does borrowing 53.5 billion euros accomplish the goal of 'reducing public debt'...their debt/gdp will be 200%!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
Shhhhh. You're asking a math question again.
Just go hang on the patio! Ouzo!!!
And now the Greek parliament needs to agree and sign off on this new deal, which will continue and likely worsen the Greek depression. This after the government just got a mandate to refuse such a plan. I think the politicians in parliament, who want to get voted back in by the constituents, may not go along with this plan.
Could you imagine voting and winning a referendum and having the politicians do exactly what you just voted not to do? If you think the riots were bad before, just wait.
Nah, it's ok. In Greece, Venizelos of PASOK has introduced a law a long time ago where the members of the parliament are immune to prosecution.
"The government appears to backtrack on its own earlier proposals for military spending cuts, offering to reduce spending by 100 million euros in 2015 and 200 million euros in 2016. It had earlier suggested to cut military spending by 200 million euros in 2016 and 400 million euros in 2017. The creditors have sought an immediate cut in annual military spending by 400 million euros."
If you don't have a military then you don't have a state.
EP, did you mean to say "if you don't have a military then you don't have a vassal state"? Because, as in most countries, the MIC is there (absent a foreigh invasion) only to protect the state apparatus and the principal elite population that runs it (to their everlasting benefit). Certainly that is the case in Greece.
Three days before the Greek referendum 65 former military generals and colonels published a letter in major greek newspapers insisting their can only be a "yes" vote! It appears now with Tsiparas' inexplicably treasonous u-turn that they indeed knew what they were talking about. And it comes as no wonder that the PM is accordingly pushing against military budget cuts. He got the word.
It's not a done deal yet, it still has to be passed through parliament and a lot of MP's really don't like it. Then you have all the young people who voted 'no' who are going to be very pissed off. It'll be a long weekend in Greece......
Somehow my visual summary was a lot more x rated.
Yes, a picture of a can of worms with some cockroaches crawling around it would be better.
Any chance we could get these reforms passed in the U.S.?
Why not tell the Troika to fuck off (again), exit the EU, go back to the Drachma
And then do all this good shit for the Greek economy!
I bet Greece would be back on its feet in less than a year and a lot better off!
Good luck getting that past Greek parliament.
Good luck getting past the Greek mob as you try to make your way home.
You might be right. I don't see any debt haircuts and without those its just can kicking.
Nea Demokratia and To Potami have already indicated they'll support it.
When is this circus going to end?
No kidding...man am I tired of this...just when you think the show is over, they start another scene...end it already.
What I want to hear is how the Republican establishment is going to get rid of Trump...now that will be interesting!
"What I want to hear is how the Republican establishment is going to get rid of Trump...now that will be interesting"
You need to think a few levels higher than "the Republican establishment", and as far as getting rid of anyone, being suicided, or assassinated by a "crazed lone gunman" isn't really all that interesting, is it?
It's all been done before- nothing new under the sun.
Besides, Trump's a chump.
"Don't put your confidence in powerful people; there is no help for you there." - Psalm 146:3
After they burn the tent down.
Can we now officially concede democracy is dead, and we are officially a global kleptocracy?
"concede democracy is dead"...Tsparis is a fucking Communist...and not even that philosophy can tell the bankers to go to fucken hell...something bigger than "Democracy" has died here...and it stinks to high fucken hell.
Hope smells pretty bad when it rots.
Actually, Tsipras is not a communist, get your facts right.
"Actually, Tsipras is not a communist, get your facts right."
Get yours right dumbass!
Tsipras:
>Tsipras joined the Communist Youth of Greece in the late 1980s.
>After the departure of the Communist Party of Greece from Synaspismos in 1991, Tsipras remained in the coalition. In May 1999 he became the first political secretary of Synaspismos' youth-wing, the Synaspismos Youth.
>Currently a member of Syriza which is a coalition of left groups that includes Communists.
https://en.wikipedia.org/wiki/Alexis_Tsipras#Political_career
It's called cowardice! For most people this is the norm. Humans are rarely willing to die for a principle and will accept untold humiliation and servitude instead. It is the rare moment, and an even rarer leader that can motivate inferiors to rather die for a cause than live enslaved. It is this simple fact that enables sociopathic tyranny.
Here is the real summary - we agree to be debt serfs forever.
Tsipras turned out to be a total failure - but what do you expect of politicians?
If Alex knows it won't pass the parliment then he didn't cave. I retain hope that he is playing a deep game and messing with their minds. Time will tell.
Terminology is spot on. Serfs. A feudal system with a newly entrenched "nobility", who aren't even a little slow to proclaim devine rights.
Fucking weaklings
I am honestly getting tired of all this.
NWO what is the next event to distract us?
They were obviously racist toward bankers so the flag comes down
HA HA HA. This looks worse than BEFORE the No vote. Who the fuck is in charge here ???
You know, its weird. Almost like the world has been taken over by computer programs
and everyone is afraid to stop them because they don't know what will happen.
Or they do know what will happen.
61% said no. when does the majority ever really win in centrally planned "markets".
So by sucking Germany's dick he will get a reprieve fo six months or a year before the same shit happens again. What a loser.
yup. did you expect sth else?
Hard to be a loser when it's you vs everyone.
Double Post.
Told ya he was a commie coward from the very beginning. Little boy in too big pants. Hahahahahaha.
This seems to confirm yesterday's story that Tsipras never wanted, or expected, the NO vote on the referendum. So now he's proceding as if the Greek people had voted Yes, totally selling them down the river.
We'll see if the party hardliners will stand for it, but it looks like the big French and German banks have come out on top (again).
They're government employees what the Hell Do You think their going to do?
They don't give a shit about the country they care about getting their check. If all hell breaks out their on the street, and they will be going thru dumpsters along with the rest.
Think about this. If you hire a realtor to sell your house, is he looking out for your interest or the buyers?
Answer Neither, all he cares about is closing the deal as easily and quickly as possible so he can get his check.
Theatre taxed at 6%. Does that include the last 5 years of the Greek-EU puppet show?
Yes, please make your checks payable to the Troika.
Yes, and a donkey show.
NSA has some "stuff" that Tsipras wants to stay hidden.
I think I'll go to the bank today and ask for a short-term loan to cover my next three years of living expenses, and while I'm there I'll ask them to write down my mortgage balance.
I'm just glad the can will be kicked out of the news after Sunday, so we can focus on how well everything is going in the global eCONomies of this shiny blue marble we inhabit.
Sunday night will be rainbows and unicorns as the moneychangers and their mouthpieces declare all is fixed again.
Then the cold harsh reality of the shitty Jobs numbers in U.S.A. and lousy earnings numbers coupled with China only being able to open 1/2 of it's stock market, and short sellers being executed will set upon us again.
Big Picture: Privatization of Ports and Telecom. Everything else is mostly just about fake paper. Where's the part about the loans being secured by Greece's gold? "Loan to Own".
FEUDALISM 2.0 -- The Global Game.
Where the Jedi Mind Trick gets sheeple to sell their real assets and national wealth for private chits (paper or digital Obligations), conjured out of Thin Air.
And where (on the flip side) the Elite/Predators/Oligarchs (who do NOT pray to a pacifist, hippie god) acquire said Rent-generating Assets, to perpetuate their trans-generational lifestyle of luxury and exceptional entitlement.
"Rent-generating assets". Nail on Head, Kirk.
+1000. for all the clear linkage!
will this betrayal make it thru parliament?
It's a good thing money can be transferred electronically because Greece(Tsipras) would have a hard time explaining to his people why the bailout funds never left the ECB, Troika, IMF vaults, and they got billed for it.
And It's gone.
I see new highs coming in the US indexes after this "fix" is accepted.
I am totalling up the left side of the chart (Taxes) and it adds up to 70% taxes.
Does anyone even remotely think that people will keep working if they have to live on 3 out of 10 Euros they earn?
I realize your numbers will likely show a 42% tax rate.
But despite the legal fiction, a corporation is not actually a person. It doesn't have any life of its own to expend in trade. So any tax it pays comes from either shareholders, customers, or employees. All three groups are Greek citizens. And every Greek will fall into one of those three categories.
So I am saying that a 28% corporate tax is actually a 28% personal tax and should be added to the other taxes.
That's not going to work. There will be no growth.
When an economy that relies on the luxury of tourist for most of it's income.. well when the rest of the world is stagnating, no growth is expected.
Lucky Tsipras was not born during the shogunate period, his shogun would ask that he kills himself.
Wrong island.
I could use a nice false flag to distract me from this terminally boring shit show.
Finally it is all clear now and under control. Let's go on summer holiday now !
GS, Soros et tutti quanti will take care as usual.
More taxes, less services, sell profitable businesses, end result: still never paying off the debt. Iceland needs to start consulting services.
http://www.truth-out.org/news/item/26112-an-economic-hit-man-speaks-out-...
http://www.johnperkins.org/greece-a-prophecy-fulfilled/
Bleed for me turnip, I said BLEEEEEED!!
Greek socialism needs more of other peoples' money to survive, sounds about right.
Greeks voted "No" and it meant nothing. Just like here in the US. Secret deals, trade agreements, fraud all over. And yes, remember to vote.
Luxury tax on vessels? Damn it, I was planning on getting a large Abramovich type James Bond yacht from Greece but I guess I will have to buy it from somewhere else...
Ironic, but Abramovich's yacht was built in GERMANY.
touche!
Basic (Food, Water, Energy) VAT @ 13%. Am I correct to assume that Greece has an obesity problem?
<--- Bail out the people.
<--- Bail out Goldman Sachs.
So here is the BIG QUESTION....
WHAT'S THE PENALTY IF THEY DON'T DO ANY THESE REFORMS?
This is all useless. Its time for Greece to back their debts with hard cold assets, if they don't pay up. Forfeiture of assets.
Enough of this nonsense. Its been going on now for 200 years, how many more years must pass by? 200 years is enough.
Rape --- when NO means YES.
"The more the plans fail, the more the planners plan." - Ronald Reagan
Nice Country you got there... Shame if something were to happen to it - or YOU!
Extreme Predjudice...
Looks like the fix for Greece is from semi-socialism to all out nationalization, ownership brought to you by the International Elites.
I am getting way to much information on solving this Greek tragedy...let's focus on something else...