Greek government lays out its red lines on labour & social security reform

Greek government lays out its red lines

Broad differences are expected to remain between the two sides on a number of issues going in to Monday’s Eurogroup.

Thanos Tsiros

The Greek team of negotiators and the representatives of its creditors will submit two separate reports according to sources in the prime ministerial mansion of Megaro Maximou.

“The technical teams will not negotiate or engage in critiques of positions. They will register the points where there is convergence and identify divergences. On Monday therefore, at Eurogroup there will be two equal and equivalent texts – one of the Greek side and one of the Commission. The texts will allow the two sides to see directly on what issues there are disagreements are where there are agreements.”

That is what sources from Megaro Maximou said a short while ago, essentially signaling that in Monday’s Eurogroup the negotiation – which will then take place at the political level – will begin with both sides diverging significantly on a number of issues. The Greek text, as sources close to the prime minister state, will outline the ‘red lines’ of the country which can be summed up as follows:

  • The troika is finished as a model of monitoring, overseeing and implementing policies.
  • Policies which have failed must be abandoned. A reduction in the primary surplus target is an unwavering demand. At the same time the Greek side will not discuss labour deregulation nor privatizations. “The wealth of the Greek state cannot be sold off. On the contrary it can be exploited for wider social benefits, for example, for the benefit of the social security system,” Megaro Maximou sources say.

Significant differences between the two sides are expected to crop up on issues such as health care reform, public and private sector layoffs and social security. On the other hand broad agreement is expected to be found in the areas of combating corruption, tax evasion and public sector reform.

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