15th July stands as next deadline in Greek crisis

Lot of happenings over Greece over the weekend.

• As expected, Greece didn't get the deal it was seeking to seal. Germany and Euro zone leaders prevented a deal, since the reforms proposed remains inadequate to secure a third bailout.

• Bailout amount need to be raised for next three years. It needs to be around € 87 billion.

However, Greece needs to take following steps before the negotiation and release of funds might take place and deadline for taking such steps is on Wednesday. Passing these sets of reform might release funds which will prevent Greece from defaulting the European Central Bank (ECB) repayment and payback IMF due.

List of reforms, Greek parliament need to pass by 15^th July, Wednesday.

• Streamlining of the VAT system and the broadening of the tax base to increase revenue.
• Up front measures to improve long-term sustainability of the pension system as part of a comprehensive pension reform program.
• Safeguarding of the full legal independence of ELSTAT.
• Full implementation of the relevant provisions of the Treaty on Stability, Coordination and Governance in the Economic and Monetary Union, in particular by making the Fiscal Council operational before finalizing the Memorandum of understanding (MOU).
• Introducing quasi-automatic spending cuts in case of deviations from ambitious primary surplus targets after seeking advice from the Fiscal Council and subject to prior approval of the Institutions.

This will mean that Greece loses its fiscal autonomy so expect many lawmakers in Greek parliament including within ruling party to oppose the deal.

Another deadline is set now. That is 15^th July and on 20^th July Greece need to repay ECB € 3.5 billion.