What does Tsipras offer in latest proposal?

Market is all rosy about new Greek proposal which is likely to gain a nod from European creditors. Some European officials went further ahead saying that a deal could be sealed on Saturday.

European Central Bank (ECB) has warned participants that it needs more than just an acceptance of the proposal to continue negotiation, it requires concrete steps from both sides to ensure that a deal will be sealed and ECB payments will be honored.

What Tsipras offering in this new proposal?

Tsiparas asked for a € 53.5 billion bailout package for next three years.

• Primary surplus targets will be 3.5% by 2018.
• Tax rise on shipping companies.
• Scrapping triple tier VAT system and unify VAT rates at standard 23%.
• Government stands ready to phase out solidarity grant for pensioners by 2019.
• €300 million cut in defense spending.
• Privatization of ports and sell off OTE (telecom giant) shares.
• Scrapping 30% tax break (previously sought) for wealthiest islands.
• Will raise retirement age to 67 by 2022.

Moreover, the proposal along with a letter from Greek finance minister Tsakalotos explicitly says that Greece wants to remain in Euro zone.

Grey areas -

• As of now, it is not clear what path will be taken to reach a primary surplus of 3.5% by 2018.
• Greek government still insists on different tax/VAT rates for remote islands.
• Greece will implement 2012 pension reform in October 2015, while demands immediate action.