Eurozone Leaders Reach Greek Deal: Live – Wall Street Journal (blog)

Zuma Press
The tough package of reforms to approve by Wednesday are just the ‘minimum’ creditors are expecting. 

Per the deal terms, among the measures Greece needs to have approved by Wednesday is the creation of a scaled-up privatization program into which high-value Greek assets will be transferred and sold. That was a particular sticking point in the overnight negotiations.  The fund at least, will be managed in Greece, and not in Luxembourg as Germany had initially proposed. 

Among others, per the document (and this isn’t the full list) are:

– carry out ambitious pension reforms;

 – on energy markets, proceed with the privatization of the electricity transmission network operator (ADMIE), unless replacement measures can be found that have equivalent effect on competition, as agreed by the Institutions;

– on labor markets, undertake rigorous reviews and modernization of collective bargaining, industrial action and, in line with the relevant EU directive and best practice, collective dismissals, along the timetable and the approach agreed with the Institutions. 

– adopt the necessary steps to strengthen the financial sector, including decisive action on non-performing loans and measures to strengthen governance of the Hellenic Financial Stability Fund and the banks, in particular by eliminating any possibility for political interference especially in appointment processes.

– To modernize and de-politicize the Greek administration. A first proposal should be provided by 20 July after discussions with the Institutions. 

These are further measures, and the creditors make it clear that these are “minimum requirements to start the negotiations with the Greek authorities.” 

 

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