Athens News Agency: Daily News Bulletin in English, 15-07-15

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From: The Athens News Agency at <http://www.ana.gr/>

CONTENTS

[01] Omnibus bill with prior actions submitted to parliament

[02] Debate on draft omnibus bill to be passed by Wednesday night

[03] Greek gov't to table legislation on prior actions in parliament

[04] Tax measures in omnuibus bill to increase revenues by 3.175 bln euros annually

[05] M Tsipras: Greece was pressured at summit but deal could allow Greece to avoid Grexit

[06] Independent Greeks leader Kammenos: We support the government

[07] ANEL leader Kammenos says his party rejects deal with lenders, but supports PM Tsipras

[08] PASOK leader Gennimata says party will vote prior actions in omnibus bill

[09] State Minister Flambouraris: The intention of reactionary forces is to humiliate and divide us

[10] Productive Reconstruction Min Lafazanis' statement on the agreement

[11] Interior Minister Voutsis: There can be policies that will counterbalance the painful measures

[12] European Commission examines emergency bridge loan to Greece

[13] Greece's ESM loans could be 40-50 bln if country 'sticks to programme', EU official says

[14] European Parliament head Schulz says Greek government will implement reforms

[15] Schaeuble: Greece's ECB, IMF obligations 'take precedence' over pensions and wages

[16] Leadership of Germany's Greens to Athens on Wednesday; Socialists, Greens criticise Schaeuble

[17] Austria's finance minister says he never backed 'Grexit'

[18] Potami's Theodorakis pledges to support measures to keep Greece in euro

[19] KKE leader on lastest developments

[20] FM Kotzias to visit Kosovo on Tuesday

[21] Draft bill for private broadcaster licences to be tabled by end week, minister says

[22] Health minister bans export of 25 types of drugs to prevent shortages

[23] Banks will open once ELA financing is restored, Economy Min. Stathakis says

[24] Greece did not make deadline for SDR funds return, IMF spokesman says

[25] Greece receives three bids for hydrocarbon research and exploitation

[26] Labour ministry says inflow of revenues in social security funds is 'satisfactory'

[27] Greek state budget primary surplus up in Jan-June

[28] Greece repays 148-mln-euro samurai bond

[29] ADEDY calls 24h strike on Wednesday

[30] Greek rail workers to stage 24-our strike on Wednesday

[31] Free public transport measure to end from Wednesday, Transport Min. announces

[32] Fair on Wednesday

[33] The Tuesday edition of Athens' dailies at a glance Politics

[01] Omnibus bill with prior actions submitted to parliament

The bill includes two articles: The first one is the statement of the summit meeting in Brussels and the second has a list of prior actions that concern taxation and social security measures.

According to the article 109 of the parliament's regulation, "draft bills which are tabled by the government through a fast track procedure under the article 76 par. 4 of the Constitution, are immediately referred to the appropriate Parliamentary Committee" and "the Parliament President sets an appropriate deadline for the submission of the commission's report, according to article 89 par. 4."

If the committee accepts the fast track procedure, it examines the bill and immediately submits its report and it is placed as a priority on the daily agenda. Debate in parliament is concluded in one session which may last for a maximum of 10 hours.

[02] Debate on draft omnibus bill to be passed by Wednesday night

Discussion will begin at 10:00 in a joint session of the four relevant Parliamentary Committees using fast-track procedures, which means the entire bill must be processed within 10 hours.

The session is expected to last until 14:00 at the latest before the draft legislation is turned over for discussion before the plenum, leading to a vote on Wednesday night.

[03] Greek gov't to table legislation on prior actions in parliament

More analytically, the government will introduce three VAT rates (6.0 pct, 13 pct and 23 pct), with the lowest rate including pharmaceuticals, books and theater tickets, the 13 pct rate will include all fresh foods, energy (PPC rates, natural gas), water and hotels, while the highest 23 pct rate will include all processed food, transport, restaurants, repair services, medical services.

The draft legislation will also envisage a gradual abolishing of a special VAT rate in Aegean islands, maintaining this status only to remote islands by the end of 2016. As a countermeasure the government will offer income support to the financially weaker citizens of these islands.

The new legislation will also envisage raising a solidarity tax rate by 0.7 pct to 8.0 pct depending on income level, raising a luxury tax to 13 pct from 10 pct for vehicles with an engine of more than 2,500 cc, pools, aircraft and boats with a length of more than 5.0 metres. The government will also change taxation on farmers, raise a corporate tax rate to 28 pct from 26 pct and raise a tax advance payment for enterprises to 100 pct.

[04] Tax measures in omnuibus bill to increase revenues by 3.175 bln euros annually

According to the report, the estimations of the revenues collected by the tax measures are the following:

2.390 billion euros from the changes in VAT (795 million euros in 2015)

75.6 million euros from a tax hike in premiums for fire and car insurance

410 million euros from the tax on businesses

48.5 million euros from luxury tax and recreational boats over 5 meters in length, as well as the tax hike from 10 pct to 13 pct for cars with over 2,500 horse power

251 million euros from the increase in a special solidarity levy rates for incomes over 30,000 euros

445 million euros from the increase in advance tax payment for companies and other legal entities

[05] M Tsipras: Greece was pressured at summit but deal could allow Greece to avoid Grexit

"Last night was a bad night for Europe," Tsipras said commenting on the Summit meeting which ended on Monday morning in Brussels, adding that the way Greece was dealt with "does not honour the tradition of a democratic Europe".

"I tried with the strength of all my soul to claim as much as I could," he revealed, noting that he won't escape his responsibilities.

Commenting on the final deal, he said: "The result of the summit meeting and the Eurogroup is the result of a pressure put on a country to approach the wished of the more powerful countries of Europe."

He clarified, however, that the choices presented to Greece were either an agreement with these conditions, or a disorderly bankruptcy and eventually an exit from the Eurozone. "We got an agreement which includes harsh reforms, but it does not include the complete dead end of the ultimatum we were presented with in July."

The premier admitted that this was not an easy decision for his 18 counterparts, but focused on the silver lining on the deal, which secures funding for the country and covering of the country's medium-term loan obligations.

"Now I have this result, but we also have 82 billion euros, coverage of our country's medium-term borrowing needs and a clear commitment to discuss debt restructuring from 2022 onwards in the immediate future," he noted.

Tsipras also said the deal will secure the recapitalization of Greece's lenders and a front-loaded investment programme totaling 35 billion euros.

"It's a combination which - if it is achieved - we could avoid a Grexit and provide a prospect of recovery for Greece," he said.

[06] Independent Greeks leader Kammenos: We support the government

"The coup d'etat continues in Greece. Some wish the government to fall and to bring a government not selected by the Greek people. We will not allow a coup d'etat. The government has the Greek people's mandate" added Kammenos.

"Independent Greeks support the government. We will vote in parliament the measures agreed at the political leaders' meeting" he clarified.

[07] ANEL leader Kammenos says his party rejects deal with lenders, but supports PM Tsipras

"This deal which brings some very different data; it refers to 50 billion euros of guarantees in state assets, changes in legal provisions, such as the Civil Procedure Code that will result in home foreclosures, it refers to a complete collapse of constitutional values and we cannot agree with it," Kammenos, also the National Defence Minister, told journalists following a meeting with Prime Minister Alexis Tsipras at Maximos Mansion.

He also clarified that his party would stay in the government coalition with SYRIZA to fight "but will not accept to participate in a government of a so-called national purpose."

He noted the deal achieved in the early hours on Monday is very different from the one to which the council of political leaders and the parliament agreed upon.

Kammenos recognized, however, that considering the circumstances, Tsipras didn't have many choices. "[Tsipras] couldn't have done anything else with this blackmailing dilemma which was put to him last night by the lenders."

[08] PASOK leader Gennimata says party will vote prior actions in omnibus bill

"It was decided PASOK will vote in favour of the prior actions in parliament - but it is made clear that the responsibility for the management and implementation of the measures falls on the prime minister and SYRIZA," she said.

Gennimata also called on Alexis Tsipras to act decisively and bravely for his government, lawmakers and the smooth operation of the parliament.

[09] State Minister Flambouraris: The intention of reactionary forces is to humiliate and divide us

Flambouraris' full statement follows:

"Some insist to lead the country outside the eurozone. Although the coup d'etat against the Greek government was prevented at the EU Summit, the extreme anti-European forces that attempted it do not stop. The Greek people should be aware that the prime minister and the Greek delegation gave a hard battle in Brussels and did not succumb to the blackmail and the attempts to overthrow Alexis Tsipras and the government.

The Greek people, independent of the party we belong, we must feel the danger for our country. We must understand the intention of the reactionary forces to humiliate us, to divide the people and to devastate the country. To not deliberately or unintentionally contribute in the success of such plans.

[10] Productive Reconstruction Min Lafazanis' statement on the agreement

Lafazanis said that the government's agreement with the institutions is "unacceptable" and a radical party as SYRIZA and a fighting government that promised the cancellation of the memorandums and the austerity does not worth to bear the cost.

The so-called partners said Lafazanis is first of all the German establishment "treated our country as if it was their colony and as ruthless blackmailers and "economic murderers" and with this "deal the people's mandate and the 'proud NO' of the Greek people in the referendum is cancelled".

This agreement may pass in parliament with the contribution of New Democracy, PASOK and Potami deputies' votes, noted Lafazanis underlining that "it will not pass from the people that will cancel it in practice with unity and struggles".

According to Lafazanis, Greece had and has an alternative solution and concluded "the creditors' dilemma compromise or disaster is fake and has collapsed in the people's conscience".

[11] Interior Minister Voutsis: There can be policies that will counterbalance the painful measures

He also said "The difficult and bad agreement worries me, but we will support it and the prime minister that took the responsibility knows it. We will all take the responsibility to support an agreement to which we must find social anti-measures that will give a perspective to the people to avoid a further humanitarian crisis".

[12] European Commission examines emergency bridge loan to Greece

European Commission is examining the options of the emergency bridge loan to Greece, according to European Commission spokesman Margaritis Schinas.

Schinas said that options exist, as the bilateral loans and the funds from the EFSM which was established in 2010 and refers to all 28 EU member states.

[13] Greece's ESM loans could be 40-50 bln if country 'sticks to programme', EU official says

If Greece fully implements the measures envisaged in the 3rd bailout programme, the total amount in loans that it may need to draw from the European Stability Mechanism will not exceed 40-50 billion euros, a European official said here on Tuesday.

The official noted that part of the 82-86 billion euros referred to in the July 12 Eurozone summit statement would in any case come from the International Monetary Fund (IMF). He also suggested that the remainder in the ESM might not have to be used entirely, predicting that Greece would gradually gain access to the markets if it fully implemented the austerity measures as of the second half of 2016.

[14] European Parliament head Schulz says Greek government will implement reforms

European Parliament President Martin Schulz said on Monday he is confident the Greek government will do whatever it takes to implement the necessary reforms, according to statements made on German talk show "Brennpunkt" of public broadcaster ARD.

"It doesn't make sense to take this step now and discuss the same things a year from now. All those who closed the deal, but especially the government in Athens have the obligation to do everything they can," he noted.

He added that the deal Prime Minister Alexis Tsipras got in Brussels on Sunday is worse then the deal he could have got two weeks ago if he had accepted the proposal of European Commissioner President Jean-Claude Juncker.

However, he noted, Tsipras is the strongest prime minister of the last decades in terms of domestic support and he can impose the reforms.

"If someone is in a position to impose the reforms, then it's him. If he says now he wants to implement them - and considering the country's plight he must - then I believe he will do it, especially if in the next few hours he approaches the parties in the opposition and secure a wide front of support for his line and policy," the German official said.

[15] Schaeuble: Greece's ECB, IMF obligations 'take precedence' over pensions and wages

In statements concerning efforts to find bridge loans for Greece in the short term, Germany's Finance Minister Wolfgang Schaeuble on Tuesday said that European leaders had decided that Greece's obligations to the International Monetary Fund (IMF) and European Central Bank (ECB) take precedence over wages and pensions in the country.

He had been asked whether financing will be released to cover needs within the country.

In statements after meeting EU finance ministers at an ECOFIN Council, Schaeuble stressed that an agreement for a bridge loan to Greece must be found by Monday "in order to avoid bigger problems." He again emphasised the need to restore trust between the Greek government and its EU partners.

"For some years now, since 2010, they have destroyed a great quantity of trust. It is not the last government that is solely responsible. The issue is, however, how long you can do this without destroying the credibility of Europe," he said.

Schaeuble said that it was up to Greece to take the actions that must be taken, while noting that there was still a danger for the outcome of the negotiations for a third bailout, which he predicted would be protracted and difficult.

Asked about the possibility of elections in Greece, Schaeuble replied that there was an agreement that in each stage of the negotiations the "decisions of a country must be implemented, regardless of domestic developments."

On the Grexit proposal he presented to the Eurogroup, the German finance minister said that he had done this because many people in the German government believe that this is in Greece's best interests and the best solution, while admitting that no one could be absolutely certain.

[16] Leadership of Germany's Greens to Athens on Wednesday; Socialists, Greens criticise Schaeuble

The leadership of Germany's Green party, Simone Peter and Cem Ozdemir, are to arrive in Athens on Wednesday for talks with Greek government officials, the party announced on Tuesday.

They will also meet members of Greece's Green party and other parties, while attending Wednesday's session of the Greek Parliament.

In Germany, meanwhile, German Finance Minister Wolfgang Schaeuble came under intense criticism from the SPD's economic expert Carsten Schneider, who accused him of seriously mishandling the negotiations on Greece's bailout by presenting his 'Grexit' plan, which Schneider said had isolated Germany in Europe.

Speaking to ARD, Schneider accused Schaeuble of resurrecting the spectre of the "very harsh Teuton," and added: "I cannot see how what Mr. Schaeuble did was useful."

While the finance minister genuinely wanted Greece's exit from the euro, he said, the SPD considered this outcome highly risky and did not share this goal, while the German Chancellor Angela Merkel also had other balances in mind.

The temporary Grexit proposal was similarly harshly criticised by the German Green party Die Grunen, which said it was a "historic mistake" of the German government and called the plan both unacceptable and unconstitutional, given that the Bundestag had not been informed.

[17] Austria's finance minister says he never backed 'Grexit'

Austria's Finance Minister Hans Joerg Schelling, usually considered among the 'hawks' on the issue of Greece, on Tuesday stressed in an interview with Austrian state radio that he had steadfastly been opposed to Grexit.

Schelling said that he had always considered Greece's departure from the euro the "worst of all solutions" and for this reason had made efforts for an agreement.

Schelling said that the idea of a Grexit - especially the 'temporary' Grexit proposed by the German finance minister - should only have been raised in case of an extreme emergency and after a final agreement failed to be reached, adding that the best way would have been to achieve a solution together with Greece.

He said the Grexit plan was 'off the table' for the time being and that the ball was now in Greece's court, where the Greek government needed to get a majority in Parliament to back the measures envisaged by the agreement. If this was achieved, it would be a strong confidence-building measure showing that Greece was prepared to implement the programme, he added.

On a bridge loan for Greece, Schelling said that there were various options and that a combination will probably be nececessary, adding that Eurozone finance ministers will discuss the conclusions of the working group in a Wednesday' conference call.

[18] Potami's Theodorakis pledges to support measures to keep Greece in euro

"For us there is no dilemma. We will vote in favour of the measures that the prime minister has promised our partners," he said and stressed that there was no room for wavering between national and party interests.

While saying he could respect a reluctance on the part of MPs to vote in favour of the measures, he said that those disagreeing should resign from their seat in Parliament, not stay on the grounds that the measures will pass with the support of the opposition parties.

"The role of an MP comes with responsibility. It is not enough for someone to be an MP for the salary, the privileges, the presidency or vice-presidency," he pointed out. "It is not possible for the prime minister to make an agreement and some people to undermine this."

Theodorakis also stressed that Greece needed reform and change, saying that the prime minister must make clear which forces he intends to move forward with and ruling out Potami's participation in a SYRIZA government.

"We will support whatever we agree is for the benefit of the many. When we don't agree, we will say so. We keep our cards open and the question is whether we agree to the things Tsipras agreed to or not. Potami says 'yes'," Theodorakis said.

In an earlier meeting, according to sources, Potami MPs agreed to support a censure motion against Parliament President Zoi Konstantopoulou but said that the initiative must be taken by the prime minister. They also rejected a situation where the opposition parties supported measures not backed by the ruling majority in Parliament.

[19] KKE leader on lastest developments

[20] FM Kotzias to visit Kosovo on Tuesday

Mr. Kotzias will then meet, at 16:30 (local time), with Deputy Prime Minister and Foreign Minister Hashim Thaci. Following their one-on-one meeting and the expanded talks between the two delegations, statements will be made to news media representatives.

[21] Draft bill for private broadcaster licences to be tabled by end week, minister says

He stressed that it was the Greek government's promise to the Greek people to "stop the irregular relations between governments and media moguls."

Speaking on the public broadcaster ERT, Spirtzis said the draft bill will have two parts, one dealing with the maximum number of licenced channels and the second with the frequencies and the operation of the National Commission for Telecommunications and Post Offices (EETT).

The minister said that the licences will be put up for tender and awarded to the highest bidder, while some may be left out if they offer too low a price. Replying to questions, he said that specifications for how each television channel will operate will be outlined and that each channel will henceforth have a permanent, rather than temporary, licence to operate.

He noted that this would eliminate the "political bargaining" for the renewal of licences.

[22] Health minister bans export of 25 types of drugs to prevent shortages

The decision was taken following an in-depth inspection by the National Organisation of Pharmaceuticals after pharmacists raised the issue of shortages during a meeting at the health ministry.

Financial News

[23] Banks will open once ELA financing is restored, Economy Min. Stathakis says

"This will happen as soon as the parliaments in Greece, Germany and elsewhere vote in favour of the new agreement," he added.

He said that the lifting of capital controls might take longer, up to around two months, because it was a more complex issue, while he ruled out all chances of a 'bail-in' that would reduce bank deposits, pointing out that the agreement called for a 25 billion euro recapitalisation of Greek banks.

On the 'privatisation fund' for Greek assets up to 50 billion euros that is to be set up in Athens and whether it was possible to raise that amount, Stathakis said the new fund would operate more as a 'guarantee fund' than a fund for large-scale privatisations that were clearly not possible.

He also predicted that the extent of austerity demanded under the new programme will be significantly less, since it called for smaller primary surpluses.

[24] Greece did not make deadline for SDR funds return, IMF spokesman says

IMF spokesman Gerry Rice made the following statement:

"The SDR 360 million principal repayment (about EUR 456 million) due by Greece to the IMF today was not received. We have informed our Executive Board of this development. Greece's arrears to the IMF total SDR 1.6 billion (about EUR 2.0 billion) to date.

"The request by the Greek authorities for an extension of the repayment obligation due on June 30th is expected to be discussed by the Executive Board in the coming weeks."

The SDR funds are reserve funds the member-states have access to and are expected to return. Greece made use of these to pay a May 12 loan installment.

[25] Greece receives three bids for hydrocarbon research and exploitation

The ministry said the tender "taken place in today's difficult conditions prevailing in the oil market, [the tender] can be considered as a positive step in the country's effort to exploit its subsea resources."

The names of the companies bidding as well as the blocks for which they are interested will be announced when the bids are unsealed, the ministry said.

Hellenic Petroleum has officially stated they would participate in the tender, while sources are mentioning two more companies, of Italian and French interests.

[26] Labour ministry says inflow of revenues in social security funds is 'satisfactory'

"During the meeting we concluded that despite the economic asphyxiation caused by the closure of banks, the smooth and satisfactory inflow of revenues is continuing in social security funds, due to the welfare contributions and people's participation in the debt installment scheme," the ministry said in a statement.

It also said that pensions will be paid in time and without problems.

[27] Greek state budget primary surplus up in Jan-June

According to preliminary budget execution data, on an amended cash basis, the state budget showed a deficit of 1.422 billion euros in the six-month period, from a deficit of 2.419 billion euros last year.

Net budget revenue totaled 21.820 billion euros, down 4.0 pct from targets, while regular budget revenues totaled 19.791 billion euros, down 7.8 pct from targets. Tax returns reached 1.328 billion euros in the six-month period, down 123 million euros from targets. Public Investment Program revenue surpassed targets by 759 million euros to 2.029 billion in the January-June period.

In June, net state budget revenues fell 10 pct from targets, while regular budget revenues dropped 20 pct from monthly targets and tax returns fell short of targets by 19 pct. Public Investment Program revenues grew by 342 million euros.

State budget spending totaled 23.242 billion euros, down 4.090 billion euros from targets, while regular budget spending reached 22.088 billion euros, down 3.044 billion from targets. Regular budget spending fell short by 6.7 pct from targets, while Public Investment Program spending reached 1.154 billion euros, down from a budget target of 2.20 billion and down by 1.208 billion euros compared with the same period last year.

In June, state budget spending reached 3.218 billion euros, down 1.462 billion from monthly targets, while regular budget spending totaled 3.035 billion, down 1.104 billion from targets.

[28] Greece repays 148-mln-euro samurai bond

General News

[29] ADEDY calls 24h strike on Wednesday

ADEDY has also called a rally at 11:00 and a demonstration outside the Greek parliament on Wednesday at 19:00.

Moreover, labour union PAME (affiliated to the Communist Party) will also hold a rally at 19:30 on Wednesday at Omonia Square, downtown Athens.

[30] Greek rail workers to stage 24-our strike on Wednesday

Tonight's services will also be cancelled, the union announced, adding that metro trains will stop at Doukissis Plakendias station.

The Athens metro also announced it will not be running between the start of the shift and 09.00 am as workers stage a "warning" strike against the government's deal with Greece's lenders.

"The austerity storm continues even under the 'leftist' government of Tsipras, in the logic of leveling of labor rights and economic bloodletting," their union SELMA said in a statement which urged workers to participate in Wednesday's rallies.

The tram will operate normally.

[31] Free public transport measure to end from Wednesday, Transport Min. announces

This means that anyone using the city's buses, trains, trams and metro lines on Wednesday onward will once again need either a ticket or a travel card to travel.

Weather forecast

[32] Fair on Wednesday

[33] The Tuesday edition of Athens' dailies at a glance

DIMOKRATIA: Funeral bells. National wealth a mortgage to Gestapo's Fund for 30 years.

EFIMERIDA TON SYNTAKTON: Vertigo. Rapid developments after the agreement in Brussels.

ELEFTHEROS TYPOS: Turmoil in Maximos mansion.

ESTIA: Populism has heavy price.

ETHNOS: Government and SYRIZA on quicksand.

IMERISSIA: Crucial 48 hours.

NAFTEMPORIKI: The Grexit was extremely close.

KATHIMERINI: Hours of trial and responsibility.

RIZOSPASTIS: The people will organise their counterattack to stop their bankruptcy.

TA NEA: The memorandum's piggy bank

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