The group of experts from the European Commission, European Central Bank and International Monetary Fund began their regular inspection of the Greek economy on Thursday, ahead of a decision to approve payment of the fourth tranche of a loan, worth 15 billion euros, to the country next month.
They will be checking on whether Greek authorities have pushed through the necessary reforms to secure the fourth installment of a multi-billion-euro rescue package, due in March.
The visiting officials will be focusing on reforms to labor relations, loss-making public companies and the opening up of so-called closed professions.
Speculation has mounted that they will ask the government to take more austerity measures to curb a ballooning budget deficit and raise some 12 billion euros in much-needed revenue between 2012 and 2014.
Sources have said that measures being pushed through by the Finance Ministry to boost revenue – including plans for harsher penalties for tax evaders – have faced resistance from within the ruling party, notably from Justice Minister Haris Kastanidis, who is worried that tougher penalties will lead to further overcrowding in the country’s cramped jails.
While Finance Minister Giorgos Papaconstantinou wants tax evasion to be classified as a crime when it involves 50,000 euros or more, Kastanidis wants this to apply to cases involving 80,000 euros or more, noting that a lower threshold would result in Greek prisons filling up with “tax evasion suspects awaiting trial”.
The heads of the European Commission, European Central Bank and International Monetary Fund are expected to arrive in Athens next Monday.
The government plans to cover one-third of the 12.77 billion euros from raising revenues and two-thirds of the money from cutting spending.
Sources: ANA, Kathimerini
