Leaked proposals: Everything Greece wants, and what its creditors changed
As tensions escalated between Greece and its lenders, the inevitable happened: a four-page document originally produced by Greece but edited heavily by its creditors was leaked.
The document includes dozens of changes on proposals from VAT reform to fiscal structural measures and pension reforms.
An agreement over the document would unlock the €7.2bn Greece needs to make a payment of €1.6bn to its lenders later this month.
Here's what it wanted.
What Greece wanted |
What its creditors want |
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1. Supplementary Budget |
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| The document starts well, with Greece pledging to adopt budget surpluses of one, two, three and 3.5 per cent of GDP in 2015, 2016, 2017 and 1028 respectively. | Not many changes here – apart from some intriguing brackets around Greece's proposal to adopt changes from 1 July |
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2. VAT reform |
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| Greece wants to target a net revenue gain of 0.74 per cent of GDP through VAT reforms. VAT will be hiked to 23 per cent as standard, 13 per cent for "basic" food, energy, water, catering/restaurants and hotels, and a "super-reduced" rate of six per cent on medical supplies, books and theatres. | Here's where the argument begins. The creditors have crossed out 0.74 per cent and inserted the number one. They've also added "unprocessed" instead of "basic", crossed out "catering/restaurants" and changed "medical supplies" to "pharmaceuticals". |