Athens is banking on five reforms
The European Commission is reportedly looking for ways to include returns from European central banks' profits from Greek bonds they bought through the Securities Market Program (SMP) and the Agreement on Net Financial Assets (ANFA) as budget revenue.
Including the amount, about 1.2-1.3 billion euros annually, would indirectly help reduce Greece's primary budget surplus target from the equivalent of 3.5 percent of the country's gross domestic product to below 3 percent, the Commission estimates.
If this is approved, it would create significant breathing space for the government to implement its promised growth-boosting tax cuts.
However, the return to Greece of profits from the bonds bought under SMP and ANFA is conditional on the implementation of reforms. Thus, the government is compelled to fast-track these reforms.
The government is betting on five...