Samaras to unveil tax breaks at TIF despite lack of troika deal

Prime Minister Antonis Samaras intends to herald a raft of tax relief measures during his speech at the Thessaloniki International Fair (TIF) on Saturday morning despite the fact that troika representatives meeting with government officials in Paris had not given their approval for such concessions by late on Thursday night, Kathimerini understands.

A statement issued by the troika on Thursday referred to “productive discussions” with Greek officials. But the issues raised in the talks – including fiscal adjustment, labor reforms and a civil service overhaul – are to be continued when foreign auditors return to Athens later this month for their next review.

A key bone of contention is the fiscal gap for next year – which the government estimates at 900 million euros but the troika puts at 2 billion, and the ways the gap will be bridged. The matter is to be a key focus of discussion in the coming days as government officials begin preparing the draft budget for 2015, which must be submitted to Parliament by October 6.

The question of Greece’s funding needs, and the sustainability of its debt, are to be on the agenda of a meeting with troika representatives in Washington in mid-November, according to reports which indicated that the International Monetary Fund had proposed the initiative though there was no official confirmation on Thursday that such a meeting is on the cards.

Despite failing to secure the green light from the troika, Samaras is said to be set on pressing forward with his goal of heralding tax relief unilaterally, sources indicated. In his speech opening the TIF on Saturday, he is expected to announce a 30 percent reduction to a consumption tax on heating oil and a 50 percent cut in a solidarity levy on income. He is also...