Greece backtracks on ‘red lines’ to get agreement

The Greek government seems as though it has completely abandoned its red lines, -not reducing auxiliary pension benefits (EKAS), increasing pension ages etc- as new Finance Minister Euclid Tsakalotos has reportedly submitted a set of proposals to the EU institutions for a 3-year bailout plan that includes harsh measures, the exact details of which are expected to be fine tunes in the next hours. According to information, the amount Tsakalotos will ask from the EU could range between 40 and 70 bln euros. The final loan remains to be seen depending on the measures the Greek government is willing to commit to –budget surpluses, bail-ins etc) in order to proceed forward. Athens will present a series of measures on Monday or Tuesday, committing to reforming the pension system and agreeing on tax hikes. The immediate implementation of these measures will allow for a release of 7 bln euros within the upcoming week.