Euclid Tsakalotos

Greece's creditors are expected to assess the government's plans for handouts based on projections of the fiscal space available, in the context of the spring forecasts the European Commission is set to publish on Tuesday.

For three days, 8-10 May, Greek politics will be focused on a vote of confidence that will be held on 10 May
Prime Minister Alexis Tsipras has invoked his parliamentary right to turn New Democracy leader Kyriakos Mitsotakis' no-confidence motion against his alternate health minister Pavlos Polakis into a vote of confidence in the government.

Greece unveiled draft legislation on Sunday intended to provide relief to millions of Greeks with tax and pension contribution arrears, offering discounts to amounts owed and stretching out payment plans by up to 120 monthly installments.

Finance Minister Euclid Tsakalotos on Thursday said he is planning to meet with Prime Minister Alexis Tsipras on Saturday to decide on the handouts the government will be announcing next week, in an effort to capitalize on the primary surplus overrun projected for this year, according to figures forwarded to the European Commission.

With the government under fire from the opposition over a slew of pre-electoral hand outs and social benefits - the latest batch is scheduled to be announced next week - Finance Minister Euclid Tsakalotos said that the government is merely doing what it had promised in 2015.

The government's decision to reverse its anti-bailout memorandum tactics in order to sign the third bailout memorandum is well known.

After adopting an unrealistic stance in negotiations with European partners and other creditors in the first six months of 2015, which nearly brought total disaster upon the country, the first Tsipras government was forced into a disorderly retreat.

As the government finalizes a new package of handouts in the countdown to local and European elections next month, European officials are skeptical about the large primary surpluses from which the benefits are to come, arguing that they are partly due to cuts to the country's public investment program.

The government on Monday submitted its application for the early repayment of a costly section of Greece's loans from the International Monetary Fund, as agreed last month between Finance Minister Euclid Tsakalotos and IMF Managing Director Christine Lagarde.

The government keeps postponing the payment of its overdue arrears to suppliers and taxpayers. A law amendment tabled on Monday in Parliament for an Education Ministry bill defines May 31, 2019 as the new deadline for the completion of the debt repayment process.

As the government seeks to bolster its flagging ratings in an election year, Finance Minister Euclid Tsakalotos is under pressure to formulate a new package of handouts, without upsetting the country's international creditors, Kathimerini understands.