Breaking: Greece folds. Tsipras sends letter to creditors…ready to accept proposal

The statements, views and opinions expressed in this column are solely those of the author and do not necessarily represent those of this site. This site does not give financial, investment or medical advice.

Greek Prime Minister Alexis Tsipras has offered to accept proposals from creditors in order to end a standoff over its bailout program, subject to certain conditions.

The proposal was contained in a letter from Tsipras dated June 30 to his creditors and obtained by Bloomberg (click here to see the full letter in PDF format).

Tispras will most certainly have to step down after this. EU bankers will then move to make sure a “YES” man is put in place to rule over their newest colony.

Will the “Cyprus template” unfold with this Greek surrender, ultimately leading to a depositor haircut in order to satisfy the blood thirsty EU oligarchs?

Here is the basic contents of the letter:

Dear Managing Director, dear Presidents,

I am writing to inform you on the position of the Hellenic Republic towards the list of
Prior Actions of the Staff Level Agreement as published on the European Commission
website on June 28th 2015. The Hellenic Republic is prepared to accept this Staff Level
Agreement subject to the following amendments, additions or clarifications, as part of an
extension of the expiring EFSF program and the new ESM Loan Agreement for which a
request was submitted today, Tuesday June 30th 2015. As you will note, our amendments
are concrete and they fully respect the robustness and credibility of the design of the overall

1. VAT reform:
Maintain the 30% discount on islands, to be applied to the new rates.

2. Fiscal structural measures:
Gradually increase the advance payment of individual business income tax to 100 percent
and phase out the preferential tax treatment for farmers (including the subsidies for excise
on diesel oil) by end-2017.
Reduce the expenditure ceiling for military spending by €200 million in 2016 and €400
million in 2017 through a targeted set of actions, including a reduction in headcount and

3. Pensions:
The 2010 reform will be fully implemented but the 2012 reform (sustainability factor) will be
postponed until the new legislative reform is implemented in October 2015.
EKAS will be phased-out by end-2019 but without any immediate action on the top 20% of
All nuisance charges will be phased out by end-2017, starting from October 31, 2015.

4. Labour markets:
The new framework will be legislated in autumn 2015.

5. Product markets:
Immediately implement specific recommendations from OECD’s toolkit 1 (tourist rentals,
tourist buses, truck licenses, code of conduct for traditional foodstuff and eurocodes on
building materials), toolkit 2 (beverages and petroleum products), and open the restricted
professions of notaries, actuaries, and court bailiffs, liberalize the market for gyms and
eliminate significant portion of nuisance charges.
Moreover, in cooperation with the OECD, implement an ambitious reform package

  • Create One-Stop-Shop (OSS) services for businesses (best practice analysis, as well as
    a comprehensive roadmap already prepared and completed in cooperation with the
  • Conduct immediately a comprehensive competition assessment on specific sectors
    characterized by oligopolistic practices (e.g. construction, wholesale trade,
    agricultural products, media, etc.) and adopting recommendations accordingly
    (roadmap and timelines already prepared by the OECD);
  • Implement immediately a comprehensive strategy against corrupt business
    practices, for example in the area of public procurement procedures (roadmap and
    timeline already prepared by the OECD).

ADMIE will be split from the PPC into a separate legal entity under state majority ownership.

Thank you in advance for your support. I look forward to hearing from you.

Yours faithfully,

Alexis Tsipras


The statements, views and opinions expressed in this column are solely those of the author and do not necessarily represent those of this site. This site does not give financial, investment or medical advice.

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Breaking: Urgent Eurogroup meeting to vote on new Greek proposal before midnight default deadline

Meanwhile in Ukraine, default is all but certain as Greek crisis provides nice cover for failed state