Interview with Greek Prime Minister Tsipras: 'We Don't Want to Go on Borrowing Forever' March 07, 2015
In a SPIEGEL interview, Greek Prime Minister Alexis Tsipras discusses planned reforms, the polarizing effect his government has had on Europe and the possibility of a "Graccident," Greece's accidental exit from the euro zone. [...] SPIEGEL: What about privatizations? Tsipras: There we do in fact have a different approach. We have to make state assets usable, but we shouldn't sell everything. Otherwise, the proceeds will disappear directly into the black hole of debt. Instead, we want to use the revenues from state-owned companies to shore up social welfare. SPIEGEL: On Monday, your government will be presenting your first reform proposals in Brussels, which will then have to be approved by the euro-zone finance ministers. What is your plan? Tsipras: We will propose six reforms that are ready for implementation. First: combating the humanitarian crisis. We want to create an electronic Citizen Smart Card that can be used to access public services for which applications to seven authorities had to be made in the past. The needy will also be able to use it to pay for groceries and electricity. Second: the necessary administration reform to make the state more efficient. Third: the introduction of a rate payment plan for tax debts. The fourth reform has to do with tax administration and the fifth aims at the creation of a politically independent tax council. The sixth is the creation of a task force for targeted tax audits so as to combat tax evasion in the middle classes as well. SPIEGEL: The first point sounds like more spending. How do you intend to finance it? Tsipras: We have already presented a draft law in parliament. It corresponds with our promise to establish social justice. The humanitarian crisis is collateral damage resulting from the bailout program. Today, 35 percent of Greeks live beneath the poverty line and 600,000 children don't have enough to eat, according to UNICEF. We have already received EU funding for the fight against the humanitarian crisis and I will speak to European Commission President Jean-Claude Juncker in the coming days to find out if we can receive additional funds. SPIEGEL: In the rest of Europe, people are concerned about your plan to allow Greeks to pay back taxes in up to 100 monthly installments. Are you not concerned that such a plan will cause tax revenues to dry up completely? Tsipras: Quite to the contrary. It will create immediate revenues for the state. At the moment, the tax debt owed by Greeks is increasing by a billion euros each month. We want to reverse this development. And of course we will not offer this to people who are capable of paying but want to cheat. SPIEGEL: What exactly is your proposal to create a tax council about? Tspiras: It will be a tax authority that is independent of politics. Do you know how it was in the past? Major companies could call the prime minister here at Maximos Mansion and the terms would be changed in their favor overnight. That shall no longer be possible. SPIEGEL: Do you really believe that will enable to you to force the rich to pay? Tspiras: Surely you know that there are two Greeces. The one Greece is that of 4 million people who live below the poverty line. You can see the other Greece if you go out on a summer evening in a Bouzouki nightclub along the coast or if you go to Mykonos. It is the Greece of the tax evaders and the cheats. We know full well that many of these bars and restaurants don't issue any receipts. We are going to be very strict against this Greece. SPIEGEL: And what makes you so confident of success? Tsipras: We are forming a task force for targeted checks and its staffing is to be changed every two months so that it doesn't become corrupt. We have a minister who is responsible for combatting tax evasion, a former public prosecutor. An independent organization is to be set up under him that is not influenced by the political system. SPIEGEL: That sounds very ambitious at a time when your money is already running out. In March, you have to pay back just under €4 billion, but you aren't officially scheduled to receive the next tranche from the bailout program until the end of April. Will you even manage to get through this month? Tspiras: I unfortunately have to admit that, during the past 30 days, I have spent 90 percent of my time negotiating how we can meet deadlines in order to secure our financing. That is in no way productive or creative. The meeting of the Euro Group on Feb. 20, when our loan agreement was extended, was an important step. A decision was made to give us breathing room, but the ECB is still holding onto the rope that is around our neck. [...] full: http://www.spiegel.de/international/europe/spiegel-interview-with-greek-prime-minister-tsipras-a-1022156.html The 11-page document sent by Finance Minister Yanis Varoufakis to Eurogroup chief Jeroen Dijsselbloem: http://www.spiegel.de/media/media-36086.pdf _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
