Greece refuses to accept the hard-line taken by the IMF, which requires long-term solutions rather than short-term measures. The lenders proposed a primary surplus (government revenues minus expenses, excluding interest on the public debt) of 3.5% of GDP by 2018, which was accepted by Greece although the market doubt put into effect. Creditors proposed cuts in reforms in the amount of 1.8 billion euros in 2016 and 2017, to which the Greek government countered with a cut of 1.9 billion euros only in 2016.
Greece has one of the lowest VAT rates in the European Union. Lenders want a standard VAT of 23%, with few exceptions, while Greece wants a structure with three levels: 6%, 13% and 23%. The Greek newspaper Ekathimerini advanced that the EU and the IMF have proposed an increase in VAT on tourist accommodation from 6.5% to 23% and an increase in VAT on the restaurants from 13% to 23%, to be introduced on the 1st of July, intensifying fears about the adverse impact on tourism.
Tuesday, June 30: Is the deadline to comply with all payments to the IMF of around 1.54 billion euros. If Greece fails to pay, Christine Lagarde, head of the IMF, said that refusing the possibility of a grace period. In addition, Greece needs to pay 1.5 billion euros in salaries and reforms by the end of June.
Wednesday, July 1: ECB decision on the Emergency Liquidity Assistance (ELA), which can be crucial in this process because of the lack of liquidity of Greek banks.
Monday, July 20: Payment to the ECB of € 700 million in interest and EUR 3.5 billion in reimbursed capital.