Fiscal consolidation and the real economy
Main expenditure cuts and tax measures
Major reforms adopted

2011 Budget on track
2011 Budget law
Emergency measures supporting the 2011 Budget and the Economic Policy Programme
Real estate and asset privatisation programme

• The Greek government has unveiled a wide-ranging privatisation programme, spanning the state’s holdings in rail, road transport, airports, ports, utilities, the gaming industry, and public real estate.

• The programme leverages private investment so as to restructure the economy, foster economic growth, contribute to fiscal consolidation and raise the overall quality of life.

• The programme puts to use the know-how of the private sector through outright sales, concession agreements, initial public offerings, strategic public-private partnerships, and the establishment of new holding companies.

• State shareholdings will range from minority stakes of less than 34%, to controlling stakes of 51% or more. In a number of cases the government will divest fully from its holdings.

• The new Economic Policy Programme will be supported with a 110 billion euro financing package provided by euro area Member States (80 billion euro) and the IMF (30 billion euro). The programme will be monitored through twelve quarterly reviews.

• The programme includes both structural and fiscal reforms that will help Greece overcome deep-rooted structural deficiencies that persist in public fiscal management, the real economy and the financial sector.

• The Greek government has proceeded decisively with the implementation of the existing Stability and Growth Programme as well as with the actions foreseen in the new programme. All fiscal measures necessary to achieve the 2010 fiscal targets have been adopted.

• Consolidation of the budget remains on track with the state budget deficit over the period January – April 2010 registering a year-over-year reduction on an accrual basis close to 42%.

Greek parliament passed a new tax law on Thursday April 15th that aims to simplify and rationalise the tax system, and to introduce rules to combat tax evasion.

• The new tax law represents a complete overhaul of the Greek tax system and makes it simpler, more stable, transparent, fair and effective in fighting tax evasion by improving auditing and the exchange of information.

• With this new law the Greek government moves decisively to fulfil its obligations arising from the Hellenic Stability and Growth Programme and the European Council decision on fiscal and structural measures to be adopted by May 15th.

The current report has been drafted as a response to the Council Decision 6147/10 of 16 February 2010 requiring Greece to provide a report spelling out the measures and the calendar for implementation needed to achieve the 2010 budgetary targets, including additional necessary measures.

The report includes a brief overview of current economic conditions and the short term outlook for the Greek economy and focuses upon the status of implementation of the policy measures contained in article 2 of the Council Decision and in Greece’s Stability and Growth Programme (SGP) update of January 2010. It, furthermore, provides a description of the content, justification, expected fiscal impact and implementation timetable of the additional policy measures that the Greek government took in February and March 2010.