Greece pledges to respect privatisations, avoid budget derailment

[BERLIN] Greece has pledged to not roll back any ongoing or completed privatisations and ensure that any efforts to address a "humanitarian crisis" does not hurt its budget, according to a document containing its reform plans seen by Reuters on Tuesday.

Athens sent the list of reforms to its European Union and International Monetary Fund creditors late on Monday. They must approve the plans to pave the way for an extension to Greece's bailout lifeline for the next four months.

The list also includes pledges to reform tax policy, review and control spending in "every area" of government spending.

It also commits to consolidating pension funds to achieve savings and eliminate loopholes and incentives for early retirement - in an apparent effort to find a compromise between the government's stated objective to avoid any further pension cuts as previously demanded by EU and IMF inspectors.

Athens also said it would reform the public sector wage grid in a way that would not reduce wages further but would ensure that the overall public wage bill does not rise. It also said it would phase in collective wage bargaining with a view to raising the minimum wage over time, but that any such rise would be made in consultation with European and other partners.

REUTERS