Athens Macedonian News Agency: News in English, 14-06-10

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From: The Athens News Agency at <http://www.ana.gr/>

CONTENTS

[01] New Finance minister faces challenge of prior actions

[02] Venizelos discharged from hospital

[03] Greek inflation rate fell to -2.0 pct in May

[01] New Finance minister faces challenge of prior actions

A next Eurogroup meeting is scheduled for June 19, while a first meeting with the troika's heads is expected around mid-July ahead of the troika's next assessment report in autumn.

The representatives of the country's creditors are expected to ask, in July, for a full briefing over the course of the 12 prior actions agreed with Greek authorities -of which six should have been implemented by May. These prior actions are:

-Updating a list of third party taxes

-Introducing legislation offering access to uninsured people in pharmaceutical and diagnostics services and chaning profit margins of pharmacies

-Adopting a new code of ethics for government members

-Ministerial decision for the unification of tax collection procedures

-Adopting legislation for investment licensing

-Adopting legislation for open markets (implemented).

The other six prior actions, which must be implemented by the end of June are:

-Abolishing, from January 1, 2015, all third party duties financing supplementary pension funds under the auspices of Labor ministry

-Introducing legislation to absorb all supplementary pension funds by ETEA

-Introducing a new forest legislation

-Introducing a new legislation on reducing administration burdens

-Introducing a legislation on "small PPC" and settling all of its overdue debt

-Introducing legislation for funding of political parties.

The implementation of these prior actions will pave the way for the disbursement of two pending loan tranches (1.0 billion euros by the end of June and 1.0 billion euros by the end of July).

Greek authorities will begin a round of talks with the troika in autumn over changes in the pension system, a new payroll system in the public sector, extending or not an extra tax contribution, etc.

The new Finance minister will be accompanied by Finance Alternate Minister Christos Staikouras, Finance Deputy Minister Giorgos Mavraganis, the Prime Minister's economic advisors, Stavros Papastavrou and Chrysanthos Lazaridis, along with professor Panos Tsakloglou -the country's representative in the Euro Working Group.

The new Finance minister is considered to be a supporter of free economy and reforms and has supported the transformation of the country's economic model from consumption to exports and investments.

In speeches he made in the past, he has supported cutting wages and pensions and introducing higher taxes.

He worked as director of Prime Minister's economic office in the period 2000-2004, while in the period November 2011-May 2012 he worked as director of the Prime Minister's economic office and has helped in the first PSI+ of Greek debt in 2012.

[02] Venizelos discharged from hospital

According to sources, Venizelos is already at his house and will attend the new cabinet's swearing-in ceremony.

[03] Greek inflation rate fell to -2.0 pct in May

Hellenic Statistical Authority (ELSTAT), in a report, recorded significant price increase in elelectricity rates (11.7 pct), pharmaceuticals (21.9 pct), petrol (0.5 pct), air tickets (20 pct) and hotel expenses despite a 3.5 pct decline in households' available income. On the other hand, significant price declines were recorded in fresh vegetable (13.3 pct) fresh fruit (14.9 pct) and fresh potatoes (18.1 pct), while clothing/footwear (9.4 pct) and home applices (2.7 pct) fell in May because of a special 10-day offer period.

The consumer price index fell 0.8 pct in May compared with April 2014, after a 0.2 pct decline recorded in the same period last year.

More analytically, the 2.0 pct decline in the inflation rate in May, reflected: a 2.9 pct delcine in food/beverage prices, a 9.4 pct fall in clothing/footwear, a 0.6 pct decline in housing prices, a 2.2 pct fall in durable goods, a 2.8 pct fall in entertainment, a 3.9 pct fall in education prices, an 1.6 pct fall in hotel/coffee/restaurant prices and a 5.6 pct decline in other goods and services.

On the other hand, prices rose in alcohol/tobacco (1.6 pct), healthcare (2.1 pct), transport (0.1 pct) and communications (0.1 pct).

Greece's harmonized inflation rate was -2.1 pct in May, from -1.6 pct in April and -0.3 pct in May last year. On a monthly basis, the harmonized rate fell 0.6 pct in May.

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