Government denies 'breakdown' in talks with EU-ECB-IMF troika

Talks with the EU-ECB-IMF troika have not "broken down" and the government is going ahead with the measures and reforms envisaged in the Medium-Term Fiscal Strategy as planned, government spokesman Elias Mossialos stressed on Monday. He underlined that talks with troika officials on the implementation of the programme will be repeated around the middle of the next week.
Mossialos said the government's immediate aim was to cover the country's loan needs with the sum that is expected to be disbursed in September, whether this is considered the sixth installment of the first loan or the first installment of a new loan agreement.
The spokesman underlined that the processing of the 'labour reserve' measures for the core public sector will be completed soon and any Constitutional obstacles will be examined. He also explained that such obstacles would not apply for state-funded private-sector organisations and public utilities and enterprises.
Mossialos advised all sides to display calm and make sure the right messages were being broadcast abroad since the ratification of the July 21 agreement, which the government sees as crucial for covering the country's borrowing needs, was still pending in several EU national Parliaments.
He also denied reports that the prime minister will be announcing a flat VAT rate during his speech at the Thessaloniki International Fair, saying that all measures will be included in the new national taxation plan that will be announced at the end of September.

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