It became a bad habit to live on credit. Despite severe financial difficulties and bad credit experience, the Greek authorities continue borrowing money. The country follows the tested “take new credit to pay back a previous one” scheme. Athens asked for a large sum of €53.5 to make an installment in regard to already taken credits. The European Stability Mechanism (ESM) was also offered to become a creditor. In case of its consent, the received money will help Greece cover a part of its financial obligations. To prove its serious intention, the Greek government has presented another list of reforms, including restructuring of the VAT law. If reforms are implemented successfully, only this will help GDP grow by 1%. A new tax will be applied to gaming industry and TV commercials. Besides, tax on shipping companies will be raised and current benefits for ship owners will be abolished. New authorities managed to fulfill some of its election promises and keep soft Vat rates of 6% on so-called social goods such as bread, milk, books, medicines, and theater tickets. However, the country will have to make considerable concessions concerning pensions system. The issues of early retirement and raising retirement age are to be sold first. Another important topic of enterprises privatization sees a progress too. This fall, privatization of ports of Piraeus and Thessaloniki and railway companies TRAINOSE and ROSCO will be announced.
