jueves, 16 de diciembre de 2010

Grecia arde por el programa de reformas propuesto por el FMI.España debe mirarse en el espejo griego,con el handicap para nosotros del despilfarro de las CCAA. porque ellos no tienen Comunidades Autónomas.

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El programa del Fondo  Monetario Internacional para Grecia

GREECE: Memorandum of Understanding on 

SPECIFIC ECONOMIC POLICY CONDITIONALITY 
May 2, 2010 


The quarterly disbursements of bilateral financial assistance from euro area Member States 
will be subject to quarterly reviews of conditionality for the duration of the arrangement. 
The release of the tranches will be based on observance of quantitative performance 
criteria, and a positive evaluation of progress made with respect to policy criteria in the 
MEFP and in this Memorandum, which specifies the detailed criteria that will be assessed 
for the successive reviews, up to the end of 2011. The detailed criteria for the years 2012 
and 2013 will be specified at the occasion of the spring 2011 review.  

The authorities commit to consult with the European Commission, the ECB and the IMF 
on adoption of policies that are not consistent with this memorandum. They will also 
provide them with all requested information for monitoring progress during program 
implementation and the economic and financial situation (Annex 1). Prior to the release of 
the instalments, the authorities shall provide a compliance report on the fulfilment of the 
conditionality. 


1. Actions for the first review (to be completed by end Q2-2010) 

i. Fiscal consolidation 

Progress with the implementation of the 2010 budget and fiscal measures adopted 
thereafter. Progress is assessed against the (cumulative) quarterly deficit ceilings in the 
MEFP (including the TMU). The authorities take the following measures, generating 
savings for a total amount of 2.5% of GDP in 2010: 

Increase in VAT rates, with a yield of at least EUR 1800 million for a full year 
(EUR 800 million in 2010); 
Increase in excises for fuel, tobacco and alcohol, with a yield of at least 
EUR 1050 million for a full year (EUR 450 million in 2010); 
Reduction in the public wage bill by reducing the Easter, summer and 
Christmas bonuses and allowances paid to civil servants, with net savings 
amounting to EUR 1500 million for a full year (EUR 1100 million in 2010); 
Elimination of the Easter, summer and Christmas bonuses paid to pensioners, 
while protecting those receiving lower pensions, with net savings amounting to 
EUR 1900 for a full year (EUR 1500 million in 2010);  
Cancel budgetary appropriations in the contingency reserve with the aim of 
saving EUR 700 million; 
Reduce the highest pensions with the aim of saving EUR 500 million for a full 
year (EUR 350 million in 2010); 
 2 
Abolish most of the budgetary appropriation for the solidarity allowance 
(except a part for poverty relief) with the aim of saving EUR 400 million; 
Reduce public investment by EUR 500 million compared to plans; 
Parliament adopts, as planned in the stability programme of January 2010, a 
Law introducing a progressive tax scale for all sources of income and a 
horizontally unified treatment of income generated from labour and assets; 
Parliament adopts, as planned in the stability programme of January 2010, a 
Law abrogating exemptions and autonomous taxation provisions in the tax 
system, including income from special allowances paid to civil servants. The 
law applies retroactively from January 1, 2010. 

ii. Structural Fiscal Reforms 

Government adopts by end June 2010 a law that requires the monthly publication by the 
General Accounting Office (GAO) of timely monthly statistics (on a cash basis) on 
revenue, expenditure and financing for the State, as well as on spending pending of 
payment, including arrears. 

iii. Financial sector regulation and supervision  

The Bank of Greece, on behalf of the Government, establishes an independent Financial 
Stability Fund, with a strong governance structure, to deal with potential solvency issues 
and to preserve the financial sector’s soundness and its capacity to support the Greek 
economy, by providing equity support to banks as needed (Annex 2).  

Start implementation of intensified supervision of banks, including by allocating more 
human resources, also with a view to the take-over of insurance supervision, frequent 
reporting under tighter deadlines and quarterly solvency stress tests. 

Review the private sector bankruptcy law to ensure consistency with ECB observations. 

iv. Structural reforms 

Authorities undertake reforms to modernise public administration

Parliament adopts legislation reforming public administration at the local level, notably by 
merging municipalities, prefectures and regions with the aim of reducing operating costs 
and wage bill. 

Parliament adopts legislation requiring online publication of all decisions involving 
commitments of funds in the general government sector. 

To strengthen labour market institutions:  

Government starts discussions with social partners in order to revise private sector wage 
bargaining and contractual arrangements. 

 3 
To enhance competition in open markets:  

Government adopts law to simplify the start-up of new businesses. 

Government adopts the horizontal legislation on the Services Directive. 

Government adopts a recovery plan for the railway sector with a timetable for measures 
which:  

specify how operational activities will be made profitable, including by closing 
loss-making lines; 
ensure the effective implementation of EU Directives allowing for competition 
amongst providers of railway services;  
provide for the restructuring of holding company, including the sale of land and 
other assets. 

To raise the absorption rates of Structural and Cohesion Funds: 

Government will put in place measures, including the implementation of Law 3840/2010, 
the establishment of a "fast-track project production”, to achieve the six-monthly targets 
for payment claims targets in the absorption of Structural and Cohesion Funds set down in 
the table below. Compliance with the targets shall be measured by certified data. The 
government will take steps to achieve an annual target of submitting 10 major projects 
applications to Commission services. 

Programming period 2007-2013 Payment claims to be submitted 
between 2010 and 2013 
  (in million of euro) 2010 2011 2012 2013 
European Regional Fund and Cohesion 
Fund 2330 2600 2850 3000 
European Social Fund 420 750 880 890 
Target of first half of the year 1105 1231 1284 
Target of second half of the year 2245 2499 2606 
Total annual target 2750 3350 3730 3890 

Government establishes a technical task force in direct contact with Commission services, 
to ensure rapid implementation of a) major projects in transport sectors, b) environmental 
projects; c) financial engineering instruments and d) public administration reform, relying 
on increased technical assistance. 

Government shall have completed steps to ensure that budgetary appropriations for the 
national co-financing of Structural and Cohesion Funds are channelled to a special central 
account that cannot be used for any other purposes and which should be available to 
provide co-financing to all entities in the general government.  


 4 
2. Actions for the second review (to be completed by end Q3-2010) 

i. Fiscal consolidation 

Rigorously implement the budget for 2010 and the fiscal consolidation measures 
announced afterwards, including those in this Memorandum. Progress is assessed against 
the (cumulative) quarterly deficit ceilings in the MEFP (including the TMU). 

Government submits the draft budget for 2011 to Parliament. The budget provides 
information and reliable projections on the entire general government sector and targets a 
further reduction of the general government deficit in line with the MEFP. It includes a 
detailed presentation of fiscal consolidation measures amounting to at least 3.2% of GDP 
(4.3% of GDP, if carryovers from measures implemented in 2010 are considered), and 
detailed information on the situation of public enterprises. 

The budget includes the following measures (in exceptional circumstances, measures 
yielding comparable savings could be considered in close consultation with European 
Commission, IMF and ECB staff):  

Implement the rule of replacing only 20 percent of retiring employees in the 
public sector (central government, municipalities, public companies, local 
governments, state agencies and other public institutions); 
Reduction in intermediate consumption of the general government by at least 
EUR 300 million compared to the 2010 level, on top of savings envisaged in 
the context of  reforming public administration and the reorganisation of local 
government (see next measure); 
Government starts implementing legislation reforming public administration 
and the reorganisation of local government with the aim of reducing costs by at 
least EUR 1500 million from 2011 to 2013, of which at least EUR 500 million 
in 2011. 
Freeze in the indexation of pensions, with aim of saving EUR 100 million;1 
Reduction in domestically-financed investments by at least EUR 1000 million, 
by giving  priority to investment projects financed by EU structural and 
cohesion funds; 
Temporary "crisis levies" on highly profitable firms, yielding at least EUR 600 
million in additional revenue per year in 2011, 2012 and 2013; 
Incentives to regularise land-use violations, yielding at least EUR 1500 million 
from 2011 to 2013, of which at least EUR 500 million in 2011; 
Enforce the presumptive taxation of professionals, with a yield of at least 
EUR 400 million in 2011 and increasing returns in 2012 and 2013; 
Broaden the VAT base by including services that are currently exempted and 
move a significant proportion (at least 30%) of the goods and services currently 
subject to the reduced rate to the normal rate, with a yield of at least EUR 1000 
million; 
Start phasing in a "green tax" on CO2 emissions, with a yield of at least EUR 
300 million in 2011; 
                                                 
1 
  Adjustments may be needed in case of negative inflation. 
 5 
Collect revenue from the licensing of gaming: at least EUR 500 million in sales 
of licences and EUR 200 in royalties; 
Expand the base of the real estate tax by updating asset values to yield at least 
EUR 500 million additional revenue; 
Increase taxation of wages in kind, including by taxing car lease payments (at 
least EUR 150 million); 
Initiate the collection of a special tax on unauthorised establishments (at least 
EUR 800 million per year); 
Increase taxes on luxury goods by at least EUR 100 million; 
The budget will establish detailed expenditure ceilings for each line-ministry, 
local governments, and social security funds consistent with the general 
government deficit target. This also pertains to the medium-term fiscal 
framework for 2012-2013; 
The budget will contain indicative information on monthly revenue per 
category, and expenditure per Ministry. Updated figures will be regularly made 
available online. 

Parliament adopts modifications to the organic budget law, if necessary, to  ensure that the 
draft budget law for 2011 onwards contains detailed information on outturn and plans of 
the entire general government sector – including local government, social security, 
hospitals and legal entities. An annex to the budget will present key figures on the financial 
performance of the largest public enterprises, concomitant budgetary and tax expenditures, 
and related fiscal risks. 

ii. Structural fiscal reforms 

Parliament adopts legislation to improve the efficiency of the tax administration and 
controls, implementing recommendations provided by the European Commission and IMF. 
In particular, they put in place an effective project management arrangement (including 
tight MOF oversight and taskforces) to implement the anti-evasion plan to restore tax 
discipline through: strengthened collection enforcement and recovery of tax arrears 
(coordinated with the social security funds) of the largest debtors; a reorganized large 
taxpayer unit focused on the compliance of the largest revenue contributors;  a strong audit 
program to defeat pervasive evasion by high-wealth individuals and high income self- 
employed, including prosecution of the worst offenders; and  a strengthened filing and 
payment control program. 
  
Parliament adopts a reform of the pension system to ensure its medium- and long-term 
sustainability. It should limit the increase of public sector spending on pensions, over the 
period 2010-2060, to under 2.5 percent of GDP. The reform will be designed in close 
consultation with European Commission, IMF and ECB staff, and its estimated impact on 
long-term sustainability will be validated by the EU Economic Policy Committee. The 
parameters of the system will ensure long-term actuarial balance, as determined by the 
National Actuarial Authority. The reform should include the following elements:  

Simplification of the fragmented pension system by merging the existing 
pension funds in three funds and introducing a unified new system for all 
current and future employees. The new universally binding rules on 
 6 
entitlements, contributions, accumulation rules and indexation of pension rights 
shall be applied pro rata to everybody from 1 January 2013; 
Introduction of a unified statutory retirement age of 65 years, including for 
women in the public sector (phased in immediately after adoption), to be 
completed by December 2013; 
Gradual increase in the minimum contributory period for retirement on a full 
benefit from 37 to 40 years by 2015; 
Amendment of the pension award formula in the contributory-based scheme to 
strengthen the link between contributions paid and benefits received, with 
accrual rate limited to an average annual rate of 1.2%, and pensions indexed to 
prices;  
Introduction of an automatic adjustment mechanism that, every three years and 
starting in 2020, will increase the (minimum and statutory) retirement age in 
line with the increase in life expectancy at retirement; 
Extend the calculation of the pensionable earnings from the current last five 
years to the entire lifetime earnings (while retaining acquired rights); 
Reduction of the upper limit on pensions; 
Introduction of a means-tested minimum guaranteed income for elderly people 
(above the statutory retirement age), to protect the most vulnerable groups, 
consistent with fiscal sustainability; 
Measures to restrict access to early retirement. In particular, increase the 
minimum early retirement age to 60 years by 1st January 2011, including for 
workers in heavy and arduous professions and those with 40 years of 
contributions. Abolish special rules for those insured before 1993 (while 
retaining acquired rights). Substantial revision of the list of heavy and arduous 
professions;  
Reduction of pension benefits (by 6% per year) for people entering retirement 
between the ages of 60 and 65 with a contributory period of less than 40 years; 
Introduction of stricter conditions and regular re-examination of eligibility for 
disability pensions; 
Until the entry into force of the new rules on the retirement age (January 1, 
2011), new demands for pensions will be frozen and requests for retirement will 
be considered on the basis of the new eligibility rules. 

Government adopts a reform of the GAO, including the following elements:  

Strengthening of the role of the GAO in budget planning and control;  
Provision of the necessary resources in terms of high-level personnel, 
infrastructure and equipment support, managerial organisation and information- 
sharing systems;  
Provision of safeguards for GAO staff against political interference, and 
personal accountability in the provision of reliable data; 
Strengthen the institutional mechanisms for providing reliable and plausible 
official budgetary forecasts that take into account available recent execution 
developments and trends; to this end, the official macroeconomic forecasts 
should be reviewed by external experts;. 

 7 
Government takes the following measures to ensure timely provision of reliable fiscal 
accounts and statistics: 

GAO starts, in June 2010, the publication of timely monthly statistics (on a cash 
basis) on revenue, expenditure and financing and spending arrears for the 
"available general government" and its sub entities (state, social security, 
hospitals, local governments and legal entities); 
Government adopts a detailed time-bound action plan,  to be agreed with 
Eurostat, to improve collection and processing of general government data 
required under the existing EU legal framework, in particular by enhancing the 
mechanisms that ensure the prompt and correct supply of these data, and ensure 
personal responsibility in cases of misreporting; and seek appropriate resident 
technical assistance to ensure rapid progress; 
Government starts to publish timely information on the financial situation in 
public enterprises (at least the 10 largest loss-making ones) and other public 
entities not classified in the general government (including detailed income 
statements, balance sheets and data on employment and the wage bill). To this 
end, a regular and timely reporting mechanism is introduced. 

iii. Financial sector regulation and supervision 

The Bank of Greece and the Government ensure that the Financial Stability Fund is fully 
operational.  

Review the adequacy of the insolvency framework, for banks as well as for non-financial 
entities. 

iv. Structural reforms 

Progress with reforms to modernise public administration: 

Government launches the process, including the principles and timetable, for establishing a 
simplified remuneration system covering basic wages and allowances. It shall apply to all 
public sector employees, and be part of an overall reform of Human Resource 
management. This should lead to a system where remuneration reflects productivity and 
tasks. 

Government launches independent functional reviews of the public administration at 
central level and of existing social programmes. It is to be conducted by internationally 
renowned and external experts. The Terms of Reference for the reviews will be agreed 
with European Commission, IMF and ECB staff. The objectives of the reviews are:  

To take stock of the use of resources, including human resources, to carry out 
government functions (e.g., employment, goods and services) in the central 
government and subordinated public institutions; 
To identify actions to rationalize the organisation of public administration and 
generate productivity gains, and quantify possible fiscal savings from 
implementation of these actions; 
 8 
To assess effectiveness and appropriateness of existing social programmes and 
make proposals for reform or cancellation of the least effective ones, while 
quantifying possible fiscal savings from implementation of these actions. 

To strengthen competition in open markets 

Authorities make the General Commercial Registry (GEMI) fully operational 

Under the Services Directive, the government finalizes the review of existing sectoral 
legislation (screening), ensures that the point(s) of single contact is(are) operational. 

Government adopts a law on road freight transport that removes restrictions not provided 
for in Directive 96/26/EC of 29 April 1996 on admission to the occupation of road haulage, 
including minimum fixed prices. 

Issue a Ministerial Decree for the liberalisation of wholesale electricity market and a 
Ministerial Decision on rationalisation of electricity consumer tariffs. 

Promoting investments and exports 

Government takes measures, in line with EU competition rules, to facilitate FDI and 
investment in innovation in strategic sectors (green industries, ICT etc...) through a 
revision of the Investment Law, the adoption of measures to facilitate PPPs, action to fast- 
track large FDI projects and measures to strengthen export promotion policy. 


3. Actions for the third review (to be completed by end Q4-2010) 

i. Fiscal consolidation 

Government achieves the programme target for the 2010 general government deficit. 

Parliament adopts draft budget for 2011 targeting a further reduction of the general 
government deficit and including the consolidation measures specified in this 
Memorandum. 

Government prepares a privatization plan for the divestment of state assets and enterprises 
with the aim to raise at least 1 billion euros a year during the period 2011-2013. 

ii. Structural fiscal reforms 

Government adopts draft legislation to strengthen the fiscal framework, following 
discussions with European Commission and IMF staff. The following elements should be 
part of the reform:  

Introduce a medium-term fiscal framework covering the general government 
based on rolling three-year expenditure ceilings for the State, social security 
entities and local governments;  
 9 
Strengthen the position of the Finance Minister vis-à-vis line ministers in both 
budget preparation and execution phases (giving him/her veto power on 
spending decisions and execution); 
Introduce a compulsory contingency reserve in the budget, corresponding to 10 
percent of total appropriations government departments other than wages, 
pensions and interest; the use of the contingency reserve will be decided by the 
Finance Minister; 
Ensure that Parliament does not modify the overall size of the budget at the 
approval stage, and focus on the composition of public expenditure and 
revenue, and reliability of projections for expenditure and revenue;  
Introduce stronger expenditure monitoring mechanisms, particularly by 
implementing an appropriate control of spending commitments, through which 
spending entities (line ministries, local authorities, social security funds, 
hospital and legal entities) would report on a regular basis to the Treasury on 
their outstanding expenditure commitments against their authorised 
appropriations in the budget law; 
Introduce a revenue rule for the general government, according to which the 
allocation of higher-than-expected revenues should be specified ex-ante in the 
budget law;  
Creation of a fiscal agency attached to Parliament providing independent advice 
and expert scrutiny on fiscal issues, and reporting publicly on the budgetary 
plans and execution of the spending entities of the general government, and on 
macroeconomic assumptions used in the budget law.  

Parliament adopts reform of the public wage legislation consistent with this Memorandum. 

iii. Structural reforms 

To reform and modernise public administration: 

Government adopts all necessary legislation and decree for the full entry into force of the 
local administration reform. 

Government completes the creation of a Single Payment Authority for the payment of 
wages in the public sector. The Ministry of finance publishes a detailed report, based on 
information and in collaboration with the Single Payment Authority, on the structure and 
levels of compensation and the volume and dynamics of employment in the general 
government. 

Authorities complete the first phase of the public procurement system reform, with a 
central procurement authority and involving a swift implementation of the electronic 
platform for public procurement and introducing the use of e-auctioning system. It should 
ensure a common approach and tendering procedures, ex ante and ex post controls. 

Government adopts legislation and measures needed to implement the Better Regulation 
agenda. 

 10 
To modernise the health care systems:  

Government adopts legislation on the institutional framework for health supplies (Law 
3580/2007), establishes new systems for the management of drugs that favour more use of 
generic medicines, including a new system for the electronic monitoring of doctors' 
prescriptions. 

Government completes the programme of hospital computerisation, upgrading hospital 
budgeting systems, and the reform of management, the accounting (including double-entry 
accrual accounting) and financing systems. 

Government ensures greater budgetary and operational oversight of health care spending 
by the Finance Minister, the publication of audited accounts and improvement in pricing 
and costing mechanisms. 

To strengthen labour market institutions: 

Following dialogue with social partners, the government proposes and parliament adopts 
legislation to reform wage bargaining system in the private sector, which should provide 
for a reduction in pay rates for overtime work and enhanced flexibility in the management 
of working time. Allow local territorial pacts to set wage growth below sectoral 
agreements and introduce variable pay to link wages to productivity performance at the 
firm level. 

Government amends regulation of the arbitration system, (Law 1876/1990), so that both 
parties can resort to arbitration if they disagree with the proposal of the mediator. 

Following dialogue with social partners, government adopts legislation on minimum wages 
to introduce sub-minima for groups at risk such as the young and long-term unemployed, 
and put measures in place to guarantee that current minimum wages remain fixed in 
nominal terms for three years. 

Government amends employment protection legislation to extend the probationary period 
for new jobs to one year, to reduce the overall level of severance payments and ensure that 
the same severance payment conditions apply to blue- and white-collar workers, to raise 
the minimum threshold for activation of rules on collective dismissals especially for larger 
companies, and to facilitate greater use of temporary contracts and part-time work. 

To enhance competition in open markets:  

Government adopts changes to existing (sectoral) legislation in key services sectors such as 
tourism, retail and education services. New legislation should facilitate establishment, by 
significantly reducing requirements covered by Articles 15 and 25 of the Services 
Directive, in particular requirements relating to quantitative and territorial restrictions, 
legal form requirements, shareholding requirements, fixed minimum and/or maximum 
tariffs and restrictions to multidisciplinary activities. It should also facilitate the provision 
of cross-border services by implementing the freedom to provide services clause in Article 
16 of the Service Directive through an approach ensuring legal certainty for services 
providers, i.e. by clearly setting out in the respective (sectoral) legislation which 
requirements can and which requirements cannot be applied to cross-border services. 
 11 

Government proposes legislation to remove restrictions to trade in restricted professions 
including:   

the legal profession, to remove unnecessary restrictions on fixed minimum 
tariffs, the effective ban on advertising, territorial restrictions on where lawyers 
can practice in Greece;  
the pharmacy profession, covering limits on the number of pharmacies and 
minimum profit margins; 
the notary profession, covering fixed tariffs, limits on the number of notaries, 
territorial restrictions on where notaries can practice and the effective ban on 
advertising; 
architects, covering fixed minimum tariffs; 
engineers,  covering fixed minimum tariffs; 
auditing services, covering fixed tariffs. 

Government adopts legislation and takes all necessary measures to complete the full and 
effective transposition of EU rules on recognition of professional qualifications, including 
the transposition of the Professional Qualifications Directive (Directive 2005/36/EC) 
including compliance with ECJ rulings. 

Government adopts legislation to simplify and accelerate the process of licensing 
enterprises, industrial activities and professions, which inter alia revises Law 3325/05, 
makes Law 3335/05 for business areas, and operationalises the spatial plan. 

Government adopts a law modifying the existing institutional framework of the Hellenic 
Competition Commission (HCC) which abolishes the notification system for all 
agreements falling within the scope of Article 1 of Law 703/1977, gives the HCC the 
power to reject complaints, to increase the independence of HCC members, and to 
establish reasonable for the investigation and issuance of decisions. 

Promoting investments and exports 

Government carries out in depth evaluation of all R&D and innovation actions, including 
in various Operational Programmes, in order to adjust the national strategy. 

Government creates an external advisory council financed through the 7th R&D 
programme, to consider how to foster innovation, how to strengthen links between public 
research and Greek industries and the development of regional industrial clusters. 

To raise the absorption rates of Structural and Cohesion Funds 

Government to meet targets for payment claims (to be measured against certified data) and 
for the submission of large projects. 


 12 
4. Actions for the fourth review (to be completed by end Q1-2011) 

i. Fiscal consolidation 

Rigorously implement the budget for 2011 in line with this memorandum, and the fiscal 
consolidation measures in the budget. Progress is assessed against the (cumulative) 
quarterly deficit ceilings in the MEFP (including the TMU). 

ii. Structural fiscal reforms 

Parliament adopts legislation to strengthen the fiscal framework, consistent with this 
memorandum.   

iii. Structural reforms 

To reform and modernise public administration: 

Government completes effective transposition of Directive 2007/66/EC on public 
procurement regarding remedies, and at the same time ensures that responsibility for the 
review of award procedures be vested with the administrative courts. Government 
completes the transposition of Directives 2009/81 on defence and security expenditure. 

Reforms to improve the business environment: 

Government fully implements the recovery plan for the railway sector to make operational 
activities profitable, implement EU Directives and restructure the holding company. 

Parliament adopts legislation unbundling electricity and gas activities.  

Government adopts measures, in line with EU requirements to strengthen the independence 
and capacity of the Energy Regulatory Authority and further unbundle the transmission 
system operators DESMIE (electricity) and DESFA (gas), including by bringing forward 
transparent criteria and procedure to govern the selection of the chair and members of 
RAE. 


 13 
5. Actions for the fifth review (to be completed by end Q2-2011) 

i. Fiscal consolidation 

Rigorously implement the budget for 2011 in line with this memorandum, and the fiscal 
consolidation measures in the budget. Progress is assessed against the quarterly deficit 
ceilings in the MEFP (including the TMU). 

ii. Structural reforms 

Reforms to modernise public administration: 

Government adopts legislation/decrees establishing a simplified remuneration system 
covering basic wages and allowances that applies to all public sector employees ensuring 
that remuneration reflects productivity and tasks: this reform should be part of an overall 
reform of Human Resource management in the public sector. 

On the findings of the external and independent functional review of public administration 
at central level, the government adopts legislation and measures to rationalize the use of 
resources, the organisation of the public administration and social programmes. 

Authorities take the following measures to strengthen labour market institutions: 

Government completes the reform to strengthen the Labour Inspectorate, which should be 
fully resourced with qualified staff and has quantitative targets on the number of controls 
to be executed. 

Government adapts the legislation on tackling undeclared work to require the registration 
of new employees before they start working. 

Review the scope for improvements in the targeting of social expenditures to enhance the 
social safety net for the most vulnerable. 

To strengthen competition in open markets: 

Government adopts specific legislation to in restricted professions including for the legal 
profession, the pharmacy profession, the notary profession, architects, engineers and 
auditing services. 

To raise the absorption rates of Structural and Cohesion Funds: 

Government to meet targets for payment claims to be measured against certified data. 


 14 
6. Actions for the sixth review (to be completed by end Q3-2011)  

i. Fiscal consolidation 

Rigorously implement the budget for 2011 in line with this memorandum, and the fiscal 
consolidation measures in the budget. Progress is assessed against the quarterly deficit 
ceilings in the MEFP (including the TMU). 

Government adopts draft budget for 2012 aiming at a further reduction of the general 
government deficit in line with the programme and including the detailed presentation of 
consolidation measures amounting to at least 2.2% of GDP, including the following 
measures (in exceptional circumstances, measures yielding comparable savings could be 
considered in close consultation with European Commission, IMF and ECB):  

Reduce public employment on top of the rule of 1 recruitment for each 5 
retirements in the public sector; the reduction in public employment on top of 
the 5-to-1 rule should allow savings of at least EUR 600 million; 
Establish excises for non alcoholic beverages, for a total amount of at least 
EUR 300 million; 
Continue the expansion of the base of the real estate tax by updating asset 
values to yield at least EUR 200 million additional revenue; 
Continue the reorganisation of local government, to generate at least EUR 500 
million in savings; 
Nominal freeze in pensions; 
Continue to increase the effectiveness of the presumptive taxation of 
professionals, with the aim of collecting at least additional EUR 100 million; 
Reduction of transfers to public enterprises by at least EUR 800 billion 
following their restructuring; 
Make unemployment benefits means-tested (aiming at savings of EUR 500 
million);  
Collect further revenue from the licensing of gaming: at least EUR 225 million 
in sales of licences and EUR 400 in royalties; 
Further broadening of VAT base, by moving goods and services from the 
reduced to the normal rate, with the aim of collecting at least additional EUR 
300 million. 

ii. Structural reforms 

Reforms to modernise public administration: 

Government ensures full operation of the Better Regulation Agenda to reduce administrative 
burden by 20% compared with 2008 level, and sends report to the Commission. 

Improve the business environment: 

Government changes legislation to mitigate tax obstacles to mergers and acquisitions such 
as the non-transfer of accumulated losses, together with the company and the complex 
computation of "excessive benefit" (Law 3522/2006, Article 11) in the transfer of private 
limited companies. 
 15 

Government takes decisions to simplify the process to clear customs for exports and 
imports and give larger companies or industrial areas the possibility to be certified to clear 
cargo for the customs themselves; Government abolishes the requirement of registration 
with the exporter’s registry of the chamber of commerce for obtaining a certificate of 
origin. 


7. Actions for the seventh review (to be completed by end Q4-2011)  

i. Fiscal consolidation 

Government achieves the programme target for the 2011 general government deficit. 

Parliament adopts draft budget for 2012 a further reduction of the general government 
deficit and including consolidation measures amounting to at least 2.2% of GDP, in line 
with Memorandum. 

ii. Structural reforms 

To raise the absorption rates of Structural and Cohesion Funds: 

Government to meet targets for payment claims (to be measured against certified data) and 
for the submission of large projects. 

Introduced of web-based open-access monitoring tool of procedures for approval of project 
proposals and for implementation of public projects. 

Ensure that the managerial capacity of all Managing Authorities and Intermediate Bodies 
of operational programmes under the framework of the National Strategy Reference 
Framework 2007-2013 has been certified by the International Organization for 
Standardization according to the standard ISO 9001:2008 (Quality Management).  


 16 
Annex 1. Provision of data 

During the programme, the following indicators and reports shall be made available to the 
European Commission, the ECB and the IMF by the authorities on a regular basis. In 
general, reporting information provided to other multilateral and bilateral lenders involved 
in the programme of financial assistance of which the assistance provided by the 
Community forms part shall at the same time also be provided to the Commission, unless 
the Commission has indicated that this is not specifically required. The authorities shall 
provide the Commission and the ECB with compliance reports on the fulfilment of 
conditionality immediately after test dates. 


To be provided by the Ministry of Finance 
Preliminary monthly data on the state budget execution (including 
functional breakdown by main categories of revenue and expenditure 
and by line ministry)  
Monthly, 15 days after the end 
of each month; these data should 
also be included in subsequent 
transmissions in case of revision 
Updated monthly plans for the state budget execution for the remainder 
of the year, including functional breakdown by main categories of 
revenue and expenditure and by line ministry 
Monthly, 30 days after the end 
of each month 
Preliminary monthly cash data on general government entities other 
than the State Monthly, 30 days after the end 
of each month, these data should 
also be included in subsequent 
transmissions in case of revision 
Monthly data on the public wage bill (of general government, 
including a functional breakdown in nominal wage and allowances 
paid to government employees per line ministry and public entity), 
number of employees (including a functional breakdown per ministry 
and public entities outside the central government) and average wage 
(including the relative shares of the base wage, allowances and 
bonuses). A functional breakdown of these data into the main public 
entities will be added. 
Monthly, 30 days after the end 
of each month (starting in June 
2010) 
Quarterly data on general government accounts, and general 
government debt as per the relevant EU regulations on statistics Quarterly accrual data, 90 days 
after the end of each quarter  
Weekly information on the Government's cash position with indication 
of sources and uses as well of number of days covered as well as 
information on the main government spending and receipt items 
Weekly on Friday, reporting on 
the previous Thursday 
Data on below-the-line financing for the general government Monthly, no later than 15 days 
after the end of each month, ; 
these data should also be 
included in subsequent 
transmissions in case of revision 
Data on expenditure pending payment (including arrears) of the 
general government, including the State, local government, social 
security, and legal entities 
Quarterly, within 55 days after 
the end of each quarter  
Data on expenditure pending payment (arrears) of the State and 
hospitals Monthly, 30 days after the end 
of each month 
Public debt, and new guarantees issued by the general government to 
public enterprises and the private sector Monthly, within one month 
Income and expenditure statement and balance sheets of 30 largest 
public enterprises by total expenditures Quarterly, three months after the 
end of the quarter 
 17 
Data on EU project grants (reimbursements and advances), capital 
expenditures and subsidies covered by EU advances or eligible for EU 
reimbursement on EU supported projects specifically agreed with the 
EU 
Monthly, within three weeks of 
the end of each month 
Monthly statement of the transactions through off-budget accounts Monthly, at the end of each 
month 
Monthly statements of the operations on the special account Monthly, at the end of each 
month 
Report on progress with fulfilment of policy conditionality Monthly, at the end of each 
month 
  
To be provided by the National Bank of Greece 
Assets and liabilities of the Bank of Greece  Weekly, next working day 
Assets and liabilities of the Greek banking system - aggregate 
monetary balance sheet of credit institutions  Monthly, 30 days after the end 
of each month 
Evolution of the external funding provided by Greek banks to their 
subsidiaries abroad2 Monthly, 15 days after the end 
of each month 
External funding flows for the banking, corporate and government 
sector, including also expected developments in the 12 months ahead Monthly, 30 days after the end 
of each month 
Report on banking sector liquidity situation Weekly, next working day 
Report on the evolution of financial stability indicators Quarterly, 15 days after the end 
of each quarter depending on 
data availability 
Report on results from the regular quarterly solvency stress tests Quarterly, 15 days after the end 
of each quarter depending on 
data availability 
Detailed report on the balance sheet of the Financial Stability Fund 
with indication and explanation of changes in the accounts Weekly, next working day 

                                                 
2 
 All forms of debt instruments and capital, as well as net deposits provided to subsidiaries abroad. 
 18 
Annex 2. Financial Stability Fund 

General  

- The purpose of the Financial Stability Fund (the ‘Fund’) is to maintain the stability of 
the Greek banking system by providing equity capital in case of a significant decline of 
capital buffers.  
- The Fund will not provide liquidity support, which will be provided under existing 
arrangements. 
- The equity will be provided in the form of preference shares to credit institutions 
authorised to operate in Greece by license from the Bank of Greece. The preference 
shares will be convertible into ordinary shares at a later stage under certain conditions 
to be further specified in the legislation establishing the Fund. 
- Participation in the Fund will be based on a trigger linked to the minimum required 
level of capital adequacy requirements, as established for specific credit institutions by 
the Bank of Greece, in its capacity as the competent supervisory authority, if no private 
solution has been found. 
- The Fund will be established by specific Greek legislation. 
- An initial lifespan of [7] years would be envisaged for the Fund. After the end of the 
lifespan of the Fund any acquired ownership rights fall to the Greek State. 

Legal status 

- The Fund will be established as a private law legal entity in order to enhance its 
flexibility and efficiency (e.g., to facilitate the recruitment and remuneration of 
appropriately qualified staff). 
- The legal structure of the Fund should allow for private participation. 

Funding 

- The Fund will be exclusively financed through its own resources lent by the Greek 
Government of up to EUR 10 billion. [Specifically, financing will be provided by the 
Greek Government using part of the proceeds of the loans granted in the EU/IMF 
programme. This implies that the risk of losses arising out of the Fund’s operations 
would lie exclusively with the Greek Government, as the primary shareholder in the 
Fund, which would also be obliged to repay the loans granted in the EU/IMF 
programme. The purchase of preference shares shall be done in cash]  

Organizational issues 

- The Fund would be managed by a Governing Council composed of (1) a Chairperson, 
a Chief Executive and two directors appointed by the Governor of the Bank of Greece; 
(2) a director appointed by the Governor of the Bank of Greece on the nomination of 
the European Commission (without prejudice to the application by the Commission of 
state aid and competition rules); and (3) two ex officio directors who represent the 
Minister of Finance and the Governor of the Bank of Greece. The ECB will nominate 
an observer who would have a right to participate, without voting, in meetings of the 
Governing Council.  
 19 
- The Chairperson, Chief Executive and the non-ex officio directors will be required by 
law to be persons of recognised standing in banking or financial matters in Greece, the 
EU or internationally. 
- Each of the Chairperson and the non-ex officio directors will be appointed to a five 
year term of office and may only be compulsorily removed from office by an 
appropriate Greek court on application of the Governor of the Bank of Greece where 
(1) no longer capable of fulfilling the conditions required for the performance of the 
duties of office or (2) guilty of serious misconduct.   
- No member of the Governing Council may be represented on the board of directors of 
any credit institution. 
- The legislation establishing the Fund will provide that, when exercising the powers and 
carrying out the tasks and duties conferred upon them under the legislation, neither the 
Governor of the Bank of Greece nor the members of the Governing Council of the 
Fund shall seek or take instructions from the Greek Government or any other State 
entity, institution, body or undertaking.  
- The Governing Council will present a semi-annual report to the Greek Parliament, the 
European Commission, the ECB and the IMF. 
- The operating expenses will be covered by the Fund. 

Powers of the Fund 

- In order to fulfil its purposes the Fund will enjoy certain powers over credit institutions 
receiving capital from the Fund, including without limitation the power:  
o to require a credit institution to provide the Fund with all information necessary 
for the Fund to fulfil its tasks; 
o to appoint a member of the Board of Directors of a credit institution;  
o to require a credit institution to present a restructuring plan;  
o to veto key decisions of a credit institution (e.g., business strategy, dividend 
distributions, salary caps, liquidity and asset-liability management, etc.);  
o to call a general shareholders’ meeting for a credit institution in accordance 
with Greek company law;  
o to require conversion of preference shares into ordinary shares insofar as a 
credit institution fails to meet (1) the minimum required level of capital 
adequacy requirements established for credit institutions generally under 
applicable regulatory requirements or (2) certain financial conditions to be 
further specified in the legislation establishing the Fund; and 
o to conduct diagnostic studies and special audits with the help of outside 
consultants to assess the solvency of a credit institution where the Fund 
considers this necessary. 

- Each of the Bank of Greece, in its capacity as the competent authority for the 
supervision of credit institutions, and the Fund will be authorised to exchange 
confidential information with one another to the fullest extent permitted by EU law. 
- The powers of the fund are without prejudice to the supervisory powers of the bank of 
Greece. 

Conditions applicable to capital increases 
  
- The conditions applicable to any capital increases should be aligned with the 
Commission Decision of 19.11.2008 (N 560/2008 support measures for the credit 
 20 
institutions in Greece). The granting of equity capital is made subject to the following 
conditions in particular: 
- The credit institutions will be expected to pay a market-oriented, non-cumulative 
remuneration unless an analysis of the restructuring plan warrants an alternative 
approach. A market-oriented, non-cumulative remuneration can either be 10% as 
stipulated in the above decision or depending on the risk profile of the credit institution 
and the quality of the capital, between 7% and 9.3%, whereas core tier 1 capital for 
fundamentally sound credit institutions should normally be remunerated at at least 9%. 
- The credit institutions will not pay dividends or coupon on hybrid capital, unless they 
are legally obliged to do so, which is typically the case when a credit institution is 
profit making (the credit institution should however not be allowed to use reserves to 
book a profit). 
- Preference shares shall be repurchased by the credit institution for an amount that is 
equivalent to the amount originally invested in the credit institution. After five years 
the shares shall be repurchased or be remunerated at penal rates. If they cannot be 
repurchased because the capital adequacy requirements are not fulfilled, the preference 
shares shall be converted into ordinary shares. 

Approval of restructuring plan by European Commission  

- Any restructuring plan needs to be in accordance with State aid rules and approved by 
decision of the European Commission ensuring that the credit institutions will restore 
viability at the end of the restructuring period, burden sharing of shareholders is 
achieved and distortion of competition is limited. 

Follow-up 

- The Greek authorities would prepare the necessary legislation implementing the details 
of the above by the end of June 2010, at the latest. 














 21 

Annex 3. Fiscal measures to be implemented over 2011-2014 

2010 
in million EUR  % of GDP 
Revenue  0.5 
Increase in VAT rates  800 0.3 
Increase in excise tax on fuel 200 0.1 
Increase in excise tax on cigarettes 200 0.1 
Increase in excise tax on alcohol 50 0.0 
Expenditure  1.9 
Wage bill cut by reducing the Easter, summer and 
Christmas bonuses and allowances 1100 0.5 
Intermediate consumption 700 0.3 
Pension cuts (highest pensions) 350 0.1 
Elimination of solidarity allowance (second instalment) 400 0.2 
Pensions cut by reducing the Easter, summer and 
Christmas bonuses 1500 0.6 
Public investment reduction 500 0.2 
TOTAL ANNUAL IMPACT 5800 2.5 
   
   
 22 
 2011 
in million EUR  % of GDP 
Carry over from last year  1.1 
Increase the VAT rates 1000 0.4 
Increase in excise tax on fuel 250 0.1 
Increase in excise tax on cigarettes 300 0.1 
Increase in excise tax on alcohol 50 0.0 
Wage bill cut by reducing the Easter, summer and 
Christmas bonuses and allowances 400 0.2 
Pensions cut by reducing the Easter, summer and 
Christmas bonuses 500 0.2 
Revenue  2.2 
Taxation on unauthorised establishments 800 0.4 
Luxury goods tax 100 0.0 
Book specification of income 50 0.0 
Gaming royalties 200 0.1 
Gaming licenses 500 0.2 
Special levy on profitable firms 600 0.3 
Levies on illegal buildings 500 0.2 
VAT - changes in the sub-categories and broadening base 1000 0.4 
Green tax  300 0.1 
Presumptive taxation 400 0.2 
Increase of legal values of real estate 400 0.2 
Taxation of wage in kind (cars) 150 0.1 
Expenditure  1.0 
Intermediate consumption 300 0.1 
Savings from the introduction of unified public sector 
wages 100 0.0 
Pension freeze 100 0.0 
Kalikrates savings 500 0.2 
Pension cuts (highest pensions) 150 0.1 
Public investment reduction 500 0.2 
TOTAL ANNUAL IMPACT 9150 4.1 
  
  
   
   
 23 

2012 
in million EUR  % of GDP 
Revenue  0.7 
Excise non-alcoholic beverages 300 0.1 
Gaming licenses 225 0.1 
Gaming royalties 400 0.2 
VAT - broadening base 300 0.1 
Presumptive taxation 100 0.0 
Increase of legal values of real estate 200 0.1 
Expenditure  1.2 
Reduction in public employment in addition to the 5-to-1 
replacement rule 600 0.3 
Means test unemployment benefit 500 0.2 
Pension freeze 250 0.1 
Kalikrates savings 500 0.2 
Cut transfers to public entities 800 0.4 
Public investment  reduction 500 0.2 
Unidentified cuts in operational expenditure 900 0.4 
TOTAL ANNUAL IMPACT 5575 2.4 
  
  
   
 24 
 2013 
in million EUR  % of GDP 
Revenue  -0.3 
Presumptive taxation 100 0.0 
Gaming licenses -725 -0.3 
Expenditure  0.5 
Reduction in public employment in addition to the 5-to-1 
replacement rule 500 0.2 
Pension freeze 200 0.1 
Kalikrates savings 500 0.2 
Unidentified measures 4200 1.8 
TOTAL ANNUAL IMPACT 4775 2.0 
   
 25 
2014 
in million EUR  % of GDP 
Temporary measures   -0.4 
Special levy on profitable firms (discontinuation of 
temporary measures) -600 -0.2 
Levies on illegal buildings (discontinuation of temporary 
measures) -450 -0.2 
Unidentified measures 5750 2.4 
TOTAL ANNUAL IMPACT 4700 1.9 
   
TOTAL MEASURES 2010 - 2014 30000 13.0 








 26 
Annex 4. Structural reforms conditionality 
 STRUCTURAL REFORMS: CONDITIONALITY 
 Action Time frame 
PUBLIC ADMINISTRATION REFORMS   
Simplify the remuneration system for public 
sector employees 

-  launch a process to create a simplified remuneration system to 
cover basic wages and all allowances applying to all public sector 
employees and ensuring that remuneration reflects productivity 
and tasks 
 - establish a fully operational Single Payment Authority to 
centralize the payment of all salaries paid to civil servants at all 
levels of government, 
  
- adopt legislation for a simplified remuneration system 
 September 2010 
  
  
December 2010  
  
 June 2011  

Public procurement 

 - complete the first phase of the public procurement system for all 
sectors and levels of government with a fully operational 
electronic platform introducing the use of e-auctioning systems 
 - implement EU Directives and have an effective appeals system 

December 2010  
  
March 2011 
Transparency of public spending decisions 
- adopt legislation to ensure transparency by requiring online 
publication of all government expenditure decisions  

June 2010 
Local administration reform  
 - adopt legislation reforming public administration at the local 
level  
 - adopt all legislation and decrees for full entry force of the reform 
on 1 January 2011 involving transfer of responsibilities and 
resources across entities 

 June 2010 
  
 December 2010 

 27 
STRUCTURAL REFORMS: CONDITIONALITY 
 Action Time frame 
Independent functional review of the central 
government 
 - launch an independent and external review of the organization 
and functioning of the central administration  
 - adopt legislation and measures to rationalize the use of resources, 
the organisation of the public administration and the effectiveness 
of social programmes.  

September 2010 
  
 June 2011  
Better Regulation  
-adopt legislation to implement the Better Regulation agenda  
 - ensures full implementation to reduce administrative burden by 
20compared with 2008 level and submit a progress report to the 
Commission 
December 2010  
  
September 2011 

LABOUR MARKET and WAGES    
Start discussion with social partners  
To prepare the revision of private sector wage bargaining and 
contractual arrangements 
June 2010 
Reform Employment Protection Legislation  
- extend the probationary period for new jobs to one year 
  
- reduce the overall level of severance payments which should 
apply equally to blue and white collar workers,  
 - raise the minimum threshold for activating rules on collective 
dismissals especially for larger companies,  
 - put measures in place to guarantee that current minimum wages 
remain fixed in nominal terms for 3 years 
 - facilitate use of temporary contracts and part-time work  
December 2010 

Reform minimum wages 
 - following dialogue with social partners, government adopts 
legislation on minimum wages to introduces sub-minima for 
groups at risk such as the young and long term unemployed, 

December 2010 

 28 
STRUCTURAL REFORMS: CONDITIONALITY 
 Action Time frame 
- guarantee that current minimum wages remain fixed in nominal 
terms for three years 
Reform private wage bargaining system to ensure 
wage moderation  
 - adopts legislation to reform wage bargaining system in the 
private sector, including local territorial pacts to set wage growth 
below sectoral agreements  
 - introduce variable pay to link wages to productivity performance 
at the firm level  
 - amend regulation of the arbitration system 
December 2010 
Increase the flexibility of working hours  
 - adjust legislation to introduce annual time accounts and reduce 
overtime pay 
  
December 2010 
Fight undeclared work 
 - strengthen legislation to enforce the registration of new 
employees  
 - ensure the Labour Inspectorate is fully staffed and  quantitative 
controls targets are in place 
June 2011 
Review social safety net 
 Review the scope for improvements in the targeting of social 
expenditures to enhance the social safety net for the most 
vulnerable 

June 2011 
PENSIONS     
Reform pension system 

Government adopts a new simplified system (pro rata) for all 
current and future employees including: 
- by December 2015, a unified statutory retirement age of 65 
years, including for those insured before 1 Jan 1993.  
- increase retirement age of women in the public sector to 65 by 
2013 
June 2010  
  
  

 29 
STRUCTURAL REFORMS: CONDITIONALITY 
 Action Time frame 
- strengthened link between contributions and benefits  
- pension earnings calculated on the entire lifetime 
- an average annual accrual rate of 1.2 
- price indexation of pensions 
- an automatic adjustment mechanism that links the retirement age 
with increases in life expectancy at retirement 
- an increased minimum contribution period from 37 to 40 years 
by 2015 
- restricted access to early retirement and increased minimum 
retirement age of 60 years by 1st January 2011, including for 
workers in heavy and arduous professions, and those with 40 years 
of contributions  
- revised disability scheme 
- reduced (by 6 per year) pension benefits for people retiring 
between the ages of 60 and 65 with less than 40 years of 
contribution  
- No special rules for those insured before 1 Jan 1993 
- substantial cuts in the list of heavy and arduous professions (to 
no more than 10 of employees) 
- a means-tested minimum guaranteed pension for people aged 
above 65 years of age 
- a reduction in the number of funds to 3 
 Parliament adopts the pension reform 
  
  
  
  
  
  
  
  
  
  
  
  
September 2010 

HEALTHCARE   
Healthcare reform  
Complete reforms to improve management and procurement 
systems of health system: complete move to double accounting 
systems, establish operational oversight by the Finance Minister,  
the publication of audited accounts  
December2010 
BUSINESS ENVIRONMENT    
Facilitate business start ups   June 2010 
 30 
STRUCTURAL REFORMS: CONDITIONALITY 
 Action Time frame 
Simplify the start up of new businesses and make the General 
Commercial Registry (GEMI) fully operational 

September 2010 
Simplify the licensing of industrial units and 
reduce the costs of doing business 
 - simplify and accelerate the process of licensing enterprises, 
industrial activities and professions through legislation and by 
making the spatial plans operational 
 - Government changes legislation to mitigate tax obstacles to 
mergers and acquisitions, and lower costs associated with customs 

December 2010  
  
 September 2011 
  
Implement the Services Directive 
- adopt horizontal legislation, finalize screening of sectoral 
legislation,   
 make single points of contact operational 
 -adopt measures in key service sectors such as tourism, retail and 
education 
June 2010 
 September 2010 
 December 2010 

Open up restricted professions  
- propose sector-specific legislation to remove restrictions to trade 
in the legal profession, the pharmacy profession, the notary 
profession, architects, engineers, auditing services 
 - implement the Professional Qualifications Directive so that 
qualifications from third countries are recognized 
 -adopt legislation to open up restricted professions 
 December 2010 
   
 December 2010 
  
June 2011 

Road freight transportation 
 Liberalize road freight transport by removing all unnecessary 
restrictions on admission to the occupation of road haulage, 
including minimum fixed prices 

September 2010 
 31 
STRUCTURAL REFORMS: CONDITIONALITY 
 Action Time frame 
Competition policy framework  
 Modify the existing institutional framework of the Hellenic 
Competition Commission, including  to allow prioritisation on 
important cases and to strengthen the independence of HCC 
members 
  
December 2010 
Railways 

- Prepare a recovery plan for the railway sector to restore 
profitability to operational services, ensure compliance with EU 
Directives, and -specify a timetable for the restructuring of the 
holding company including the sale of land and other assets 
 - Implement fully the recovery plan for the railway sector 
  
 June 2010 
  
March 2011 

Energy 
  
  

-Decisions on the liberalization of wholesale electricity market and 
to commence the rationalization of consumer tariffs 
 -Adopt legislation to unbundle electricity and gas activities, 
including measures  
 - Adopt measures to strengthen the independence and capacity of 
the Energy Regulatory Authority 

 September 2010 
  
 March 2011 
  
March 2011 
  
PROMOTING INVESTMENT AND 
EXPORTS 
  
Promoting FDI and investment in strategic 
sectors 
Government takes measures to facilitate FDI and investment in 
innovation in strategic sectors (green industries, ICT etc...), 
through a revision of the Investment Law, the adoption of 
measures to facilitate PPPs, action to fast-track large FDI projects 
and measures to strengthen export promotion policy 
September 2010 
R&D and innovation  - Carry out in depth evaluation of all R&D and innovation actions, December 2010 
 32 
STRUCTURAL REFORMS: CONDITIONALITY 
 Action Time frame 
including in various Operational Programmes, in order to adjust 
the national strategy 
 - Create an Advisory Council financed through the 7th R&D 
programme, to consider how to foster innovation, how to 
strengthen links between public research and Greek industries and 
the development of regional industrial clusters 
  
 December 2010 
  

STRUCTURAL AND COHESION FUNDS    
Increase absorption of Structural and Cohesion 
Funds 
- put in place measures to achieve binding targets for payment 
claims of Structural and Cohesion Funds and for submission of 
large projects 
- establish Task Force with the Commission to speed-up the 
development of high quality projects, through better coordination 
and other actions 
- complete steps to prioritize public investment spending for 
projects benefiting from EU funds, including the introduction of a 
central bank account 
- meet targets for payment claims (measured against certified data) 
and large projects 
- introduction of a web-based open access monitoring tool of 
procedures for approval of project proposals and for 
implementation of public projects; 
- ensure that the managerial capacity of all Managing Authorities 
and Intermediate Bodies of operational programmes 
  
June 2010 
  
  
 December 2010 and every six 
months thereafter  
 December 2011 
 December 2011