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Actions Shares. Embeds 0 No embeds. No notes for slide. Grcki predlog 1. The new fiscal path is premised on a primary surplus target of 1, 2, 3 , and 3. The reform will target a net revenue gain of 1 percent of GDP on an annual basis from parametric changes.
The new VAT system will: i unify the rates at a standard 23 percent rate, which will include restaurants and catering, and a reduced 13 percent rate for basic food, energy, hotels, and water excluding sewage , and a super-reduced rate of 6 percent for pharmaceuticals, books, and theater; ii streamline exemptions to broaden the base and raise the tax on insurance; and iii Eliminate discounts on islands, starting with the islands with higher incomes and which are the most popular tourist destinations, except the most remote ones.
This will be completed by end, as appropriate and targeted fiscally neutral measures to compensate those inhabitants that are most in need are determined. The new VAT rates on hotels and islands will be implemented from October The increase of the VAT rate described above may be reviewed at the end of , provided that equivalent additional revenues are collected through measures taken against tax evasion and to improve collectability of VAT. Any decision to review and revise shall take place in consultation with the institutions.
On health care, effective as of July 1, , i re-establish full INN prescription, without exceptions, ii reduce as a first step the price of all off-patent drugs to 50 percent and all generics to Pension reform The Authorities recognise that the pension system is unsustainable and needs fundamental reforms.
The consolidation of social insurance funds will take place by end In , the process will be activated through legislation to consolidate the social insurance funds under a single entity and the operational consolidation will have been completed by 31 December Further reductions in the operating costs and a more effective management of fund resources including improved balancing of needs between better-off and poorer-off funds will be actively encouraged. The authorities will adopt legislation to fully offset the fiscal effects of the implementation of court rulings on the pension reform.
In parallel to the reform of the pension system, a Social Welfare Review will be carried out to ensure fairness of the various reforms.
The institutions are prepared to take into account other parametric measures within the pension system of equivalent effect to replace some of the measures mentioned above, taking into account their impact on growth, and provided that such measures are presented to the institutions during the design phase and are sufficiently concrete and quantifiable, and in the absence of this the default option is what is specified above.
The scheme will promote the use of job description and will be linked with an online database that will include all current vacancies. Final decision on employee mobility will be taken by each service concerned. This will rationalize the allocation of resources as well as the staffing across the General Government. Amend and implement the legal framework for the declaration of assets and financing of the political parties and adopt legislation insulating financial crime and anti- corruption investigations from political intervention in individual cases.
Empower the Line Ministries to perform robust audit and control inspections to supervised entities including SOEs. Develop strategy according to the assessment Q4 9. Develop and implement strategy. Q4 6. Labour market Launch a consultation process to review the whole range of existing labour market arrangements, taking into account best practices elsewhere in Europe. Further input to the consultation process described above will be provided by international organisations, including the ILO.
The organization and timelines shall be drawn up in consultation with the institutions. In this context, legislation on a new system of collective bargaining should be ready by Q4 The authorities will take actions to fight undeclared work in order to strengthen the competitiveness of legal companies and protect workers as well as tax and social security revenues.
The assessment will be concluded by Q1 The recommendations will be adopted by Q2 Technical assistance of the World Bank will be sought to implement the easing of licensing requirements. On electricity markets, the authorities will reform the capacity payments system and other electricity market rules to avoid that some plants are forced to operate below their variable cost, and to prevent the netting of the arrears between PPC and market This list of actions is updated regularly and the Government will ensure that all pending actions are timely implemented.
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