ocp192_en

Memorandum of Understanding on Specific Economic Policy ConditionalityThe Authorities are committed to achieving the 2015 fiscal target. Current projections indicate theexistence of a fiscal gap for 2015, which the Authorities intend to close, in first instance, through theextension of expiring measures, including the solidarity surcharge. The question on closing the gap for2015 will be taken up in the context of the preparation of the 2015 budget. If there is sustained overperformanceof revenue, contingent on the fiscal targets being met, the Authorities will in consultationwith the EC-ECB-IMF consider a reduction in the high statutory tax rates while aiming to broaden thetax bases. In line with the existing legal framework, the 2015-18 MTFS will be voted on by Parliamentby May 15, 2014, and the draft 2015 budget will be agreed with the EC/ECB/IMF by end-September2014.Prior to the disbursement the Government will:a. Strengthen the collection of social security contributions (SSC) to yield about EUR 500million by: (i) imposing penalties on employers who do not declare accurately their SSCobligations in the Periodical Analytical Statement (APD), which are equivalent to thepenalties for failing to register employees; (ii) introducing mandatory declaration ofcontributions for supplementary and lump-sum pensions to ETEA and TAPIT in the APD;and (iii) expanding the automatic reminders to all employers who have not paid their SSCobligations in the previous month, including employers declaring contribution obligationsfor supplementary and lump-sum pensions through a SGPR Decision for matching ofPAYE and APD data (iv) automating the off-setting of OGA and OAEE contributionsagainst EU subsidies.b. Undertake corrective actions to ensure implementation of the unified public sectorwage grid in extra-budgetary funds (EBFs) that will contribute (among other savingsmainly in operational expenditures) to the realization of the reduction in expenditureceilings of EBFs by around 100 mn EUR to be provided in the MTFS 2015-18.c. Reduce military procurement spending in order to yield EUR 50 million from 2014onward.d. Legislate the automatic off-setting of VAT and income tax refunds against SSF debts,eliminate OAED family benefits, reduce OAED training programs, rationalize OAEEexemptions in order to offset the reduction of IKA contribution rates by 3.9 percentagepoints by EUR 230 million in 2014 and additional EUR 115 million in 2015.e. Eliminate the TEADY dividend as part of the supplementary pensionsOther Actions:1. The Government will implement permanent measures in order to reduce hospital spendingby euro 25 million in 2014 (July 2014).150