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Memorandum of Understanding on Specific Economic Policy Conditionalityii.iii.iv.monitoring system; a set of VET standards and regulations ensuring the quality andrelevance of education in VET education and training institutions.The setting up of a monitoring mechanism for the development of local partnershipsat regional level with associated targets and milestones, including the formation ofat least two pilot local partnership agreements with master plans (June 2014).The elaboration of a strategy with detailed proposals to ensure progressively closeremployer engagement and private-sector funding in VET (May 2014).Develop clear estimates of the budgetary costs of the expansion of VET andapprenticeships including detailed assumptions in particular on the share of costs tobe covered by public resources and by employers, and estimates of the additionalinfrastructure and human resources costs (May 2014).v. A detailed plan for the required technical assistance for the achievement of theImplementation Plan by May 2014.vi.Develop a strategy to provide a diagnostic system to identify future skills needs andto match vocational education and training with the needs of the labour market bySeptember 2014.2. The Ministry of Labour and the Ministry of Education with OAED ensures fullimplementation of the above-mentioned implementation plan, including throughadministrative and legislative actions, and sets up a permanent coordination committee withrepresentatives from relevant Ministries. They will regularly report jointly on the progressachieved and the pending measures (continuous, February, May, September andNovember of each year).3. Secures the availability of adequate budget allocations, including the proposed contributionby EU Structural Funds for the period 2014-2020 in line with the above-mentionedimplementation plan, in order to deliver the planned expansion of vocational education andtraining and apprenticeships throughout the entire implementation period, and compatiblewith the overall fiscal targets (continuous, starting June 2014).4.5. Support to the unemployedThe Government steps up efforts through the implementation of the Action Plan on Employmentadopted in July 2013 to prevent unemployment becoming permanent and to mitigate the hardship ofunemployment, focusing on: promoting the integration of the long-term unemployed, young peopleand all other disadvantaged groups in the labour market; easing labour market mismatches andfacilitating the transition from school to work, and the mobility of workers across occupations andsectors by improving training policies and promoting the employability of the disadvantaged groups;and strengthening social economy. The Government also starts implementing the CouncilRecommendation on Establishing a Youth Guarantee 2 gradually, whilst prioritising relief for thehardest-hit young people. In these efforts, the Government will aim at involving the social partnersand the private sector to the maximum extent possible and seek an effective use of the resourcesavailable, including by preventing possible abuses or frauds. In particular, the Government will:1. Implements a new round of short-term public work programmes in 2014 targeted at joblesshouseholds, the long-term unemployed, and young people not in education, employment ortraining, as a measure of emergency and temporary nature while labour demand remains2 http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:C:2013:120:0001:0006:EN:PDF194
Memorandum of Understanding on Specific Economic Policy Conditionalitysluggish. The new round scheme may target at least 50,000 persons. Municipalities and otherpublic Authorities may participate directly in such public works programmes only under thefull adequate and transparent control of such programmes (open calls, internet publication ofprojects with full details, and reporting helpline). Proposals for the new-round scheme to bemade by May 2014.2. Makes proposals for future youth schemes after undertaking an evaluation of the existingyouth schemes, including the youth voucher. These must ensure the proper monitoring andestablish sanctions against any fraudulent behaviour (May 2014). An extension of theseinitiatives to other categories of jobseekers can be envisaged.3. Closely align the Youth Guarantee Implementation Plan with the roadmap for themodernisation and expansion of vocational education and training and providing immediaterelief for the hardest-hit young people (December 2014).4. Ensure that adequate administrative capacity to formulate employment policies and implementthe Youth Guarantee at all levels is available, including by setting up effective coordinationmechanisms between the Ministry of Labour, the Ministry of Education, other Ministries,OAED, regions and other partners (June 2014).5. Fully implementing the Re-engineering Plan for OAED and establishing, where appropriate,partnerships with the private sector and external organisations (September 2014).4.6. Developing Social Welfare and promoting InclusionThe Government will develop the welfare system and improve social safety nets within the currentbudgetary envelopes to create an integrated and cost-effective welfare system in Greece throughincreased effectiveness and efficiency of welfare spending. That is urgently needed to reduce poverty,through minimum income protection, whilst ensuring the incentives to work and save needed to avoidwelfare dependency. To this end:1. The Government launches in April 2014 a comprehensive review of social welfare and socialprotection spending, including spending on social assistance paid through the social securitysystem (in conjunction with the social security review). The purpose is to increase theeffectiveness of social welfare spending and to consolidate and streamline existing benefitswith the intention of creating the fiscal space to provide targeted support to vulnerable groupswithin the overall fiscal targets. The first part of the review should include both in-kind andfinancial benefits. The review should cover detailed information on each benefit: inter alia, thestructure and type of the benefit, eligibility criteria, target population and number of actualbeneficiaries, spending in recent years and source of financing. All subsectors of the generalgovernment, notably central government, social security funds and local governments shouldbe covered. The first part of the social welfare review should officially report in June 2014.2. A second part of the review should focus on the effectiveness of the various benefits inreaching its target population and addressing its objective as well as identify potentialpopulation groups not covered by the social protection system. Alternative key designparameters need to be assessed, including the development of non-tax form based eligibility,incentives for labour activation, and the development of appropriate anti-fraud controls. Thesecond part of the review making detailed proposals for reform should officially report inSeptember 2014.3. Based upon the social welfare review, the government in conjunction with EC/ECB/IMF staffwill set out a Government Strategy on Social Welfare and Inclusion by October 2014. Thisshould include detailed proposals for the creation of a guaranteed minimum income scheme.The streamlined level of social spending must remain within the programme fiscal targets andbe consistent with fiscal sustainability.195
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OUTLINE OF THE REPORTEXECUTIVE SUMM
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LIST OF GRAPHSGraph 1. Economic cli
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ACKNOWLEDGEMENTSThe report was prep
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1. INTRODUCTION1. INTRODUCTION1. Th
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ANNEX 2: MACROECONOMIC FORECASTANNE
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ANNEXTable B1: USE AND SUPPLY OF GO
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ANNEXTable C1: FISCAL ACCOUNTS AND
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ANNEX 3: UPDATED PROGRAMME DOCUMENT
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