ocp192_en

ANNEXΡar /ΡageMoU2.4.2.9MoU2.4.2.9MEFP(23)(Table4)MoU2.5.1.1MoU2.5.2.1MEFP(10)MoU2.5.2.2MoU2.5.3.1MoU2.5.3.2MoU2.5.3.3Action Deadline Comments StatusOnce the clearance of all verified arrears is achieved, theGovernment ensures that no new arrears are accumulated.Once the clearance of all verified arrears is achieved, theGovernment ensures that no new arrears are accumulated.We have also set targets for indicators for end-September2013 (structural benchmark), 94% percent of generalgovernment entities will have reported their arrearsthrough the e-portal and 78% will have reported acomprehensive set of information from their commitmentregisters with a discrepancy of less than 2%.The Government will adopt the necessary legislation totranspose the Fiscal Compact provisions with a view tointroducing a structural budget balance rule with anautomatic correction mechanism.(MEFP) Have a preliminary draft MTFS in earlySeptember.(MoU) The Government will submit to the Parliament the2014 medium-term fiscal strategy (MTFS).The Government will adopt the organic budget law tointroduce:i. The MTFS will set fixed expenditure ceilings for lineministries and the health care sector and every year aceiling for an additional year will be added while thealready set ceilings (i.e. for the first two years of therolling three-year period covered by the ceilings) wouldremain as previously fixedii. Establish binding annual budget balance targets for localgovernmentsiii. identify performance targets for SOEs;iv. Provisions to freeze ex-ante 10% of discretionaryappropriations per budget line as part of the MTFS. Thefrozen appropriations would be released in the second halfof the year conditional upon meeting the fiscal targets. Thefirst application should concern the 2014 budgetv. A revenue rule for the general government, according towhich at least 30% of windfall revenues in excess of thetarget will be devoted to debt repayment while up to 70%could be used the following year by the Government tosupport temporary policies aiming to boost growth andsocial cohesion automatically, conditional to theachievement of the fiscal targets.The Government will ensure a continuous balance betweenpension contributions and benefits, by bringing forward toJune 2014 the entry in force of the binding mechanism (forauxiliary pensions) already legislated to enter in force as of2015.The Government will strengthen HRADF's governanceand independence and implement an automatic correctionmechanism, should there be any difficulties in theprivatisation process or slippages in the targets, by:i.Reviewing the functioning of the privatisation frameworklaw, through specific QPCs to be enforced the moment theprivatisation plan derailsii. Taking, in cooperation withEC/ECB/IMF, appropriate steps, including changes inexisting legislation and/or in the composition of the Board,to safeguard and strengthen the independence and thefunctioning of the HRADF, if targets for the sale of assetsto be privatised were missed substantially for twoconsecutive quarters. In all circumstances, the HRADFremains fully accountable to parliament on an ex-post basisfor the integrity of every privatisation saleiii. Increasingautomatically the primary surplus target, should there be ashortfall of privatisation proceedsdue to the delay in salesof specific assets compared to programme targets for twoconsecutive quarters. Any shortfall in privatisationproceeds ceteris paribus increases the financing need andthe debt ratio. To mitigate this undesirable outcome, unlessother adjustments are agreed with the EC/ECB/IMF, theprimary surplus target would be raised with immediateeffect by 50 percent of the shortfall in proceeds, andshould be achieved by means of current expenditure cuts inthe general government. The adjustment within any yearwould be capped at €1 billionThe Government will enhance the corrective mechanismfor local governments (LGs) through a top down approachfor the preparation of 2014 realistic budgets for LGs. Thisapproach foresees subsequent steps:ContinuousContinuousSeptember2013There was a significant increase in the arrears ofhospitals and EOPYY in 2013 amounting to 2 billionEuro.There was a significant increase in the arrears ofhospitals and EOPYY in 2013 amounting to 2 billionEuro.September data were published. Two out of threetargets were accomplished. With the interpretivecircular this target will also be achieved.October 2013 Rephased for April 2014September2013Τhe MTFS is expected to be voted in May 2014.October 2013 To be submitted to the Parliament in April 2014September2013ContinuousThe legislative work had been done with articles39,40,41,42 of Law 4052/2012. The Ministry ofLabour confirmed to EC/ECB/IMF its intention touse the date 01/01/2014 as base of a proratacalculation of pensions. A new law must be adoptedfor the earlier implementation.L. 4254/2014 FEK 85/7.4.2014 (subparagraphIA2/3).Continuous effort to strengthen HRADF functioningand independence.NotObserved.NotObserved.Pending.NotObserved.NotObserved.Pending.NotObserved.NotObserved.N/A89