THE TAKEAWAY: Greek Government Has 7 Days to Complete the Checklist of Reforms to Get the Second Bailout > Failure to Comply will Lead to a Disorderly Default > Greek Default Pushes the Country out of The Euro Zone and Causes Incalculable Consequences for Europe

The Greek government has been given seven days to complete a lengthy checklist of reforms demanded by its international creditors to win a €130 billion bailout that would theoretically avert a disorderly default next month. The checklist includes 38 specific conditions in Greek tax, spending and wage policies that must be passed by parliament, ministerial decisions and presidential decrees.

Below is a partial list of the necessary measures that must be completed before Euro Zone Finance Ministers meet for their scheduled gathering next Thursday:

  • Accept financial oversight from foreign “inspectors”
  • Rewrite its constitution to give priority to debt service, cut its budget by a further euro 325 million to meets its debt reduction targets through “additional structural spending cuts” (Passed)
  • Reduce public pensions by an additional €300 million (Passed)
  • Slash its public investment budget by euro400 million, to be achieved “through cuts in subsidies to private investments and nationally financed investment projects”
  • Establish an escrow account that can be tapped only by holders of Greek debt
  • Pass legislation to liberalize the country’s closed profession such as beauty salons, tour guides and diet centres
  • Complete 75 full-scale audits and 225 value added tax audits of large taxpayers
  • Fire under-performing tax collectors
  • Buy a new computer system for tax collectors
  • Tightening rules against bribery
  • Prepare at least two large state-controlled companies for sales
  • Overhaul judicial procedures
  • Centralize health insurance
  • Reduce state spending on pharmaceuticals by euro1.1 billion
  • Change the way drugs are prescribed
  • Complete an accurate land registry
  • Change the way drugs are prescribed
  • Set minimum crude oil stocks