Eurogroup ‘optimistic’ on Greek reform proposals

Euro zone finance ministers will hold a conference call on Tuesday afternoon to discuss the latest reform proposals from Greece as it looks to unlock the extension of its loan programme, after the Syriza-led government delayed the official submission of its plans.

The government of Alexis Tsipras was given a deadline onFriday of midnight on Monday to submit its reform proposals for consideration by the EU and IMF, but confirmed it would submit the document on Tuesday morning.

Finance minister Yaris Varoufakis, however, denied there was any delay. “[The institutions] requested we deliver the official report tomorrow morning,” he told CNN on Monday night. “There was no delay. We were ready this morning.”

After weeks of stand-offs, euro zone finance ministers agreed a four-month extension of the Greek loan programme on Friday, but only on condition that reform proposals submitted by Athens were “sufficiently comprehensive”.

The proposals

Amid fears the proposals being brought forward by Athens were not precise enough, officials reported better progress on Monday in informal discussions between Athens and its international creditors. The decision to hold a conference call rather than a full Eurogroup meeting also suggested that a deal was in the offing.

Eurogroup president Jeroen Dijsselbloem said he was "optimistic" the letter from Athens would be acceptable.

Among the proposals expected to be unveiled by the Syriza-led government are revenue-raising measures such as cracking down on tax evasion and cigarette and fuel smuggling.

There are also indications the government could propose to reintroduce a form of collective wage bargaining as well as gradually increasing the minimum wage.

Meanwhile, IMF director Christine Lagarde said on Monday a Greek exit from the euro zone was "not on the cards" and was not being discussed.

Market response

She urged Greece to implement reforms, such as taking on vested interests, which she said could unleash productivity and stimulate growth.

European stock markets on the whole responded positively to Friday’s interim agreement, with most finishing significantly higher on Monday.

Separately, the European Investment Bank (EIB) said it remained “strongly committed to financing projects in Greece.”