http://www.ekathimerini.com/4dcgi/_w_articles_wsite1_10307_17/09/2012_461714

Final stretch for talks on cuts  PM hopes to reach coalition deal before Friday, as new poll shows strong opposition to measures Plans to wrap up by the end of the week negotiations with the troika on some 11.5 billion euros of cuts are still on course, government sources suggested Monday, following a meeting between Finance Minister Yannis Stournaras and representatives of Greece’s lenders. Greece’s coalition leaders are due to meet Wednesday or on Thursday to finalize the cuts before Prime Minister Antonis Samaras flies to Rome on Friday to meet Italian Premier Mario Monti. Samaras is aiming to secure an agreement with PASOK’s Evangelos Venizelos and Democratic Left’s Fotis Kouvelis before leaving. The government is hoping that after that, Stournaras will conclude talks with the troika and the coalition can draw the relevant bills to be submitted to Parliament. It is possible the draft laws will be appended to the 2013 national budget and submitted to Parliament before the meeting of eurozone finance minister on October 8 and the European Union leaders’ summit on October 18 and 19. Following Stournaras’s meeting with troika officials, Finance Ministry sources said there had been “more progress” between the two sides but that the talks would continues. The finance minister remained evasive on the issue of whether a rise in the retirement age from 65 to 67 would be one of the measures adopted by the coalition in order to clinch the deal with its lenders. “We’ll see,” Stournaras told reporters. While the coalition has a comfortable majority in Parliament to rely on to pass the measures, it faces a sizable task in convincing the public that the country is on the right track. A new Public Issue poll for Skai and Kathimerini suggested that only 20 percent of Greeks are satisfied with the government and 68 percent are against the terms of the loan deal. Of those questioned, 85 percent say they will probably be affected by the latest cuts. Nevertheless, 67 percent of Greeks still view the euro positively. In Germany, Chancellor Angela Merkel said in a news conference that her “heart bleeds” at the hardships faced by many Greeks due to the austerity measures but stressed the need for Greece to continue reforms in order to remain in the eurozone. “I think that everyone who is politically sensible will want that, too,” she said of Greece’s membership of the single currency, while calling on Greeks to back reforms. “In some cases, this is about reforms that, I think, wouldn’t bring any extra burden for the population. “I don’t think it helps to revolt against measures that have to be taken anyway.” and...... Corporate tax to rise to 30 pct  Gov't also intends to abolish dividend levy to stop companies from leaving the country By Prokopis Hatzinikolaou The Finance Ministry is making plans for a single tax rate for the incomes and profits of the self-employed and medium-sized and large enterprises, Kathimerini understands. The tax rate will come to 30 percent for every taxpayer excluding salary workers and pensioners, meaning the aforementioned categories will not have any other tax obligations. The increase in corporate tax to 30 percent will automatically mean that companies no longer have to pay a tax on distributed profits. The government’s aim is to beat tax evasion and to bolster revenues from professional categories that are believed to conceal a significant part of their incomes, according to the statistical data compiled by the Finance Ministry. For the self-employed, the plan provides for abolishing the tax-free threshold so that they will be taxed from the first euro of their annual income. The tax-free threshold currently stands at 5,000 euros per year. Today a self-employed professional with an annual income of 40,000 euros pays the tax authorities 8,820 euros per annum, while with the single tax rate that amount will rise to 12,000. There will also be changes in tax deductible expenses. The system will become much stricter but the government is still seeking ways to have more oversight regarding the spending of the self-employed. Today, major companies pay taxes of 20 percent on the profits they declare to the authorities. In the case of dividend distribution, shareholders also pay a 25 percent levy, taking the total amount of tax to 45 percent. Due to this policy a number of enterprises have created subsidiaries in the European Union, particularly in countries with very low tax rates. The ministry now hopes it will collect more revenues by abolishing tax on dividends and raising the corporate tax to 30 percent, thereby stopping the flight of companies from Greece. http://www.athensnews.gr/portal/11/58204 Government, troika talks continue 17 Sep 2012 Stournaras is still in talks with the troika, as 4bn euros of cuts have not yet been agreed on (file photo) Finance Minister Yannis Stournaras will meet with the EC, ECB and IMF representatives at 5pm on Monday.   The government and the troika have already agreed on 7.5bn euros' worth of cuts in the 11.5bn euro austerity package, but talks are continuing as the troika is raising concerns about another 4bn euros of cuts.   The troika is reportedly placing the two-year increase in the retirement age, from 65 to 67, as a condition for less odious austerity measures in other fields. Public sector layoffs and cuts to pensions and social welfare benefits will also be discussed during the government – troika negotiations.   Pasok party spokesperson Fofi Gennimata said on state radio on Monday that "at this time we have no formal proposal, on the part of the government, for an increase in the retirement ages", adding that she thus declined to take a position in the issue "based on leaks".   Gennimata said that "there are two red lines", which are layoffs in the public sector and changes to the labour regime.   Stournaras held talks with Prime Minister Antonis Samaras earlier in the day at the Maximos Mansion, where he was joined by Labour Minister Yiannis Vroutsis. The government expects to complete the talks in the next 7-10 days.   The proposals will then be discussed at the next Eurogroup meeting of eurozone finance ministers on October 8 and be submitted for approval by eurozone heads on October 18. (Athens News/dv, AMNA)

summing up the Greek government talks....