Access Investments-European Union- ROMANIA

THE GREEK PROPOSAL - Crucially, in this document at least, there is no mention of the debt sustainability issue.

• Primary budget surplus targets: government has agreed to hit targets of 1pc, 2pc, 3pc, and 3.5pc from 2015-2018. This is in line with what has already been proposed, but they are still very ambitious, particularly as economic activity is set to have deteriorated even further while the country is under capital controls and the banking system is temporarily shut down.

• VAT exemptions for Greek islands will be abolished: the 30pc discounted rate will go, as demanded by creditors but previously fiercely resisted by the government. The proposals say they will start with "islands with the highest incomes and which are the most popular tourist destinations" first.

• Hotels will remain in lower 13pc bracket, but restaurants will be hit by the highest 23pc bracket. Books, medicines and the theater (don't ask me why) will remain at a super reduced 6pc rate.

• Greek farmers will also have all fuel subsidies abolished, another concession demanded by creditors in previous plans

• Importantly, the proposals note that these VAT measures will be reviewed before the end of 2016, if "additional revenues are collected through tax evasion" and other improved collection measures result in higher tax income

• Higher income tax: should any of the proposals result in "fiscal shortfalls" the government is controversially proposing hikes on income tax for the poorest earners. This would see

- incomes below €12,000 taxed at 15pc (from 11pc)

- incomes above €12,000 taxed at 35pc (from 33pc)

• Corporation tax: will be raised to 28pc, rather than 29pc first set out by Athens

• Pensions: Greeks have agreed to phase out their supplementary pensions for the poorest by Dec 2019, rather than 2020. There is no mention of replacing them, and importantly, the top 20pc beneficiaries will also not be protected from the cuts. The government has also agreed to hike the basic pensions retirement age to 67

• Interestingly, the government also seems to have agreed to nullify previous court rulings which have deemed the 40pc cut in pensions as unconstitutional and need of reverse: The authorities will adopt legislation to fully offset the fiscal effects of the implementation of court rulings on the 2012 pension reform.

• Defence spending: to be cut by €100m this year and €200m in 2016. Creditors previously demanded €400m budget cut next year.