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Greece confirms upcoming reforms will not include austerity

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IANS Athens
Last Updated : Mar 20 2015 | 8:13 PM IST

Reforms, to be submitted in the coming days by the Greek government to its European partners, will not include austerity measures, and will be based on the list of proposals previously submitted by Finance Minister Yanis Varufakis to Eurozone representatives, a Greek government spokesman said on Friday.

The government will not implement additional austerity measures that add further pressure on income, Efe news agency cited spokesman Gavriil Sakelaridis as telling several Greek television channels.

Implementing more austerity measures makes no economic sense, as society can no longer withstand the "belt-tightening" policy, Sakelaridis stressed, pointing out that there are other ways the government can increase its revenues.

The list of reforms, vowed on Thursday by the Greek Prime Minister Alexis Tsipras to be submitted to the European partners in the upcoming days, will be within the framework of the reforms presented by Varufakis to the Eurogroup prior to the February 20 agreement, and thus will not include recessionary proposals, Sakelaridis confirmed.

Sakelaridis described Thursday's "mini-summit", attended by Tsipras, German Chancellor Angela Merkel, French President Francois Hollande, President of the European Commission Jean-Claude Juncker, President of the European Central Bank, Mario Draghi, and the Chairman of the Eurogroup, Jeroen Dijsselbloem, as having had a "positive" outcome.

During the meeting, it was confirmed that talks in Brussels would continue, while the mission of technical experts of the creditor institutions, the European Commission and the European Central Bank, will continue its work of collecting data in Athens.

Regarding the liquidity issues, Sakelaridis said that everything was under control, as he explained that such problems existed, but posed no threat, neither to paying salaries and pensions nor to fulfilling the country's obligations.

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The Greek prime minster said that Greece no longer has any obligation to implement the measures that caused the recession, and noted his government will introduce and apply its own structural reforms.

The ruling Syriza leader expressed his optimism after the meeting, and said that "all the sides confirmed their intention to try to do their best to overcome the difficulties of the Greek economy as soon as possible".

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First Published: Mar 20 2015 | 8:04 PM IST

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