Greece set to submit list of reforms

Greek prime minister Alexis Tsipras began the task of selling a provisional deal with eurozone partners to extend bailout funds after securing a reprieve from the prospect of insolvency.

“We won a battle, but not the war as the difficulties, the real difficulties, not only those related to the discussions and the relationship with our partners, are ahead of us,” Tsipras said in a speech on Saturday.

Talks in Brussels between officials from the 19 eurozone countries concluded late on Friday with an agreement to extend bailout funds to Greece for four months. Tsipras’s government must submit a list of economic measures it will undertake by today. Finance chiefs will then decide whether his proposals go far enough.

While the deal potentially frees up some money to meet at least some of the pledges made by Tsipras before last month’s election, the outcome may still prove politically bruising for him.

His policies remain subject to validation by the troika from which Tsipras vowed to break free.

While Greece has discussed the measures with its eurozone partners and the troika, the proposals are Greek, said finance minister Yanis Varoufakis after a cabinet meeting in comments broadcast on Skai TV. The list of measures will be completed today, he said.

There is no disagreement between the two sides and “we are almost certain that we will get a yes from the institutions,” Varoufakis told Skai.

Tsipras said the deal “cancels austerity” and pledges by the previous government to cut wages, pensions, and public sector employees and increase sales taxes. The list of reforms will be “based on the current arrangement”, the Eurogroup meeting of finance ministers said in a statement. That will include fighting corruption and public administration and tax-system changes, government spokesman Gabriel Sakellaridis said on Mega TV.

The agreement allows Greece to lower previously agreed targets on reaching a primary budget surplus. In return, it will refrain from unilateral actions that may jeopardise fiscal targets and will abandon plans to use about €11bn in leftover European bank support funds to help restart the economy. Sakellaridis acknowledged that marks a turnaround from a previous target.

Finance ministers will hold a conference call on Tuesday to discuss the Greek response, after which the deal, if approved, will be put to national parliaments next week. Varoufakis said he was confident his counterparts will approve his government’s measures, or else “this agreement is dead and buried”.