According to Kathimerini, the three government parties appear to remain in disagreement about the property tax attached to electricity bills (introduced in September 2011 as an emergency levy).

Democratic Left is adamant that the government should not renege on its original promise to replace the levy with a unified property tax. PASOK also wants the levy to be substituted with “a fairer tax.”

Sources close to Samaras told the paper that the two coalition partners appeared to be competing with each other in displaying social sensitivity rather than backing efforts to push through reforms pledged to creditors to secure a EUR 2.8-billion tranche of rescue aid for March.

As protothema.gr writes, the climate in the government headquarters is heavy as delays and deficiencies arebeing spotted that will complicate the troika negotiations. According to AMNA, Finance Minister Yannis Stournaras briefed representatives of PASOK, Filipos Sachinidis and Democratic Left party, Dimitris Chatzisokratis on all issues that still remain pending in talks between the government and the troika, over the reimbursement of the next tranche of the country’s rescue loan.

Meanwhile, the National Association of Train and Railway Personnel and Suburban Workers Union are moving to 8-hour repetitive work stoppages today until Friday, April 5, from 16.00 until midnight; passengers should expect cancellations and changes to TRAINOSE routes (trains, suburban).

According to media reports, employees require the signing of a new collective bargaining agreement, speak of their unwarranted inclusion in the single payroll and react to the privatization of TRAINOSE.

Following a meeting with Prime Minister Antonis Samaras, the leader of Democratic Left, Fotis Kouvelis, who appears against increasing the retirement age to 67 and layoffs in the civil service argued: “No measures can be imposed on a society that is disintegrating,” he said.

PASOK leader Evangelos Venizelos argued that Greece’s labour market rules must be the same as in the rest of Europe. He reiterated his demand for Greece’s fiscal adjustment period to be extended by two years, Kathimerini writes. On the other hand, he appeared optimistic: “There is small progress every day,” he said. “My experience tells me that we will reach a comprehensive agreement.”

Meanwhile, talks with troika head representatives continue. Finance minister Yannis Stournaras and the troika heads met yesterday afternoon aim at drafting around EUR 9-10 billion worth of measures from the total EUR 11.9 billion package, protothema.gr writes. The government aims to overcome the objections of the auditors, however the latter seem persistent in rejecting around EUR 2-2.5 billion of measures. According to the initial plan, Stournaras is about to present the list of measures to the Eurogroup tomorrow in Nicosia.

Agreeing the details of the 2013-14 cuts is one of the goals the coalition government is aiming to achieve in the next few weeks to secure a positive review by the troika. The three leaders aim to further convince the troika that the government is fully committed to pursuing necessary reforms and implementing the fiscal adjustment programme.

Finance Ministry sources say the aim is for the measures for this year to be finalized by the end of the coming week while the package for the next two years will be developed over the coming weeks and finalized in early September in time for a scheduled Eurogroup summit on September 3.

According to Kathimerini, the coalition government will probably abandon its intention to increase the retirement age from 65 to 67, although this would have saved EUR 1 billion, and instead remove the adjustment period introduced in the 2010 pension reform. This would mean that nobody could retire under the age of 65 from next year. Also, government officials have decided against cutting just pensions above EUR 1,400, which form the minority of retirement payments in Greece, but to reduce all pensions by about 5 to 6 percent. This would mean that someone earning a pension of EUR 700 would lose about EUR 35 per month.

Sources said the switch is a result of cuts to large pensions not providing enough savings. The ceiling for the combined total of basic and supplementary pensions is currently EUR 3,690. Lowering it to EUR 2,500 would only save EUR 25 million. There is also concern that the reduction would be successfully challenged in court.

Meanwhile, coalition leaders yesterday agreed on the 10 public assets, which are considered mature to be put up for privatization and discussed the speeding up of dozens of legislative and administrative actions that need to be taken to remove obstacles to this and future rounds of sales.

According to financial naftemporiki.gr, at the top of the list of public assets and enterprises that are going to be made available to investors are the International Broadcasting Center (currently the Golden Hall shopping mall), the State Lottery, Public Gas Corporation (DEPA), the gas grid operator (DESFA), the Helliniko site, the state gambling company (OPAP), the horse racing organization (ODIE), land in Corfu and Rhodes, and 28 real estate properties that will be sold and leased back.

According to Reuters, Russian, Italian, U.S. and French companies had expressed an interest in the natural gas company DEPA and gas grid operator DESPA.

Sources told Kathimerini that it was also agreed that the government’s general secretary, Takis Baltakos, would be responsible for overseeing the effort to complete 77 legislative and administrative acts relating to privatizations, many of which are included in Greece’s bailout terms. Sources said that this will involve coordinating the action of nine ministries. Baltakos is a close associate of the prime minister.

Among the legislative acts that need to be completed is one that will lead to the cancellation of the law that requires the state to retain a 51% stake in public enterprises considered to be of strategic importance. The law that limits a single investor holding just 20% of one of these companies will also be repealed. Regulatory authorities to oversee the privatization of highways, ports, airports and refuse collection also need to be set up.

Prime Minister Antonis Samaras has called the meeting to fine tune issues and debate the proposal coalition parties push forward for the extension of the bailout agreement and a two-phase implementation of the austerity package; EUR 6.7 billion worth of cuts pushed through in 2013 and 2014, with the remaining cuts saved for the following two years.

Saving harsh, horizontal measures for later is what Evangelos Venizelos and Fotis Kouvelis would like the government to do, to save face in front of their partisan colleagues. “Agreement on the strategic plan” has been the only quote coming from the coalition leaders meeting that could suggest a viable planning for the future. What they also agree on is that the country requires additional time to meet its debt targets.

Sources told Kathimerini that Samaras assured troika inspectors that the cuts would be agreed this week and set out in detail by next week. The Premier sees this as a vital part in securing a review from the troika that will be favorable enough to ensure the release of further loans from the Eurozone and the IMF.

Venizelos and Kouvelis, however, have growing reservations about agreeing to cuts to salaries and pensions. They argue that this would exacerbate Greece’s recession and threaten the government’s viability, as there would be a backlash against the measures.

Yesterday morning,  Prime Minister Antonis Samaras met with the troika representatives for clarifications on certain economic matters, ANA reports. The urgent meeting was also attended by Finance Minister Yannis Stournaras, Alternate Finance Minister Christos Staikouras and Labour Minister Yiannis Vroutsis.

The meeting with the troika follows Monday’s meeting of the government party leaders, which ended without firm final agreement on the measures that will be adopted to reduce the country’s deficit by EUR 11.5 billion. According to government spokesman Simos Kedikoglou, the measures will be announced in August. No statements followed after the meeting.