New deal for greece

1. Public  debt restructuring  based on linking of  (a) the size & repayment  rate of public debt, with (b)  the size & growth rate of nominal  national income

2. A  long term primary  government budget surplus  target (between 0% and 1.5%  of national income, depending on  the economic cycle) that terminates   austerity

3. Private  debt restructuring  by a Public Financial  Assets Management Company, with an immediate 5-­year moratorium  on foreclosures/auctions

4. Large  reductions  in tax rates:  Maximum VAT and  small/medium sized   business tax rate of  15-­‐18%, termination of  tax prepayments, greater progressivity  in income tax rates

5. Setting  up of a Public  Non-­‐bank Payments  System, based on the  tax authorities’ web interface,  to allow for multilateral arrears  settlements, free transactions, and  to fund (partially) an Anti-­‐Poverty  Program

6. Protection  of waged labour  and creative/productive  entrepreneurship: No longer will waged labour be paid under  the provisions for ‘service providers’;   a 5-­‐year moratorium on social security contributions  by start-­‐ups; a ceiling of 50% on profits for a company’s  total tax & social security payments bill

7. Conversion  of Greece’s fire  sales (aka privatisation)  outfit into a Development Bank  – by granting it a banking licence,  ending all fire sales, and using public assets as collateral for the purpose of creating  investment flows into the same public assets, as well  as to the private sector. The new Development Bank shares will be transferred to pension funds to bolster their capital  base.