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.