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Late last night, the creditors sent to the Greek government their revised proposals to reach an agreement within a surprising move, as the government sources define it. According to them, the latest proposals insignificantly differ from the initial ones that the creditors presented to Prime Minister Alexis Tsipras.

Christine Lagarde and Pierre Moscovici in anticipation of Alexis Tsipras

According to the same sources, the creditors insist on pension cuts of up to 1% of gross domestic product, eliminating the aid for minimum pensions and increasing health insurance contributions of pensioners from 4% to 6%. They agree with the introduction of three VAT rates but are adamant that the highest of them, 23%, should apply to restaurant services.

Jean-Claude Juncker and Mario Draghi in anticipation of Alexis Tsipras

It was precisely the revised proposals and creditors’ opposition to the measures proposed by Athens that angered the Greek Prime Minister, who, before leaving for Brussels, accused them of maintaining a "strange position".

These include:

Budgetary measures. The creditors insist on:

- increasing VAT revenues to 1% of GDP and, in particular, imposing a 23% tax on restaurant services,

- introducing 100% advance tax payment for legal entities,

- cancelling tax sheltering for fuel for farmers,

- reducing defence spending by 400 million euro (Athens’ proposal was to reduce it by 200 million euro),

- a smaller increase in taxes on legal persons and in particular, increasing the tax from 26% to 28% (instead of 29%, which was the proposal of the Greek cabinet).

The creditors have removed from the Greek proposal the following:

- the imposition of a tax on online betting and VLT machines

- generating revenue from licences for 4G and 5G networks

- the introduction of lower tax rates for residents of the Greek islands to compensate them for the VAT increase.

Pensions. The creditors insist on:

- fully implementing the law passed in 2010, particularly the regulations that increase low, and reduce high, pensions,

- measures to compensate the abolition of zero deficits of insurance funds,

- saving 0.25-0.5% of GDP in 2015 and 1% in 2016,

- cancelling early retirement until 2022. All those who have reached the age of 67 will be entitled to retire, regardless of the length of service or those aged under 62 years with 40 years of service,

- removing/replacing the aid for the minimum pension until December 2017,

- increasing health insurance of pensioners from 4% to 6%,

- gradually eliminating all exceptions that are financed from the state budget and aligning the contributions with those of the National Insurance Institute after 1 July 2015,

- eliminating all taxes in favour of third parties by 31 October 2015,

- finding measures to cover the cost of a recent decision of the Greek Supreme Administrative Court that defines the pension cuts made in 2012 as unconstitutional, which, according to sources, will amount to 1-1.5 billion euro.