Greece has offered to run a budget surplus of one per cent in 2015 as it fights to save its status in the Euro. It had previously fought to keep its obligation below that level.
According to the proposals, reportedly seen by Spanish newspaper El Pais, Greece will also raise VAT to 23 per cent, with basic items such as food and energy charged at a lower rate of 13 per cent.
After 2015 the budget surplus will rise to two per cent in 2016, three per cent in 2017 and 3.5 per cent in 2018.
Despite what Greece’s economy minister told the BBC, there will also be concessions on another major red line: pension reform.
According to the document, which El Pais says is signed by Prime Minister Alexis Tsipras, Greece will crack down on early retirement and push up the retirement age to 67. There will be big penalties for anyone retiring early, with up to a 16 per cent reduction in the pension of anyone retiring early.
These concessions are likely to cause problems for Tsipras at home.