The negotiations between the Greek government and the creditors will peak on Monday in Brussels with the view to bridging the differences in taxation and early pensions and reaching an agreement.

State Minister Nikos Pappas and the president of the Council of Economic Advisors (SOE) Giorgos Chouliarakis are in contact with the institutions in order to bridge the differences between the two sides and come to an agreement at today’s summit.

On VAT, the crucial issue is what products and services will be transferred to the high VAT rate of 23 pct from 13 pct. Greece’s lenders are asking a 23 pct VAT rate on restaurants while the rise of the VAT rate on electricity tariffs in non-negotiable for the Greek government. Finance ministry officials reassure, however, that VAT on medicine will remain stable at 6.0 percent.

New proposals have been submitted regarding the companies’ special contribution while the government has ruled out the possibility of increasing the special contribution to incomes lower than 30,000 euros.

One of the crucial issues to be discussed is early pensions as creditors seem determined to abolish all early pensions.