Greece sets out new reform plan to EU and IMF

Greece has put forward a revised set of reforms to the European Union and the International Monetary Fund as its deadline to repay a total of €1.5bn looms.

The BBC reports Greece has put forward proposals under which the country is willing to increase VAT and give ground on the target surplus Greece needs to hit this year and next.

The EU and IMF have called for Greece to run a primary surplus of 1 per cent of GDP in 2015 and 2 per cent in 2016, although Greece is pushing for 0.6 per cent and 1 per cent respectively.

The Greek government is also considering increasing pensioner contributions to healthcare from 4 per cent of their monthly income to 6 per cent.

Greece rolled over a €300m (£221m) payment to the IMF last week, and has rejected a reform plan proposed by the EU.

At the end of June a total of £1.5bn is due to be paid.