Greece could be about to start another fight with its creditors and the financial markets.
The government unveiled last evening the first draft of its 2019 budget plan in which two scenarios were put forward for its spending plans and economic targets for the coming year.
One of them included planned and pre-legislated pension cuts, in line with its creditors' expectations.
The other spending plan does not include pension cuts, however, indicating that the Greek government is willing to make changes to reforms that it had previously agreed with its creditors.
The pension cuts were due to start in January and were one of the most difficult reforms to come to an agreement. Potential changes to pensions, or to other reforms, could spark confrontations with European institutions and the International Monetary Fund (IMF). The IMF said last month that the 2019 pension cuts are part of the reforms that the Greek government agreed to, and that Greece needs to show it is investor-friendly.
The 2019 budget is the first in nearly a decade without Greece being subject to a bailout program. Nonetheless, Athens promised on Monday to stick to fiscal targets that had agreed with its creditors. In fact, Greece has said it will over-deliver when it comes to its primary budget surplus.