No governmental member expected that the
renegotiation path of the memorandum would be easy, but the most
pessimistic expected that the climate would improve after the
determination shown by the government in the implementation of the 11.5
billion measures for the period 2013 -2014. Thus, unpleasant placements
by members of the German government in recent days Eurozone, not only limit their
expectations for the meeting between PM Antonis Samaras and Angela
Merkel in Berlin, but are forcing the government to redefine its tactics
on the request of an extension to the fiscal adjustment program.
Maximos Mansion learned Monday evening with embarrassment about
German Foreign minister Guido Westerwelle’s placement - after meeting
with Avramopoulos- that there is no room for renegotiation. It were
preceded by similar placements by Finance minister W. Schäuble and
parliamentary leader of the Christian Democrat party Volker Kauder.
Faced with this German attitude Samaras will redefine his tactics.
Maximos Mansion already leaked that no decisions will be taken in the
meeting and that the issue of extension will be officially placed in the
European institutions during the upcoming summit in October.
Naturally, Samaras will set out the situation in the country,
emphasize that recession is larger than estimated due also to the
memorandums and will defend the need for changes to the agreed framework
for the country to be able to meet its obligations and debts.
Until the extension is officially placed in the summit, Samaras
wants to avoid negative statements by Merkel and the German political
elite. He will seek to get Merkel's declaration that Germany is in favor
of Greece’s stay in the eurozone. He will also try to convince the
German leadership to depend its stance on extension to the troika report
and the package of 11.5 billion euros and its adoption by the Greek
parliament, that will be a testament of determination by the Greek
government.
Thus, the prime minister and the economic team are completing the
package of 11.5 billion euros, which will be extremely hard as it will
include cuts in pensions over 700 euros, reduction and elimination of
benefits for which the prime minister and political leaders had
committed not to touch before the elections, significant cuts in
payrolls of SOEs, a new type of redundancy in the public sector as well
as significant reductions in welfare, health, education etc.
This was the subject of yesterday's meeting at Maximos Mansion. And
since the argument of hard European and German elites against our
country is that there can be no new funding, the Greek leadership has to
develop proposals that the extension cost be restricted to the minimum
to avoid having to pass it through the parliaments of member countries
and it will be covered by the Greek economy when it enters a development
phase. The prime minister will argue that Greece must remain in the
euro at all costs and that it should take all necessary steps as hard as
they might seem to restore its credibility.
Samaras will attempt to transfer the critical decisions so that
when the package of measures is brought in parliament, MPs of the three
parties that support the government will be found in front of the
dilemma either to vote in its favor or to pave the way for the fall of
the government and the country’s exit from the euro.
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