Juncker expressed his love and support to Greece and the Greeks, but... he notes: proceed with the reorganization and we will give you the next tranche

After his meeting with prime minister Antonis Samaras, Eurogroup head Jean-Claude Juncker expressed his confidence that the Greek government will do what is necessary, while he emphatically stood against the country's exit from the Eurozone and asked foreign dignitaries to stop the relevant statements.

The two politicians agreed on the need to implement the program of financial stability, advance structural reforms and accelerate privatizations.

The meeting was attended by Finance minister Yannis Stournaras and deputy minister Christos Staikouras. They discussed all the developments in our country and the eEurozone, the necessary steps to be taken to tackle the debt crisis, and the geostrategic conditions for stability, given the turbulent situation in Syria.

The PM said that he informed the Eurogroup president that "in the last two months we have changed a lot in the country and in the future we will change even more. We have expanded the agenda of privatizations and accelerated structural changes, and during the next few weeks we will close the package of 11.5 billion euros. Also, we spoke on efforts to tackle tax evasion, as well as on the safety of citizens and tackling illegal immigration."

Samaras stressed that it is particularly important for the three parties to support the policy. "Greece is turning over a new leaf politically, economically and socially. We will implement all objectives to get the country out of the crisis, but we ask to enter a development phase because due to continuous recession and massive unemployment, we cannot stabilize our economy. We emphasize liquidity and look for ways to stimulate the economy and strengthen the SMEs. The Greek people asked for the country’s stay in the European Union and that their sacrifices bear fruit."

The PM referred to those within and outside the country who gamble on its exit from the Eurozone and said "we will disappoint them with deeds, not words." He concluded his speech by saying that very soon “we will restore the credibility of the country and change the psychology of the international markets."

Eurogroup president Juncker acknowledged the country’s efforts to overcome its debt problem. He too addressed its critics abroad, saying that "the country is making great efforts to consolidate its finances, but this is not understood. After two years Greece faces a credibility crisis."

He said the priority of the country is the consolidation of public finances because they will restore its credibility. He argued that "with a serious policy of deficit reduction, the country can count on the disbursement of the next tranche." However, he explained that both the next tranche and the extension will depend on the Troika report. "The ball is in Greece’s court, and this is the last chance."

Replying to a relevant question, he said that "I do not support a third memorandum. The Troika will examine the way to fully implement the second program, and I don’t want to say that in the next six months Greece will not be given any help." But he refused to refer to his own suggestion for the extension, which he discussed with Merkel.

Juncker said that the measures to be taken by the country should be reliable and strong, acknowledged that "low wage earners have suffered enough and should not shoulder new burdens, but other social groups must contribute more."

He pointed out that Greece must proceed with its structural changes and noted that a lot of work has been done, especially in the labour market. He stressed that all professions must be deregulated even though there are reactions from powerful lobbies.

He clarified that "an exit from the Eurozone will not help Greece, while it will have a huge impact on Europe. If they stop talking about Greece’s exit from the euro, they will help with privatizations too." He concluded by saying that "I did not come here to give lessons to the government and I'm on the side of Greece."

Meeting Juncker - Samaras in Athens today

PM Antonis Samaras will meet at 5.30 pm today with eurogroup president Jean-Claude Juncker, who arrives in Greece at 1:00 in the afternoon.

The meeting is very important, as the prime minister will present the measures taken by the Greek government and attempt to persuade Juncker on his determination to meet the commitments of the country.

Samaras will also raise the issue of the fiscal adjustment extension. The Eurogroup president has repeatedly distanced himself from statements against our country and believes that there should be no departures from the eurozone.

After being convinced of the Greek side’s intentions he can affect the overall climate in view of the October summit and eurogroup meetings that will be crucial for the disbursement of the next loan tranche.

After the meeting at Maximos Mansion, Juncker will visit the Acropolis Museum and in the evening Samaras will host a dinner in his honor.

The PM, who takes off tomorrow for Berlin, did not convene a meeting of political leaders wanting to show that he takes responsibility for the policy to be followed from now on, and also to avoid any disagreements on the package of measures that would have had a negative impact.

The rough German stance discourages Athens

 

 

 

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.

Juncker sees no Greek exit from eurozone

Luxembourg’s prime minister says Greece won’t leave the 17-nation eurozone, arguing that an exit wouldn’t be politically feasible and would carry unforeseeable risks.

Greece has been kept afloat by international loans but has fallen behind on implementing reforms and austerity measures demanded in exchange, feeding speculation about a possible euro exit.

But Luxembourg’s Jean-Claude Juncker (photo), who also chairs eurozone finance ministers’ meetings, was quoted Saturday as saying in an interview with Austria’s Tiroler Tageszeitung newspaper, “It will not happen unless Greece violates all the conditions and keeps to no agreements.”

Juncker said he assumes Greece will redouble efforts to reach its targets, so “there is no reason to assume that this exit scenario can become relevant.”

He said an exit would be “technically” but not “politically” feasible.

AP