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

Meetings Merkel, Hollande and Juncker with Greek Prime Minister Samaras

In the next week the Greek government is going to announce the new measure of austerity. After that the Greek Prime Minister Antonis Samaras will meet with German Chansellor Angela Merkel and President of France Francois Hollande and Eurogroup Chairman Jean – Claude Juncker.

Antonis Samaras is determined to put the Greek demands and particularly the extension of the fiscal adjustment program in front of the European partners. After a short vacation, he has returned to his office in Athens and will begin preparing for a difficult and crucial week.

The climate for our country is still not good, especially in Germany, as shown by the recent statements of Philipp Rösler and the articles of the international press. Financial Times report that Samaras will ask a two-year extension of the fiscal adjustment program and that the Greek government suggests ways that the additional funding will not be required to pass by the European Parliament, which would bring further entanglement.

The same newspaper notes that the patience of creditors against Greece is exhausted and another conflict between Athens and Berlin might further destabilize the markets, and that German officials have ruled out any additional funding in Greece and a growing number of politicians are asking for Greece's exit from the eurozone.

Just two days ago vice chancellor Rösler returned to harsh statements saying that there can be no extension for Greece, which must implemented what has been agreed. German magazine Der Spiegel says Greece should go bankrupt, since neither the IMF nor the eurozone can sacrifice their credibility by offering new help. However, the magazine criticizes the German government arguing that if their goal was to save Greece they have failed and the austerity measures only managed to exacerbate the crisis and increase the debt.

Samaras will meet Wednesday in Athens with eurogroup chairman Juncker and then on Friday in Berlin with Merkel and on Saturday in Paris with Hollande.

The Prime Minister's strategy is fixed and described as "stay in the euro at all costs." Until meeting with Juncker, Merkel and Hollande, the government should specify the measures of 11.5 billion eurso that will be presented by Samaras.

He will assure his interlocutors that he will promote privatizations and the reduction of the public sector at a fast pace. Whether he will manage to lift Merkel’s reservations remains a question. It is estimated that Juncker and Hollande are more positive about our country. The meetings will be crucial for the report of the troika who returns at the end of the month in our country. The goal is a positive report so that the eurogroup will give the green light for the next tranche of 31.5 billion euros.

It still has not been decided if Samaras will meet with Venizelos and Kouvelis, the leaders of parties which support the government, before the crucial meetings with the Europeans. As there are disagreements on certain measures related to the pressure from within their parties Samaras would not want to have a disagreement with the government's partners before the meeting with Juncker. He seems determined to assume full responsibility for the 11.5 billion euros package and the overall strategy to promote the plan for the rescue of our country.