New measures, 6th tranche and haircut being judged

Finance minister Evangelos Venizelos will be on an open line with Brussels and Washington, as the chapter for the evaluation of Greece for the 6th tranche is finally closing.

The report will also judge the haircut on Greek bonds. Venizelos will be constantly informing the EU and IMF on the course of the multi-bill voting. He knows that if it does not get voted in time, the new negotiating steps and the future of the government are in jeopardy. To curb any resistance, especially inside PASOK, he suggested four modifications yesterday:

- The immediate reduction in salary for 2012 will be up to 25% and not 30% and can be effected by the implementation of the new payroll.
- There will be a provision in the bill which establishes the "social balance" account in the state budget. Anything else received by the state in 2012, goes towards benefits and support measures for the weaker members of society.
- As long as the resources of the so-called "green fund" remain under-utilised, they will be placed in the Deposits and Loans Fund to facilitate borrowing for development purposes on local-scale municipal projects, etc.
- There will be a time limit for the term which suspends the ability of the labour minister to extend the validity of a sectoral collective agreement to those who have not signed it. It is considered an emergency measure and after the end of the mid-term in 2014, it could be abolished.

However, in yesterday’s meeting with the President of the Republic, Venizelos painted the whole situation in bleak colors: “The situation is extremely difficult, as there is great uncertainty in Europe and throughout the world. We must save our country. We should not have high expectations for the Sunday summit, but we will do our best. We will start negotiations from tomorrow morning. We are not living under normal circumstances. This is war; if Greece is saved, so is the Eurozone. But if the Europeans fail with Greece, they will not be able to shield themselves.”