Anxiety about the haircut, maneuvering for political initiatives

The government is trying to fix its communication and political strategy amid rumors that reinforce uncertainty and concern about whether there will be a final decision by the European Union for the Greek debt at today’s meeting. Athens expects EU leaders to decide on a large bond haircut, even at 60%, which it will present as a major success because it will reduce the debt by about 100 billion euros and will make it manageable.

Maximos Mansion hopes that the decision will be made today but does not hide its concern, as disagreements between EU Member States - mainly because of British objections - but also between governments and European bankers, are delaying the outcome of negotiations. Although the government is determined to talk about a great success of the country, it appears to be reneging on the matter of approval of the agreement by an increased majority of 180 parliament seats.

Although the debate was triggered by Venizelos' statements and led quickly to the resurfacing of election rumors, given the negative correlation in parliament, Maximos Mansion rushed to end the issue. The government is now saying that there is no issue of reduction of national sovereignty, so there is no reason for the implementation of the relevant constitutional provision, which requires a majority of 180 seats for such international conventions and agreements.

The challenge of the debate was apparently designed to persuade New Democracy, so that it would appear indifferent, underestimating the importance of the European agreement, but also to lower the expectation bar in order for a communicative emergence of the debt reduction.