Confrontation between the Greek government and Troika

The Greek government is setting up a confrontation scene with Troika after Asmussen’s statements for a fiscal gap in 2014 which should be covered by new measures.

The Greek side says there is no case for implementing more measures, although adding "horizontal measures" and excluding cuts in wages and pensions and leaving the structural measures to the negotiations with Troika. Samaras spoke of the need for greater European solidarity towards Greece and invoked the sacrifices made by the Greek people. Deputy Prime Minister Evangelos Venizelos spoke of an "intolerable attitude by our European partners."

The rejection of Stournaras’ proposal by Asmussen for a rollover of bonds maturing in 2014 creates skepticism and uncertainty regarding the covering of the financing gap.

However, although the Greek government is preparing for a difficult negotiation with Troika, Cabinet staff said that things are not so bad and there is room for improvement as demonstrated by the increase in benefits for heating oil, despite the rejection of the request for reduction in Special Consumption Levy.

The government is more optimistic about the comprehensive settlement of the public debt issue that will be discussed after the formation of government in Germany. The Greek side expects a large extension of the repayment period up to 50 years, and a reduction on interest rates and settings even for a grace period. It hopes that this arrangement will be completed before the European elections to avoid a debacle that would open the way to political uncertainties. Government officials do not rule out a governmental initiative for elections to stop the rise of SYRIZA and the general questioning as long as the overall settling of public debt is positive and vindicates the government's efforts.

This afternoon Samaras will meet with Euro-working group chairman Thomas Wieser to discuss the economic developments and Greece’s public debt.

At 3:30 pm Samaras will visit Republic President Karolos Papoulias and will inform him about his recent travels in the U.S. and Israel and discuss developments on the issue of Golden Dawn.