Maximos Mansion: Troika negotiations are the key for developments

The Greek government is moving between local elections, European elections and negotiations with the troika and considers that these issues affect one another.

"The key for the developments in the economy is the negotiation with the Troika," a government source said yesterday. The developments in the economy and the debt negotiations will significantly shape the political climate and affect the outcome of the elections.

The Greek government believes that the negotiations with the troika, which returns to Greece next week, will end with a positive way, the evaluation of the Greek economy will be completed and the "green light" for the disbursement of the tranches will be given in March.

The difference for the fiscal gap in 2014 remains but is transferred for later when Eurostat will confirm the surplus of 2013 and the European elections have passed.

Another compromising solution has been found on the issue of structural measures where until recently troika was absolute. The same government source said yesterday that they also found a solution for the issue of bakers and non-prescription medicines.

PM’s associates say the gap in other issues like the deregulation of layoffs has been covered with troika’s retreat. Naturally there are problems as with the elimination of taxes to third parties, the decrease of employers’ contributions etc., but the economy team seems certain that the issues with political costs will be transferred after the European elections.

The next step as they describe it is “to start the discussion on the debt as long as there is an agreement with the troika. After the certification of the primary surplus and before the European elections we expect a political support statement from our partners.”

Local government elections

Maximos Mansion considers that the results of the municipal and regional elections will play an important role in political developments and after the initial blunders in the choice of candidates in major cities and regions Samaras is trying to correct the overall image.