Maximos Mansion: It wants to avoid rapture, but will not back off on the surplus
14.03.2014
11:19
Striving for an agreement - After its confirmation by Eurostat the surplus will be distributed to uniformed personnel and low pensioners
The Prime Minister, the PASOK chairman and the Finance Minister who briefed them on the latest developments, discussed yesterday at Maximos Mansion the negotiating line against the troika.
The Greek government believes that "things are difficult but not pessimistic and that an agreement with the troika until Sunday evening is realistic." In the matter of the primary surplus PM Samaras insists he will implement his pronouncements. His colleagues explained that it will be much larger than troika had initially estimated and that once confirmed by Eurostat it will be distributed to uniform personnel and low pensioners. However, the government made concessions to the troika and suggests that a portion will go for development purposes or to cover the budget gap of 2014. Leaving Maximos Mansion yesterday, Venizelos said "the surplus exists and its distribution must be done in a way that serves both growth and social objectives."
Regarding labour issues the government believes that the troika will not insist on positions that will create an even bigger problem in a destroyed labour market. The most difficult issues are milk and medicines. The government will have to bear the additional difficulty that any decisions will have to pass through parliament. The situation in the parliamentary groups of ND and PASOK is not the best. Despite the high tones from Berlin and Brussels last week the government must take into account the internal political stability as well and not topple its plans of a manageable outcome in the European elections. And it has two more difficult issues to pass through parliament, the recapitalization of banks and the privatization of PPC.
The limit placed by the Eurogroup and Berlin is suffocating. The discussion with the troika will have to conclude until Sunday. "We look at the revised text of the agreement in order to conclude as soon as possible," Stournaras said, but declined to say whether the troika accepts the Greek positions in the structural issues. The Greek government, however, believes the pressure is on both sides since nobody will benefit in case of a rupture.
The Greek government believes that "things are difficult but not pessimistic and that an agreement with the troika until Sunday evening is realistic." In the matter of the primary surplus PM Samaras insists he will implement his pronouncements. His colleagues explained that it will be much larger than troika had initially estimated and that once confirmed by Eurostat it will be distributed to uniform personnel and low pensioners. However, the government made concessions to the troika and suggests that a portion will go for development purposes or to cover the budget gap of 2014. Leaving Maximos Mansion yesterday, Venizelos said "the surplus exists and its distribution must be done in a way that serves both growth and social objectives."
Regarding labour issues the government believes that the troika will not insist on positions that will create an even bigger problem in a destroyed labour market. The most difficult issues are milk and medicines. The government will have to bear the additional difficulty that any decisions will have to pass through parliament. The situation in the parliamentary groups of ND and PASOK is not the best. Despite the high tones from Berlin and Brussels last week the government must take into account the internal political stability as well and not topple its plans of a manageable outcome in the European elections. And it has two more difficult issues to pass through parliament, the recapitalization of banks and the privatization of PPC.
The limit placed by the Eurogroup and Berlin is suffocating. The discussion with the troika will have to conclude until Sunday. "We look at the revised text of the agreement in order to conclude as soon as possible," Stournaras said, but declined to say whether the troika accepts the Greek positions in the structural issues. The Greek government, however, believes the pressure is on both sides since nobody will benefit in case of a rupture.
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