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PM Papandreou`s interview with Newsweek

Greece will decide whether or not to activate the EU-IMF support mechanism within the next few weeks, Prime Minister George Papandreou said in an interview with Newsweek magazine, on April16. 
Papandreou said that the aid package was not a programme for rescuing the Greek economy but would give Greece some “breathing space” in which to carry out necessary reforms, giving the government room to manoeuvre as it embarks on changes that would make the economy sustainable:
“We’re not looking for scapegoats. These are problems of our own making. Markets, however, take a snapshot of the day, projecting it onto the future. It’s difficult for them to evaluate the changes we are making: changes in mentality, changes in our political culture. That may take some time for the markets to realize. But we need a period of calm to make these changes happen. We just passed a new tax law, for example, that is a major revolution in our country. It’s more just and transparent, and it will target tax evaders. This will help slash our deficit. Those numbers are bound to come down”.

Tax and spending policy

» PM: Tackling Economic Woes

(GREEK NEWS AGENDA) Prime Minister George Papandreou chaired a Cabinet meeting that discussed the draft tax bill and public-sector incomes policy.
He said that the government’s efforts to tackle the country’s economic problems will focus on three axes: reducing public debt, promoting growth, and accelerating legislative and institutional measures.
Papandreou stressed that the government’s primary duty was to save the economy, striving for fair solutions that would protect the lower and middle classes as much as possible.

» FinMin: New Tax Rates

A range of public spending cuts and tax adjustments were presented by the government yesterday, following an announcement last week by the premier that drastic measures would be taken to prevent Greece from defaulting.
Finance Minister George Papaconstantinou unveiled more specific policies, which included plans to cut the salaries of the premier and his ministers, a moratorium on hiring in the public sector this year – excluding however health services –  as well as changes to the tax system, which will now contain more tax brackets and will lead to higher earners paying more.

PM`s press conference for the first 100 days of the government

(GREEK NEWS AGENDA) The year 2010 was the time for Greece to make a new start and major changes, Prime Minister George Papandreou stressed on Wednesday during a press conference held to mark the completion of 100 days since PASOK was sworn in as the new government.
“It is time to change everything, to turn the crisis into an opportunity.
We have already shown that we are capable of doing this, that we can be leaders and not laggards,” Papandreou said, emphasising that the government was determined not to fall into the inertia of its predecessors and had already made important changes at every ministry, while several deep reforms were now in the process of being introduced.
Among these he listed the effort to establish a new taxation system, overhauling the social insurance system, and initiating a debate on local administration reform and a new electoral law.Reviewing his government’s course during the first 100 days, he admitted that some mistakes have been made but stressed that the government is prepared to take corrective action when this proves necessary.
“We are determined to do the things for which we were elected by Greek men and women.
It is this that gives us the strength to not back down,” he underlined, and urged everyone to join the “democratic front” in order to democratically restructure the country.