Greece beats 2012 deficit targets

According to an official announcement issued on January 10 by the Ministry of Finance, Greece has beaten budget and primary deficit targets for 2012.
The data indicate a state budget deficit of €15.908 billion, compared to a target of €16.312 billion deficit. The report on government budget execution also showed a primary deficit of €3,684 billion, as opposed to a target of €4.577 billion.
Compared to the previous year, the budget deficit fell by €6.866 billion, while the primary deficit is also lower by €2.742 billion, with the state budget balance shrinking by 30.1% compared to 2011.This was due to drastic expenditure cutbacks, which counterbalanced a shortfall in revenues attributed to the reduced inflow of funds from the EU toward the Public Investment Programme.
State budget spending was €355 million lower compared to the target fixed in the national budget.
In a related development, Haris Theoharis head of Finance ministry’s General Secretariat of Information Systems was also appointed to the post of permanent a General Secretary for state revenues, it was announced on January 9.
Ministry of Finance: Announcement on 2012 Budget Execution (in Greek) & Report on 12-month Budget Execution (in Greek); Greek News Agenda: Primary Budget Record Surplus
(GREEK NEWS AGENDA)

Η εικόνα της Ελλάδας στο εξωτερικό-Τέσσερις ξένοι ανταποκριτές μιλούν για βελτίωση και δημοσιεύματα αλληλεγγύης

Τέσσερις Ευρωπαίοι δημοσιογράφοι, που εργάζονται στην Ελλάδα, συγκλίνουν στην άποψη ότι η εικόνα της Ελλάδας έχει αλλάξει προς το καλύτερο, είτε διότι οι αναφορές που γίνονται περιλαμβάνουν θετικά σχόλια και εκπέμπουν κάποια αισιοδοξία είτε διότι τα ρεπορτάζ έχουν απλώς λιγοστέψει.
«Το κλίμα άρχισε να αλλάζει αμέσως μετά τις εκλογές στη Ρηνανία-Βεστφαλία» μας λέει η Κορίνα Γιέσεν, ανταποκρίτρια της βερολινέζικης «Berliner Zeitung». «Η γερμανική κυβέρνηση συμφώνησε στο πακέτο στήριξης, προβλήματα ανέκυψαν και για άλλες χώρες και στο στόχαστρο βρέθηκαν πλέον οι τράπεζες. Η ατμόσφαιρα για την Ελλάδα άλλαξε και άρχισαν να βγαίνουν στον Τύπο δημοσιεύματα αλληλεγγύης προς την Ελλάδα. Αναφορές του είδους, “τώρα είναι η καλύτερη εποχή για διακοπές στην Ελλάδα”, “κανένας κίνδυνος για τους Γερμανούς”, “οι Ελληνες ακόμη αγαπούν τους Γερμανούς” έκαναν όλο και συχνότερα την εμφάνισή τους. Στο βάθος όμως, εκτός από αλληλεγγύη, κρύβονταν και οι ευκαιρίες από τις φθηνότερες τιμές στα τουριστικά καταλύματα» επισημαίνει η κ. Γιέσεν.
«Κανείς στο εξωτερικό δεν αμφισβητεί την προσπάθεια της ελληνικής κυβέρνησης να ανατρέψει τα δεδομένα» τονίζει η Χελένα Σμιθ, ανταποκρίτρια του βρετανικού «Guardian». «Ο δρόμος είναι μακρύς και δύσκολος, όπως επισημαίνω και σε σημερινό εκτενές άρθρο με την ευκαιρία της επίσκεψης των ξένων διαπραγματευτών, αλλά υπάρχουν σαφείς ενδείξεις αισιοδοξίας. Επικαλούμαι μάλιστα και σχετικό άρθρο της γερμανικής οικονομικής εφημερίδας “Handelsblatt” που τόνισε ότι για τον τρόπο με τον οποίο μειώνονται τα ελλείμματα οι Ευρωπαίοι μπορούν να διδαχθούν περισσότερο από την Ελλάδα παρά από τη Γερμανία». «Σε σχέση με την προηγούμενη κυβέρνηση, η εικόνα της σημερινής είναι η μέρα με τη νύχτα» τονίζει η κ. Σμιθ, η οποία στο χθεσινό άρθρο της επισημαίνει ότι οι κινήσεις αναδιάρθρωσης δεν θα είναι εύκολες σε καθεστώς οικονομικής ύφεσης, με πολλούς Ελληνες να ασκούν δριμεία κριτική στην Ευρωπαϊκή Ενωση και το Διεθνές Νομισματικό Ταμείο, «αν και κατ’ ιδίαν παραδέχονται πως μόνον η εξωτερική παρέμβαση μπορούσε να αναγκάσει το αναξιόπιστο πολιτικό σύστημα» να πάρει μέτρα.
«Η αντιστροφή στην εικόνα της Ελλάδας είναι εμφανής» λέει ο Αντόνιο Φεράρι, αναλυτής της ιταλικής «Corriere della sera» που ασχολείται επί δεκαετίες με θέματα Ελλάδας, Μέσης Ανατολής και Βαλκανίων: «Υπάρχει η αίσθηση ότι τα χειρότερα πέρασαν, αν και είναι δύσκολο να προβλεφθούν οι αντιδράσεις του κόσμου στην Ελλάδα αλλά και άλλες χώρες το φθινόπωρο, τότε που οι πολίτες θα νιώσουν στο πετσί τους τις συνέπειες των μέτρων». Ο κ. Φεράρι μάς θυμίζει ότι εξαρχής η Ιταλία δήλωσε την αλληλεγγύη της στην Ελλάδα, αλλά και ότι τα ιταλικά μέσα ενημέρωσης ελάχιστα ασχολήθηκαν με ηθικοπλαστικές πλευρές της κρίσης, όπως έκαναν οι Γερμανοί. «Συμβάλλουν οι συγγένειες στη νοοτροπία αλλά και προβλήματα όπως η φοροδιαφυγή που υπάρχουν και στην Ιταλία. Ειλικρινώς φοβόμουν χειρότερες αντιδράσεις, που προς το παρόν δεν είδαμε. Ισως βοηθούν και οι καλοκαιρινές διακοπές. Ισως κάποιοι κατάλαβαν ότι δεν μπορείς από τη μια να καταγγέλλεις ένα κράτος και από την άλλη να πιέζεις για να εξασφαλίζεις προμήθειες εξοπλισμών»…
Ανταποκρίτρια του πρώτου κρατικού τηλεοπτικού σταθμού της Γερμανίας ARD, η Σουζάνε Μπάουζινγκερ μας μιλά για «στάση αναμονής» των γερμανικών μέσων. «Οι εποχές που στέλναμε καθημερινώς αναλυτικά ρεπορτάζ για το πώς λειτουργούν τα ελληνικά σχολεία, τα νοσοκομεία, οι δημόσιες υπηρεσίες και το συνταξιοδοτικό σύστημα πέρασαν. Το ενδιαφέρον αμβλύνθηκε και αυτό δημιουργεί τη διαφοροποιημένη εικόνα για την Ελλάδα, ειδικά στην τηλεόραση που λειτουργεί βραχυπρόθεσμα και χωρίς να επανέρχεται εύκολα στα θέματα. Ισως εάν έχουμε και πάλι μεγάλες διαδηλώσεις, επεισόδια και ταραχές να δημιουργηθεί και πάλι ενδιαφέρον. Εως τότε οι αναφορές περιορίζονται στα πιο ειδικά μέσα ενημέρωσης».
(Ελευθεροτυπία, 27/7/2010)

Deficit down by 46%

According to the preliminary data available for the state budget implementation for the first six months of 2010, on a fiscal basis the deficit presented a 46% year-on-year decline against a targeted 39.5% in the government’s economic policy programme.

The fiscal result of the first six months of 2010 is due to both restriction of expenditures and revenue increases. Nevertheless, these do not yet fully reflect all fiscal measures included in the government’s programme for 2010.

Furthermore, ordinary budget expenditures declined by 12.8% year-on-year against a targeted 5.5% reduction and primary expenditures decreased by 12.7% against a targeted 5.4% annual decrease.

Hellenic Stability & Growth Newsletter: June 2010

(GREEK NEWS AGENDA)

PM George Papandreou`s profile in the New York Times

Suzanne Daley, a journalist for the New York Times, wrote an extensive profile of George Papandreou entitled Greek Leader Finds Balm for Deficit: Straight Talk. 
Published on June 15th, the piece describes how honesty about the state of the economy and transparency into government activities have become the most important tools in confronting the sovereign debt crisis- and the hallmarks of the Papandreou administration.

Stability programme on “the right track”

The team of experts from the so-called “troika” (European Commission, the International Monetary Fund and the European Central Bank), after completing their monitoring of the progress of the stability programme, said that the latter is “on track on all of the dimensions.”
 The government is ahead of the deficit reduction target set in the plan for this year and tax hikes are boosting revenues, according to the team.
The government is also making progress on more long-term economic reforms, which can help its future finances, they added.
Meanwhile, Prime Minister George Papandreou, who attended the European Union Summit in Brussels yesterday, underlined that “his government is determined to go ahead with important and difficult reforms,” in order to put the country on the right path for achieving its goals. 
(GREEK NEWS AGENDA)

PM George Papandreou Interview at “Politique Internationale”

Few countries have suffered from the global economic crisis as much as Greece. Not only did it feel the full force of the financial earthquake, but it also found itself under attack by international speculators. Today, as the IMF and the European Union prepare to help, the country is licking its wounds and trying to understand how things got so bad. George Papandreou is not the last to ask the question. Elected prime minister in October 2009, the leader of the Pan-Hellenic Socialist Movement (PASOK) is fiercely critical of the previous center-right New Democracy administration, which he believes is guilty of setting up a system of cronyism and of knowingly underestimating the public debt and budget deficit. But the new head of government is an energetic man. In this exclusive interview, he outlines his strategy for resolving his country’s daunting problems. http://www.politiqueinternationale.com/revue/article.php?id_revue=127&id=901&content=synopsis

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”.

Government announced austerity plan

PM: “Sacrifices will Bear Fruits”

The government announced yesterday an additional set of measures bound to slash the double-digit public deficit.
Speaking yesterday at a Cabinet meeting, Prime Minister Papandreou said that the emphasis is now shifting to what the European Union will do. 
The new measures aim at bringing into public coffers some €4.8 billion, amount which corresponds to 2% of the country’s GDP.  

Pay Cuts

In particular, the new measures include a 30% pay cut of public sector’s supplements allocated annually, and a 12% across the board cut of public servants’ benefits. Moreover, subsidies to public entities and their social security funds will be reduced by 10%.
Any additional remuneration in the public sector will be trimmed by 50%, and compensation for overtime work will shrink by 30%.

Executive bonuses in the public sector will be abolished and the Public Investment Budget will be curtailed by 5% (€500 million). As of 2011, the ratio for public sector hirings will be one for every five retirees.

Taxation

VAT is expected to rise at all cases by an average 1% to 2% and an extra levy on fuel, cigarettes, liqueur and luxury products will be imposed.
A one-off tax of 1% on personal incomes above €100.000 will also be introduced, together with a 15% rise in taxation of offshore companies’ real estate property.
Kathimerini daily: Further Cuts and Tax Hikes Announced
(GREEK NEWS AGENDA)

Bank of Greece Governor: Full confidence in Government

(GREEK NEWS AGENDA) Georgios Provopoulos, the Governor of the Bank of Greece’s, said (on February 22) – in an interview with Bloomberg in Athens – he is confident that Greece will achieve its “very ambitious” deficit-reduction goals and avert further credit-rating downgrades.
Rating agencies “want evidence that the plan is being implemented on target” and “some time will have to pass before they can form a better judgement,” said Provopoulos, who is also a European Central Bank council member.
“I have full confidence in the government meeting its goals. They have to succeed.
And they will, I’m sure of that,” he stressed, adding that he takes the commitment of European governments to stand by Greece at face value. The lack of a detailed rescue plan isn’t disappointing, he said. 
Bloomberg.com: Provopoulos Confident Greece Will Meet

PM Papandreou interview on BBC

(GREEK NEWS AGENDA) “Greece is not looking for an EU bailout but for political support from its European counterparts” said Prime Minister George Papandreou in an interview yesterday on BBC One, on the sidelines of his visit to London.
“Give us the time, give us the support – and I’m not talking about financial but political support – in order to show you that what we’re saying is being implemented and we are credible again,” stressed Papandreou, emphasizing on the fact that Greece needs to borrow at the same rate as other countries.
Meanwhile, speaking to “Der Spiegel,” Papandreou expressed confidence that Greece can achieve its target to reduce its budget deficit by implementing serious economic reforms.
BBC News: Greece ‘not looking for bailout,’ Papandreou tells BBC  

EU backs up Greece

(GREEK NEWS AGENDA) The European Union yesterday, in a joint statement by the Heads of State or Government, agreed to take determined and coordinated action to safeguard financial stability in the euro area, and expressed full support for the efforts of the Greek government and their commitment to do whatever is necessary to get the country’s public finances in order.
European commission chief Jose Manuel Barroso said that the statement was intended to end speculation that Greece would require a bailout package, while adding that “the Greek government believe they do not need financial support.”
Addressing a press conference at the end of the informal summit in Brussels and referring to this agreement to assist Greece, Prime Minister George Papandreou said:

“our partners assessed and ascertained our will to change, we convinced them, following our great efforts, and it is necessary for us to continue. We will succeed.”
Greece is aiming to reduce its deficit by 4 % of GDP this year, largely through cuts in public spending and an increase in taxes. However, Papandreou said that he would not hesitate to adopt more measures if it becomes necessary.
Council of the European Union: Agreement to support Greece; Kathimerini daily: EU offers help but no specific money pledge

PM Papandreou meeting with French President Sarkozy

(GREEK NEWS AGENDA) Prime Minister George Papandreou flew to France yesterday, for talks with French President Nicolas Sarkozy – on an array of issues, focused mostly on economic matters – ahead of today’s European Council meeting.
After his meeting with the French president, Papandreou stated that the Greek government is committed to taking all necessary measures to fix Greece’s public finances.
 “We are ready to take any measures in order to cut public deficit to 8.7% of GDP in 2010 from 12.7% in 2009 and to meet the commitments the government has undertaken in its Stability and Growth Programme.”
Besides the pressing deficit and credit crisis burdening Greece, Papandreou said issues dealing with the Balkans, the Cyprus problem, climate change and even Europe’s position on the international stage were discussed.
Kathimerini daily: Premier talks tough but EU may offer help; Youtube.com: Greek prime minister in France for debt talks

Papandreou in “Le Monde”

French daily “Le Monde” portrays George Papandreou in an article (‘L’ homme qui fait trembler l’euro’, February 5) describing Greece’s current affairs and Papandreou’s personal and political career over the years:
“Le monde le regarde. Le destin de l’euro tient à lui. Elu depuis tout juste quatre mois, le premier ministre grec est le point de mire des dirigeants et des marchés de la planète, pressé de questions affolées sur la situation dont il a hérité : un pays au bord de la faillite, discrédité sur les marchés, exposé à la spéculation, étranglé par une dette et un déficit public colossaux, un Etat dysfonctionnel, un système de fraude généralisé.
Le raffinement est son arme. Costume bleu marine, chemise blanche, cravate délicatement violette, Georges Papandréou a la silhouette longue et distinguée, la moustache taillée au millimètre, la politesse souriante, l’anglais parfait du brillant élève passé par Harvard et la London School of Economics, la graisse évanouie dans des heures quotidiennes de fitness et de cyclisme à haute dose. Si peu balkanique, si différent.
Devenir premier ministre n’était pas sa vocation, lui qui, à la fin des années 1960, étudiait la sociologie aux Etats-Unis et manifestait, cheveux longs et guitare rock en bandoulière, contre la guerre du Vietnam. “Si la Grèce avait été à l’époque un pays normal, dit-il dans son bureau à Athènes, je ne serais pas entré en politique.”
Son nom a fini par le rattraper. Celui de son grand-père, Georges Papandréou, trois fois premier ministre, centriste, figure mythique de la politique des années 1960. Celui de son père, Andréas Papandréou, ministre et économiste renommé, fondateur du Pasok (parti socialiste grec), et premier ministre dans les années 1980. Quant à lui, ce rêveur affable et modeste que l’on appellera longtemps Yorgakis (petit Georges), personne n’imaginait qu’il dirigerait le pays à son tour, dernier-né de l’une des trois dynasties familiales qui, avec les Caramanlis et les Mitsotakis, se partagent le pouvoir en Grèce depuis l’après-guerre.
Il a 14 ans ce 21 avril 1967. Le coup d’Etat des colonels, prélude à la dictature qui durera sept ans, vient d’avoir lieu. Les militaires viennent chercher son père, Andréas, caché sur le toit de la maison. L’un d’eux lui colle sa mitraillette sur la tempe. “Où est-il ?” L’enfant ne répond pas. La mitraillette frémit. Andréas se rend. Pour lui, c’est la prison. Puis, pour toute la famille, l’exil.
Georges Papandréou vient d’ailleurs. Avant la guerre, son père Andréas, déjà forcé à quitter la Grèce pour des raisons liées à ses activités trotskistes, était devenu citoyen américain, avait enseigné l’économie à l’université de Berkeley, puis en Suède et au Canada. Georges a une mère américaine, est né au Minnesota, a grandi en Californie et étudié dans l’Illinois, à Londres, à Stockholm. Il parle à quasi-égalité l’anglais, le grec et le suédois.
A son retour en Grèce, en 1974, la dictature abolie, il découvre un pays où tout est à réinventer. Et une élite forcée comme lui à l’exil, revenue “avec des idées nouvelles, la capacité de comparer, de tirer réflexion des contrastes.”
Etre différent, c’est son atout. “L’étranger” est un drôle de zèbre, mélange de “libéral” à l’américaine et de social-démocrate suédois, défenseur des libertés individuelles, de l’Etat-providence, de l’environnement, du progrès technique. Théodoros Pangalos, vice-premier ministre, s’amuse à rappeler ces années 1990 où Georges était ministre dans le gouvernement de son père, Andréas Papandréou : “En réunion, Georges prenait des notes sur un ordinateur portable. Nous, nous avions nos feuilles et nos crayons. On se donnait des coups de coude : “Regarde, le petit Georges joue, il n’a toujours pas grandi !”. En fait, comme toujours, il avait plusieurs longueurs d’avance…”
Au sein de la dynastie Papandréou aussi, il fait la différence. Après Georges “l’ancien”, le centriste anticommuniste, après Andréas le tempétueux tribun socialiste aux accents nationalistes, Yorgakis, président de l’Internationale socialiste depuis 2006, conquiert les Grecs par un agenda progressiste inhabituel. Il est hostile au blairisme, croit en la primauté de la politique sur le marché, préconise une société ouverte et multiculturelle, une économie tournée vers la valeur ajoutée et la croissance verte. “Je suis fier de porter mon nom mais je gouvernerai à ma façon. Comme Sinatra, je pourrai dire : “I did it my way”.”
Son style politique, il l’a déjà esquissé. Ministre de l’éducation, en 1988, il s’affronte au conservatisme ambiant et à la puissance de l’Eglise orthodoxe en défendant les droits des homosexuels. Ministre des affaires étrangères très estimé, en 1999, il milite en faveur de l’Europe et tempère l’anti-américanisme, sport national en Grèce. Il établit des conditions de dialogue avec la soeur ennemie, la Turquie, soutient la candidature de celle-ci à l’Union européenne (UE), contribue à l’intégration de Chypre dans l’UE.
“Yorgakis sait écouter, il ne fait pas l’intelligent, il prend calmement des décisions audacieuses. Il nous change de ce théâtre balkanique dont nous sommes tous fatigués”, témoigne l’un de ses anciens collègues au gouvernement, Nikos Dimadis. “La Grèce a plus que jamais besoin d’un dirigeant différent, citoyen du monde, qui a sur son pays une pensée globale”, analyse l’éditorialiste de centre droit, Georges Kirtsos.
Depuis quatre mois, Georges Papandréou est parti en guerre contre un Etat pléthorique, contre la corruption et l’économie parallèle. La droite l’accuse déjà d’immobilisme. Des mouvements sociaux se préparent contre les mesures d’austérité annoncées.
Certains le craignent plus visionnaire que pragmatique, plus théoricien que politique. Mais la Grèce n’a plus le choix, la zone euro non plus. Le petit Georges est peut-être la dernière chance. Lui-même en a fait un slogan : “Nous devons changer, ou sombrer.””
(LeMonde.fr)

PM George Papandreou at the World Economic Forum

(GREEK NEWS AGENDA) Speaking as part of a panel – that also included Spanish Prime Minister Jose Luis Zapatero and European Central Bank President Jean-Claude Trichet – at the annual World Economic Forum taking place in Davos, Switzerland (January 27 -31), Prime Minister George Papandreou said that Greece would not leave the euro area and would use the discipline of membership to slash its budget deficit and make long-delayed structural economic reforms. “The answer is very simple. We went [to the market] for borrowing two days ago and we were five times oversubscribed. We’re not looking for money from anywhere else…” said Papandreou. He outlined an ambitious goal to reduce the deficit by four points this year and bring it below 3% by 2012, through measures taken as part of Greece’s Stability and Growth Programme (SGP).  The premier held a meeting with EU Economic and Monetary Affairs Commissioner Joaquin Almunia yesterday, and the discussion focused on Greece’s SGP in light of the report that the European Commission will be submitting on February 3, on Greece.  European Commission President Jose Manuel Barroso – speaking in Brussels on Thursday – stressed the need for the greater coordination of economic policies in the EU, emphasising that economic policies are not only a national issue, but European as well. Referring to Greece specifically, he expressed the conviction that the Greek government must be supported in its effort to fulfil its commitments in the framework of the SGP.  See world reports – BBC.co.uk: Davos 2010: Greece denies a bail-out is needed; Reuters.com: Greece says being targeted as euro zone “weak link”

The Stability Programme was submitted

(GREEK NEWS AGENDA) The cabinet met yesterday  to approve the updated Stability and Growth Programme (SGP) 2008-2011, which was submitted today (15.1) to the European Commission in Brussels.

“We will achieve fiscal consolidation within three years. […] We can do it; this target is feasible,” said Prime Minister George Papandreou.
The premier added that the Stability and Growth Programme does not contain immediate fiscal adjustment measures only, but also a substantial part of the plan for the restructuring of the country.
On his part, Finance Minister George Papaconstantinou stressed that the deficit would definitely be cut, as Greece’s economy is expected to expand in the coming next years.
“The Programme was prepared with the decisive involvement of all ministries and it will be implemented through team-work,” said Papaconstantinou.
Kathimerini Daily: Cabinet stands by recovery plan; Ministry of Economy and Finance: Update of the Hellenic Stability and Growth Programme 2008-2011

Finance Minister Interview in “Der Spiegel”

(GREEK NEWS AGENDA)      Greece has no current need for credit and the excessive pessimism of the financial markets is unjustified, Finance Minister George Papaconstantinou told German weekly Der Spiegel, in an interview. He added that while Greek spreads had soared this week, they would narrow once again, when Greece had proven that it was doing all it could, to improve the country’s financial situation. “We are in a very serious fiscal situation, we have debts with a dangerous dynamic,” said the minister. “But we have a new government that clearly recognizes the problem. With our savings programme, we will reduce the deficit in the coming year by 3.6 percentage points.” Papaconstantinou further said that there was no reason for Greece to ask for help from the International Monetary Fund. Instead, it would solve its problems inside the European Union and according to the bloc’s rules. Greece would release a new bond at the beginning of January, he concluded.  On Friday, Greek Prime Minister George Papandreou said Greece would meet its debt obligations and planned to reduce its budget deficit to below 3 percent of GDP within four years, sending bond yields lower. Today, the premier is expected to announce the measures, his government plans to implement, following talks with representatives of labour unions and business groups. Foreign and Currency News: Greece has no urgent credit need – Greek Finmin

Finance Minister on Greek Economy

(GREEK NEWS AGENDA) The new government “will do what is required to be consistent with the need for a medium-term reduction of the budget deficit,” Finance Minister George Papaconstantinou stated, after a downgrade in Greece’s credit rating by Fitch rating agency.
He also dubbed unrealistic the scenario of Greece resorting to the assistance of the International Monetary Fund.

Giving an interview about the issue yesterday on CNN , Papaconstantinou stressed that “the government is putting together very quickly a number of initiatives and measures to reassure the markets and our European partners that we are serious about reducing the deficit […].”
“There is a movement on all reforms fronts,” something that will restore Greece’s credibility.
Kathimerini daily: Fitch rating downgrade upsets markets

Eurozone Focuses on Greece

(GREEK NEWS AGENDA) Greece has failed to take the necessary measures to cut its fiscal deficit, according to the directions offered last spring by the EU Council, the European Commission (EC) announced on Wednesday, before recommending that the country be placed under excessive deficit procedure of Article 104(8) of the Treaty of Maastricht.

Responding to this, Finance Minister George Papaconstantinou said that the government is determined to restore the credibility of its macro-economic statistics and reduce its large fiscal deficit.In its autumn forecasts, released last week, the EC sees Greece’s budget deficit remaining above 12% of GDP through 2011 – at 12.2% in 2010 and 12.8% in 2011. “We do not share the EC’s projections that see the deficit over 12% in the coming years. This projection was made without taking into account the change in policy,” said Papaconstantinou, who believes he can lower the budget deficit to below 10% next year. “We are changing policy and this will be reflected in the next budgets,” he said.
Kathimerini daily:Eurozone concerned about Greece

Greece in ECOFIN: Adding Numbers Up

(GREEK NEWS AGENDA)   Minister of Finance George Papaconstantinou participated at the European Council Economic and Financial Affairs meeting in Luxemburg (October 19-20).  The minister acknowledged that the budget deficit for 2009 will creep up to 12.5% of GDP, a figure which has been also confirmed by the Bank of Greece.  One third of this significant increase can be attributed to the economic crisis – GDP contracted by 1.5%, investment dropped by 20%, tourism by 15% and shipping revenue by 20%.  The rest can be equally attributed to expenditure excesses, as well as the revision of the way by which the deficit is measured.  Papaconstantinou is ready to negotiate a three-year extension for deficit curbing with the possibility of a further one-year extension.  “The first step is to decrease the deficit to a single digit figure” for 2010, said the minister. The government has pledged to present the Commission with a revised three-year Stability and Growth Programme (2008-2011).Thirteen out of sixteen countries of the eurozone will be put under EU deficit supervision. The European Commission estimates that public finances for all eurozone members will begin to recover by 2011 at the latest.  European Commission: Driving the European Recovery 

Greece: Tax Pacage to Curb Budget Deficit

(GREEK NEWS AGENDA)  Economy and Finance Minister Yiannis Papathanassiou announced on June 25 a €1,9 billion package of new tax measures, in an effort to boost state revenues and reduce public deficit. The package includes higher taxes on fuel, mobile phones, lottery earnings, cars with more than 2-litre engines and recreational boats over 10 metres in length. Another €1 billion in revenues is expected from legalizing unauthorised home construction. Papathanasiou stressed that the government remains committed to the goals of reducing the fiscal deficit to 3.7 pct of GDP this year, creating initial conditions for limiting public debt and preserving the credibility of the Greek economy. The Greek minister added that a battle to combat tax evasion and cutting public spending would continue.  Kathimerini daily: Gov’t seeks 2 bln euros in new taxes