Historic decisions for Greece and the Eurozone

Following a marathon negotiating session of European Council on the 26th of October in Brussels, Heads of State and Government of the Eurozone member states agreed on a comprehensive set of measures which reflect their unwavering determinationto overcome together the current difficulties and to take all the necessary steps towards a deeper economic union commensurate with their monetary union.
In particular on Greece, there was an agreement that should secure the decline of the Greek debt to GDP ratio with an objective of reaching 120% by 2020. It also includes a voluntary contribution by private creditors, amounting to a nominal discount of 50% on notional Greek debt. Additionally, a new EU-IMF multiannual programme financing up to € 100 billion will be put in place by the end of the year, accompanied by a strengthening of the mechanisms for the monitoring of reforms implementation.
“The debt is absolutely sustainable now,” Papandreou told a press conference, earlier today, after the meeting of euro zone leaders.
“Greece can now settle its accounts with the past, once and for all. […] We can claim that a new day has come for Greece, and not only for Greece but also for Europe,” the premier added.
Primeminister.gr: Papandreou press conference after the euro summit (in Greek); European Council President: Remarks by Herman Van Rompuy following the meeting of the Euro Summit & Statement by President Barroso
(GREEK NEWS AGENDA)

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PM George Papandreou: A Year of Consolidation and Reform

Greece’s image at this year’s World Economic Forum in Davos was “positive”, Prime Minister George Papandreou said on January 28, on the sidelines of the forum. As Papandreou said, there was across-the-board acknowledgement of Greece’s efforts and of the Greek people’s and government’s determination to carry on with the reforms.
Meanwhile, in an interview with the Austrian newspaper Die Presse, Papandreou reiterated that debt restructuring is not an option for Greece stressing the efforts to achieve an extension of the repayment period of the EU-IMF loans.
See also: A year of consolidation and reform – Greece meets ambitious targets in 2010
(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)

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: “We`re on a new Odyssey for Hellenism

(GREEK NEWS AGENDA) On April 23, Prime Minister George Papandreou formally requested financial support from the EU and the IMF.
“It is a national and pressing need to formally ask our EU partners for the activation of the support package that we jointly created,” Papandreou said in a televised statement from the southeastern island of Kastellorizo, where he was on a visit.
“We are on a tough course, a new Odyssey for Hellenism. But we now know the way to Ithaca and have chartered our course. Ahead of us lies a journey, a demanding journey for us all, but with a new, collective conscience and joint efforts we shall reach our destination safely… Our final goal, our final destination is to liberate Greece from supervision and trusteeship.”

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”.

PM George Papandreou at Europarliament

(GREEK NEWS AGENDA) “If we appeal to the IMF, they will ask us for nothing more (no extra measures). But I would prefer a European solution. I would prefer a European solution as part of the eurozone, as a European, as an ardent European myself, and being able to show the world that Europe can act together,” Prime Minister George A. Papandreou said yesterday addressing the Special Committee on the Financial, Economic and Social Crisis of the European Parliament.
He further noted that, in the debate that goes around the world whether Europe will fail or whether Europe is on the map, more Europe rather than less is needed.

Regarding the financial situation in Greece, the premier stressed that “we are not asking for help, as some reckless country just wanting to live off the wealth of others.[…] What we are saying is we need the strong political support in order to make these necessary reforms, making sure that we are not going to pay more than necessary in order to get these reforms enacted.”
See also: President of the European Parliament, Buzek on the meeting with Prime Minister of Greece ; Common statement by Elmar Brok MEP, Marietta Giannakou MEP and Ioannis Kasoulides MEP; Othmar Karas MEP, “Greece is not begging for money”
Alliance of Liberals and Democrats for Europe (ALDE Group), Papandreou outlines austerity to EP special committee ; Guy Verhofstadt (ALDE President) Angela Merkel’s lack of solidarity with Greece is shocking, states Guy Verhofstadt

Greek Finance Minister: Economic Prospects

(GREEK NEWS AGENDA)  The next two years will be a period of intense reform, Economy and Finance Minister Yiannis Papathanassiou said on Monday (25.5), addressing an Economist conference in Athens. He also stressed that the growth model that helped Greece enjoy strong rates so far, must be adjusted to modern demands and expressed the government’s determination to improve the country’s competitiveness by taking measures to support innovation, reduce bureaucracy, promote alternative energy sources, and attract big foreign investments. Meanwhile, the International Monetary Fund (IMF) published yesterday (25.5) its annual report on the Greek economy, according to which the economy is expected to shrink by up to 2% this year with recovery beginning late in 2010. The IMF also recommended sweeping changes to tax regulations, continuing wage moderation and social security reforms.  Commenting on the IMF report, Papathanassiou said that “the Government is studying and carefully evaluating all the reports by international organisations pertaining to our country, even when it happens to disagree with certain estimates and predictions. In any case, it is clear that the next two years will determine the outcome of many significant issues for Greece’s present and future.”  Ministry of Economy and Finance: Speech by minister Papathanassiou at the Economist conference (in Greek); Kathimerini daily: IMF sees better days in late 2010

Greek Finance Minister at IMF: Restoring Trust

(GREEK NEWS AGENDA)  Thanks to its relatively solid banking system, Greece is ‘insulated’ enough against the clogged financial system that has been inflicting the global economy; however, the necessity to fortify financial policy and cohere with fiscal principles is urgent. The remarks belong to Finance Minister Giorgos Alogoskoufis speaking to the press in Washington on the occasion of his address at the International Monetary Fund annual meeting’s plenary session. Alogoskoufis noted that IMF has projected a prolonged crisis which will last through 2009. The conclusions drawn at IMF coincide with the ones of G7 and Ecofin and call for action to assure liquidity, remove toxic assets from banks’ balance-sheets, consolidate capitals and provide guarantees to rebuild credit trust. As for Greece’s stance on the matter, the minister reiterated that bank deposits are now guaranteed by law and that the comparatively high growth rates and the ongoing decrease in unemployment signal a lighter disturbance by the latest financial turbulence. Ministry of Economy and Finance: Speech by Giorgos Alogoskoufis & The Greek economy at a glance (October 2008); Greek News Agenda: PM: Growth Secured & Special Issue-The Greek Economy  International Monetary Fund: IMF Welcomes Euro Zone Plan to Combat Crisis & World Economic Outlook, (October 2008)

The Greek Economy

(GREEK NEWS AGENDA)   According to the latest reports on the Greek economy published by the International Monetary Fund (IMF) for 2007 (30.4.2008) and European Commission’s spring forecast, 2008-2009  (28.4.2008), predictions are temperately optimistic, despite a difficult and stressful world economic environment. In particular, for 2008, the IMF estimates that economic growth will reach 3.7%, as opposed to the Greek Central Bank’s 3.5% and to European Commission’s 3.4%. Even so, the Commission points out that a 3.4%’s growth rate is double that of the eurozone average. Furthermore, the Commission says that the deficit will be close to 2% for 2008 and 2009, while the public debt is estimated to decrease to 92.4% for 2008 and even further to 90.2% in 2009. Inflation will rise to 3.7% for 2008 as opposed to 3% of the previous year and to 3.6% in 2009. The IMF encourages Greece’s planning for balancing the books by 2010 and insists on neater tax administration and collection, as well as restrained public spending.