Wednesday, May 18, 2011

Greek Finance Minister Sees Room For Consensus With Opposition

Greek Finance Minister Giorgos Papakonstantinou made a step for consensus, stating that opposition party’s proposal includes provisions that the government has already integrated or could integrate in its program. 


“We will invite the main opposition to a debate on a framework for joint action”, Giorgos Papakonstantinou said at the Economist conference in Lagonissi, south of Athens. “The Greek government fully assumes its responsibilities. We shall tell the truth and move forward”, he added. 

The economic team had identified “some positive aspects” in the proposal of the main opposition party New Democracy last week, adding that they could form a basis for debate between government and opposition. 

At the same time, the Minister didn’t rule out the possibility of further dismissals in the public sector as a result of state organisations’ mergers. 

A year after the signing of the Memorandum of Understanding, things did not cleared out, and questions multiplied, Giorgos Papakonstantinou said. 

A country cannot move along with a deficit of 15.5%, he noted, adding that the country still has not passed the tough situation. 

Everyone realizes slowly but surely how tough was the project, as the government moves in an environment that has become more difficult than before, Papakonstantinou said. 

He ruled out the possibility of debt restructuring, stating that Greece’s problem is structural.

The Minister of Finances referred to the next steps:

- There can be no relaxation of fiscal effort.

- Necessary measures to reduce the deficit to 7.5%.

- The Greek government will announce €6 billion measures in the coming days, regarding to expenditure reductions and revenue growth.

- Neither horizontal wage and pension reductions nor increases in VAT rates.

- Development will be an objective. Interventions of €26 billion by 2015, including measures in 2011.

- New payroll.

- Rationalization of social spending.















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