Draft Bill on Waste Management
in Parliament
14.10.2017
On Thursday, a draft bill on waste management was submitted to Parliament by the Ministry of Energy and the Environment.
EU law and directives on reuse, recovery, and recycling of waste are incorporated in the bill that will change the existing legislative framework in Greece where more than 80% of waste is still buried. It will also clarify issues relating to the Hellenic Recycling Agency.
The Ministry says that the draft bill aims at transforming the economy with the goal of creating a safer environment. The legislation will amend the basic institutional framework [Law 2939/2001] on the alternative management of packaging and other products, in line with the EU Directive 2015/720/EU, regulating issues concerning the Hellenic Organization for Recycling and other provisions.
According to the Ministry’s explanatory memorandum, the aim of the legislation is to reduce the existing significant evasion of taxes related to waste disposal. 81% of rubbish still goes to landfill.
The organizational role of the Hellenic Organization for Recycling [ΣΕΔ] is essential for the proper functioning of the market and dealing with conflicts of interests. Arrangements are being put in place for the reduction of non-recyclables, the streamlining of recycling costs and the channelling of resources to achieve optimal waste management alternatives."
The draft legislation clarifies the distributor’s responsibility for the implementation of the extended responsibility of the producer, while corresponding criminal and administrative sanctions are to be put in place for infringements of the obligations. At the same time, in line with the provisions of Directive 2015/720/EU, provision is to be introduced for measures to reduce the use of plastic bags.
Special emphasis is given to the separate collection of waste packaging material, so that it is recovered in the cleanest and purest possible form in order to achieve the necessary quality standards in their respective fields of recycling. Separate collection must be organized by both the Hellenic Organization for Recycling [ΣΕΔ] and the Municipalities.
The new provisions enable Municipalities independently to organise the alternative management of municipal waste themselves, while the new institutional framework provides for incentives and rewards for Municipalities on the basis of their results. Finally, the role and responsibility of the Greek Recycling Organisation [Ε.Ο.ΑΝ.] is strengthened both as an institution and in terms of human resources, with the aim of better coordination with the Hellenic Organization for Recycling [ΣΕΔ], the Local Authorities and the organisations of civil society.
EU law and directives on reuse, recovery, and recycling of waste are incorporated in the bill that will change the existing legislative framework in Greece where more than 80% of waste is still buried. It will also clarify issues relating to the Hellenic Recycling Agency.
The Ministry says that the draft bill aims at transforming the economy with the goal of creating a safer environment. The legislation will amend the basic institutional framework [Law 2939/2001] on the alternative management of packaging and other products, in line with the EU Directive 2015/720/EU, regulating issues concerning the Hellenic Organization for Recycling and other provisions.
According to the Ministry’s explanatory memorandum, the aim of the legislation is to reduce the existing significant evasion of taxes related to waste disposal. 81% of rubbish still goes to landfill.
The organizational role of the Hellenic Organization for Recycling [ΣΕΔ] is essential for the proper functioning of the market and dealing with conflicts of interests. Arrangements are being put in place for the reduction of non-recyclables, the streamlining of recycling costs and the channelling of resources to achieve optimal waste management alternatives."
The draft legislation clarifies the distributor’s responsibility for the implementation of the extended responsibility of the producer, while corresponding criminal and administrative sanctions are to be put in place for infringements of the obligations. At the same time, in line with the provisions of Directive 2015/720/EU, provision is to be introduced for measures to reduce the use of plastic bags.
Special emphasis is given to the separate collection of waste packaging material, so that it is recovered in the cleanest and purest possible form in order to achieve the necessary quality standards in their respective fields of recycling. Separate collection must be organized by both the Hellenic Organization for Recycling [ΣΕΔ] and the Municipalities.
The new provisions enable Municipalities independently to organise the alternative management of municipal waste themselves, while the new institutional framework provides for incentives and rewards for Municipalities on the basis of their results. Finally, the role and responsibility of the Greek Recycling Organisation [Ε.Ο.ΑΝ.] is strengthened both as an institution and in terms of human resources, with the aim of better coordination with the Hellenic Organization for Recycling [ΣΕΔ], the Local Authorities and the organisations of civil society.
Prospects for the Third Assessment
On Tuesday EU Finance Commissioner Pierre Moscovici announced that the Heads of Mission of the Institutions are expected to return to Athens on October 23rd in order to start the Third Assessment. President of the Eurogroup Jeroen Dijsselbloem said: "We have a very strong shared objective and ambition to close the Assessment before the end of the year."
Commenting on the possibility of the new German Government’s stance towards Greece becoming stricter in the event of the Free Democrat party joining a ruling coalition with Chancellor Merkel, Jeroen Dijsselbloem said the Greek bailout was “solid” and could not be changed by new governments.
"Let us channell all our energies towards concluding the Third Assessment is mainly about implementing agreed reforms, and then preparing the end of the Greek Programme, which I hope to do at the end of the summer," Commissioner Moscovici said, noting that "Greece is not experiencing any problems at the moment".
Greek Government sources dismissed speculation generated in local media on Wednesday that fresh austerity is on the cards.
IMF
In its latest World Economic Outlook, the International Monetary Fund is forecasting a higher growth rate for Greece in 2018 than the projection made in the Greek draft State Budget.
The IMF expects the growth rate to be at 1.8% of GDP for 2017. In 2018, according to the IMF, the Greek economy will grow at a rate of 2.6% of GDP, whereas the Government is working on the basis of growth at 2.4% of GDP.
“Greece has done a lot of work and the Greeks have made enormous efforts,” said the Director General of the International Monetary Fund, Christine Lagarde, at a press conference given at the annual session of the Fund and the World Bank. “It is very impressive", she added.
D.G. Lagarde said that the IMF is not asking for new measures, just the implementation of those agreed, while she stressed that the IMF is insisting on the issue of debt relief about which the debate with Europe continues.
Finance Minister Euclid Tsakalotos and Alternate Finance Minister Giorgos Chouliarakis will meet with IMF Managing Director, Christine Lagarde, on October 14th, on the sidelines of the IMF - World Bank Annual Meeting, in Washington. The issues of the Third Assessment of the Greek bailout programme, debt relief, the Fund’s role in the bailout programme and Greece’s sustained future access to capital markets, are expected to be discussed in detail.
Tackling VAT Evasion
The increased number of inspections at food service establishments this summer is showing results.
According to the Independent Authority for Public Revenue, bars and restaurants are no longer the worst offenders in terms of tax evasion. This unenviable distinction now goes to pawnshops.
The authority’s plan to focus on the Cyclades and Saronic islands brought violation rates down to 20% of enterprises. Corfu had the highest rate of violations at 59%.
On Tuesday EU Finance Commissioner Pierre Moscovici announced that the Heads of Mission of the Institutions are expected to return to Athens on October 23rd in order to start the Third Assessment. President of the Eurogroup Jeroen Dijsselbloem said: "We have a very strong shared objective and ambition to close the Assessment before the end of the year."
Commenting on the possibility of the new German Government’s stance towards Greece becoming stricter in the event of the Free Democrat party joining a ruling coalition with Chancellor Merkel, Jeroen Dijsselbloem said the Greek bailout was “solid” and could not be changed by new governments.
"Let us channell all our energies towards concluding the Third Assessment is mainly about implementing agreed reforms, and then preparing the end of the Greek Programme, which I hope to do at the end of the summer," Commissioner Moscovici said, noting that "Greece is not experiencing any problems at the moment".
Greek Government sources dismissed speculation generated in local media on Wednesday that fresh austerity is on the cards.
IMF
In its latest World Economic Outlook, the International Monetary Fund is forecasting a higher growth rate for Greece in 2018 than the projection made in the Greek draft State Budget.
The IMF expects the growth rate to be at 1.8% of GDP for 2017. In 2018, according to the IMF, the Greek economy will grow at a rate of 2.6% of GDP, whereas the Government is working on the basis of growth at 2.4% of GDP.
“Greece has done a lot of work and the Greeks have made enormous efforts,” said the Director General of the International Monetary Fund, Christine Lagarde, at a press conference given at the annual session of the Fund and the World Bank. “It is very impressive", she added.
D.G. Lagarde said that the IMF is not asking for new measures, just the implementation of those agreed, while she stressed that the IMF is insisting on the issue of debt relief about which the debate with Europe continues.
Finance Minister Euclid Tsakalotos and Alternate Finance Minister Giorgos Chouliarakis will meet with IMF Managing Director, Christine Lagarde, on October 14th, on the sidelines of the IMF - World Bank Annual Meeting, in Washington. The issues of the Third Assessment of the Greek bailout programme, debt relief, the Fund’s role in the bailout programme and Greece’s sustained future access to capital markets, are expected to be discussed in detail.
Tackling VAT Evasion
The increased number of inspections at food service establishments this summer is showing results.
According to the Independent Authority for Public Revenue, bars and restaurants are no longer the worst offenders in terms of tax evasion. This unenviable distinction now goes to pawnshops.
The authority’s plan to focus on the Cyclades and Saronic islands brought violation rates down to 20% of enterprises. Corfu had the highest rate of violations at 59%.
The Greek-Eurasian Business Council Conference
Speaking at the Greek-Eurasian Business Council Conference, Greek President Prokopis Pavlopoulos on Monday stressed Greece’s leading role in promoting Europe’s ties with Eurasia and China.
“Greece supports regional integration schemes in the wider Eurasian region, which can contribute to peace, growth and prosperity.” “Greece encourages and supports all efforts that promote a strategic link between the countries of Europe and Asia in key areas of the economy, such as energy, trade, transport, digital online collaboration, new technologies and tourism.”
He also underlined that “Greece, a European country at the crossroads of three continents, has throughout history been open to the communication and the interconnection of different countries and cultures.”
Greece has played a crucial role in efforts for economic cooperation between the EU and the wider Eurasian region, as demonstrated by the fact that Greece, an EU member-state, encouraged further cooperation between the EU and China, he said.
“Greece attaches great importance to China’s One Belt, One Road initiative.” “This idea is based both on ancient Chinese philosophy and the ancient silk road, which on the one hand is characterized by a spirit of peace and mutually beneficial cooperation, and on the other hand, makes a substantial contribution to the development of infrastructure projects, promotion of trade, economic integration and closer relations between those peoples and the societies linked, either by land or sea, together for the realization of this idea.”
The Greek President referred to the scope for an innovative approach such economic cooperation between the EU, the Eurasian Economic Union and China, pointing out that the success of the project depends to a large extent on cultivating relations of trust between the parties, which will accelerate the progress of joint investment projects for the benefit of all involved.
A Social Dividend in 2018
The Government, convinced that it has achieved the 1.75% Primary Surplus target for 2017, is moving ahead with the distribution of a social dividend to the most vulnerable and financially weak social groups. Financial support is to be sourced out of the funds generated by the overachievement of the financial and fiscal policy targets.
Government spokesman, Mr. Dimitris Tzanakopoulos pointed out that the overachievement of the 2017 fiscal goals allows the government to offer a one-off payment, in terms of social policy expenditures, in order to support and further protect vulnerable economic groups as well as to implement a range of other social policy actions.
The Primary Surplus, as set out in the Government’s draft budget for the Financial Year 2018, is estimated at 2.21%. The forecast for the growth rate of the Greek economy is close to 2% for 2017 and 2.4% for 2018.
The Prime Minister’s office announced that in 2018, through the Social Income Solidarity programme 760€ million will be distributed to 250,000 households, while 320€ million will be made available to tackle child poverty issues. On top of this, the State will contribute an additional 100€ million in order to protect the primary residences of heavily indebted households.
Hellenikon
The Government Statement welcomed the current developments related to investment. specifically the unblocking of the investment in “Hellenikon”, following the final decision taken by the Central Archaeological Council (KAS). The Minister of State responsible for handling the “Hellenikon” issue, stated that any obstacles to the investment have been dealt with, following the decision made by KAS, to designate a small section of the area in question as an archaeological site - just 280 acres out of a total of 6,500 acres.
The Government spokesman argued that there was no question about the investor withdrawing and cancelling the investment, since neither the terms set out in the agreement between the Greek State and the company investing on the property had been broken, nor has the development schedule being put back to an extent so that makes the investment unattainable. Also, no more than 30% of the building plans area has been designated as an archaeological site.
KAS has also accepted and endorsed the Integrated Development Plan as well as the Strategic Environmental Impact Study, while the Complaints Commission has reached the conclusion that the questioned classification of a 37-acre as a forest area cannot be upheld.
Speaking at the Greek-Eurasian Business Council Conference, Greek President Prokopis Pavlopoulos on Monday stressed Greece’s leading role in promoting Europe’s ties with Eurasia and China.
“Greece supports regional integration schemes in the wider Eurasian region, which can contribute to peace, growth and prosperity.” “Greece encourages and supports all efforts that promote a strategic link between the countries of Europe and Asia in key areas of the economy, such as energy, trade, transport, digital online collaboration, new technologies and tourism.”
He also underlined that “Greece, a European country at the crossroads of three continents, has throughout history been open to the communication and the interconnection of different countries and cultures.”
Greece has played a crucial role in efforts for economic cooperation between the EU and the wider Eurasian region, as demonstrated by the fact that Greece, an EU member-state, encouraged further cooperation between the EU and China, he said.
“Greece attaches great importance to China’s One Belt, One Road initiative.” “This idea is based both on ancient Chinese philosophy and the ancient silk road, which on the one hand is characterized by a spirit of peace and mutually beneficial cooperation, and on the other hand, makes a substantial contribution to the development of infrastructure projects, promotion of trade, economic integration and closer relations between those peoples and the societies linked, either by land or sea, together for the realization of this idea.”
The Greek President referred to the scope for an innovative approach such economic cooperation between the EU, the Eurasian Economic Union and China, pointing out that the success of the project depends to a large extent on cultivating relations of trust between the parties, which will accelerate the progress of joint investment projects for the benefit of all involved.
A Social Dividend in 2018
The Government, convinced that it has achieved the 1.75% Primary Surplus target for 2017, is moving ahead with the distribution of a social dividend to the most vulnerable and financially weak social groups. Financial support is to be sourced out of the funds generated by the overachievement of the financial and fiscal policy targets.
Government spokesman, Mr. Dimitris Tzanakopoulos pointed out that the overachievement of the 2017 fiscal goals allows the government to offer a one-off payment, in terms of social policy expenditures, in order to support and further protect vulnerable economic groups as well as to implement a range of other social policy actions.
The Primary Surplus, as set out in the Government’s draft budget for the Financial Year 2018, is estimated at 2.21%. The forecast for the growth rate of the Greek economy is close to 2% for 2017 and 2.4% for 2018.
The Prime Minister’s office announced that in 2018, through the Social Income Solidarity programme 760€ million will be distributed to 250,000 households, while 320€ million will be made available to tackle child poverty issues. On top of this, the State will contribute an additional 100€ million in order to protect the primary residences of heavily indebted households.
Hellenikon
The Government Statement welcomed the current developments related to investment. specifically the unblocking of the investment in “Hellenikon”, following the final decision taken by the Central Archaeological Council (KAS). The Minister of State responsible for handling the “Hellenikon” issue, stated that any obstacles to the investment have been dealt with, following the decision made by KAS, to designate a small section of the area in question as an archaeological site - just 280 acres out of a total of 6,500 acres.
The Government spokesman argued that there was no question about the investor withdrawing and cancelling the investment, since neither the terms set out in the agreement between the Greek State and the company investing on the property had been broken, nor has the development schedule being put back to an extent so that makes the investment unattainable. Also, no more than 30% of the building plans area has been designated as an archaeological site.
KAS has also accepted and endorsed the Integrated Development Plan as well as the Strategic Environmental Impact Study, while the Complaints Commission has reached the conclusion that the questioned classification of a 37-acre as a forest area cannot be upheld.
1st Bulgarian-Greek-Romanian-Serbian Summit
7.10.2017
1st Bulgarian-Greek-Romanian-Serbian Summit
PM Alexis Tsipras travelled to Varna, Bulgaria, on Tuesday, October 3rd, to take part in the 1st Bulgarian-Greek-Romanian-Serbian Summit organised in the Bulgarian city.
The four countries aim at strengthening their economic, business and energy ties. Such a coalition is expected to the springboard towards growth on all levels and to promote substantial development of the area using investment from abroad.
This summit is also important to China. One of their correspondents from the state television of China to Bulgaria, will report the event from on the spot.
The Summit issued a message of peace, cooperation and stability.
"Our common future in the Balkans cannot be built on nationalism, as unfortunately happened in the past, nor on the plans of third parties for our region. It can be built on the great potentials of our peoples, on respect for international law and on a common European vision for our region, "stressed PM Tsipras in the joint declaration with the Prime Ministers of Bulgaria Boyko Borisov, of Romania Mihai Tudose and President of Serbia Aleksandar Vučić.
All four leaders expressed messages of peace, cooperation and stability and agreed the next meeting should be in Belgrade, as the form of their cooperation takes on a permanent shape.
The Varna Summit was yet another step to further cooperation among the four countries in the areas of the economy, energy, security and refugees and it is significant that the Greek proposal was adopted for there to be a Summit Meeting of the European Union-Western Balkans, during the Bulgarian Presidency of the EU in the first half of 2018. It was also agreed to formulate a joint request by the Prime Ministers of Greece and Bulgaria, Alexis Tsipras and Boyko Borisov to the European Commission, and Jean-Claude Juncker to secure EU funding for the railway connecting Thessaloniki-Varna.
PM Tsipras placed great importance on the revitalization of the "Thessaloniki Agenda" for the European vision of the Western Balkans, and referring to the countries that are in the accession process, he pointed out: "The EU's relationship with the countries in the accession process, such as Serbia, is one of the issues that the European Union has to solve, it must first solve its own in-house problems in order to be able to play a serious role in the international sphere. And as far as the accession journey of the countries of the Balkans is concerned, I believe that the journey should be one based meeting conditions, but also on a new vision for cooperation among the peoples in the wider region."
PM Alexis Tsipras travelled to Varna, Bulgaria, on Tuesday, October 3rd, to take part in the 1st Bulgarian-Greek-Romanian-Serbian Summit organised in the Bulgarian city.
The four countries aim at strengthening their economic, business and energy ties. Such a coalition is expected to the springboard towards growth on all levels and to promote substantial development of the area using investment from abroad.
This summit is also important to China. One of their correspondents from the state television of China to Bulgaria, will report the event from on the spot.
The Summit issued a message of peace, cooperation and stability.
"Our common future in the Balkans cannot be built on nationalism, as unfortunately happened in the past, nor on the plans of third parties for our region. It can be built on the great potentials of our peoples, on respect for international law and on a common European vision for our region, "stressed PM Tsipras in the joint declaration with the Prime Ministers of Bulgaria Boyko Borisov, of Romania Mihai Tudose and President of Serbia Aleksandar Vučić.
All four leaders expressed messages of peace, cooperation and stability and agreed the next meeting should be in Belgrade, as the form of their cooperation takes on a permanent shape.
The Varna Summit was yet another step to further cooperation among the four countries in the areas of the economy, energy, security and refugees and it is significant that the Greek proposal was adopted for there to be a Summit Meeting of the European Union-Western Balkans, during the Bulgarian Presidency of the EU in the first half of 2018. It was also agreed to formulate a joint request by the Prime Ministers of Greece and Bulgaria, Alexis Tsipras and Boyko Borisov to the European Commission, and Jean-Claude Juncker to secure EU funding for the railway connecting Thessaloniki-Varna.
PM Tsipras placed great importance on the revitalization of the "Thessaloniki Agenda" for the European vision of the Western Balkans, and referring to the countries that are in the accession process, he pointed out: "The EU's relationship with the countries in the accession process, such as Serbia, is one of the issues that the European Union has to solve, it must first solve its own in-house problems in order to be able to play a serious role in the international sphere. And as far as the accession journey of the countries of the Balkans is concerned, I believe that the journey should be one based meeting conditions, but also on a new vision for cooperation among the peoples in the wider region."
The Draft Budget for 2018
The draft Budget has been presented to Parliament. The unemployment rate is projected to fall to 19% in 2018, from 27% at the end of 2014
* The draft Budget forecasts growth for 2018 at 2.4% of GDP and a Primary Surplus 3.57%.
* 2017’s excess surplus will be allocated to actions supporting growth and social cohesion, which will be “provided with a dowry” of 800€ million.
For 2017 significant over-achievement of budget target of 1.75% is forecast, allowing once again a one-off expenditure in the form of a social dividend.
Deputy Finance Minister Houliarakis, submitting the 2018 draft Budget to the President of Parliament N. Voutsis described it as “the last budget of the [Memoranda] programmes.”
He pointed out that the Budget for 2018 is "within targets" stressing that in 2017 a significant over-achievement of targets was recorded, which "we will put to good use".
The primary balance of the General Government Bodies in 2018, [in accordance with the methodology of the Financial Facility Agreement - Law 4336/2015] is projected to reach 3.57% of GDP (6,671€ million) which is compatible with the targets of the programme.
For 2017 the draft State budget estimates a significant over-achievement of the budgetary target of 1.75%. This over-achievement allows a one-time expenditure in the form of a social dividend and the pursuit of the objective of giving targeted support to financially vulnerable households. The exact amount and the support measures will be specified on the basis of budgetary implementation data in November this year.
The sustainable achievement of the budgetary targets for the third year in a row, is due to the consolidation of budgetary discipline, the gradual restoration of confidence in the medium-term prospects of the Greek economy and the significant creation of new positions of paid employment. The above permit the Government to successfully combine fiscal responsibility with social justice.
For 2018, the Budget incorporates the continuing operations of social policy but also the start of new actions, including:
• The implementation of the programme for the Social Solidarity Income, with credits of 760€ million which will give relief to over 250,000 households experiencing poverty.
• The sum of 320€ million, which has been secured by the scrutiny of primary operating costs, is intended to protect financially vulnerable households and provide for interventions in the crucial area of tackling child poverty.
• The contribution of the Treasury, with an amount of 100€ million for the protection of the main residence of indebted households, in accordance with certain income and assets criteria.
In subsequent years, growth rates are adequate to ensure the achievement both of the budgetary targets and of the fiscal space for the reductions in tax rates for households and businesses that have been planned and voted on in the Medium-Term Fiscal Strategy 2018-2021.
“Harmonisation of Family and Working Life” Programme
The total funding of the programme “Harmonization of Family and Working Life” for the period 2017-2018 is reaching 223.5€ million.
Deputy Minister of Economy and Development, Alexis Charitsis approved additional funding from national resources amounting to 18.5€ million.
With this increase in funding, the Programme fully satisfies all applications for free admission (approximately 108.5000 vouchers) to available child care structures (crèches, kindergartens and Children's Creative Employment Centres (ΚΔΑΠ).
Deputy Minister Charitsis said:
“Childcare structures are a top priority for the Government. We have again brought forward a generous increase in funding, reaching in 2017 the record amount of 223.5€ million. The funding is made up mostly from national resources from surpassed surpluses over just 3 years. In close cooperation with the Ministries of Labour and of the Interior have managed for the first time this year to guarantee a place at nursery schools and crèches for more than 100,000 children. Having at the heart of our policy the needs of a society under great stress, we have met all applications from families below the poverty line, and from every persons with a disability".
EUROSTAT Data on Unemployment
The unemployment rate for young people (under 25 ) in Greece fell in June at 43.3%, compared with 43.6% in May
A slight decrease, to 21.2%, was recorded in the level of unemployment in Greece in June 2017, compared to May (21.5%), according to data published by the European Statistical Office (Eurostat).
In August, the level of unemployment remained stable in the Eurozone (9.1%), while a small decrease was recorded in the EU (7.6% in August, compared with 7.7% in July). A year ago, in August 2016, unemployment in the Eurozone and in “the EU of 28” was 9.9% and 8.5% respectively.
Altogether in August 18.747 million were recorded unemployed in the EU and 14.751 million in the Eurozone.
The highest levels of unemployment in the EU are in Greece (21.2% in June) and in Spain (17.1%). The lowest unemployment rates were recorded in the Czech Republic (2.9%), Germany (3.6%) and Malta (4.2%).
In Greece, the number of jobless in June stood at 1.017 million. The unemployment rate for men stood at 17.9% and for women at 25.3%.
The unemployment rate of young people (under 25 years) in Greece fell in June at 43.3%, compared with 43.6% in May. The highest rates of youth unemployment in the EU are in Greece (43.3%), in Spain (38.7%) and in Italy (35.1%); the lowest rate recorded is in Germany (6.4%).
In August the unemployment rate of young people in the Eurozone stood at 18.9% and in the EU at 16.7%.
The draft Budget has been presented to Parliament. The unemployment rate is projected to fall to 19% in 2018, from 27% at the end of 2014
* The draft Budget forecasts growth for 2018 at 2.4% of GDP and a Primary Surplus 3.57%.
* 2017’s excess surplus will be allocated to actions supporting growth and social cohesion, which will be “provided with a dowry” of 800€ million.
For 2017 significant over-achievement of budget target of 1.75% is forecast, allowing once again a one-off expenditure in the form of a social dividend.
Deputy Finance Minister Houliarakis, submitting the 2018 draft Budget to the President of Parliament N. Voutsis described it as “the last budget of the [Memoranda] programmes.”
He pointed out that the Budget for 2018 is "within targets" stressing that in 2017 a significant over-achievement of targets was recorded, which "we will put to good use".
The primary balance of the General Government Bodies in 2018, [in accordance with the methodology of the Financial Facility Agreement - Law 4336/2015] is projected to reach 3.57% of GDP (6,671€ million) which is compatible with the targets of the programme.
For 2017 the draft State budget estimates a significant over-achievement of the budgetary target of 1.75%. This over-achievement allows a one-time expenditure in the form of a social dividend and the pursuit of the objective of giving targeted support to financially vulnerable households. The exact amount and the support measures will be specified on the basis of budgetary implementation data in November this year.
The sustainable achievement of the budgetary targets for the third year in a row, is due to the consolidation of budgetary discipline, the gradual restoration of confidence in the medium-term prospects of the Greek economy and the significant creation of new positions of paid employment. The above permit the Government to successfully combine fiscal responsibility with social justice.
For 2018, the Budget incorporates the continuing operations of social policy but also the start of new actions, including:
• The implementation of the programme for the Social Solidarity Income, with credits of 760€ million which will give relief to over 250,000 households experiencing poverty.
• The sum of 320€ million, which has been secured by the scrutiny of primary operating costs, is intended to protect financially vulnerable households and provide for interventions in the crucial area of tackling child poverty.
• The contribution of the Treasury, with an amount of 100€ million for the protection of the main residence of indebted households, in accordance with certain income and assets criteria.
In subsequent years, growth rates are adequate to ensure the achievement both of the budgetary targets and of the fiscal space for the reductions in tax rates for households and businesses that have been planned and voted on in the Medium-Term Fiscal Strategy 2018-2021.
“Harmonisation of Family and Working Life” Programme
The total funding of the programme “Harmonization of Family and Working Life” for the period 2017-2018 is reaching 223.5€ million.
Deputy Minister of Economy and Development, Alexis Charitsis approved additional funding from national resources amounting to 18.5€ million.
With this increase in funding, the Programme fully satisfies all applications for free admission (approximately 108.5000 vouchers) to available child care structures (crèches, kindergartens and Children's Creative Employment Centres (ΚΔΑΠ).
Deputy Minister Charitsis said:
“Childcare structures are a top priority for the Government. We have again brought forward a generous increase in funding, reaching in 2017 the record amount of 223.5€ million. The funding is made up mostly from national resources from surpassed surpluses over just 3 years. In close cooperation with the Ministries of Labour and of the Interior have managed for the first time this year to guarantee a place at nursery schools and crèches for more than 100,000 children. Having at the heart of our policy the needs of a society under great stress, we have met all applications from families below the poverty line, and from every persons with a disability".
EUROSTAT Data on Unemployment
The unemployment rate for young people (under 25 ) in Greece fell in June at 43.3%, compared with 43.6% in May
A slight decrease, to 21.2%, was recorded in the level of unemployment in Greece in June 2017, compared to May (21.5%), according to data published by the European Statistical Office (Eurostat).
In August, the level of unemployment remained stable in the Eurozone (9.1%), while a small decrease was recorded in the EU (7.6% in August, compared with 7.7% in July). A year ago, in August 2016, unemployment in the Eurozone and in “the EU of 28” was 9.9% and 8.5% respectively.
Altogether in August 18.747 million were recorded unemployed in the EU and 14.751 million in the Eurozone.
The highest levels of unemployment in the EU are in Greece (21.2% in June) and in Spain (17.1%). The lowest unemployment rates were recorded in the Czech Republic (2.9%), Germany (3.6%) and Malta (4.2%).
In Greece, the number of jobless in June stood at 1.017 million. The unemployment rate for men stood at 17.9% and for women at 25.3%.
The unemployment rate of young people (under 25 years) in Greece fell in June at 43.3%, compared with 43.6% in May. The highest rates of youth unemployment in the EU are in Greece (43.3%), in Spain (38.7%) and in Italy (35.1%); the lowest rate recorded is in Germany (6.4%).
In August the unemployment rate of young people in the Eurozone stood at 18.9% and in the EU at 16.7%.
TV Channel owners just keep challenging.
Last year's struggle of the TV channels against the competitive auctioning of licences, using the argument that the National Council of Radio and Television [ΕΣΡ] had not been involved,
is now shown to have been a wild pretext. The real goal has now emerged: the continuation of the 27 year-old regime of illegality and vested interests. SKAI TV and Star TV, aided and abetted by the association of the channel owners, have appealed again to the Supreme Court against the decisions of Nikos Pappas but also now the decision of the National Council of Radio and Television about the number of licences and the price, essentially asking for there to be an unlimited number at zero cost.
Preparations for the Third Assessment
The Greek Government has undertaken to complete the vast majority of prior actions agreed with creditors as part of the Third Assessment of its bailout programme by early November, when the Eurogroup meets. Deputy Prime Minister, Yiannis Dragasakis, told SKAI TV on Thursday that “we have committed to completing 80% of the Assessment before the Eurogroup in early November and to complete the rest by the end of the year”.
Mr. Dragasakis also said the Government plans to distribute a social benefit from its primary surplus again this year. The issue will require discussion with Greece’s creditors, as the Deputy PM confirmed.
The Government is preparing to submit the necessary data to creditors - it has fulfilled the specific target for eliminating arrears - in order for the disbursement to go ahead of an 800€ million bailout loan sub-tranche left over from the previous Assessment.
A senior Eurozone official told reporters in Brussels on Thursday that “there exists a strong political will ” for the Greek Programme Assessment to be completed this year. The official said that the issue will be discussed at the next Eurogroup meeting on October 9th, in Luxembourg.
Commenting on the upcoming Third Assessment, the senior official said the heads of the creditor institutions will return to Athens by the beginning of November.
Last year's struggle of the TV channels against the competitive auctioning of licences, using the argument that the National Council of Radio and Television [ΕΣΡ] had not been involved,
is now shown to have been a wild pretext. The real goal has now emerged: the continuation of the 27 year-old regime of illegality and vested interests. SKAI TV and Star TV, aided and abetted by the association of the channel owners, have appealed again to the Supreme Court against the decisions of Nikos Pappas but also now the decision of the National Council of Radio and Television about the number of licences and the price, essentially asking for there to be an unlimited number at zero cost.
Preparations for the Third Assessment
The Greek Government has undertaken to complete the vast majority of prior actions agreed with creditors as part of the Third Assessment of its bailout programme by early November, when the Eurogroup meets. Deputy Prime Minister, Yiannis Dragasakis, told SKAI TV on Thursday that “we have committed to completing 80% of the Assessment before the Eurogroup in early November and to complete the rest by the end of the year”.
Mr. Dragasakis also said the Government plans to distribute a social benefit from its primary surplus again this year. The issue will require discussion with Greece’s creditors, as the Deputy PM confirmed.
The Government is preparing to submit the necessary data to creditors - it has fulfilled the specific target for eliminating arrears - in order for the disbursement to go ahead of an 800€ million bailout loan sub-tranche left over from the previous Assessment.
A senior Eurozone official told reporters in Brussels on Thursday that “there exists a strong political will ” for the Greek Programme Assessment to be completed this year. The official said that the issue will be discussed at the next Eurogroup meeting on October 9th, in Luxembourg.
Commenting on the upcoming Third Assessment, the senior official said the heads of the creditor institutions will return to Athens by the beginning of November.
"Clean Energy for
the Islands of the EU"
- "Long-term energy planning is a Government policy priority"
30.9.2017
PM Alexis Tsipras, speaking at the first "Clean Energy for the Islands of the EU" Forum said "“smart” islands with a high penetration of Renewable Energy Resources [ΑΠΕ] and a reduction of energy costs is our vision and ambition".
Greece has already taken an active role in environmental protection in Europe, he stressed.
He reminded his audience that Greece is the only lignite-producing country in the European Union that is pushing for the adoption of more stringent limits on emissions. He highlighted the efforts on many fronts and the country’s contribution to the transition to clean energy. He said that the attainment of the European objectives for 2020 to increase the share of Renewable Energy Resources in the energy mix can be taken as given.
He added that Greece has adopted the system of guaranteed prices and the first competitive process for photovoltaic installations. Also, he said that it is completing the consultation with the European Commission for a competitive bidding schedule for all forms of renewables - photovoltaic, wind energy and, if there is interest, biomass and small hydroelectric plants.
At the same time, the country is promoting an up-to-date Land-use Plan specificly for Renewable Sources of Energy, the existence of which will help avoid time-consuming legal implications.
In cooperation with the Commission, added the Prime Minister, Greece is also proceeding with the modernisation of the framework of environmental permits for Renewable Energy Resources. “This Government has brought environmental protection and climate change from the fringes of the political agenda to the centre of the search for ways our society can proceed to the future. And we have made long-term energy planning a political priority, and this despite a seven-year economic and social crisis from which we are now emerging.”
Greece has already taken an active role in environmental protection in Europe, he stressed.
He reminded his audience that Greece is the only lignite-producing country in the European Union that is pushing for the adoption of more stringent limits on emissions. He highlighted the efforts on many fronts and the country’s contribution to the transition to clean energy. He said that the attainment of the European objectives for 2020 to increase the share of Renewable Energy Resources in the energy mix can be taken as given.
He added that Greece has adopted the system of guaranteed prices and the first competitive process for photovoltaic installations. Also, he said that it is completing the consultation with the European Commission for a competitive bidding schedule for all forms of renewables - photovoltaic, wind energy and, if there is interest, biomass and small hydroelectric plants.
At the same time, the country is promoting an up-to-date Land-use Plan specificly for Renewable Sources of Energy, the existence of which will help avoid time-consuming legal implications.
In cooperation with the Commission, added the Prime Minister, Greece is also proceeding with the modernisation of the framework of environmental permits for Renewable Energy Resources. “This Government has brought environmental protection and climate change from the fringes of the political agenda to the centre of the search for ways our society can proceed to the future. And we have made long-term energy planning a political priority, and this despite a seven-year economic and social crisis from which we are now emerging.”
EFKA
"Those who are still arguing that the EFKA surplus is purely notional are shown to be wrong by the reality of the numbers," said a statement released by the Ministry of Labour.
"Reports are attempting once again to cast doubt on the positive trajectory of the economics of EFKA [the Consolidated Social Security Service -Ενιαίος Φορέας Κοινωνικής Ασφάλισης]. The well-known scaremongering keeps returning with discredited data and inaccuracies, ignoring the official data which has been presented by the Ministry of Labour, Social Security and Social Solidarity both in Parliament and in the media."
"Apart from the obvious political objective they are serving, they clearly aim also to undermine the public social security system, in the service of other interests."
"For those who refuse to accept the reality, the Ministry reminds them that:
-having inherited in 2015 the social security system with a deficit of 186€ million, EFKA was launched in 2017 with a budgeted deficit of over 1€ billion. The positive trajectory of EFKA revenues in the eight months January-August 2017 showed this prediction of its budget to be in error and in fact led to a surplus of more than 400€ million with record-breaking contributions to the National Health Service Organization [ΕΟΠΥΥ] and the Labour Force Employment Organisation [ΟΑΕΔ]. The positive results, despite initial estimates to the contrary, are a result of increasing employment and contribution collecting, and wiser fund management. This result will be reflected in the final review of the EFKA budget for the whole of 2017 as required by law.
- The disbursement of 395€ million from the Generation Solidarity Insurance Fund was anticipated from December 2016 and had been included in the original budgets of both the Generation Solidarity Insurance Fund [ΑΚΑΓΕ] and EFKA for the whole of 2017. The decision to disburse this regular and known expenditure does not constitute "extra" funding.
"The interventions being implemented to promote employment and the restoration of the public social security system are yielding results - and give the best answer to all those who, constantly and consciously, are trying to undermine it."
Journalists’ Pension Fund Rescue
On Wednesday, the Minister for Digital Policy, Telecommunications and the Media, Nikos Pappas met with the Press trade unions. The goal of the meeting was to inform the Minister about the progress of negotiations with the owners of the channels in connection with the rescue of the Pension Fund.
After the meeting, Nick Pappas said: “The Journalists’ Unified Advocacy and Retirement Organization (ΕΔΟΕΑΠ) must be supported. We have been informed about the reasonable solutions which have been drawn up in the course of the discussions. We have reiterated our willingness to rethink the amount of advertising tax in the event that ΕΔΟΕΑΠ is supported with resources resulting from an agreement between employers and employees. It is clear that there is the possibility both for the Fund to be supported, and for the levy to be prevented which will jeopardize jobs and the level of remuneration of employees in the Media. "The owners of the TV channels must face up to their responsibilities and stop playing hide and seek."
Greece joins challenge to fake Chinese Trademarks
A Greek Minister has warned China to cancel fake trademarks of two Greek products including feta cheese in order for a future deal with Brussels on geographical indications to move on.
In June the EU and China agreed to publish a list of 200 geographical indications (GIs) – 100 from each side – that would be protected under an agreement to be signed later this year.
Nevertheless, according to a document from the Greek Ministry of the Economy and Development, Italy, Spain, France, Greece, Portugal, Germany, Hungary and Romania have agreed to jointly file a lawsuit – to share the legal costs – against China over 25 trademarks with fake geographical indications which are homonymous with EU geographical indications.
The eight EU member states will take legal action against China over the 25 counterfeit trademarks on the Chinese market that mislead consumers on the origin of products protected by the EU’s geographical indications.
Gis - food products with a certified geographic origin - are a central part of the EU’s food quality mechanisms, giving consumers certainty over the authenticity and quality of their food.
For Greece, feta cheese and Samos wine have been wrongly marketed as “feta” and “Samos”, written in Chinese.
“If these registrations are not rejected by the court, the Chinese holders will have the right to either produce these products for the domestic market or import homonymous counterfeit products from all over the world,” the Government document warned.
Speaking at the Greece-China Joint Ministerial Committee on Wednesday (20th September), Deputy Minister of Rural Development and Food Vasilis Kokkalis told the Chinese that the two products are of “crucial importance” for the conclusion of the negotiations between the European Union and China.
The Greek minister emphasised the importance of feta for the Greek economy, claiming that it supports the lives of thousands of families.
Feta cheese is considered the “white gold” of Greece’s economy. The country produces around 120,000 tonnes of feta every year, while the total domestic production of sheep and goat milk is about 1,100,000 tonnes.
Farmers in Greece are also concerned about the fate of feta cheese in EU trade agreements with third countries after the EU failed to fully protect the iconic product in the free trade deal with Canada [CETA EU-Canada Comprehensive Economic and Trade Agreement]
The Greek Minister pointed out that these two fake Chinese trademarks are an “insurmountable obstacle” for the effective protection of both Greek products.
He noted that there are extremely adverse consequences for Greek producers and exporters as well as Chinese consumers, who are entitled to make choices “on the basis of sound information and guarantees of quality and origin of products, to enjoy genuine food products”.
“The Chinese side should take all necessary administrative measures to cancel these trademarks, given the long tradition and respect of your country in traditional food products, which are known worldwide,” the Greek Minister concluded.
"Those who are still arguing that the EFKA surplus is purely notional are shown to be wrong by the reality of the numbers," said a statement released by the Ministry of Labour.
"Reports are attempting once again to cast doubt on the positive trajectory of the economics of EFKA [the Consolidated Social Security Service -Ενιαίος Φορέας Κοινωνικής Ασφάλισης]. The well-known scaremongering keeps returning with discredited data and inaccuracies, ignoring the official data which has been presented by the Ministry of Labour, Social Security and Social Solidarity both in Parliament and in the media."
"Apart from the obvious political objective they are serving, they clearly aim also to undermine the public social security system, in the service of other interests."
"For those who refuse to accept the reality, the Ministry reminds them that:
-having inherited in 2015 the social security system with a deficit of 186€ million, EFKA was launched in 2017 with a budgeted deficit of over 1€ billion. The positive trajectory of EFKA revenues in the eight months January-August 2017 showed this prediction of its budget to be in error and in fact led to a surplus of more than 400€ million with record-breaking contributions to the National Health Service Organization [ΕΟΠΥΥ] and the Labour Force Employment Organisation [ΟΑΕΔ]. The positive results, despite initial estimates to the contrary, are a result of increasing employment and contribution collecting, and wiser fund management. This result will be reflected in the final review of the EFKA budget for the whole of 2017 as required by law.
- The disbursement of 395€ million from the Generation Solidarity Insurance Fund was anticipated from December 2016 and had been included in the original budgets of both the Generation Solidarity Insurance Fund [ΑΚΑΓΕ] and EFKA for the whole of 2017. The decision to disburse this regular and known expenditure does not constitute "extra" funding.
"The interventions being implemented to promote employment and the restoration of the public social security system are yielding results - and give the best answer to all those who, constantly and consciously, are trying to undermine it."
Journalists’ Pension Fund Rescue
On Wednesday, the Minister for Digital Policy, Telecommunications and the Media, Nikos Pappas met with the Press trade unions. The goal of the meeting was to inform the Minister about the progress of negotiations with the owners of the channels in connection with the rescue of the Pension Fund.
After the meeting, Nick Pappas said: “The Journalists’ Unified Advocacy and Retirement Organization (ΕΔΟΕΑΠ) must be supported. We have been informed about the reasonable solutions which have been drawn up in the course of the discussions. We have reiterated our willingness to rethink the amount of advertising tax in the event that ΕΔΟΕΑΠ is supported with resources resulting from an agreement between employers and employees. It is clear that there is the possibility both for the Fund to be supported, and for the levy to be prevented which will jeopardize jobs and the level of remuneration of employees in the Media. "The owners of the TV channels must face up to their responsibilities and stop playing hide and seek."
Greece joins challenge to fake Chinese Trademarks
A Greek Minister has warned China to cancel fake trademarks of two Greek products including feta cheese in order for a future deal with Brussels on geographical indications to move on.
In June the EU and China agreed to publish a list of 200 geographical indications (GIs) – 100 from each side – that would be protected under an agreement to be signed later this year.
Nevertheless, according to a document from the Greek Ministry of the Economy and Development, Italy, Spain, France, Greece, Portugal, Germany, Hungary and Romania have agreed to jointly file a lawsuit – to share the legal costs – against China over 25 trademarks with fake geographical indications which are homonymous with EU geographical indications.
The eight EU member states will take legal action against China over the 25 counterfeit trademarks on the Chinese market that mislead consumers on the origin of products protected by the EU’s geographical indications.
Gis - food products with a certified geographic origin - are a central part of the EU’s food quality mechanisms, giving consumers certainty over the authenticity and quality of their food.
For Greece, feta cheese and Samos wine have been wrongly marketed as “feta” and “Samos”, written in Chinese.
“If these registrations are not rejected by the court, the Chinese holders will have the right to either produce these products for the domestic market or import homonymous counterfeit products from all over the world,” the Government document warned.
Speaking at the Greece-China Joint Ministerial Committee on Wednesday (20th September), Deputy Minister of Rural Development and Food Vasilis Kokkalis told the Chinese that the two products are of “crucial importance” for the conclusion of the negotiations between the European Union and China.
The Greek minister emphasised the importance of feta for the Greek economy, claiming that it supports the lives of thousands of families.
Feta cheese is considered the “white gold” of Greece’s economy. The country produces around 120,000 tonnes of feta every year, while the total domestic production of sheep and goat milk is about 1,100,000 tonnes.
Farmers in Greece are also concerned about the fate of feta cheese in EU trade agreements with third countries after the EU failed to fully protect the iconic product in the free trade deal with Canada [CETA EU-Canada Comprehensive Economic and Trade Agreement]
The Greek Minister pointed out that these two fake Chinese trademarks are an “insurmountable obstacle” for the effective protection of both Greek products.
He noted that there are extremely adverse consequences for Greek producers and exporters as well as Chinese consumers, who are entitled to make choices “on the basis of sound information and guarantees of quality and origin of products, to enjoy genuine food products”.
“The Chinese side should take all necessary administrative measures to cancel these trademarks, given the long tradition and respect of your country in traditional food products, which are known worldwide,” the Greek Minister concluded.
“Crete is a very good example for us to define what we mean when we talk about reconstruction, about a new productive model”
Alexis Tsipras in Heraklion
23.9.2017
Alexis Tsipras, speaking at a regional Conference on the Restructuring of Production in Heraklion, on Thursday said “The experience so far of all these regional conferences aimed at putting together our plan for the reconstruction of production and regional planning in the 13 Regions and together with all these with whom we are drawing up the national plan, is something more than positive.
“Crete is a place large enough to accommodate a wide range of productive activities.
"Some people try to justify their policy choices which represent the interests of the few and the powerful, by telling us that inequality is in the nature of human society
"I don’t know where they have found that written down. What I do know is that the redistribution of wealth, social protection, support for the small against the big, for the powerless in the face of the strong constitute gains of our modern civilisation."
"These are gains much more recent than the primitive neoliberalism of the jungle, in which the stronger eats the weaker. This primitive neoliberalism is passed of by the leader of the official opposition as a perspective for development and a stable model for the country."
"So, we are here to move the wheel of history forward. To fight against inequalities.
The Region of Crete is a very good example for us to define what we mean when we talk about reconstruction, about a new productive model.
"Reconstruction is, first and foremost, the increase in productive capacity and the growth in employment, stable and permanent employment.
"The goal is to restore a decent standard of living for working people and to ensure the adequate supply of social services. This describes the term "Equitable Development", namely, development, whose benefits are diffused into society and it does not function as a tool of accumulating wealth for some few and powerful people.
" The more effect combining of the rural sector with the tourism sector could result in much more, the will exists and it is a matter of better organisation and planning which we must resolve.
"To this end, the Animal Husbandry-Manufacturing -Tourism Forum set up by the Ministry of Development, aiming to combine with specific policies and incentives the Animal Husbandry sector with manufacturing industry and the tourism cluster.
"The qualitative growth of agricultural production mainly relates to the improvement of the quality of exports, standardization and certification.
"In the new Development Law being implemented by the Government, industry, manufacturing and animal husbandry are priority sectors, a trend that is confirmed by investors.
The sector of the economy this year gave so much impetus to growth, that today the OECD has been forced to revise its predictions and to talk about percentages that will touch and will exceed 3% growth in the third and fourth quarter of the year.
These are among the four highest quarterly rates of growth across the eurozone.
"For us, equitable tourism development also means a substantial improvement in working conditions. For us tourism development and investment means jobs".
An issue of concern for working people in Crete also is undeclared work and particularly in apprenticeships in tourist enterprises.
From 2010 the arrangements had been in force specified by a Joint Ministerial Decision which allows for the employment of apprentices in tourist enterprises, at the rate of 17% up to a maximum of 40 employees. Furthermore the employment of apprentices from schools in other EU countries or even from third countries had been legislated on, since there are bilateral conventions.
Today the Government is preparing a new Joint Ministerial Decision which will redefine the proportions of workers to apprentices, and which will involves the review of the level of apprentice pay, at 60% of the minimum wage in the country. In addition, it will look at a ban on overtime.
"We are not in favour of entrepreneurship in general, but we are in favour of the entrepreneurship that respects workers’ rights and the natural environment.
We are not in favour of the sort of extortionists, nor of the Government-funded entrepreneurs who looted public wealth and exploited the labour force. We make a gift of those people to the governments of yesterday, whose interests they represented.
In contrast, this Government supports and encourages healthy entrepreneurship and those investors who come not to loot but to support the country, its people and its values.
Today the Government is in a position to present its plan that will result in the commencement of work on the Northern Axis Highway of Crete (BOAK), before the current term of Government is completed.
The study for BOAK which ensures a unified project design from Kastelli Kissamos to Siteia, will be put out to tender in October 2017. In particular, for the part of BOAK, from Chania to Agios Nikolaos, the tender for its construction will take place early in 2018, with the competitive dialogue procedure.
"We expect that the work will start at the beginning of 2019. And we'll be here, with the Regional Governor to find ourselves at the commencement of the work. The project will be completed in 4 to 5 years from its start.
With regard to the new airport at Kastelli, Heraklion, the form of the company that will take it over has been chosen as have the fees for local government and the Ministry of Infrastructure.
Also, an area of 1000 sqm has been defined that will be arranged appropriately for conducting conferences and exhibitions of local products. The realization of these projects and their operation will lead to considerable increase in employment.
Also in progress are other infrastructure projects, such as the junction at Agia Pelagia, the water project on the Lasithi Plateau, and improvements at Heraklion airport. Projects relating to routes to BOAK and also improvements at the airport of Chania.
Crete’s energy connectivity, which will turn it into an energy hub, increasing jobs and reducing households’s costs, is underway.
It is important for us to establish the role of Crete as an intermediate station along energy projects. Specifically, the Eurasia Interconnector cable which will link the electricity networks of Israel, Cyprus and Crete, but also the Eastmed pipeline that will transport natural gas from deposits in the Southeastern Mediterranean to Europe via Cyprus , Greece and Italy. A joint declaration between Greece, Cyprus and Israel has been signed for its promotion.
The exploitation of hydrocarbon deposits in the Southeastern Mediterranean, has placed Crete at the centre of the interest of oil companies.
"All these projects together will increase the importance of Crete, they will create jobs. Their construction will proceed under the strictest standards of international practice for the protection of the environment.
Within the framework of the Regional Conference, it has been agreed between the Ministry of education, the University, the Polytechnic, the Technological Education Institute of Crete and the Foundation for Technology and Research, for there to be a joint workshop, in order to determine the specific two-year programmes that will be implemented in Crete for High School graduates. The programmes that have been established by law for higher education, will give issue professional certificates of European qualifications.
[The workshop will be held in the last week of October and will be the first in the countryEd.]
The reform that will change the map of public health across the country is one that the Government is currently promoting this time and relates to Primary Health Care.
As part of this reform and in the first phase, Crete will be strengthened with 25 Local Health Units.
"There will be immediate results for the better functioning of the public health system as a whole, but also for the quality of life of local communities and to serve visitors to the island.
PM Tsipras closed by mentioning the project for the integrated management of urban waste in the Chania area, at a total cost of 9.1€ million which is being co-financed from public spending.
While visiting Iraklio…
The Government has placed special emphasis on research and technology, Prime Minister Alexis Tsipras said, during a visit to the Cretan premises of the Foundation for Research and Technology-Hellas (FORTH) on Thursday.
“Alexis Tsipras has stressed that the government has chosen – from the very beginning of his leadership of Greece and despite the economic conditions – to support research and young scientists, increasing funding by 200€ million, to start with, and creating a favorable institutional framework,” a statement from the Prime Minister’s office said.
It is the first time in Greece that expenditures for research accounted for 1% of the GDP, the position of alternate minister focusing on research and technology has been established, and the Hellenic Centre of Research and Innovation (ELIDEK) has been founded, PM Tsipras said. He also added that new funding tools were being used, like the superfund for holding companies to fund innovative technology.
“Our country’s comparative advantage is its human capital,” the PM noted, “and we must invest in young people and in infrastructures,” adding that “for the next five years, the national target is ‘brain gain’, something we can achieve step by step.”
[FORTH was founded in 1983 and is one of the largest and best-equipped research institutions in Greece. It is overseen by the general secretariat of research and technology (Ministry of Culture), it is headquartered in Iraklio, and it consists of six research centres throughout Greece.Ed]
“Crete is a place large enough to accommodate a wide range of productive activities.
"Some people try to justify their policy choices which represent the interests of the few and the powerful, by telling us that inequality is in the nature of human society
"I don’t know where they have found that written down. What I do know is that the redistribution of wealth, social protection, support for the small against the big, for the powerless in the face of the strong constitute gains of our modern civilisation."
"These are gains much more recent than the primitive neoliberalism of the jungle, in which the stronger eats the weaker. This primitive neoliberalism is passed of by the leader of the official opposition as a perspective for development and a stable model for the country."
"So, we are here to move the wheel of history forward. To fight against inequalities.
The Region of Crete is a very good example for us to define what we mean when we talk about reconstruction, about a new productive model.
"Reconstruction is, first and foremost, the increase in productive capacity and the growth in employment, stable and permanent employment.
"The goal is to restore a decent standard of living for working people and to ensure the adequate supply of social services. This describes the term "Equitable Development", namely, development, whose benefits are diffused into society and it does not function as a tool of accumulating wealth for some few and powerful people.
" The more effect combining of the rural sector with the tourism sector could result in much more, the will exists and it is a matter of better organisation and planning which we must resolve.
"To this end, the Animal Husbandry-Manufacturing -Tourism Forum set up by the Ministry of Development, aiming to combine with specific policies and incentives the Animal Husbandry sector with manufacturing industry and the tourism cluster.
"The qualitative growth of agricultural production mainly relates to the improvement of the quality of exports, standardization and certification.
"In the new Development Law being implemented by the Government, industry, manufacturing and animal husbandry are priority sectors, a trend that is confirmed by investors.
The sector of the economy this year gave so much impetus to growth, that today the OECD has been forced to revise its predictions and to talk about percentages that will touch and will exceed 3% growth in the third and fourth quarter of the year.
These are among the four highest quarterly rates of growth across the eurozone.
"For us, equitable tourism development also means a substantial improvement in working conditions. For us tourism development and investment means jobs".
An issue of concern for working people in Crete also is undeclared work and particularly in apprenticeships in tourist enterprises.
From 2010 the arrangements had been in force specified by a Joint Ministerial Decision which allows for the employment of apprentices in tourist enterprises, at the rate of 17% up to a maximum of 40 employees. Furthermore the employment of apprentices from schools in other EU countries or even from third countries had been legislated on, since there are bilateral conventions.
Today the Government is preparing a new Joint Ministerial Decision which will redefine the proportions of workers to apprentices, and which will involves the review of the level of apprentice pay, at 60% of the minimum wage in the country. In addition, it will look at a ban on overtime.
"We are not in favour of entrepreneurship in general, but we are in favour of the entrepreneurship that respects workers’ rights and the natural environment.
We are not in favour of the sort of extortionists, nor of the Government-funded entrepreneurs who looted public wealth and exploited the labour force. We make a gift of those people to the governments of yesterday, whose interests they represented.
In contrast, this Government supports and encourages healthy entrepreneurship and those investors who come not to loot but to support the country, its people and its values.
Today the Government is in a position to present its plan that will result in the commencement of work on the Northern Axis Highway of Crete (BOAK), before the current term of Government is completed.
The study for BOAK which ensures a unified project design from Kastelli Kissamos to Siteia, will be put out to tender in October 2017. In particular, for the part of BOAK, from Chania to Agios Nikolaos, the tender for its construction will take place early in 2018, with the competitive dialogue procedure.
"We expect that the work will start at the beginning of 2019. And we'll be here, with the Regional Governor to find ourselves at the commencement of the work. The project will be completed in 4 to 5 years from its start.
With regard to the new airport at Kastelli, Heraklion, the form of the company that will take it over has been chosen as have the fees for local government and the Ministry of Infrastructure.
Also, an area of 1000 sqm has been defined that will be arranged appropriately for conducting conferences and exhibitions of local products. The realization of these projects and their operation will lead to considerable increase in employment.
Also in progress are other infrastructure projects, such as the junction at Agia Pelagia, the water project on the Lasithi Plateau, and improvements at Heraklion airport. Projects relating to routes to BOAK and also improvements at the airport of Chania.
Crete’s energy connectivity, which will turn it into an energy hub, increasing jobs and reducing households’s costs, is underway.
It is important for us to establish the role of Crete as an intermediate station along energy projects. Specifically, the Eurasia Interconnector cable which will link the electricity networks of Israel, Cyprus and Crete, but also the Eastmed pipeline that will transport natural gas from deposits in the Southeastern Mediterranean to Europe via Cyprus , Greece and Italy. A joint declaration between Greece, Cyprus and Israel has been signed for its promotion.
The exploitation of hydrocarbon deposits in the Southeastern Mediterranean, has placed Crete at the centre of the interest of oil companies.
"All these projects together will increase the importance of Crete, they will create jobs. Their construction will proceed under the strictest standards of international practice for the protection of the environment.
Within the framework of the Regional Conference, it has been agreed between the Ministry of education, the University, the Polytechnic, the Technological Education Institute of Crete and the Foundation for Technology and Research, for there to be a joint workshop, in order to determine the specific two-year programmes that will be implemented in Crete for High School graduates. The programmes that have been established by law for higher education, will give issue professional certificates of European qualifications.
[The workshop will be held in the last week of October and will be the first in the countryEd.]
The reform that will change the map of public health across the country is one that the Government is currently promoting this time and relates to Primary Health Care.
As part of this reform and in the first phase, Crete will be strengthened with 25 Local Health Units.
"There will be immediate results for the better functioning of the public health system as a whole, but also for the quality of life of local communities and to serve visitors to the island.
PM Tsipras closed by mentioning the project for the integrated management of urban waste in the Chania area, at a total cost of 9.1€ million which is being co-financed from public spending.
While visiting Iraklio…
The Government has placed special emphasis on research and technology, Prime Minister Alexis Tsipras said, during a visit to the Cretan premises of the Foundation for Research and Technology-Hellas (FORTH) on Thursday.
“Alexis Tsipras has stressed that the government has chosen – from the very beginning of his leadership of Greece and despite the economic conditions – to support research and young scientists, increasing funding by 200€ million, to start with, and creating a favorable institutional framework,” a statement from the Prime Minister’s office said.
It is the first time in Greece that expenditures for research accounted for 1% of the GDP, the position of alternate minister focusing on research and technology has been established, and the Hellenic Centre of Research and Innovation (ELIDEK) has been founded, PM Tsipras said. He also added that new funding tools were being used, like the superfund for holding companies to fund innovative technology.
“Our country’s comparative advantage is its human capital,” the PM noted, “and we must invest in young people and in infrastructures,” adding that “for the next five years, the national target is ‘brain gain’, something we can achieve step by step.”
[FORTH was founded in 1983 and is one of the largest and best-equipped research institutions in Greece. It is overseen by the general secretariat of research and technology (Ministry of Culture), it is headquartered in Iraklio, and it consists of six research centres throughout Greece.Ed]
Eldorado Gold
Last Thursday the arbitration process was initiated after the finding by the Greek Government that Eldorado Gold’s subsidiary Hellas Gold is in violation of agreed obligations (2004) and environmental conditions (2011).
The case of the Greek Government (the Ministries of Finance and Environment & Energy) at the State Legal Council against Hellas Gold, the subsidiary of the Canadian multinational Eldorado Gold, documents fundamental breaches of the Contract of Transfer in 2003 of the mines of Cassandras, which was ratified by law in January 2004, and also records the trampling underfoot of environmental conditions that were adopted by a Joint Ministerial Decision in 2011.
The main breach and the focus of the conflict is a metal production technique known as "flash smelting." Despite the fact that the company was required to do so by the end of 2015, it has failed to demonstrate the appropriateness of this "flash smelting". "Flash smelting is only suitable for raw material with a low arsenic content," explains physicist Maria Kadoglou. "But in the case of the two mines in Skouries and Olympiada, the arsenic concentration is over 9%." "Flash smelting" is a metallurgical process designed to operate with an arsenic threshold below 0.4%.
During the flash smelting process, arsenic dust is released into the air – as much as 20,000 tons a year. The maximum permitted level is 20 kilos. There are no technologies to purify the air, says Ms. Kadoglou.
The mine is situated directly on top of a seismic fault. Were there to be an earthquake, millions of tons of poisonous waste could be released into the environment.
"To operate a mine like this you need a dry environment. So the groundwater has to be lowered. Yet the mountain in question is the most important water source in otherwise arid Chalkidiki, " she says.
Specifically, in the Appeal it is pointed out that the purpose of the Contract of Transfer was the exploitation of the national mining wealth and of the added value of this through the domestic production of pure metals manufactured on site at Μαντέμ Λάκκος the metalworking factory fed by concentrates from the mines of Olympiadas and Skouries.
The company’s technical study as submitted on 22.12.2014 “does not contain evidence of the implementation of the integrated metallurgical processing method, on which the licencing (both technical and environmental) of the construction and operation of the metalworking factory essentially relied.”
Other serious irregularities and gaps have been identified. There is no evidence that the final stages of production of pure metals - gold, copper and silver - are being undertaken and the fulfilment of its commitment to a vertically integrated production process is not reflected in company reports
Arbitration
Last Thursday the arbitration process was initiated after the finding by the Greek Government that Eldorado Gold’s subsidiary Hellas Gold is in violation of agreed obligations (2004) and environmental conditions (2011).
The decision will be issued within three months from the appointment of the arbitrator, is final and conclusive and enforceable immediately. It is not subject to any appeal and is binding on both parties.
Eldorado postpones decision
Eldorado Gold issued an announcement on Thursday saying it has entered “constructive dialogue” with the Greek Government and is postponing its decision.
“Eldorado Gold Corporation… has entered into constructive dialogue with Greece's Ministry of Energy and Environment with respect to the development of the company's subsidiary, Hellas Gold SA’s Kassandra Mine assets in Halkidiki, northern Greece,” the statement said.
“We are very pleased with the constructive dialogue that is underway with the Ministry of Energy and Environment,” said Eldorado President and CEO George Burns. “Furthermore, last week the Ministry issued a number of long overdue routine permits for our Olympias project. As a result of these developments we have decided to temporarily postpone our decision to place our assets in Halkidiki on care and maintenance.”
Last Thursday the arbitration process was initiated after the finding by the Greek Government that Eldorado Gold’s subsidiary Hellas Gold is in violation of agreed obligations (2004) and environmental conditions (2011).
The case of the Greek Government (the Ministries of Finance and Environment & Energy) at the State Legal Council against Hellas Gold, the subsidiary of the Canadian multinational Eldorado Gold, documents fundamental breaches of the Contract of Transfer in 2003 of the mines of Cassandras, which was ratified by law in January 2004, and also records the trampling underfoot of environmental conditions that were adopted by a Joint Ministerial Decision in 2011.
The main breach and the focus of the conflict is a metal production technique known as "flash smelting." Despite the fact that the company was required to do so by the end of 2015, it has failed to demonstrate the appropriateness of this "flash smelting". "Flash smelting is only suitable for raw material with a low arsenic content," explains physicist Maria Kadoglou. "But in the case of the two mines in Skouries and Olympiada, the arsenic concentration is over 9%." "Flash smelting" is a metallurgical process designed to operate with an arsenic threshold below 0.4%.
During the flash smelting process, arsenic dust is released into the air – as much as 20,000 tons a year. The maximum permitted level is 20 kilos. There are no technologies to purify the air, says Ms. Kadoglou.
The mine is situated directly on top of a seismic fault. Were there to be an earthquake, millions of tons of poisonous waste could be released into the environment.
"To operate a mine like this you need a dry environment. So the groundwater has to be lowered. Yet the mountain in question is the most important water source in otherwise arid Chalkidiki, " she says.
Specifically, in the Appeal it is pointed out that the purpose of the Contract of Transfer was the exploitation of the national mining wealth and of the added value of this through the domestic production of pure metals manufactured on site at Μαντέμ Λάκκος the metalworking factory fed by concentrates from the mines of Olympiadas and Skouries.
The company’s technical study as submitted on 22.12.2014 “does not contain evidence of the implementation of the integrated metallurgical processing method, on which the licencing (both technical and environmental) of the construction and operation of the metalworking factory essentially relied.”
Other serious irregularities and gaps have been identified. There is no evidence that the final stages of production of pure metals - gold, copper and silver - are being undertaken and the fulfilment of its commitment to a vertically integrated production process is not reflected in company reports
Arbitration
Last Thursday the arbitration process was initiated after the finding by the Greek Government that Eldorado Gold’s subsidiary Hellas Gold is in violation of agreed obligations (2004) and environmental conditions (2011).
The decision will be issued within three months from the appointment of the arbitrator, is final and conclusive and enforceable immediately. It is not subject to any appeal and is binding on both parties.
Eldorado postpones decision
Eldorado Gold issued an announcement on Thursday saying it has entered “constructive dialogue” with the Greek Government and is postponing its decision.
“Eldorado Gold Corporation… has entered into constructive dialogue with Greece's Ministry of Energy and Environment with respect to the development of the company's subsidiary, Hellas Gold SA’s Kassandra Mine assets in Halkidiki, northern Greece,” the statement said.
“We are very pleased with the constructive dialogue that is underway with the Ministry of Energy and Environment,” said Eldorado President and CEO George Burns. “Furthermore, last week the Ministry issued a number of long overdue routine permits for our Olympias project. As a result of these developments we have decided to temporarily postpone our decision to place our assets in Halkidiki on care and maintenance.”
New Democracy President Mitsotakis in Thessaloniki
New Democracy Leader, Kyriacos Mitsotakis, held his customary press conference at the Thessaloniki International Fair (TIF) on Sunday in which he outlined the set of policies he will implement if he succeeds in becoming Prime Minister at the next general election.
Mr.Mitsotakis pledged less taxes, a smaller public sector, a business-friendly environment, the promotion of investment and job creation for the country’s youth.
He vowed to negotiate with international creditors a reduction of Primary Surplus targets in order to cut taxes. To this end, he revealed that he plans to offer Greece’s creditors a programme of sweeping State spending cuts in exchange for lower taxation and lower social security contributions.
“I will demand and achieve a reduction in Primary Surpluses, because I will propose a set of reforms, and we will convince our partners that this is the right strategy for the country.”
“I am committed to a 20% reduction in business taxation within two months,” Mr. Mitsotakis said, adding that he is also committed to “a simplified licencing framework” for enterprises.
Specifically, Mitsotakis said, an ND government would reduce the hugely unpopular property tax, known as ENFIA, by 30 percent over two years. He also pledged a drastic simplification of tax laws, promising that the final framework would remain in place for five years in an attempt to reassure investors wary about frequent changes to tax regulations.
Referring to Eldorado Gold, Mr. Mitsotakis said "No country would leave mineral wealth untapped in the name of so-called environmental protection.""This kind of investment is positive for employment and Government revenue."
SYRIZA’s comment
"Mr. Mitsotakis has nothing new to say. His "rusty" policy proposal is well-known and proven to have dire consequences for the country and its citizens." That was the verdict of the SYRIZA press office on Mr. Mitsotakis’speech. The statement said:
"The President of New Democracy’s only plan remains exactly the same: to continue the disastrous neoliberal policy that bankrupted the country and the economy.
In Mr. Mitsotakis’s plan, the evaluation and the reconstruction of the public sector amounts to layoffs and the privatisation of public assets. In his new language, the sackings of public servants are called "liberalisation"! It is no secret that he wants to give schools and hospitals to the private sector. For Mr. Mitsotakis, the promotion of investment equals looting and the dissolving of labour rights, tax reductions mean new burdens on the middle and weaker social strata.
The funniest, yet most dangerous element of his speech is that it is his distinctive "seriousness" and "reliability" that he says will convince the creditors to reduce surpluses, with him promising new "reforms" in exchange – reforms which he does not specify – for after 2018!
In essence, Mr. Mitsotakis has pledged from the platform of the TIF a new memorandum-fortunately he will remain permanently in opposition!
It is certain that the country deserves better than the unrepentant neoliberal and dangerously populist Mr. Mitsotakis. Mr. Mitsotakis is convincing only as business salesman and not as a political leader, let alone as a candidate for Prime Minister."
New Democracy Leader, Kyriacos Mitsotakis, held his customary press conference at the Thessaloniki International Fair (TIF) on Sunday in which he outlined the set of policies he will implement if he succeeds in becoming Prime Minister at the next general election.
Mr.Mitsotakis pledged less taxes, a smaller public sector, a business-friendly environment, the promotion of investment and job creation for the country’s youth.
He vowed to negotiate with international creditors a reduction of Primary Surplus targets in order to cut taxes. To this end, he revealed that he plans to offer Greece’s creditors a programme of sweeping State spending cuts in exchange for lower taxation and lower social security contributions.
“I will demand and achieve a reduction in Primary Surpluses, because I will propose a set of reforms, and we will convince our partners that this is the right strategy for the country.”
“I am committed to a 20% reduction in business taxation within two months,” Mr. Mitsotakis said, adding that he is also committed to “a simplified licencing framework” for enterprises.
Specifically, Mitsotakis said, an ND government would reduce the hugely unpopular property tax, known as ENFIA, by 30 percent over two years. He also pledged a drastic simplification of tax laws, promising that the final framework would remain in place for five years in an attempt to reassure investors wary about frequent changes to tax regulations.
Referring to Eldorado Gold, Mr. Mitsotakis said "No country would leave mineral wealth untapped in the name of so-called environmental protection.""This kind of investment is positive for employment and Government revenue."
SYRIZA’s comment
"Mr. Mitsotakis has nothing new to say. His "rusty" policy proposal is well-known and proven to have dire consequences for the country and its citizens." That was the verdict of the SYRIZA press office on Mr. Mitsotakis’speech. The statement said:
"The President of New Democracy’s only plan remains exactly the same: to continue the disastrous neoliberal policy that bankrupted the country and the economy.
In Mr. Mitsotakis’s plan, the evaluation and the reconstruction of the public sector amounts to layoffs and the privatisation of public assets. In his new language, the sackings of public servants are called "liberalisation"! It is no secret that he wants to give schools and hospitals to the private sector. For Mr. Mitsotakis, the promotion of investment equals looting and the dissolving of labour rights, tax reductions mean new burdens on the middle and weaker social strata.
The funniest, yet most dangerous element of his speech is that it is his distinctive "seriousness" and "reliability" that he says will convince the creditors to reduce surpluses, with him promising new "reforms" in exchange – reforms which he does not specify – for after 2018!
In essence, Mr. Mitsotakis has pledged from the platform of the TIF a new memorandum-fortunately he will remain permanently in opposition!
It is certain that the country deserves better than the unrepentant neoliberal and dangerously populist Mr. Mitsotakis. Mr. Mitsotakis is convincing only as business salesman and not as a political leader, let alone as a candidate for Prime Minister."
“We must show our determination to conclude the Third Assessment as soon as possible.”
The greatest possible speed is expected to be made by the Government in the coming period in order to have implemented 80% of the required measures before November to conclude the Third Assessment.
The Prime Minister told his Cabinet, “We must show our determination to conclude the third review as soon as possible.” “I would like us to have completed most of the reforms demanded under the Third Assessment by November, to avoid giving anyone excuses, at home or abroad.”
The Cabinet was briefed by Euclid Tsakalotos on the outcomes of the Eurogroup, with the Finance Minister describing as positive the meeting of Eurozone Finance Ministers. Minister Tsakalotos said that no further fiscal measures were discussed, however, he did ask for the speedy implementation of the required measures to conclude the Third Assessment on time.
In televised remarks, the Greek Prime Ministers said that the country was on course to outperform budget targets set by creditors, for the second year running.
He said that Greece’s surplus, before debt servicing costs has been taken into account, will be higher than the 1.75% of GDP required by the Agreement.
He said that exiting the bailout programme was not just a calendar milestone, but a process of transition from a state of economic crisis to dynamic growth, a reorganisation of production, job recovery and the foundation for a strong welfare state.
He stressed that the steps taken in this direction are significant, and that the country has returned to positive growth rates.
Referring to the economy and investments, Tsipras stressed that “we are working to make the most of this positive momentum for the Greek economy.”
European Investment in Greece planned
European Investment Bank (EIB) plans to invest around 7€ billion in Greece in the period 2018-2020. The EIB’s Deputy Managing Director and Head of the Investment Group for Greece, Nicholas Jennett said last week that “Greece is one of the top countries which has benefited so far from a Juncker Plan, with projects approved worth 1.2€ billion, leading to investments of 3.7€ billion through private leverage”. This positive climate is expected to be confirmed during the inauguration of EIB’s new offices in Athens, September 29, by the bank’s head Werner Hoyer.
The press report said that EIB will approve investment projects worth more than 7€ billion over the next three years and noted that this money could double or even triple with the leverage process.
Greece signed funding agreements worth 1.516€ billion as part of the so-called Juncker Plan in 2016 and disbursements totaled 1.420€ billion. For 2017, agreements and disbursements are expected to exceed 2€ billion euros putting Greece at the sixth place for absorption rates after Italy, France, Spain, Germany and the UK.
Labour Inspectorate at work
184 companies have been called upon to provide written explanations for identified breaches of labour legislation and sanctions are pending.
Under the programme of targeted inspections of companies operating in the tourism sector, Inspectors from the Labour Inspectorate (ΣΕΠΕ) conducted 4,209 checks on island and mainland regions between May 1st and 30th August.
In 751 cases of fines were imposed for infringements of labour legislation totalling 4,683,392.90€, while 39 reports recommending charges were submitted.
ΣΕΠΕ announced that the programme of checks in the tourism industry will continue over the next period. At the same time it is calling on workers to bring forward named or anonymous accusations about violations of labour legislation using the phone number 15512 or at the local office of the Labour Inspectorate.
Greece backs “Equalisation Tax”
Greece is among ten countries which have signed a statement calling on the European Commission to examine the feasibility of the so-called equalisation tax, a tax of large internet companies on their turnover in each EU state, rather than their profits, proposed by France.
The letter – signed by the finance ministers of Italy, Spain, Greece, Portugal, Bulgaria, Slovenia, Romania, Austria, France and Germany – proposes internet companies should pay a tax on their turnover that would “reflect some of what these companies should be paying in terms of corporation tax”.
France wants to tax companies like Google and Facebook on their turnover, rather than profits, to increase revenue from global online groups, accused of paying too little in Europe.
Six countries opposed the idea, while the rest say there is a problem, but question if equalisation tax is the way to deal with it. According to one diplomat, the strongest level of opposition came from Ireland, Malta and Cyprus.
Others, including the UK argued caution, as the proposal could antagonise other non-EU countries, in particular the United States, and urged continuing work through the G20 and OECD process to reform the global corporation tax regime.
The greatest possible speed is expected to be made by the Government in the coming period in order to have implemented 80% of the required measures before November to conclude the Third Assessment.
The Prime Minister told his Cabinet, “We must show our determination to conclude the third review as soon as possible.” “I would like us to have completed most of the reforms demanded under the Third Assessment by November, to avoid giving anyone excuses, at home or abroad.”
The Cabinet was briefed by Euclid Tsakalotos on the outcomes of the Eurogroup, with the Finance Minister describing as positive the meeting of Eurozone Finance Ministers. Minister Tsakalotos said that no further fiscal measures were discussed, however, he did ask for the speedy implementation of the required measures to conclude the Third Assessment on time.
In televised remarks, the Greek Prime Ministers said that the country was on course to outperform budget targets set by creditors, for the second year running.
He said that Greece’s surplus, before debt servicing costs has been taken into account, will be higher than the 1.75% of GDP required by the Agreement.
He said that exiting the bailout programme was not just a calendar milestone, but a process of transition from a state of economic crisis to dynamic growth, a reorganisation of production, job recovery and the foundation for a strong welfare state.
He stressed that the steps taken in this direction are significant, and that the country has returned to positive growth rates.
Referring to the economy and investments, Tsipras stressed that “we are working to make the most of this positive momentum for the Greek economy.”
European Investment in Greece planned
European Investment Bank (EIB) plans to invest around 7€ billion in Greece in the period 2018-2020. The EIB’s Deputy Managing Director and Head of the Investment Group for Greece, Nicholas Jennett said last week that “Greece is one of the top countries which has benefited so far from a Juncker Plan, with projects approved worth 1.2€ billion, leading to investments of 3.7€ billion through private leverage”. This positive climate is expected to be confirmed during the inauguration of EIB’s new offices in Athens, September 29, by the bank’s head Werner Hoyer.
The press report said that EIB will approve investment projects worth more than 7€ billion over the next three years and noted that this money could double or even triple with the leverage process.
Greece signed funding agreements worth 1.516€ billion as part of the so-called Juncker Plan in 2016 and disbursements totaled 1.420€ billion. For 2017, agreements and disbursements are expected to exceed 2€ billion euros putting Greece at the sixth place for absorption rates after Italy, France, Spain, Germany and the UK.
Labour Inspectorate at work
184 companies have been called upon to provide written explanations for identified breaches of labour legislation and sanctions are pending.
Under the programme of targeted inspections of companies operating in the tourism sector, Inspectors from the Labour Inspectorate (ΣΕΠΕ) conducted 4,209 checks on island and mainland regions between May 1st and 30th August.
In 751 cases of fines were imposed for infringements of labour legislation totalling 4,683,392.90€, while 39 reports recommending charges were submitted.
ΣΕΠΕ announced that the programme of checks in the tourism industry will continue over the next period. At the same time it is calling on workers to bring forward named or anonymous accusations about violations of labour legislation using the phone number 15512 or at the local office of the Labour Inspectorate.
Greece backs “Equalisation Tax”
Greece is among ten countries which have signed a statement calling on the European Commission to examine the feasibility of the so-called equalisation tax, a tax of large internet companies on their turnover in each EU state, rather than their profits, proposed by France.
The letter – signed by the finance ministers of Italy, Spain, Greece, Portugal, Bulgaria, Slovenia, Romania, Austria, France and Germany – proposes internet companies should pay a tax on their turnover that would “reflect some of what these companies should be paying in terms of corporation tax”.
France wants to tax companies like Google and Facebook on their turnover, rather than profits, to increase revenue from global online groups, accused of paying too little in Europe.
Six countries opposed the idea, while the rest say there is a problem, but question if equalisation tax is the way to deal with it. According to one diplomat, the strongest level of opposition came from Ireland, Malta and Cyprus.
Others, including the UK argued caution, as the proposal could antagonise other non-EU countries, in particular the United States, and urged continuing work through the G20 and OECD process to reform the global corporation tax regime.
China is the honoured country
at the 82nd Thessaloniki International Fair (TIF)
16.9.2017
Greek Prime Minister Alexis Tsipras and Chinese Ambassador to Greece Zou Xiaoli cut the ribbon for the opening ceremony of the 82nd Thessaloniki International Fair (TIF) on September 9th 2017.
Prime Minister Alexis Tsipras hailed Sino-Greek cooperation last Saturday, expressing confidence for the further deepening of bilateral ties, during the opening of China's pavilion at Greece's top annual trade fair in Thessaloniki.
China is the honoured country at the 82nd Thessaloniki International Fair (TIF) which is the largest in terms of participants and visitors in the past decade, according to the Greek organizers. 250,000 visitors from 17 countries are expected to visit the Fair with its 1,500 exhibitors.
Addressing the event, the PM praised China's One Belt, One Road initiative, reiterated Greece's strong support and underlined the key role of Chinese investments in Greece's efforts to overcome the debt crisis and restore growth.
China’s honourary status at the 82nd Thessaloniki International Fair (TIF) this year is the culmination of a relationship that has strengthened in recent years and has much to offer in the years to come, PM Tsipras said.
"The Chinese Government’s strategic initiative to invest more than one trillion dollars globally with the ‘New Silk Road’ finds Greece in a phase of recovery from the economic crisis, at a time when it must use its most important comparative advantage, which is that our country is at the convergence point of three continents, to become a global transit, trade and energy hub. It will also broaden the prospects for development and give a boost to economic progress throughout the Balkans and the southeastern Mediterranean."
The Prime Minister called on Chinese companies to invest in Greece. “COSCO’s large investment at the port of Piraeus was followed by an important expression of interest for a series of investments at a moment when the Greek economy is eager for investments. The presence of Chinese companies is particularly important and it is welcome,” he added.
PM Tsipras said there is also great potential for cooperation in tourism and welcomed the introduction of a direct airline service from Athens to Beijing on September 30th. He welcomed Chinese companies exhibiting their products at the 82nd TIF and remarked: "I wish their participation in the 82nd TIF to mean further strengthening of relationships and for Thessaloniki and Northern Greece, following Piraeus, to play a stand-out role in strengthening relationships and attracting investment."
He stressed also the need for the peoples and the civilizations of Greece and China to tread together the path to a vision for a better world.
Addressing the ceremony, the Chinese Ambassador to Greece, Zou Xiaoli, noted that it was the first time after 19 years that China is the honoured country at Greece's most prestigious trade fair.
"This is a clear sign of the progress achieved in mutual understanding and trust between the two countries and peoples and of the joint efforts we make to address challenges to the benefit of all sides."
Ambassador Zou Xiaoli spoke about PM Tsipras’ recent visit to Beijing describing it as a “milestone” for the two countries which allowed the creation of a mutually beneficial relationship.
After the opening, accompanied by several Greek ministers, the Greek PM toured the Fair including China's exhibition hall which occupies an area of six acres, with about 170 companies including those representing major sectors of the Chinese economy.
The entire exhibition site, as well as the streets of Thessaloniki, had been decorated with 5,000 traditional Chinese red lanterns by the Municipality of Thessaloniki this year.
The Greek Prime Minister was welcomed with enthusiasm, informed about the products on display and in some cases offered to him as gifts.
At the start he saw an ultramodern model of a high-speed train, at the booth of COSCO, they offered him two animatronics (of the company's mascot) for his children; he visited the pavilions of high-tech companies, where they offered him a mobile phone; he examined a robot that brings articles to people and he tasted Chinese tea.
He also visited the booth of Chinese Telecommunications Company ZTE with which Digital Policy Minister Nikos Pappas signed an agreement of cooperation when he visited Beijing with the Prime Minister.
China is the honoured country at the 82nd Thessaloniki International Fair (TIF) which is the largest in terms of participants and visitors in the past decade, according to the Greek organizers. 250,000 visitors from 17 countries are expected to visit the Fair with its 1,500 exhibitors.
Addressing the event, the PM praised China's One Belt, One Road initiative, reiterated Greece's strong support and underlined the key role of Chinese investments in Greece's efforts to overcome the debt crisis and restore growth.
China’s honourary status at the 82nd Thessaloniki International Fair (TIF) this year is the culmination of a relationship that has strengthened in recent years and has much to offer in the years to come, PM Tsipras said.
"The Chinese Government’s strategic initiative to invest more than one trillion dollars globally with the ‘New Silk Road’ finds Greece in a phase of recovery from the economic crisis, at a time when it must use its most important comparative advantage, which is that our country is at the convergence point of three continents, to become a global transit, trade and energy hub. It will also broaden the prospects for development and give a boost to economic progress throughout the Balkans and the southeastern Mediterranean."
The Prime Minister called on Chinese companies to invest in Greece. “COSCO’s large investment at the port of Piraeus was followed by an important expression of interest for a series of investments at a moment when the Greek economy is eager for investments. The presence of Chinese companies is particularly important and it is welcome,” he added.
PM Tsipras said there is also great potential for cooperation in tourism and welcomed the introduction of a direct airline service from Athens to Beijing on September 30th. He welcomed Chinese companies exhibiting their products at the 82nd TIF and remarked: "I wish their participation in the 82nd TIF to mean further strengthening of relationships and for Thessaloniki and Northern Greece, following Piraeus, to play a stand-out role in strengthening relationships and attracting investment."
He stressed also the need for the peoples and the civilizations of Greece and China to tread together the path to a vision for a better world.
Addressing the ceremony, the Chinese Ambassador to Greece, Zou Xiaoli, noted that it was the first time after 19 years that China is the honoured country at Greece's most prestigious trade fair.
"This is a clear sign of the progress achieved in mutual understanding and trust between the two countries and peoples and of the joint efforts we make to address challenges to the benefit of all sides."
Ambassador Zou Xiaoli spoke about PM Tsipras’ recent visit to Beijing describing it as a “milestone” for the two countries which allowed the creation of a mutually beneficial relationship.
After the opening, accompanied by several Greek ministers, the Greek PM toured the Fair including China's exhibition hall which occupies an area of six acres, with about 170 companies including those representing major sectors of the Chinese economy.
The entire exhibition site, as well as the streets of Thessaloniki, had been decorated with 5,000 traditional Chinese red lanterns by the Municipality of Thessaloniki this year.
The Greek Prime Minister was welcomed with enthusiasm, informed about the products on display and in some cases offered to him as gifts.
At the start he saw an ultramodern model of a high-speed train, at the booth of COSCO, they offered him two animatronics (of the company's mascot) for his children; he visited the pavilions of high-tech companies, where they offered him a mobile phone; he examined a robot that brings articles to people and he tasted Chinese tea.
He also visited the booth of Chinese Telecommunications Company ZTE with which Digital Policy Minister Nikos Pappas signed an agreement of cooperation when he visited Beijing with the Prime Minister.
PM Tsipras’ Annual Policy Speech at TIF
The Greek Government is friendly toward healthy entrepreneurship. Greece can converse with Russia, China and the Arab world. These were two of the themes of Prime Minister Alexis Tsipras’ in his annual policy speech at the 82nd Thessaloniki International Fair.
"The timing of the completion of the Assessment is a very crucial issue. We are determined to move forward with great speed as part of the agreement," he stressed, disclosing that he would very soon convene the Cabinet so that the Government can make the necessary interventions in relation to the completion of the Assessment.
"We firmly believe that the European side will have a clear position against possible obstructions to the completion of the Third Assessment."
At the same time he requested the IMF to show its cards and decide its position in relation to the programme, putting forward the timescale as the end of the year.
"The aim is to promote the Greece of creativity and the Greece of hard work. Only with reforms and a change of the policy mix in favour of the most vulnerable, can we leave behind seven years of the Stewardship," he stressed, pointing out that in a year from now, the 83rd TIF will be held with the country out of Memoranda.
At the same time he estimated that with the targets for years 2016 and 2017 being exceeded and by the reduction of tax evasion and smuggling, it is possible to meet the targets and also to again give a dividend to the financially weakest.
But he conceded that signs of economic growth had not been felt so far by the majority of Greeks.
PM Tsipras added that around 500,000 jobs have been created since 2015 - "a record for the last 16 years".
Greece’s economy is expected to grow by about 2% in 2018, a sign that sacrifices are bearing fruit, Alexis Tsipras said outlining initiatives to boost employment and fight a brain drain.
PM Tsipras said the state would give financial incentives to employers to hire more younger workers and spend 156€ million to subsidise social security contributions of employers who will turn contractors into full-time staff. Unregistered work and contract jobs have increased during the debt crisis, as businesses are desperate to cut costs.
The Government will also pay 100€ million euros to subsidise unpaid workers in struggling sectors and businesses, he said, promising to fight labour law violations.
"A French businessman who came to Greece with my French counterpart this week approached me and told me that we have managed to transform Grexit to Grinvest not only for the French but for the rest of Europe," he said.
"The heightened interest for investments in Greece is not something that has happened by chance," he said recalling recent visits by French President Emmanuel Macron and Russian leader Vladimir Putin.
"We will have the fiscal space of a 3.5% Primary Surplus to make the necessary adjustments from 2019 and beyond. In addition to those that we have already made, I am referring to the adoption of the so-called countermeasures for 2019 and 2018 which is 1% of GDP for areas of social support in 2019 and in 2020 a further 1% in tax reductions. In 2016 we achieved a fantastic over-performance and that was one of the reasons that we were able to meet certain requirements of our lenders.
And in 2017 we had a positive over-achievement close to 1€ billion in the first seven months. We must be prudent during the next period but the overall picture is that we are over target, and we will again this year see to it that there is a dividend to the weakest."
"I see a creative Greece that, if it invests in innovation and in new technologies, can work wonders."
He reiterated again that for the Government, entrepreneurship and equitable development go hand in hand with the protection of the environment and of labour.
"2016 was a record for direct foreign investments with the highest rate since 2009. in 2017 it is expected that we will make an even bigger record."
"We are making a very great effort to combat pathologies such as the bureaucracy and the delay in issuing legal judgments that happened before our term of office. The difference we have with the neoliberal view is that we want a healthy business environment so we can protect labour relations and the environment. If we destroy the environment and human capital we will not have productivity in the country."
"Inertia and fear in the face of responsibility are pervasive in the Public Sector. Fear of signing anything." said Prime Minister Alexis Tsipras answering a question about his choice to put himself at the head of the investment Task Force.
"We want to create a climate and show the determination to move ahead with certain plans, of course, within the legal framework.", he stressed and added that there is a big discussion about the simplification of the legal framework and the acceleration of procedures to be announced by the Finance Ministry."
"We will only have won when Greece becomes bone of contention between investment strategies", he commented in response to a question about the investments from China and the increased European investment interest supported by President Macron’s initiative.
Greece has a unique advantage in its strategic location between three continents. Greece must become the country that will have its roots in the Eurozone but which will be able to spread its branches both to the East and to the North and to the South. And that is what we are trying to make a doctrine of a multidimensional and pro-active foreign policy. Greece is within the Eurozone, a pillar of European policy but at the same time a country that, as much as any other, can communicate and converse with Russia and with China and with the Arab world. Few countries can do this."
The Greek Government is friendly toward healthy entrepreneurship. Greece can converse with Russia, China and the Arab world. These were two of the themes of Prime Minister Alexis Tsipras’ in his annual policy speech at the 82nd Thessaloniki International Fair.
"The timing of the completion of the Assessment is a very crucial issue. We are determined to move forward with great speed as part of the agreement," he stressed, disclosing that he would very soon convene the Cabinet so that the Government can make the necessary interventions in relation to the completion of the Assessment.
"We firmly believe that the European side will have a clear position against possible obstructions to the completion of the Third Assessment."
At the same time he requested the IMF to show its cards and decide its position in relation to the programme, putting forward the timescale as the end of the year.
"The aim is to promote the Greece of creativity and the Greece of hard work. Only with reforms and a change of the policy mix in favour of the most vulnerable, can we leave behind seven years of the Stewardship," he stressed, pointing out that in a year from now, the 83rd TIF will be held with the country out of Memoranda.
At the same time he estimated that with the targets for years 2016 and 2017 being exceeded and by the reduction of tax evasion and smuggling, it is possible to meet the targets and also to again give a dividend to the financially weakest.
But he conceded that signs of economic growth had not been felt so far by the majority of Greeks.
PM Tsipras added that around 500,000 jobs have been created since 2015 - "a record for the last 16 years".
Greece’s economy is expected to grow by about 2% in 2018, a sign that sacrifices are bearing fruit, Alexis Tsipras said outlining initiatives to boost employment and fight a brain drain.
PM Tsipras said the state would give financial incentives to employers to hire more younger workers and spend 156€ million to subsidise social security contributions of employers who will turn contractors into full-time staff. Unregistered work and contract jobs have increased during the debt crisis, as businesses are desperate to cut costs.
The Government will also pay 100€ million euros to subsidise unpaid workers in struggling sectors and businesses, he said, promising to fight labour law violations.
"A French businessman who came to Greece with my French counterpart this week approached me and told me that we have managed to transform Grexit to Grinvest not only for the French but for the rest of Europe," he said.
"The heightened interest for investments in Greece is not something that has happened by chance," he said recalling recent visits by French President Emmanuel Macron and Russian leader Vladimir Putin.
"We will have the fiscal space of a 3.5% Primary Surplus to make the necessary adjustments from 2019 and beyond. In addition to those that we have already made, I am referring to the adoption of the so-called countermeasures for 2019 and 2018 which is 1% of GDP for areas of social support in 2019 and in 2020 a further 1% in tax reductions. In 2016 we achieved a fantastic over-performance and that was one of the reasons that we were able to meet certain requirements of our lenders.
And in 2017 we had a positive over-achievement close to 1€ billion in the first seven months. We must be prudent during the next period but the overall picture is that we are over target, and we will again this year see to it that there is a dividend to the weakest."
"I see a creative Greece that, if it invests in innovation and in new technologies, can work wonders."
He reiterated again that for the Government, entrepreneurship and equitable development go hand in hand with the protection of the environment and of labour.
"2016 was a record for direct foreign investments with the highest rate since 2009. in 2017 it is expected that we will make an even bigger record."
"We are making a very great effort to combat pathologies such as the bureaucracy and the delay in issuing legal judgments that happened before our term of office. The difference we have with the neoliberal view is that we want a healthy business environment so we can protect labour relations and the environment. If we destroy the environment and human capital we will not have productivity in the country."
"Inertia and fear in the face of responsibility are pervasive in the Public Sector. Fear of signing anything." said Prime Minister Alexis Tsipras answering a question about his choice to put himself at the head of the investment Task Force.
"We want to create a climate and show the determination to move ahead with certain plans, of course, within the legal framework.", he stressed and added that there is a big discussion about the simplification of the legal framework and the acceleration of procedures to be announced by the Finance Ministry."
"We will only have won when Greece becomes bone of contention between investment strategies", he commented in response to a question about the investments from China and the increased European investment interest supported by President Macron’s initiative.
Greece has a unique advantage in its strategic location between three continents. Greece must become the country that will have its roots in the Eurozone but which will be able to spread its branches both to the East and to the North and to the South. And that is what we are trying to make a doctrine of a multidimensional and pro-active foreign policy. Greece is within the Eurozone, a pillar of European policy but at the same time a country that, as much as any other, can communicate and converse with Russia and with China and with the Arab world. Few countries can do this."
President Macron in Athens
On Thursday, France's President Macrond warned the International Monetary Fund to refrain from demanding cuts beyond those already agreed, in upcoming talks.
“The IMF’s role in these talks must be in good faith and without adding further conditions,” Macron told journalists in a joint news conference with Greek Prime Minister Alexis Tsipras.
“We should not exhaust our Ministers and officials with nights and weeks of talks about the (Greek) growth rate over the next 20-25 years down to the last decimal point,” he added.
In an exchange with Greek President Prokopis Pavlopoulos also on Thursday, Macron suggested that the IMF should not “intervene” in European affairs and looked towards the creation of a European Monetary Fund.
In a speech on Pnyx Hill on Thursday night, President Macron proposed the creation of a “road map” to “rebuild the European Union” and attributed Greece’s crisis partly to a lack of European solidarity, calling it “a failure of Europe.”
Completing his two-day visit to Athens on Friday, French President Emmanuel Macron expressed his support for further French investments in Greece and encouraged authorities to press on with economic reforms.
“I personally guarantee French support,” President Macron said at the Stavros Niarchos Foundation Cultural Centre, where he and Greek Prime Minister Alexis Tsipras co-chaired a meeting of Greek and French entrepreneurs.
He urged European firms to step up their investments in Greece to “help reduce the country’s growing reliance on non-European countries, notably China”.
Addressing a round-table of Greek and French business leaders on Friday, Macron said Greece was “forced” to choose non-European investors “because the Europeans were not there.”
“We want Korean, Chinese and American investments, these are very important,” he said. “But if there are no European investors, then we are forced to select non-European investors.”
A failure to respond, he said, would show that Europeans have “no faith in Europe.”
President Macron called on French companies that have had a presence in the country for years to “give new energy, new dynamism to investments in Greece.”
He also underlined the importance of European solidarity in Greece. “We pushed Greece toward non-European investments and that does not gratify me,” he said.
PM Tsipras for his part, noted that Greece was finally “turning a page” after seven years of recession and was open for investments, describing the country as “an attractive destination for investors.”
He added that his Government was intent on creating a healthier environment for investments “by means of a plan for constant reforms” with the ultimate goal of generating much-needed jobs.
Greek government sources indicated that they were satisfied with the visit by Macron, noting that his references to the need for more democracy in Europe pointed to a close alignment with positions that have been expressed by PM Tsipras.
On Thursday, France's President Macrond warned the International Monetary Fund to refrain from demanding cuts beyond those already agreed, in upcoming talks.
“The IMF’s role in these talks must be in good faith and without adding further conditions,” Macron told journalists in a joint news conference with Greek Prime Minister Alexis Tsipras.
“We should not exhaust our Ministers and officials with nights and weeks of talks about the (Greek) growth rate over the next 20-25 years down to the last decimal point,” he added.
In an exchange with Greek President Prokopis Pavlopoulos also on Thursday, Macron suggested that the IMF should not “intervene” in European affairs and looked towards the creation of a European Monetary Fund.
In a speech on Pnyx Hill on Thursday night, President Macron proposed the creation of a “road map” to “rebuild the European Union” and attributed Greece’s crisis partly to a lack of European solidarity, calling it “a failure of Europe.”
Completing his two-day visit to Athens on Friday, French President Emmanuel Macron expressed his support for further French investments in Greece and encouraged authorities to press on with economic reforms.
“I personally guarantee French support,” President Macron said at the Stavros Niarchos Foundation Cultural Centre, where he and Greek Prime Minister Alexis Tsipras co-chaired a meeting of Greek and French entrepreneurs.
He urged European firms to step up their investments in Greece to “help reduce the country’s growing reliance on non-European countries, notably China”.
Addressing a round-table of Greek and French business leaders on Friday, Macron said Greece was “forced” to choose non-European investors “because the Europeans were not there.”
“We want Korean, Chinese and American investments, these are very important,” he said. “But if there are no European investors, then we are forced to select non-European investors.”
A failure to respond, he said, would show that Europeans have “no faith in Europe.”
President Macron called on French companies that have had a presence in the country for years to “give new energy, new dynamism to investments in Greece.”
He also underlined the importance of European solidarity in Greece. “We pushed Greece toward non-European investments and that does not gratify me,” he said.
PM Tsipras for his part, noted that Greece was finally “turning a page” after seven years of recession and was open for investments, describing the country as “an attractive destination for investors.”
He added that his Government was intent on creating a healthier environment for investments “by means of a plan for constant reforms” with the ultimate goal of generating much-needed jobs.
Greek government sources indicated that they were satisfied with the visit by Macron, noting that his references to the need for more democracy in Europe pointed to a close alignment with positions that have been expressed by PM Tsipras.
Eldorado Gold : “The issue is to have rules, to have tools and targeting, about what investments you want, what kind of conditions you apply”
On Monday Canadian Multinational Eldorado Gold Corporation announced plans to suspend investment at its operating mines, development projects and exploration assets in Greece.
In a press conference, George Burns, President and CEO of Eldorado Gold stressed that if the company is not granted the licenses it is entitled to by September 21st, it will cease investment in Greece. CEO Burns said that the licences had not been granted for “unknown bureaucratic reasons.”
Eldorado, which is targeting copper, gold, lead, silver and zinc, bought the Greek assets for nearly $2 billion in 2012. SYRIZA opposed Eldorado’s investment before taking office in 2015. The Government now says it wants it as long as it is “environmentally and economically sound”.
Eldorado’s plans to develop its mining operations in Halkidiki have also provoked protests by locals who fear it will ruin a landscape of pristine beaches and lush forests and destroy the region’s tourism.
Differences have dragged on for years, especially over compliance with environmental regulations.
Defence Minister, Panos Kammenos said “The country doesn’t need investment that leads to environmental catastrophes”, adding that he hoped the company would sit down for talks in order for its investment to continue.
On Monday Finance Minister Euclid Tsakalotos pointed to New Democracy as the possible instigator of Eldorado’s decision in order to create problems for the Government after Prime Minister Alexis Tsipras’ pro-business speech at the Thessaloniki International Fair on Saturday. Referring to the announcement by the Canadian multinational, he said: "For the third time in the last two years, Eldorado Gold is threatening an investment “freeze”. Four days before the start of the appeal to arbitration at the State Legal Council this coming Friday, Eldorado Gold is threatening to suspend its operations in Halkidiki on the 22nd of September, unless in the meantime the Government has issued "routine" licenses needed for it to proceed unhindered in its work. For the third time it is also obvious that the motivation is to use the employees as hostages, threatening them with dismissal if Eldorado Gold’s operation does not come off. They are also reaching the point, completely in tune with New Democracy, of posing the question of a change of Government! The correct thing is to have rules and tools about what investments you want."
Government spokesman Dimitris Tzanakopoulos told Skai TV that the Eldorado management had a meeting a few days earlier with Mr. Mitsotakis.
"New Democracy insists on identifying itself with business interests, an act that does not fit with a liberal-oriented party. They do not know the crux of the case or the issues at stake. The company has not submitted the clarifications requested by the Ministry for a technical study. We suggested that we go to arbitration and Eldorado does not accept that perhaps because they fear that they will be defeated. It is the third time that the company has announced the end of its investment activities. We want investment to be made on the basis of national and European legislation. The Greek Government can not accept ultimatums. For issues on which we have different perspectives with the company there is the institutional process of arbitration.
"It is not just a matter of a big investor coming, seeing a Minister and saying what they want to do. The issue is to have rules, to have tools and targeting, about what investments you want, what kind of conditions you apply so that the country can leave the crisis without returning to the period before 2009."
"Eldorado Gold is probably not used to working in European countries," Energy and Environment Minister George Stathakis commented bitingly. He sent Eldorado Gold a message in response to its ultimatum. "The licensing process is at just the stage that I announced yesterday [Monday Ed], Skouries is at 60% of completion and Olympiada is at 100%...
"It should be clear to all that this investment should abide by the two inviolate rules in the basic contract it has with the Greek State.
"Firstly, to be environmentally safe - and this has immense importance because the process of producing an ore also generates quantities of arsenic tens of times above the permissible limits means the highest environmental security is needed for us not to experience an ecological disaster. The highest environmental standards must be guaranteed as stipulated by the European and Greek legislation firstly and secondly the company must vertically integrate all its activities, that is to say it must do the metallurgy in Greece. This is a key issue and the subject of controversy because the method they are proposing to use has not yet been licensed, so as to benefit the Greek economy ... [the Greek Supreme Court currently rejects the precise methodology that deals with the arsenic produced by the mining method Ed.]
So our position is simple, these are the two conditions. There are issues that still have not been resolved by the company and by the State. Instead of the technical dialogue proposed by the company to resolve them, we suggested arbitration. The arbitration takes place this week, the State Legal Council is responsible, so we have proceeded in a co-ordinated way to the best solution."
"New Democracy and its satellites are insisting on the turbulent development model that is shaped by business interests at the expense of the public interest, indifference to the environment and the full deregulation of the labour market."
“Is New Democracy interested in how the investment of millions of euros in tourism infrastructure in Halkidiki will be affected if the company does not comply with the environmental rules? Or is it just about creating impressions at the expense of the public interest?”
SYRIZA’s Director of Economic Policy and Deputy Finance Minister, Trifon Alexiadis told SKAI TV that "The Contract states that when there is a dispute, the parties will go to arbitration. The company cannot say “no” to arbitration."
On Thursday Canada's Eldorado Gold Corporation said it had received formal notice of arbitration.
The arbitration notice alleges the company’s technical study for the Madem Lakkos metallurgical plant, for treating Olympias and Skouries oress is deficient and therefore violates the project's environmental terms. The Government says the ores to be processed will contain arsenic well above accepted levels, and the Government has to make sure the company fully conforms to environmental standards.
Eldorado said it is confident that its study meets the contractual requirements.
On Monday Canadian Multinational Eldorado Gold Corporation announced plans to suspend investment at its operating mines, development projects and exploration assets in Greece.
In a press conference, George Burns, President and CEO of Eldorado Gold stressed that if the company is not granted the licenses it is entitled to by September 21st, it will cease investment in Greece. CEO Burns said that the licences had not been granted for “unknown bureaucratic reasons.”
Eldorado, which is targeting copper, gold, lead, silver and zinc, bought the Greek assets for nearly $2 billion in 2012. SYRIZA opposed Eldorado’s investment before taking office in 2015. The Government now says it wants it as long as it is “environmentally and economically sound”.
Eldorado’s plans to develop its mining operations in Halkidiki have also provoked protests by locals who fear it will ruin a landscape of pristine beaches and lush forests and destroy the region’s tourism.
Differences have dragged on for years, especially over compliance with environmental regulations.
Defence Minister, Panos Kammenos said “The country doesn’t need investment that leads to environmental catastrophes”, adding that he hoped the company would sit down for talks in order for its investment to continue.
On Monday Finance Minister Euclid Tsakalotos pointed to New Democracy as the possible instigator of Eldorado’s decision in order to create problems for the Government after Prime Minister Alexis Tsipras’ pro-business speech at the Thessaloniki International Fair on Saturday. Referring to the announcement by the Canadian multinational, he said: "For the third time in the last two years, Eldorado Gold is threatening an investment “freeze”. Four days before the start of the appeal to arbitration at the State Legal Council this coming Friday, Eldorado Gold is threatening to suspend its operations in Halkidiki on the 22nd of September, unless in the meantime the Government has issued "routine" licenses needed for it to proceed unhindered in its work. For the third time it is also obvious that the motivation is to use the employees as hostages, threatening them with dismissal if Eldorado Gold’s operation does not come off. They are also reaching the point, completely in tune with New Democracy, of posing the question of a change of Government! The correct thing is to have rules and tools about what investments you want."
Government spokesman Dimitris Tzanakopoulos told Skai TV that the Eldorado management had a meeting a few days earlier with Mr. Mitsotakis.
"New Democracy insists on identifying itself with business interests, an act that does not fit with a liberal-oriented party. They do not know the crux of the case or the issues at stake. The company has not submitted the clarifications requested by the Ministry for a technical study. We suggested that we go to arbitration and Eldorado does not accept that perhaps because they fear that they will be defeated. It is the third time that the company has announced the end of its investment activities. We want investment to be made on the basis of national and European legislation. The Greek Government can not accept ultimatums. For issues on which we have different perspectives with the company there is the institutional process of arbitration.
"It is not just a matter of a big investor coming, seeing a Minister and saying what they want to do. The issue is to have rules, to have tools and targeting, about what investments you want, what kind of conditions you apply so that the country can leave the crisis without returning to the period before 2009."
"Eldorado Gold is probably not used to working in European countries," Energy and Environment Minister George Stathakis commented bitingly. He sent Eldorado Gold a message in response to its ultimatum. "The licensing process is at just the stage that I announced yesterday [Monday Ed], Skouries is at 60% of completion and Olympiada is at 100%...
"It should be clear to all that this investment should abide by the two inviolate rules in the basic contract it has with the Greek State.
"Firstly, to be environmentally safe - and this has immense importance because the process of producing an ore also generates quantities of arsenic tens of times above the permissible limits means the highest environmental security is needed for us not to experience an ecological disaster. The highest environmental standards must be guaranteed as stipulated by the European and Greek legislation firstly and secondly the company must vertically integrate all its activities, that is to say it must do the metallurgy in Greece. This is a key issue and the subject of controversy because the method they are proposing to use has not yet been licensed, so as to benefit the Greek economy ... [the Greek Supreme Court currently rejects the precise methodology that deals with the arsenic produced by the mining method Ed.]
So our position is simple, these are the two conditions. There are issues that still have not been resolved by the company and by the State. Instead of the technical dialogue proposed by the company to resolve them, we suggested arbitration. The arbitration takes place this week, the State Legal Council is responsible, so we have proceeded in a co-ordinated way to the best solution."
"New Democracy and its satellites are insisting on the turbulent development model that is shaped by business interests at the expense of the public interest, indifference to the environment and the full deregulation of the labour market."
“Is New Democracy interested in how the investment of millions of euros in tourism infrastructure in Halkidiki will be affected if the company does not comply with the environmental rules? Or is it just about creating impressions at the expense of the public interest?”
SYRIZA’s Director of Economic Policy and Deputy Finance Minister, Trifon Alexiadis told SKAI TV that "The Contract states that when there is a dispute, the parties will go to arbitration. The company cannot say “no” to arbitration."
On Thursday Canada's Eldorado Gold Corporation said it had received formal notice of arbitration.
The arbitration notice alleges the company’s technical study for the Madem Lakkos metallurgical plant, for treating Olympias and Skouries oress is deficient and therefore violates the project's environmental terms. The Government says the ores to be processed will contain arsenic well above accepted levels, and the Government has to make sure the company fully conforms to environmental standards.
Eldorado said it is confident that its study meets the contractual requirements.
Safeguards for Working People now State Law
"The Ministry of Labour, Social Security and Social Solidarity’s Bill which puts in place the necessary safeguards for working people, was passed on Thursday and is now state law", said the Minister Effie Achtsioglou.
At the same time, the Minister noted that the necessary conditions are now in place to deal effectively with the phenomenon of undeclared, of under-declared and unpaid work. "The Law also includes regulations about national insurance and very important regulations about the rights of people with disabilities, which should help them substantially in their daily lives."
The Minister also gave special emphasis to the regulation in the Law, according to which no employer and no business that violates labour laws, will have access to public money either national resources or EU funds or to any other sort of grant. "This is now the law of the State," she said.
It is now State Law that, employee, who have not been paid, may be considered as sacked, so they can immediately take unemployment benefit. The Law includes the provision for a summary judgment against an employer for wages due to employees and makes a drastic reduction in the cost of the procedures for employees to claiming pay arrears.
These settings are accompanied by a strenthened Labour Inspectorate (ΣΕΠΕ). "Over the last period, we have strengthened the ΣΕΠΕ with more staff, the key control mechanism, which intervenes in the labour market. There has been some recruitment and there will be more. Its tools have also been strengthened. Now it has an informational system that allows it to make targeted and effective checks. Furthermore, it has also been strengthened financially, as approved a short time ago, using an ESPA stream by 7.5€ million, in order to implement pilot checks and strengthen the provision of legal advice to working people".
"This law is a further step in an overall strategy being developed by the Ministry of Labour. The regulations place a very serious incentive and priority on consistent employers and on consistent businesses."
"The Ministry of Labour, Social Security and Social Solidarity’s Bill which puts in place the necessary safeguards for working people, was passed on Thursday and is now state law", said the Minister Effie Achtsioglou.
At the same time, the Minister noted that the necessary conditions are now in place to deal effectively with the phenomenon of undeclared, of under-declared and unpaid work. "The Law also includes regulations about national insurance and very important regulations about the rights of people with disabilities, which should help them substantially in their daily lives."
The Minister also gave special emphasis to the regulation in the Law, according to which no employer and no business that violates labour laws, will have access to public money either national resources or EU funds or to any other sort of grant. "This is now the law of the State," she said.
It is now State Law that, employee, who have not been paid, may be considered as sacked, so they can immediately take unemployment benefit. The Law includes the provision for a summary judgment against an employer for wages due to employees and makes a drastic reduction in the cost of the procedures for employees to claiming pay arrears.
These settings are accompanied by a strenthened Labour Inspectorate (ΣΕΠΕ). "Over the last period, we have strengthened the ΣΕΠΕ with more staff, the key control mechanism, which intervenes in the labour market. There has been some recruitment and there will be more. Its tools have also been strengthened. Now it has an informational system that allows it to make targeted and effective checks. Furthermore, it has also been strengthened financially, as approved a short time ago, using an ESPA stream by 7.5€ million, in order to implement pilot checks and strengthen the provision of legal advice to working people".
"This law is a further step in an overall strategy being developed by the Ministry of Labour. The regulations place a very serious incentive and priority on consistent employers and on consistent businesses."
Alexis Tsipras welcomes
President Macron
9.9.2017
At an event held on the Pnyx Hill on Thursday to welcome French President Emmanuel Macron to Athens on an official two-day visit, both leaders delivered key note speeches.
"Your Prime Minister and your Government always wanted to keep Greece in Europe, despite all the pressure" he said, and announced that he is planning initiatives that will lead to "a more social Europe".
He went on to explain that the aim is for Greece to regain its economic sovereignty and live through growth. "The time has come for Greece to look towards the future, and not implement rules decided by others,” he said.
President Macron also urged the International Monetary Fund to step back from its role in European bailouts. “I don’t think it was the right method for the IMF to supervise European programmes and intervene in the way it did,” he said. “Let’s work within Europe and not turn to outside agencies.”
He said the European Stability Mechanism should play the lead role in financial support within the eurozone. “We must rediscover the enthusiasm that the Union was founded upon and change, not with technocrats and not with bureaucracy.” He backed Germany’s idea of a European Monetary Fund (EMF) to counter economic shocks in euro zone member states but stressed the ultimate goal of deeper integration should remain a euro zone budget.
The visit includes a significant business delegation consisting of approximately 100 executives and representatives of enterprises and organisations. Approximately sixty executives representing Greek businesses and organizations of both the private and public sectors will participate in a working round-table meeting with the French business leaders at Stavros Niarchos Cultural Center on Friday.
Shipping, banking, energy, constructions, food, telecom, tourism and pharmaceuticals are among the Greek industries to be represented.
During his speech, Greek Prime Minister Alexis Tsipras stressed the need to promote a dialogue for “a new democratic contract in Europe”, to restore solidarity and equality between states and among citizens. “We can achieve fiscal unification if we achieve political and economic integration,” he said, adding he supports President Macron’s proposal for the appointment of a Eurozone Finance Mminister. He added however that Eurozone will also need a Social Justice Minister.
Optimism at Euro Working Group
EU Finance Ministers (EWG) met on Monday afternoon in Brussels. They sent out optimistic signals as regards the course of the Greek economy and endorsed the European Commission's proposal for Greece to exit the excessive deficit procedure, taking the first step towards its final approval in the course of September by the Committee of the Permanent Representatives of the EU Governments (COREPER).
As the Bailout Programme enters its last months and in view of the informal Eurogroup next Friday in Tallinn, the EWG examined the implementation of the reforms and the prospects for the Third Assessment. The technical teams are expected to return to Athens next week, while the Institutions’ chiefs are expected in mid-October. Well-informed sources estimated that the cooperation of all parties in the next Assessment will be close and take place in a positive atmosphere.
Improving the image
The EWG found that the economic situation in Greece has improved. Achieving a Primary Surplus of about 1.75% is possible, bank deposits are recovering and growth this year could exceed 1.8%. With regard to the next Assessment, this will include 95 requirements, most of which relate to the implementation of the reforms already legislated.
When it comes to the repayment of the arrears of Government debts to individuals, amounting to 800€ million, pending since the previous Assessment, the Greek side is next week expected to send further data about what has been cleared up until now. Following the audit of that data, the European Stability Mechanism is expected to approve the staged repayments.
Problem with the IMF
It seems, both the Greek and the European sides want Greece to exit the Memoranda. There is concern that the IMF could still put forward further unreasonable demands, such as the reduction of tax-free allowances being applied from 2019 and not 2020, or the deferral of the countermeasures until 2023 or the auditing of the capital adequacy of Greek banks.
Already, the Governor of the Bank of Greece Yannis Stournaras seems worried by the prevailing atmosphere and was quick to declare in Sunday’s “To Bema”: “If the IMF wants to leave [the Bailout Programme Ed], let it leave. We don't need them anymore”.
"Your Prime Minister and your Government always wanted to keep Greece in Europe, despite all the pressure" he said, and announced that he is planning initiatives that will lead to "a more social Europe".
He went on to explain that the aim is for Greece to regain its economic sovereignty and live through growth. "The time has come for Greece to look towards the future, and not implement rules decided by others,” he said.
President Macron also urged the International Monetary Fund to step back from its role in European bailouts. “I don’t think it was the right method for the IMF to supervise European programmes and intervene in the way it did,” he said. “Let’s work within Europe and not turn to outside agencies.”
He said the European Stability Mechanism should play the lead role in financial support within the eurozone. “We must rediscover the enthusiasm that the Union was founded upon and change, not with technocrats and not with bureaucracy.” He backed Germany’s idea of a European Monetary Fund (EMF) to counter economic shocks in euro zone member states but stressed the ultimate goal of deeper integration should remain a euro zone budget.
The visit includes a significant business delegation consisting of approximately 100 executives and representatives of enterprises and organisations. Approximately sixty executives representing Greek businesses and organizations of both the private and public sectors will participate in a working round-table meeting with the French business leaders at Stavros Niarchos Cultural Center on Friday.
Shipping, banking, energy, constructions, food, telecom, tourism and pharmaceuticals are among the Greek industries to be represented.
During his speech, Greek Prime Minister Alexis Tsipras stressed the need to promote a dialogue for “a new democratic contract in Europe”, to restore solidarity and equality between states and among citizens. “We can achieve fiscal unification if we achieve political and economic integration,” he said, adding he supports President Macron’s proposal for the appointment of a Eurozone Finance Mminister. He added however that Eurozone will also need a Social Justice Minister.
Optimism at Euro Working Group
EU Finance Ministers (EWG) met on Monday afternoon in Brussels. They sent out optimistic signals as regards the course of the Greek economy and endorsed the European Commission's proposal for Greece to exit the excessive deficit procedure, taking the first step towards its final approval in the course of September by the Committee of the Permanent Representatives of the EU Governments (COREPER).
As the Bailout Programme enters its last months and in view of the informal Eurogroup next Friday in Tallinn, the EWG examined the implementation of the reforms and the prospects for the Third Assessment. The technical teams are expected to return to Athens next week, while the Institutions’ chiefs are expected in mid-October. Well-informed sources estimated that the cooperation of all parties in the next Assessment will be close and take place in a positive atmosphere.
Improving the image
The EWG found that the economic situation in Greece has improved. Achieving a Primary Surplus of about 1.75% is possible, bank deposits are recovering and growth this year could exceed 1.8%. With regard to the next Assessment, this will include 95 requirements, most of which relate to the implementation of the reforms already legislated.
When it comes to the repayment of the arrears of Government debts to individuals, amounting to 800€ million, pending since the previous Assessment, the Greek side is next week expected to send further data about what has been cleared up until now. Following the audit of that data, the European Stability Mechanism is expected to approve the staged repayments.
Problem with the IMF
It seems, both the Greek and the European sides want Greece to exit the Memoranda. There is concern that the IMF could still put forward further unreasonable demands, such as the reduction of tax-free allowances being applied from 2019 and not 2020, or the deferral of the countermeasures until 2023 or the auditing of the capital adequacy of Greek banks.
Already, the Governor of the Bank of Greece Yannis Stournaras seems worried by the prevailing atmosphere and was quick to declare in Sunday’s “To Bema”: “If the IMF wants to leave [the Bailout Programme Ed], let it leave. We don't need them anymore”.
Looking Forward to the 82nd Thessaloniki International Fair (TIF)
At least 200 Chinese companies will participate in the 82nd Thessaloniki International Fair (TIF) to be held on September 9th -17th , with the participation of China as an “honoured country”.
A series of meetings between Greek and Chinese companies have been planned in an effort to attract investments, strengthen economic ties and enhance cooperation between the two countries.
A key event of the 82nd TIF will be the Memorandum of Understanding (MoU) to be signed between the China Development Bank (CDB) and the Public Power Corporation (PPC) during a conference organised within the framework of the fair.
Environment and Energy Minister Giorgos Stathakis, Chinese Ambassador Zou Xiaoli, the Head of the European Commission Representation in Greece Panos Karvounis, as well as representatives of companies and banks from China and SE Europe will speak at the conference.
On its part, China Development Bank is planning investments involving more than 900 projects in the 64 countries along the route of Silk Road.
The participation of COSCO, which is planning to invest around 600€ million in the port of Piraeus over the next decade, is also expected to attract the interest of visitors. Its decision to choose Piraeus as a gateway for Chinese products to enter the EU market is an important initiative for both the Greek economy and for relations between China and the EU.
Other companies that have registered to hold meetings within the framework of the fair are CEFC China Energy Company Limited, China Corporate United Investment Holding, ΙNESA, Shanghai Feilo Acoustics, Shanghai Electric Group Shanghai Building Materials, Ezi Surg Medical, Shenda International Trade, Shanghai Silk Group Culture Development and Shanghai Rainbowfish Ocean Technology.
This follows an initiative of TIF and Enterprise Greek Invest and Trade in order to identify companies that share common features and facilitate them in their efforts to plan their meetings.
Chinese companies are mostly interested in the sectors of energy, food, tourism, scientific innovation, culture, real estate and health care.
Another important development to be announced is the launch by Air China of new direct flights linking Athens and Beijing, starting September 30th.
In total, more than 1,500 exhibitors are expected to participate in the conference, the managing director of TIF-Helexpo Kyriakos Pozrikidis told the Athens-Macedonian News Agency.
“The economic indicators are positive”
At a meeting with the leadership of the Hellenic Bank Association (HBA) on Friday, Prime Minister Alexis Tsipras said the economic indicators are positive and the figures released by the Hellenic Statistical Authority are encouraging,
ELSTAT’s second quarter provisional figures showed a strong recovery even before the conclusion of the Second Programme Assessment. The Greek economy grew by 0.5% compared to the first quarter of 2017 and by 0.8% compared to the second quarter of 2016.
Announcing these figures, the Government Statement said “This trend was further reinforced after the conclusion of the Second Programme Assessment, Greece’s successful return to the [bond Ed]markets and the upgrades of the Greek economy by the international rating agencies. We continue to strive for equitable growth with protection of the labour market and for building a new production model.”
“If we continue to have the same positive rates as we have had in the first two quarters and especially the third, we can reach growth rates in 2017 that approach 2%, which the Greek economy has not seen in more than a decade,” Alexis Tsipras said.
“What is needed,” he said, “is to maintain the fiscal balance, provide liquidity tools and increase demand to help the Greek economy grow.” Banks can play a very useful role in this effort, the Prime Minister added, while noting that trust in Greek banks must be rebuilt, both among investors and among depositors.
The talks also focused on conditions in the banking sector and the improvements made there, with banks returning to profit after almost a decade of losses, a gradual recovery of deposits and a slow but steady reduction of bad loans. On the other side, the banks noted slow credit expansion due to low demand by households, the continuing restrictions imposed by capital controls, and the challenge still posed by the reduction of Non-Productive Loans (NPLs).
Later that day the PM received the leadership of the Hellenic Confederation of Professionals, Craftsmen & Merchants (GSEVEE).
“The main issue is to have a convergence between good macroeconomic indicators and growth rates and the real situation, as experienced by SMEs, merchants and craftspeople, because sometimes we can get carried away,” he said.
GSEVEE President Giorgos Kavvathas referred to a survey carried out in July 2017, which showed a real improvement in indicators by about 10%, though he did say this was not enough.
After the meeting, Mr. Kavvathas said that he had raised the key problems facing GSEVEE members, including overtaxation, social insurance issues, financing and the need for a development bank focused on SMEs and micro-businesses, the need for “unseizable” business bank accounts and the outstanding debts of some 300,000 entrepreneurs.
In an earlier meeting with the leadership of the Hellenic Confederation of Commerce and Entrepreneurship (ESEE), PM Tsipras noted that Greece needs a new production model, a new development model and has to rebuild small and medium-sized enterprise on a healthier foundation.
According to the President of ESEE Vassilis Korkidkis, the Prime Minister told them that there is still hope and he would continue to work with the Government’s economic staff in order to persuade Greece’s creditors to agree to “unseizable” business bank accounts.
Greek Manufacturing
Growth in Greek manufacturing activity accelerated in August for the third consecutive month as rising demand at home and abroad led firms to add jobs and increase production, a survey showed on Friday. Markit’s Purchasing Managers’ Index (PMI) for manufacturing, which accounts for about 10% of the economy, rose to 52.2 from 50.5 in July, its highest print since August 2008.
Readings above 50 denote expansion in activity. The pickup in growth was driven by a solid increase in new business, the sharpest since May 2014, with export orders also rising for the first time in a year. “Having endured years of economic malaise, the latest data will be music to the ears of many concerned with Greek manufacturing,” said IHS Markit economist Alex Gill.
To keep pace with rising client demand, companies increased staffing numbers for the fourth straight month in August, at the most marked pace in more than 17 years. “Underlying the expansion were robust increases in new business, contributing to the sharpest round of job creation since January 2000. This will buoy hopes for a reduction in the country’s high unemployment,” Gill said. While input price inflation remained solid, strong client demand boosted manufacturers’ pricing power, leading to higher factory gate prices on average, the survey showed.
As production grew, manufacturers increased purchasing activity at a rate that hit a nine-year high. “The strong degree of optimism can at least partially account for the rise in demand and is indicative of a more positive narrative surrounding the Greek economy, spurred on by the country’s return to bond markets in July,” Mr. Gill said.
The Numbers
* GDP increased by 0.8%
* Consumption increased by 1.2%
* Exports grew by 9.5%
* Imports rose by 3.1% rise
* Manufacturing recorded a 9 year high (since
August 2008) of increased exports.
* There was a 17 year record (since January 2000)
of increased Jobs
Data supplied by ELSTAT and Markit (a global financial information and services company)
Public Sector Reform
Speaking on television, Olga Gerovasili, the Minister for Administrative Reconstruction, stressed that "just with the digital signature [The Digital Signature is a mathematical system used to prove the authenticity of a digital message or document Ed], the State is saving 200€ million. That is how we will get the rationalization of the public sector and not with redundancies."
On the reform of the Public Administration, she stressed that the Government has adopted a system of evaluation in the Public Sector that has objective and transparent criteria. The evaluation, she said, "must be objective and merit-based and must do away with the system of clientelism".
The reform of the Public Administration, she continued, "comes to improve relationships between the state, society, the citizen, undertaking a series of measures such as reducing bureaucracy, speeding up procedures, using the digital signature, etc."
"We are streamlining the State to make it friendly to the citizen and to business. The National Strategy for Administrative Reform aims to make the public administration a tool for development".
As an example of removing party political influence, she spoke of the upcoming competition in September for the posts of Ministerial General Secretaries.
As regards contracted staff, she reported that, within the framework of the financial obligations and commitments of the country, “appointments must be targeted and involve employees who have for years covered for fixed and permanent needs in the context of supporting the welfare State and the citizen.
Finally she underlined that "we want to rationalise the public sector and not to the increase it, so that it can serve as a tool for development".
Labour Legislation
The Bill on the Protection of Working People was adopted in principle by Parliamentary Committee. The parties of the Government Coalition voted in favour of the Bill, the Communist Party voted "present" [i.e. abstained Ed], while all the other parties reserved their positions for the Plenary meeting of Parliament when the Bill will be introduced for final voting.
Presenting the Articles of the Bill, Labour Minister Effie Achtsioglou spoke about the legislation being a positive sign for the society, "the Ministry of Labour’s first purely protective Bill since the beginning of the crisis until today" and she made specific reference to the three central principles, which are moving in that direction.
She referred to the Social Insurance system, which, as she said, is solving some chronic problems and is responding to legitimate demands of specific social groups.
Also, she focused on the reforms on labour issues, with separate provisions for undeclared, unpaid and underdeclared work and an extension of employment rights to groups which have not enjoyed them as they should have, as well as on provisions for the expansion of the rights of people with disabilities, which constitute the third axis of the Bill.
"Behind every one of the reforms in the Bill there are real stories of workers who need support," Minister Achtsioglou said. She announced that the Labour Inspectorate will be strengthened by a further 150 people, while under New Democracy, staff had been reduced by 200. She noted that rules existed in current employment law but previous Governments had not applied them.
"Those employers who have property but do not pay wages, after 15 days the employees will be able to claim part of that property".
Referring to the funding of the reforms, she said that a tranche of 7.5€ million had been authorised in order to strengthen a mixed range of checks but also to provide services where citizens can be informed of their rights.
She added that the EFKA [The Unified Social Security Service which is being formed by the merging of all former social insurance funds Ed] is in surplus and will support the effort of the Government.
Minister Achtsioglou noted that if a worker remains unpaid for months, they will be able to bring to the Labour Force Employment Organisation [ΟΑΕΔ Ed] an out-of-court statement against the employer and will receive unemployment pay, while it is expected that the trial date will be set a maximum period of 6 months ahead.
Referring to the financial burden on the OAED, the Minister said that the Government has decided to shift the risk to the Agency. "The OAED protects the employee and not the worker the OAED."
For the mentally ill who get an allowance or pension and who find work, she said they will continue to receive it.
PM Tsipras opens Ionian Highway
Officially inaugurating the Ionian Highway, a brand new road running across northwestern Greece, the PM Tsipras described it as “a strategic project for all Greece and the Epirus region, which upgrades the country’s role in the wider region.” “Projects such as this will help usher in a new era of equitable growth, whose benefits will spread all the way to the weakest members of society. The Ionian Highway which links up to the Egnatia Highway,he said, would help upgrade trade, tourism and transport for all western Greece and Epirus, lifting the region out of its present isolation.
The benefits from the Ionian Highway will be maximized if it is included in a wider plan, which includes the construction of a new port in Igoumenitsa, a connection linking the Ionian Highway with Preveza and Agrinio and its extension to Kakavia on the Greek-Albanian border, PM Tsipras stated.
The Prime Minister underlined that with the Ionian Highway, the airport of Ioannina is being upgraded into a hub airport for tourists. “The country is well on its way out of the economic crisis,” he stressed, adding that Greece is turning a page.
“A project of historic significance and enormous economic, commercial and geopolitical value”
On Wednesday (6th September) Greece and Bulgaria signed a Memorandum of Understanding for the construction of a high-speed railway, a project which aims to attract foreign investment and establish strong links in a region historically known for divisions and antagonism between neighbours.
Bulgaria’s Prime Minister Bouko Borissov met Alexis Tsipras in Kavala, northern Greece, and signed the agreement on a railway line that will connect three ports in Greece (Thessaloniki, Kavala, Alexandroupolis) with three Bulgarian ports (Burgas and Varna on the Black Sea and Ruse on the Danube).
The Bulgarian Government said the project, named “Sea2Sea”, was expected to attract huge investor interest from the Middle East, China, Russia and other major markets.
Speaking at a joint press conference after their meeting, Tsipras said it was a project of historic significance and enormous economic, commercial and geopolitical value.
“We are opening new commercial routes and extending the trans-European transport network linking the Aegean Sea to the Danube and the Black Sea,” he said, noting that the project was a “big step” that allows the Balkan countries to be transformed into an area of economic prosperity.
Bulgaria’s PM Borissov said the region was starting with smaller things, referring to the infrastructure projects at the level of motorways and rail connections that are in progress. “If this plan is implemented, Kavala will be able to develop trade relations with the port of Ruse, and a large inland economy.” Ruse is the largest Bulgarian city on the Danube, with a road and railway bridge to Romania. Bucharest is only 60 km away. “We are looking at our [forthcoming EU Ed]presidency as a Balkan presidency. We have a rare chance to prove that there are reasonable people who will put an end to the contradictions, and from a powder keg, the region will become an area of prosperity”, PM Borissov said. He added: “With Alexis Tsipras we can play an important role in shaping a Balkan policy within the framework of the EU”.
Speaking on television, Olga Gerovasili, the Minister for Administrative Reconstruction, stressed that "just with the digital signature [The Digital Signature is a mathematical system used to prove the authenticity of a digital message or document Ed], the State is saving 200€ million. That is how we will get the rationalization of the public sector and not with redundancies."
On the reform of the Public Administration, she stressed that the Government has adopted a system of evaluation in the Public Sector that has objective and transparent criteria. The evaluation, she said, "must be objective and merit-based and must do away with the system of clientelism".
The reform of the Public Administration, she continued, "comes to improve relationships between the state, society, the citizen, undertaking a series of measures such as reducing bureaucracy, speeding up procedures, using the digital signature, etc."
"We are streamlining the State to make it friendly to the citizen and to business. The National Strategy for Administrative Reform aims to make the public administration a tool for development".
As an example of removing party political influence, she spoke of the upcoming competition in September for the posts of Ministerial General Secretaries.
As regards contracted staff, she reported that, within the framework of the financial obligations and commitments of the country, “appointments must be targeted and involve employees who have for years covered for fixed and permanent needs in the context of supporting the welfare State and the citizen.
Finally she underlined that "we want to rationalise the public sector and not to the increase it, so that it can serve as a tool for development".
Labour Legislation
The Bill on the Protection of Working People was adopted in principle by Parliamentary Committee. The parties of the Government Coalition voted in favour of the Bill, the Communist Party voted "present" [i.e. abstained Ed], while all the other parties reserved their positions for the Plenary meeting of Parliament when the Bill will be introduced for final voting.
Presenting the Articles of the Bill, Labour Minister Effie Achtsioglou spoke about the legislation being a positive sign for the society, "the Ministry of Labour’s first purely protective Bill since the beginning of the crisis until today" and she made specific reference to the three central principles, which are moving in that direction.
She referred to the Social Insurance system, which, as she said, is solving some chronic problems and is responding to legitimate demands of specific social groups.
Also, she focused on the reforms on labour issues, with separate provisions for undeclared, unpaid and underdeclared work and an extension of employment rights to groups which have not enjoyed them as they should have, as well as on provisions for the expansion of the rights of people with disabilities, which constitute the third axis of the Bill.
"Behind every one of the reforms in the Bill there are real stories of workers who need support," Minister Achtsioglou said. She announced that the Labour Inspectorate will be strengthened by a further 150 people, while under New Democracy, staff had been reduced by 200. She noted that rules existed in current employment law but previous Governments had not applied them.
"Those employers who have property but do not pay wages, after 15 days the employees will be able to claim part of that property".
Referring to the funding of the reforms, she said that a tranche of 7.5€ million had been authorised in order to strengthen a mixed range of checks but also to provide services where citizens can be informed of their rights.
She added that the EFKA [The Unified Social Security Service which is being formed by the merging of all former social insurance funds Ed] is in surplus and will support the effort of the Government.
Minister Achtsioglou noted that if a worker remains unpaid for months, they will be able to bring to the Labour Force Employment Organisation [ΟΑΕΔ Ed] an out-of-court statement against the employer and will receive unemployment pay, while it is expected that the trial date will be set a maximum period of 6 months ahead.
Referring to the financial burden on the OAED, the Minister said that the Government has decided to shift the risk to the Agency. "The OAED protects the employee and not the worker the OAED."
For the mentally ill who get an allowance or pension and who find work, she said they will continue to receive it.
PM Tsipras opens Ionian Highway
Officially inaugurating the Ionian Highway, a brand new road running across northwestern Greece, the PM Tsipras described it as “a strategic project for all Greece and the Epirus region, which upgrades the country’s role in the wider region.” “Projects such as this will help usher in a new era of equitable growth, whose benefits will spread all the way to the weakest members of society. The Ionian Highway which links up to the Egnatia Highway,he said, would help upgrade trade, tourism and transport for all western Greece and Epirus, lifting the region out of its present isolation.
The benefits from the Ionian Highway will be maximized if it is included in a wider plan, which includes the construction of a new port in Igoumenitsa, a connection linking the Ionian Highway with Preveza and Agrinio and its extension to Kakavia on the Greek-Albanian border, PM Tsipras stated.
The Prime Minister underlined that with the Ionian Highway, the airport of Ioannina is being upgraded into a hub airport for tourists. “The country is well on its way out of the economic crisis,” he stressed, adding that Greece is turning a page.
“A project of historic significance and enormous economic, commercial and geopolitical value”
On Wednesday (6th September) Greece and Bulgaria signed a Memorandum of Understanding for the construction of a high-speed railway, a project which aims to attract foreign investment and establish strong links in a region historically known for divisions and antagonism between neighbours.
Bulgaria’s Prime Minister Bouko Borissov met Alexis Tsipras in Kavala, northern Greece, and signed the agreement on a railway line that will connect three ports in Greece (Thessaloniki, Kavala, Alexandroupolis) with three Bulgarian ports (Burgas and Varna on the Black Sea and Ruse on the Danube).
The Bulgarian Government said the project, named “Sea2Sea”, was expected to attract huge investor interest from the Middle East, China, Russia and other major markets.
Speaking at a joint press conference after their meeting, Tsipras said it was a project of historic significance and enormous economic, commercial and geopolitical value.
“We are opening new commercial routes and extending the trans-European transport network linking the Aegean Sea to the Danube and the Black Sea,” he said, noting that the project was a “big step” that allows the Balkan countries to be transformed into an area of economic prosperity.
Bulgaria’s PM Borissov said the region was starting with smaller things, referring to the infrastructure projects at the level of motorways and rail connections that are in progress. “If this plan is implemented, Kavala will be able to develop trade relations with the port of Ruse, and a large inland economy.” Ruse is the largest Bulgarian city on the Danube, with a road and railway bridge to Romania. Bucharest is only 60 km away. “We are looking at our [forthcoming EU Ed]presidency as a Balkan presidency. We have a rare chance to prove that there are reasonable people who will put an end to the contradictions, and from a powder keg, the region will become an area of prosperity”, PM Borissov said. He added: “With Alexis Tsipras we can play an important role in shaping a Balkan policy within the framework of the EU”.
"The overriding focus of our strategy is the freeing of public administration from political party influence."
Alexis Tsipras
2.9.2017
"The national strategy for administrative reform is part of the overall plan for post-Memorandum Greece," said the Prime Minister in his speech at the Benaki Museum, in Athens. He added that "the ultimate goal of this plan is a Greece with its national sovereignty fully recovered ".
"The Administrative Reform will lay the foundations for a State that provides a real service to the citizen, a State that will bear no relationship to what we have experienced to date and with what we know today," he stressed.
"The concept of the State as loot and as a tool of clientelist management has continued for decades until the years of the crisis. This perception of the State as loot is shown today by the cunning and supposedly liberal cries of some for the application to the State of the constitutional protection of permanent unchangeability."
At the same time, he added, "in the years of crisis the State from being a "child of the system" became its "stepson", onto which some people tried to off-load their own sins. We saw the culmination of the attempt to incriminate the Public Administration collectively in 2015 when the current leader of New Democracy was the Minister when we learned that reform does not mean meritocracy but redundancies."
There have been positive steps, despite their being piecemeal, such as the establishment of the Supreme Council for Civil Personnel Selection (ΑΣΕΠ), the National School of Public Administration, of KEP and the establishment of Διαύγεια [the Government Information Website Ed].
"The overriding focus of our strategy is the freeing of public administration from political party influence."
"In the coming months Greece will become one of the first countries worldwide in which the process of licencing businesses will be fully digitized [computerised Ed]."
"From mid-2018 we will bring forward the announcement of written competitions through ΑΣΕΠ to attract young professionals to the Public Sector. We are seriously considering putting in place additional incentives for the repatriation of young graduates. By 2020 all transactions with the Public will be made electronically.
"With the reform which we are presenting for the first time with a holistic vision for the Administration and with the valuable contribution of France, we are on the way to laying the foundations for a structural reform of a historic character.
"Perhaps it constitutes a new beginning for the Greek State or, to put it more ambitiously, the beginning of a new Greek State.
"I don't want to say “why didn’t it happen for so many years”, but I will say that we believe in this, we will try and we will make it happen."
"The Administrative Reform will lay the foundations for a State that provides a real service to the citizen, a State that will bear no relationship to what we have experienced to date and with what we know today," he stressed.
"The concept of the State as loot and as a tool of clientelist management has continued for decades until the years of the crisis. This perception of the State as loot is shown today by the cunning and supposedly liberal cries of some for the application to the State of the constitutional protection of permanent unchangeability."
At the same time, he added, "in the years of crisis the State from being a "child of the system" became its "stepson", onto which some people tried to off-load their own sins. We saw the culmination of the attempt to incriminate the Public Administration collectively in 2015 when the current leader of New Democracy was the Minister when we learned that reform does not mean meritocracy but redundancies."
There have been positive steps, despite their being piecemeal, such as the establishment of the Supreme Council for Civil Personnel Selection (ΑΣΕΠ), the National School of Public Administration, of KEP and the establishment of Διαύγεια [the Government Information Website Ed].
"The overriding focus of our strategy is the freeing of public administration from political party influence."
"In the coming months Greece will become one of the first countries worldwide in which the process of licencing businesses will be fully digitized [computerised Ed]."
"From mid-2018 we will bring forward the announcement of written competitions through ΑΣΕΠ to attract young professionals to the Public Sector. We are seriously considering putting in place additional incentives for the repatriation of young graduates. By 2020 all transactions with the Public will be made electronically.
"With the reform which we are presenting for the first time with a holistic vision for the Administration and with the valuable contribution of France, we are on the way to laying the foundations for a structural reform of a historic character.
"Perhaps it constitutes a new beginning for the Greek State or, to put it more ambitiously, the beginning of a new Greek State.
"I don't want to say “why didn’t it happen for so many years”, but I will say that we believe in this, we will try and we will make it happen."
The national strategy for Administrative Reform 2017-2019
The Minister for Administrative Reconstruction, Olga Gerovasili presented "The National Strategy for Administrative Reform 2017-2019".
“Our policy is to combat every instance of clientelist logic and today we are giving answers as to how we see things and what we are doing to reform the present and the future of public administration.
So that the public administration is not an opaque mesh of bureaucratic mechanisms which for years has served the few. But, instead, to be an efficient, friendly, orderly, modern, productive and unbiased public institution, with its gaze exclusively directed to the needs of the many and to the public interest".
At a crucial turning point for the Greek economy, at a time when international rating agencies are certifying our upward trajectory, the administrative reorganisation comes to cure chronic pathologies, participating actively in the effort to achieve the reconstruction of the productive capacity of the country.
Believing deeply that human resources are crucial for the success of any national plan for the Public Administration, we have put in place and are implementing, with open and objective procedures, a set of actions which relate to the internal functioning of the public sector, such as Mobility, Assessment, the Registry of Staff Remuneration, the Selection of Senior Managers, Job Descriptions and Target-setting … We are investing in the promotion of the appropriate employee to the appropriate job.
The new reality in the operation of the State in 2020 will help to improve State-Citizen relations, gradually putting a collective, social stamp on the work of civil servants with an emphasis on efficiency, helpfulness, kindness, fairness and the protection of the dignity of those dealing with the public services.
The reform of the public sector does not pretend to be another spurious reform, nor a reform of a reform. We have all heard about reform many times and we have become addicted to doubt as a reflex when the political leadership proclaims reforms relating to the Public Administration. It is one of the worst residues left to us by the political system that ruled our country in previous years.
The same political system bequeathed to us rigid commitments and a suffocating stewardship, anticipating that we would not cope with the Assessments and that we would be a small left hiccup in modern political life. Anticipating that we would lose our social moorings, spreading propaganda that we are all the same.
As they were shown to be wrong in their planning for a left hiccup - and the era of Memoranda is ending once and for all as a result of our Government’s political handling - so they will be shown to be wrong also about us all being the same.”
The Minister for Administrative Reconstruction, Olga Gerovasili presented "The National Strategy for Administrative Reform 2017-2019".
“Our policy is to combat every instance of clientelist logic and today we are giving answers as to how we see things and what we are doing to reform the present and the future of public administration.
So that the public administration is not an opaque mesh of bureaucratic mechanisms which for years has served the few. But, instead, to be an efficient, friendly, orderly, modern, productive and unbiased public institution, with its gaze exclusively directed to the needs of the many and to the public interest".
At a crucial turning point for the Greek economy, at a time when international rating agencies are certifying our upward trajectory, the administrative reorganisation comes to cure chronic pathologies, participating actively in the effort to achieve the reconstruction of the productive capacity of the country.
Believing deeply that human resources are crucial for the success of any national plan for the Public Administration, we have put in place and are implementing, with open and objective procedures, a set of actions which relate to the internal functioning of the public sector, such as Mobility, Assessment, the Registry of Staff Remuneration, the Selection of Senior Managers, Job Descriptions and Target-setting … We are investing in the promotion of the appropriate employee to the appropriate job.
The new reality in the operation of the State in 2020 will help to improve State-Citizen relations, gradually putting a collective, social stamp on the work of civil servants with an emphasis on efficiency, helpfulness, kindness, fairness and the protection of the dignity of those dealing with the public services.
The reform of the public sector does not pretend to be another spurious reform, nor a reform of a reform. We have all heard about reform many times and we have become addicted to doubt as a reflex when the political leadership proclaims reforms relating to the Public Administration. It is one of the worst residues left to us by the political system that ruled our country in previous years.
The same political system bequeathed to us rigid commitments and a suffocating stewardship, anticipating that we would not cope with the Assessments and that we would be a small left hiccup in modern political life. Anticipating that we would lose our social moorings, spreading propaganda that we are all the same.
As they were shown to be wrong in their planning for a left hiccup - and the era of Memoranda is ending once and for all as a result of our Government’s political handling - so they will be shown to be wrong also about us all being the same.”
Forest Fires on Zakynthos
The recent wildfires on Zakynthos island were the work of arsonists, the Deputy Citizen Protection Minister Nikos Toskas said on Tuesday. Speaking on radio Real FM, he said that the number of fires that broke out simultaneously in different parts of the island indicated that there was an arson plan being carried out. He suggested that the arsonists may have being trying to create space for hotels in protected forest areas.
Specifically, the Deputy Minister said, 22 fires were recorded simultaneously on Zakynthos, the Ionian island, over the weekend, and that there had been 84 fires in total on the island this summer. The 18 fires that were burning on Tuesday were under control, with 200 firefighters remaining on alert.
He noted that most of the fires occurred in the northern part of the island, where, he said, there are plots that can be very profitable if they are built on.
The Deputy Minister revealed that firefighting helicopter pilots had reported seeing people trying to set fires. “In most cases the fires appear to have been the result of arson – this is what everything points to,” he said. However, he added, some of the fires were accidental.
The recent wildfires on Zakynthos island were the work of arsonists, the Deputy Citizen Protection Minister Nikos Toskas said on Tuesday. Speaking on radio Real FM, he said that the number of fires that broke out simultaneously in different parts of the island indicated that there was an arson plan being carried out. He suggested that the arsonists may have being trying to create space for hotels in protected forest areas.
Specifically, the Deputy Minister said, 22 fires were recorded simultaneously on Zakynthos, the Ionian island, over the weekend, and that there had been 84 fires in total on the island this summer. The 18 fires that were burning on Tuesday were under control, with 200 firefighters remaining on alert.
He noted that most of the fires occurred in the northern part of the island, where, he said, there are plots that can be very profitable if they are built on.
The Deputy Minister revealed that firefighting helicopter pilots had reported seeing people trying to set fires. “In most cases the fires appear to have been the result of arson – this is what everything points to,” he said. However, he added, some of the fires were accidental.
Preparing for the 82nd Thessaloniki Trade Fair
In his meeting with the Business Leaders of Thessaloniki, Prime Minister Alexis Tsipras made extensive reference to the positive course of the Greek economy.
He referred to the prospects of the country, especially in Northern Greece, after the completion of the Second Assessment, ahead of his speech at the opening of the 82nd Thessaloniki Trade Fair (TIF).
The PM reported on the positive situation of the Greek economy, the successful return to the Bond Markets, the upgrade of Greece by the Ratings Agencies, the improvement of the indicators of confidence in the Greek economy, as well as the improved macroeconomic indicators, improvements which are expected to be confirmed by the very positive trends of economic growth in the second and third quarter of 2017.
The Prime Minister described the current year as critical, while he also referred to the Greek Government’s objectives for the next period, after leaving the strict Stewardship. He picked out as significant the continuation of reforms in the public administration, in health, in education, in the markets and in services, while he also referred to the Government's efforts to attract capital and support Greek enterprises, in order to stimulate private investment, but also to strengthen public investment in the area of infrastructure.
With regard to the reduction of corporate and personal taxation, that was put forward by the Business Leaders’ representatives, the Prime Minister said that this is included in the countermeasures that the Government has already voted on. He added that the fiscal space, expected on the basis of the medium-term programme forecasts, after 2019, will be important and will be used for a further reduction of the rates of direct and indirect taxes.
He went on to refer to the measures to improve the business climate by opening up markets and services, further simplifying procedures for setting up companies, reducing bureaucracy and the beneficial effects of out-of-court settlements [of debts Ed].
On the key issue of financing business, he said the establishment of a Development Bank was extremely important as are the new tools for the financing of small and medium-sized enterprises.
Especially for Northern Greece and Thessaloniki, he stressed that the Government has changed the way it deals with the city, bringing forward projects that had become a joke, like the Thessaloniki Metro, the completion of the Tempe tunnel and the changes in the Thessaloniki Urban Transport Organization (ΟΑΣΘ). He pointed out that the resolution of chronic problems has been set in train and is being implemented, such as the extension of the runway of the airport, the northern links of the Egnatia Highway and the development of the city’s port.
More Positive Signs
The Greek Finance Ministry announced that on Wednesday the Government raised 1.138€ billion during the latest six-month Treasury Bill sale. The T-bills were sold at a 2.4% interest rate [The interest the Government must pay Ed], down from the 2.5% in the previous similar sale held a few weeks ago, according to the Public Debt Management Agency (PDMA).
Greece runs a monthly treasury bill auction in parallel with the three bailout programs launched between 2010 and 2015, in order to cover its financing needs.
On July 25th, the country made a successful first test return to bond markets in three years.
Greece has been shut out of international bond markets since 2010, and the Greek Government and foreign lenders expect it to fully return to those markets in 2018 when the current bailout programme ends.
Property Taxes
ΕΝΦΙΑ
The total amount of the Property Tax to be levied by the Treasury on a monthly basis from September 2017 to January 2018 is around 630€ million.
Statements showing each taxpayer’s Property Tax liability (ΕΝΦΙΑ) for 2017 have been posted on the Taxisnet website ( https://login.gsis.gr/sso/pages/login.jsp ).
Taxpayers will pay the tax in five instalments, the first at the end of September 2017 and the last by the end of January 2018.
Legalisation: Building Legalisations raise 1.9€ billion
More than a million applications have been submitted to legitimise infractions of zoning and building regulations since 2011, according to data from the Technical Chamber.
Legislation passed in 2011 and 2013 has led to the legalisation of violations, such as the conversion of balconies into rooms and a host of other infractions, concerning slightly more than a million properties.
The total revenue generated from the fees to legalize these constructions and additions currently stands at more than 1.9€ billion.
Under the present law, property owners can submit applications to legalize their buildings or additions made to them until September 23rd 2017.
Most of these legalizations – 274,111 – were in the Attica region and concern a total of 21 million square metres of property. Taking the average size of a home as 80 square meters, the total amount of violations would represent 267,500 homes. The lion’s share of infractions in Attica are in Eastern Attica, with 76,612 illegal constructions. Thessaloniki follows with 66,911 property owners having broken the rules, representing a total area of 6.2 million square metres. The neighboring popular holiday resort area of Halikidiki is also a bastion of zoning violations, with 27,232 recorded, representing a total area of 2.1 million square metres.
Larissa and Corinth are the other two mainland areas where zoning violations are rampant.
With regard to the islands, most infractions were reported on Crete, with 41,418 recorded zoning violations, representing 6 million square metres.
The island’s capital, Iraklion, is where the most – 16,338 – violations occurred, covering almost 3 million square metres.
The island of Evia follows close behind with 23,783 violations, ahead of the region covering Rhodes, Symi, Tilos, Halki and Kastelorizo in the southeastern Aegean.
A BREXIT Note
British pensioners who have retired to other EU countries will continue to have their healthcare paid for by the NHS post-Brexit, after a deal in principle was agreed by negotiators in Brussels.
In one of the few advances made in discussions about EU citizens’ future rights, the Brexit secretary, David Davis, said there had been agreement on reciprocal healthcare for British and EU retirees affected by BREXIT.
The agreement will also allow a British pensioner who has retired in another EU country to travel to other EU countries on holiday and use the existing European Health Insurance Card should they need medical attention.
In his meeting with the Business Leaders of Thessaloniki, Prime Minister Alexis Tsipras made extensive reference to the positive course of the Greek economy.
He referred to the prospects of the country, especially in Northern Greece, after the completion of the Second Assessment, ahead of his speech at the opening of the 82nd Thessaloniki Trade Fair (TIF).
The PM reported on the positive situation of the Greek economy, the successful return to the Bond Markets, the upgrade of Greece by the Ratings Agencies, the improvement of the indicators of confidence in the Greek economy, as well as the improved macroeconomic indicators, improvements which are expected to be confirmed by the very positive trends of economic growth in the second and third quarter of 2017.
The Prime Minister described the current year as critical, while he also referred to the Greek Government’s objectives for the next period, after leaving the strict Stewardship. He picked out as significant the continuation of reforms in the public administration, in health, in education, in the markets and in services, while he also referred to the Government's efforts to attract capital and support Greek enterprises, in order to stimulate private investment, but also to strengthen public investment in the area of infrastructure.
With regard to the reduction of corporate and personal taxation, that was put forward by the Business Leaders’ representatives, the Prime Minister said that this is included in the countermeasures that the Government has already voted on. He added that the fiscal space, expected on the basis of the medium-term programme forecasts, after 2019, will be important and will be used for a further reduction of the rates of direct and indirect taxes.
He went on to refer to the measures to improve the business climate by opening up markets and services, further simplifying procedures for setting up companies, reducing bureaucracy and the beneficial effects of out-of-court settlements [of debts Ed].
On the key issue of financing business, he said the establishment of a Development Bank was extremely important as are the new tools for the financing of small and medium-sized enterprises.
Especially for Northern Greece and Thessaloniki, he stressed that the Government has changed the way it deals with the city, bringing forward projects that had become a joke, like the Thessaloniki Metro, the completion of the Tempe tunnel and the changes in the Thessaloniki Urban Transport Organization (ΟΑΣΘ). He pointed out that the resolution of chronic problems has been set in train and is being implemented, such as the extension of the runway of the airport, the northern links of the Egnatia Highway and the development of the city’s port.
More Positive Signs
The Greek Finance Ministry announced that on Wednesday the Government raised 1.138€ billion during the latest six-month Treasury Bill sale. The T-bills were sold at a 2.4% interest rate [The interest the Government must pay Ed], down from the 2.5% in the previous similar sale held a few weeks ago, according to the Public Debt Management Agency (PDMA).
Greece runs a monthly treasury bill auction in parallel with the three bailout programs launched between 2010 and 2015, in order to cover its financing needs.
On July 25th, the country made a successful first test return to bond markets in three years.
Greece has been shut out of international bond markets since 2010, and the Greek Government and foreign lenders expect it to fully return to those markets in 2018 when the current bailout programme ends.
Property Taxes
ΕΝΦΙΑ
The total amount of the Property Tax to be levied by the Treasury on a monthly basis from September 2017 to January 2018 is around 630€ million.
Statements showing each taxpayer’s Property Tax liability (ΕΝΦΙΑ) for 2017 have been posted on the Taxisnet website ( https://login.gsis.gr/sso/pages/login.jsp ).
Taxpayers will pay the tax in five instalments, the first at the end of September 2017 and the last by the end of January 2018.
Legalisation: Building Legalisations raise 1.9€ billion
More than a million applications have been submitted to legitimise infractions of zoning and building regulations since 2011, according to data from the Technical Chamber.
Legislation passed in 2011 and 2013 has led to the legalisation of violations, such as the conversion of balconies into rooms and a host of other infractions, concerning slightly more than a million properties.
The total revenue generated from the fees to legalize these constructions and additions currently stands at more than 1.9€ billion.
Under the present law, property owners can submit applications to legalize their buildings or additions made to them until September 23rd 2017.
Most of these legalizations – 274,111 – were in the Attica region and concern a total of 21 million square metres of property. Taking the average size of a home as 80 square meters, the total amount of violations would represent 267,500 homes. The lion’s share of infractions in Attica are in Eastern Attica, with 76,612 illegal constructions. Thessaloniki follows with 66,911 property owners having broken the rules, representing a total area of 6.2 million square metres. The neighboring popular holiday resort area of Halikidiki is also a bastion of zoning violations, with 27,232 recorded, representing a total area of 2.1 million square metres.
Larissa and Corinth are the other two mainland areas where zoning violations are rampant.
With regard to the islands, most infractions were reported on Crete, with 41,418 recorded zoning violations, representing 6 million square metres.
The island’s capital, Iraklion, is where the most – 16,338 – violations occurred, covering almost 3 million square metres.
The island of Evia follows close behind with 23,783 violations, ahead of the region covering Rhodes, Symi, Tilos, Halki and Kastelorizo in the southeastern Aegean.
A BREXIT Note
British pensioners who have retired to other EU countries will continue to have their healthcare paid for by the NHS post-Brexit, after a deal in principle was agreed by negotiators in Brussels.
In one of the few advances made in discussions about EU citizens’ future rights, the Brexit secretary, David Davis, said there had been agreement on reciprocal healthcare for British and EU retirees affected by BREXIT.
The agreement will also allow a British pensioner who has retired in another EU country to travel to other EU countries on holiday and use the existing European Health Insurance Card should they need medical attention.
Lessons from the Wildfires:
“The essential point and the primary issue is not the emphasis on formalism and bureaucratic appearances but effectiveness”
26.8.2017
Rena Dourou, the Regional Governor of Attica, issued this statement:
“Over the last forty years we have experienced a particular "normality", which puts our country bottom in the ranking of EU countries in terms of its response to natural disasters. Now there has taken shape a singular, informal calendar on the basis of snowfall, fires and floods that acts as a catalyst to the detriment of local societies, undermining the present and future of citizens, destroying property and damaging the environment. The fact that we lament fewer and fewer fatalities is of course a positive – but constant alertness is a must, to start with by maintaining it and, secondly for the inclusion of the country in the real normality, that of effective interventions aimed at minimizing their negative consequences and preventing the repetition of mistakes. A common goal, for which the Region of Attica is working systematically with actions and proposals, must be the emergence from the vicious circle that citizens and the environment have been condemned to, the so-called "predetermined"- in winter or summer - snowfalls or forest fires.
Because the consequences of forest fires (as well as other natural disasters) can be prevented and limited provided there exists serious planning, preparedness, coordination and effective action. Obvious things, solved decades ago in other countries, but in our homeland they are part of a wider time lag and of the malfunctions of a Public Sector which for many years was used as a tool for the development of patronage of the parties in power and not as a mechanism for the healthy development of the country.
Overlapping responsibilities for taking action and of roles between the public bodies involved, whether it is about Central Government or the Local Authorities (the Regions, the Municipalities), the bureaucratic obstacles which act as a brake on the immediate implementation of decisions of the Administration, the unclear legal framework – these are the characteristics of this ailing State, characteristics which exist, on a small scale, when I it comes to tackling fires. This is the situation we need to correct. Already, this year the circular (2132/17.3.2017) of the General Secretariat for Civil Protection has attempted to clarify the roles and responsibilities of each institution concerned (Central Government, Regional Administrations, Local Authorities, Government Bodies). This is the starting point of a long-term serious and systematic course of action aimed at the effective cooperation of all agencies involved, whether it be Central Government bodies or decentralized institutions of Civil Protection of the Regions and the Municipalities, in connection with the existing institutional framework and with available fire protection resources.
In the Attica Region we are systematically implementing these statutory obligations with regard to prevention, preparedness, response and recovery from the consequences and damage from forest fires.
A key responsibility is the assistance of the Fire Department on the basis of its demands for the allocation of the necessary resources and equipment in the Region. So, in the recent fire in Eastern Attica, the Attica Region assisted the fire-fighting forces, at the request of the Fire Service, with 26 water wagons, 10 heavy earth-moving machines while tracked heavy earthmoving machinery of the army with special platforms transferred them to the frontline of the fires. Already the first decision to cover the related expenditure stands at 850,000€.
A responsibility of the Region is also to propose to the General Secretariat of Civil Protection the declaring of a state of emergency in an area – which the Region of Attica has done twice this summer (in the cases of Kythera and Oropos).
At the same time the level of prevention, the Attica Region has brought forward the establishment and operation, in each Regional Entity, the Coordinating Civil Protection Institutions (ΣΟΠΠ), for the deployment and coordinated action of the necessary resources and equipments for the prevention, preparedness, response and recovery from disasters - in the planning and implementation of projects for the prevention of fires along the road networks of its area of responsibility, in the preventive clearing of vegetation in forests and parks of its area, on the provision of information on civil protection activities for preventing forest fires, etc.
In terms of the damage to businesses and business premises (the responsibility for destroyed houses lies with the Municipalities), the Region of Attica has launched with effect from 14th August the relevant procedures of recording and valuing losses from the recent fire. At the same time it is the Region that submits a related request to the Ministry responsible for the demarcation of the affected areas (with the use of the data sent by the Municipalities).
Is this sufficient?
Despite the fact that Attica is moving both preventively, (e.g. is in process, as requested by the Fire Department, of supplying 35 fire vehicles of various types, following our decision to include the relevant Act, with a 5€ million budget, in the Operational Programme of Attica 2014 – 2020), the response cannot be positive because we must go beyond the formal approach that ignores the substance. The essential point and the primary issue is not the emphasis on formalism and bureaucratic appearances but effectiveness. Effectiveness achieved through the demonstration of the role of the Regions, on the basis of harmonised cooperation with other services involved, in dealing with a natural disaster like fires, which does not forgive incomplete prevention, negligence in decision-making, or lack of implementation.
So for the effective prevention and management of forest fires, the Attica Region submits for public debate these specific proposals/interventions.
For example:
1. The institutional clarification, with the publication of a relevant circular by the General Secretariat for Civil Protection, of the role and responsibilities of each service involved (the Fire Brigade, Civil Protection Volunteer Groups, the Regions, the Municipalities, Forest Authorities,the Police, the Armed Forces) in relation to the decision and implementation of preventive exclusion of traffic and the exclusion of citizens from woodlands, forests and "vulnerable areas".
2. The activation, either with a relevant Presidential Decree or by a normal decision of the Minister of the Interior, of the operation of the Metropolitan Coordinating Institution of Civil Protection, already provided for in article 210 of the Kallikrates Law (N. 3852/2010) the appropriate operating standards and competences of which, given the metropolitan scope of the Attica Region’s operations are pending publication by the Ministry.
Also:
3. The implementation, with special legislation, of the long-standing demand by voluntary organisations of Civil Protection for the elimination or reduction of the road tax for fire-fighting vehicles used in emergency situations, since the assistance of volunteers in tackling fires is a social contribution for the protection of the environment and of the property of citizens.
4. The activation, by a normal decision of the Ministry of the Interior, of the legislated provision (Article 115 of Law 4249/2014), that exists for funding of the Regions during the fire season
5. The activation, by decision of the Ministry responsible, of the provision of Article 118 of Law 4249/2014 on the establishment and functioning of the National School of Civil Protection for the training of Civil Protection volunteers and officers based on European standards,
6. The establishment, with special legislation, of the obligation to support voluntary organisations of civil protection which are included in the a register of the General Secretariat for Civil Protection.
These are some suggestions that might help, not just to solve a "problem", but to lay the groundwork for overcoming a chronic malaise of the Public Service. Because tackling forest fires has a twofold meaning. It presents both a significant challenge to the environment and the very functioning of public administration. It relates to the future of our country. Precisely for these reasons we cannot afford to lose this challenge.”
“Over the last forty years we have experienced a particular "normality", which puts our country bottom in the ranking of EU countries in terms of its response to natural disasters. Now there has taken shape a singular, informal calendar on the basis of snowfall, fires and floods that acts as a catalyst to the detriment of local societies, undermining the present and future of citizens, destroying property and damaging the environment. The fact that we lament fewer and fewer fatalities is of course a positive – but constant alertness is a must, to start with by maintaining it and, secondly for the inclusion of the country in the real normality, that of effective interventions aimed at minimizing their negative consequences and preventing the repetition of mistakes. A common goal, for which the Region of Attica is working systematically with actions and proposals, must be the emergence from the vicious circle that citizens and the environment have been condemned to, the so-called "predetermined"- in winter or summer - snowfalls or forest fires.
Because the consequences of forest fires (as well as other natural disasters) can be prevented and limited provided there exists serious planning, preparedness, coordination and effective action. Obvious things, solved decades ago in other countries, but in our homeland they are part of a wider time lag and of the malfunctions of a Public Sector which for many years was used as a tool for the development of patronage of the parties in power and not as a mechanism for the healthy development of the country.
Overlapping responsibilities for taking action and of roles between the public bodies involved, whether it is about Central Government or the Local Authorities (the Regions, the Municipalities), the bureaucratic obstacles which act as a brake on the immediate implementation of decisions of the Administration, the unclear legal framework – these are the characteristics of this ailing State, characteristics which exist, on a small scale, when I it comes to tackling fires. This is the situation we need to correct. Already, this year the circular (2132/17.3.2017) of the General Secretariat for Civil Protection has attempted to clarify the roles and responsibilities of each institution concerned (Central Government, Regional Administrations, Local Authorities, Government Bodies). This is the starting point of a long-term serious and systematic course of action aimed at the effective cooperation of all agencies involved, whether it be Central Government bodies or decentralized institutions of Civil Protection of the Regions and the Municipalities, in connection with the existing institutional framework and with available fire protection resources.
In the Attica Region we are systematically implementing these statutory obligations with regard to prevention, preparedness, response and recovery from the consequences and damage from forest fires.
A key responsibility is the assistance of the Fire Department on the basis of its demands for the allocation of the necessary resources and equipment in the Region. So, in the recent fire in Eastern Attica, the Attica Region assisted the fire-fighting forces, at the request of the Fire Service, with 26 water wagons, 10 heavy earth-moving machines while tracked heavy earthmoving machinery of the army with special platforms transferred them to the frontline of the fires. Already the first decision to cover the related expenditure stands at 850,000€.
A responsibility of the Region is also to propose to the General Secretariat of Civil Protection the declaring of a state of emergency in an area – which the Region of Attica has done twice this summer (in the cases of Kythera and Oropos).
At the same time the level of prevention, the Attica Region has brought forward the establishment and operation, in each Regional Entity, the Coordinating Civil Protection Institutions (ΣΟΠΠ), for the deployment and coordinated action of the necessary resources and equipments for the prevention, preparedness, response and recovery from disasters - in the planning and implementation of projects for the prevention of fires along the road networks of its area of responsibility, in the preventive clearing of vegetation in forests and parks of its area, on the provision of information on civil protection activities for preventing forest fires, etc.
In terms of the damage to businesses and business premises (the responsibility for destroyed houses lies with the Municipalities), the Region of Attica has launched with effect from 14th August the relevant procedures of recording and valuing losses from the recent fire. At the same time it is the Region that submits a related request to the Ministry responsible for the demarcation of the affected areas (with the use of the data sent by the Municipalities).
Is this sufficient?
Despite the fact that Attica is moving both preventively, (e.g. is in process, as requested by the Fire Department, of supplying 35 fire vehicles of various types, following our decision to include the relevant Act, with a 5€ million budget, in the Operational Programme of Attica 2014 – 2020), the response cannot be positive because we must go beyond the formal approach that ignores the substance. The essential point and the primary issue is not the emphasis on formalism and bureaucratic appearances but effectiveness. Effectiveness achieved through the demonstration of the role of the Regions, on the basis of harmonised cooperation with other services involved, in dealing with a natural disaster like fires, which does not forgive incomplete prevention, negligence in decision-making, or lack of implementation.
So for the effective prevention and management of forest fires, the Attica Region submits for public debate these specific proposals/interventions.
For example:
1. The institutional clarification, with the publication of a relevant circular by the General Secretariat for Civil Protection, of the role and responsibilities of each service involved (the Fire Brigade, Civil Protection Volunteer Groups, the Regions, the Municipalities, Forest Authorities,the Police, the Armed Forces) in relation to the decision and implementation of preventive exclusion of traffic and the exclusion of citizens from woodlands, forests and "vulnerable areas".
2. The activation, either with a relevant Presidential Decree or by a normal decision of the Minister of the Interior, of the operation of the Metropolitan Coordinating Institution of Civil Protection, already provided for in article 210 of the Kallikrates Law (N. 3852/2010) the appropriate operating standards and competences of which, given the metropolitan scope of the Attica Region’s operations are pending publication by the Ministry.
Also:
3. The implementation, with special legislation, of the long-standing demand by voluntary organisations of Civil Protection for the elimination or reduction of the road tax for fire-fighting vehicles used in emergency situations, since the assistance of volunteers in tackling fires is a social contribution for the protection of the environment and of the property of citizens.
4. The activation, by a normal decision of the Ministry of the Interior, of the legislated provision (Article 115 of Law 4249/2014), that exists for funding of the Regions during the fire season
5. The activation, by decision of the Ministry responsible, of the provision of Article 118 of Law 4249/2014 on the establishment and functioning of the National School of Civil Protection for the training of Civil Protection volunteers and officers based on European standards,
6. The establishment, with special legislation, of the obligation to support voluntary organisations of civil protection which are included in the a register of the General Secretariat for Civil Protection.
These are some suggestions that might help, not just to solve a "problem", but to lay the groundwork for overcoming a chronic malaise of the Public Service. Because tackling forest fires has a twofold meaning. It presents both a significant challenge to the environment and the very functioning of public administration. It relates to the future of our country. Precisely for these reasons we cannot afford to lose this challenge.”
Fitch Ratings – “Outlook for the Greek economy positive”
Credit Rating Agency, Fitch Ratings - a company that assigns credit ratings on the basis of a debtor's ability to make timely interest payments to repay debt and the likelihood of their default, upgraded Greece’s credit rating from CCC to B- on Friday [18.8.2017].
Greece’s Third Bailout Programme Assessment is due in the autumn and Fitch Ratings said that the outlook for the Greek economy was positive and that it expects talks with the country’s international creditors to be concluded “without creating instability.”
According to Fitch, the Eurogroup is expected to grant Greece substantial debt relief next year. That would boost market confidence and help Greece finance itself directly by issuing bonds after its current bailout programme ends in August 2018.
Furthermore, Fitch said Greece’s political situation had become more stable and that there was “limited” risk that the government would not implement the necessary austerity reforms.
Fitch predicts that Greek debt sustainability would improve as the country is complying to the European Stability Mechanism rules. Furthermore, the ESM will take over the more expensive loans from the IMF. It also considers positive the “development clause” that links Greek economic growth with debt relief measures.
Fitch noted that Greece’s public finances are improving, with a Primary Surplus of 3.9% of GDP in 2016 versus an ESM programme target of 0.5%. Fitch is projecting that the Greek Government will have an average Primary Surplus of 2.8% of GDP from 2017 to 2019. Other positives were also cited. These included pent-up investment demand and a declining unemployment rate. A continued clearance of government arrears are also said to be setting the stage to support domestic demand. Externally, growth recovery in the Euro zone is expected to support Greece’s export performance.
The yield [ie the interest Greece must pay Ed] on Greek Government bonds fell to 3.25%, close to its lowest level since 2009, following the announcement.
The Finance Ministry issued a statement: "The Government is continuing to work at a steady pace and with the aim of achieving equitable growth, so that the world of work, which bore the brunt of the crisis, shares in the benefits of development."
Dealing with Tax Evasion
Managers and staff at a taverna in the Cretan port of Iraklion on Tuesday threatened and heckled tax inspectors from the Independent Authority for Public Revenue (IAPR) who visited the premises to conduct an on-the-spot check. The inspectors reported the incident to the local police who escorted them on a second visit to the premises which resulted in the imposition of a fine for failing to issue receipts.
The restaurant will remain closed until the penalty is paid.
The incident came just days after IAPR chief Giorgos Pitsilis announced that laws aimed at protecting Greek tax inspectors will be tightened following a spate of cases involving business owners threatening officials.
Credit Rating Agency, Fitch Ratings - a company that assigns credit ratings on the basis of a debtor's ability to make timely interest payments to repay debt and the likelihood of their default, upgraded Greece’s credit rating from CCC to B- on Friday [18.8.2017].
Greece’s Third Bailout Programme Assessment is due in the autumn and Fitch Ratings said that the outlook for the Greek economy was positive and that it expects talks with the country’s international creditors to be concluded “without creating instability.”
According to Fitch, the Eurogroup is expected to grant Greece substantial debt relief next year. That would boost market confidence and help Greece finance itself directly by issuing bonds after its current bailout programme ends in August 2018.
Furthermore, Fitch said Greece’s political situation had become more stable and that there was “limited” risk that the government would not implement the necessary austerity reforms.
Fitch predicts that Greek debt sustainability would improve as the country is complying to the European Stability Mechanism rules. Furthermore, the ESM will take over the more expensive loans from the IMF. It also considers positive the “development clause” that links Greek economic growth with debt relief measures.
Fitch noted that Greece’s public finances are improving, with a Primary Surplus of 3.9% of GDP in 2016 versus an ESM programme target of 0.5%. Fitch is projecting that the Greek Government will have an average Primary Surplus of 2.8% of GDP from 2017 to 2019. Other positives were also cited. These included pent-up investment demand and a declining unemployment rate. A continued clearance of government arrears are also said to be setting the stage to support domestic demand. Externally, growth recovery in the Euro zone is expected to support Greece’s export performance.
The yield [ie the interest Greece must pay Ed] on Greek Government bonds fell to 3.25%, close to its lowest level since 2009, following the announcement.
The Finance Ministry issued a statement: "The Government is continuing to work at a steady pace and with the aim of achieving equitable growth, so that the world of work, which bore the brunt of the crisis, shares in the benefits of development."
Dealing with Tax Evasion
Managers and staff at a taverna in the Cretan port of Iraklion on Tuesday threatened and heckled tax inspectors from the Independent Authority for Public Revenue (IAPR) who visited the premises to conduct an on-the-spot check. The inspectors reported the incident to the local police who escorted them on a second visit to the premises which resulted in the imposition of a fine for failing to issue receipts.
The restaurant will remain closed until the penalty is paid.
The incident came just days after IAPR chief Giorgos Pitsilis announced that laws aimed at protecting Greek tax inspectors will be tightened following a spate of cases involving business owners threatening officials.
Henry Dunant Hospital Scandal
Anti-corruption investigator M.Tsironis, who ordered Andreas Martinis, the former Chairman of the "Henry Dunant" Hospital to be detained in prison, reversed his previous decision and instead imposed restrictions forbidding him to leave the country and his compulsory appearance twice a month at the Police Department of the region of his residence.
Mr. Martinis was released after 15 months in prison because he is suffering from serious health problems. In a request for bail presented on 31st July, the former President of the Henry Dunant referred again to his serious health problems which were confirmed by documents from the Disability Verification Centre (ΚΕΠΑ), according to which he has more than a 75% disability.
Andreas Martinis has twice been remanded in custody, once standing accused of bribery in a case involving “Hospitalia International” and then again for malpractice in providing hospitalization services at the “Henry Dunant” to prominent politicians, Media figures and others either with "unprofitable" discounts on the cost or completely free, practices which according to the indictment cost the Foundation 1.75€ million.
Mr. Martinis maintains that the millions of euros which he had allegedly taken in bribes from the company “Hospitalia International” is legal money and came from his wife's assets.
Anti-corruption investigator M.Tsironis, who ordered Andreas Martinis, the former Chairman of the "Henry Dunant" Hospital to be detained in prison, reversed his previous decision and instead imposed restrictions forbidding him to leave the country and his compulsory appearance twice a month at the Police Department of the region of his residence.
Mr. Martinis was released after 15 months in prison because he is suffering from serious health problems. In a request for bail presented on 31st July, the former President of the Henry Dunant referred again to his serious health problems which were confirmed by documents from the Disability Verification Centre (ΚΕΠΑ), according to which he has more than a 75% disability.
Andreas Martinis has twice been remanded in custody, once standing accused of bribery in a case involving “Hospitalia International” and then again for malpractice in providing hospitalization services at the “Henry Dunant” to prominent politicians, Media figures and others either with "unprofitable" discounts on the cost or completely free, practices which according to the indictment cost the Foundation 1.75€ million.
Mr. Martinis maintains that the millions of euros which he had allegedly taken in bribes from the company “Hospitalia International” is legal money and came from his wife's assets.
Prime Minister Tsipras expresses gratitude to firefighters
on behalf of Greek society
19.08.2017
Prime Minister Alexis Tsipras visited the areas in eastern Attica affected by the major fires.
He flew over the burnt areas in a military helicopter. He then visited the fire ravaged area where he spoke with Fire Department representatives as well as EMAK forces – the Special Rescue Unit.
By radio, the Prime Minister addressed all the firefighters who are on stand by across the wider region in case other fires occur due to the wind. He expressed thanks and gratitude on behalf of Greek society as a whole.
Afterwards, PM Tsipras convened a meeting at the Maximos Mansion where support, in the form of compensation and tax relief, was decided for the victims. Flood protection works and initiatives for the restoration of the burned forest areas were also decided.
The meeting, chaired by the Prime Minister, was attended by the Ministers of Interior, Digital Policy, Infrastructure and Transport, Panos Skourletis, Nikos Pappas, Christos Spirtzis, the Deputy Ministers for the Protection of the Citizen and the Environment, Nikos Toskas and Socrates Famelos respectively, as well as the Ministers of State Alekos Flambouraris and Dimitris Tzanakopoulos. Rena Dourou, Attica Regional Governor, was also present.
Deputy Minister of Environment and Energy Socrates Fammelos made a statement to morning radio in which he stressed that the forest maps are not affected by the fires, the burned areas are declared readily re-developable and their potential use is not changed. The goal - he added - is to prevent all causes of the fires.
“All findings of the Fire Brigade will be evaluated to give a full picture of the causes of the fires. Fires are not only a natural phenomenon, but to a large extent they are due to people and we must take into account both of these points. We are alert to abuses of forested areas”, the Deputy Minister said.
He flew over the burnt areas in a military helicopter. He then visited the fire ravaged area where he spoke with Fire Department representatives as well as EMAK forces – the Special Rescue Unit.
By radio, the Prime Minister addressed all the firefighters who are on stand by across the wider region in case other fires occur due to the wind. He expressed thanks and gratitude on behalf of Greek society as a whole.
Afterwards, PM Tsipras convened a meeting at the Maximos Mansion where support, in the form of compensation and tax relief, was decided for the victims. Flood protection works and initiatives for the restoration of the burned forest areas were also decided.
The meeting, chaired by the Prime Minister, was attended by the Ministers of Interior, Digital Policy, Infrastructure and Transport, Panos Skourletis, Nikos Pappas, Christos Spirtzis, the Deputy Ministers for the Protection of the Citizen and the Environment, Nikos Toskas and Socrates Famelos respectively, as well as the Ministers of State Alekos Flambouraris and Dimitris Tzanakopoulos. Rena Dourou, Attica Regional Governor, was also present.
Deputy Minister of Environment and Energy Socrates Fammelos made a statement to morning radio in which he stressed that the forest maps are not affected by the fires, the burned areas are declared readily re-developable and their potential use is not changed. The goal - he added - is to prevent all causes of the fires.
“All findings of the Fire Brigade will be evaluated to give a full picture of the causes of the fires. Fires are not only a natural phenomenon, but to a large extent they are due to people and we must take into account both of these points. We are alert to abuses of forested areas”, the Deputy Minister said.
The Government returns to work next week with preparations for two key events at the top of its agenda: a visit by French President Emmanuel Macron scheduled for September 7th and 8th and Prime Minister Alexis Tsipras’s speech at the Thessaloniki International Fair (TIF) a few days after that.
For the first time in more than two years, the focus of those meetings will not be economic reforms being demanded by creditors but will be an attempt to shape a new narrative of opening the country up to investment.
A scheduled visit by Macron to Athens in the first week of September, which was confirmed by his office on Thursday, is expected to bolster that narrative as the French President and his administration have supported Greek calls for debt relief and the easing of austerity policies championed by the German Government.
According to sources at the Elysee Palace quoted by Reuters, Macron is aiming to build momentum behind a drive to deepen European integration. His aides said the French leader has a “very European” agenda starting next week with scheduled trips to Austria, Romania and Bulgaria before plans to host the leaders of Germany, Spain and Italy the week after.
On the weekend of September 9th and 10th, PM Tsipras will address the country’s political and business leaders elite at the Thessaloniki International Fair (TIF).
Sources close to the PM have indicated that he will announce investment plans, either during Macron’s visit or in his Thessaloniki speech. It is likely that Tsipras will be in a position to unveil concrete details about the interest of French companies in the Thessaloniki Port Authority by that time.
Meanwhile, the next series of regional conferences are being planned which aim to assess the economic priorities of different regions as part of a broader goal to boost growth. The first two events were held in recent weeks in Kozani, northern Greece, and the central town of Lamia. Next on the agenda will be Crete, followed by Thrace and Thessaly.
Debts to the Greek State pursued
In an effort to catch up with some 3.8 million taxpayers who owe an estimated total of 95€ billion in overdue debts to the Greek state, the Independent Authority for Public Revenue is intensifying inspections on all those whose arrears exceed 500€, accessing their bank accounts and Land Registry details.
To collect much-needed revenue, the Finance Ministry is planning a new crackdown on debtors – both individuals and companies. The Ministry’s will focus its efforts first on those who clearly have the money to pay their debts but are choosing not to, before moving on to those who are in financial difficulties.
The Ministry is sending out notices as soon as a debt becomes overdue. The scheme aims to link the Ministry’s public revenue service to the Land Register to ensure that inspectors have an overview of the properties owned by debtors. In the event that there are no available deposits in bank accounts, tax authorities will have the option of seizing debtors’ properties.
“For the first time, we will have a full picture of the properties of taxpayers which could potentially lead to the imposition of taxes for those who have forgotten to declare them on the tax office’s E9 form,” the revenue authority said in a statement.
Authorities will also have access to insurance company data.
In the second phase of the scheme, Greek authorities will seek to exchange information with their counterparts in other countries about debtors’ foreign bank accounts.
For the first time in more than two years, the focus of those meetings will not be economic reforms being demanded by creditors but will be an attempt to shape a new narrative of opening the country up to investment.
A scheduled visit by Macron to Athens in the first week of September, which was confirmed by his office on Thursday, is expected to bolster that narrative as the French President and his administration have supported Greek calls for debt relief and the easing of austerity policies championed by the German Government.
According to sources at the Elysee Palace quoted by Reuters, Macron is aiming to build momentum behind a drive to deepen European integration. His aides said the French leader has a “very European” agenda starting next week with scheduled trips to Austria, Romania and Bulgaria before plans to host the leaders of Germany, Spain and Italy the week after.
On the weekend of September 9th and 10th, PM Tsipras will address the country’s political and business leaders elite at the Thessaloniki International Fair (TIF).
Sources close to the PM have indicated that he will announce investment plans, either during Macron’s visit or in his Thessaloniki speech. It is likely that Tsipras will be in a position to unveil concrete details about the interest of French companies in the Thessaloniki Port Authority by that time.
Meanwhile, the next series of regional conferences are being planned which aim to assess the economic priorities of different regions as part of a broader goal to boost growth. The first two events were held in recent weeks in Kozani, northern Greece, and the central town of Lamia. Next on the agenda will be Crete, followed by Thrace and Thessaly.
Debts to the Greek State pursued
In an effort to catch up with some 3.8 million taxpayers who owe an estimated total of 95€ billion in overdue debts to the Greek state, the Independent Authority for Public Revenue is intensifying inspections on all those whose arrears exceed 500€, accessing their bank accounts and Land Registry details.
To collect much-needed revenue, the Finance Ministry is planning a new crackdown on debtors – both individuals and companies. The Ministry’s will focus its efforts first on those who clearly have the money to pay their debts but are choosing not to, before moving on to those who are in financial difficulties.
The Ministry is sending out notices as soon as a debt becomes overdue. The scheme aims to link the Ministry’s public revenue service to the Land Register to ensure that inspectors have an overview of the properties owned by debtors. In the event that there are no available deposits in bank accounts, tax authorities will have the option of seizing debtors’ properties.
“For the first time, we will have a full picture of the properties of taxpayers which could potentially lead to the imposition of taxes for those who have forgotten to declare them on the tax office’s E9 form,” the revenue authority said in a statement.
Authorities will also have access to insurance company data.
In the second phase of the scheme, Greek authorities will seek to exchange information with their counterparts in other countries about debtors’ foreign bank accounts.
Action on Plastic Bags
From January 1st 2018, 3 cents will be charged for lightweight plastic bags such as those currently given away at supermarkets and other stores. The charge will rise to 7 cents from January 1st 2019.
The aim of the measure is to drastically reduce the number of plastic bags in Greece. At the moment each person in Greece uses an average of nearly 400 plastic bags per year. Authorities want to reduce this number to 90 by 2020.
The special charge that will apply from next year will be collected by the Independent Authority for Public Revenue (AADE) and the funds will then be transferred to the Hellenic Recycling Agency (EOAN). If there are problems meeting the targets that have been set, the sale of some types of bags may be banned completely.
The measure, agreed by the Finance Ministry and AADE, relates to polythene bags whose thickness is no more than 50 microns. Businesses will be allowed to charge customers for thicker carrier bags, measuring between 50 and 70 microns. Retailers will be allowed to provide customers with free reusable bags as long as this is part of a scheme to collect lightweight plastic bags so they can be recycled.
The decision taken by authorities also bans the use of oxo-degradable bags as these are deemed to contribute to pollution when they break up into smaller particles. Biodegradable bags can continue to be supplied to customers free of charge.
Kiosks and other outdoor businesses, such as produce sellers at open-air markets, will be able to continue to provide their customers with lightweight plastic bags free of charge after January 1st next year. However, the carrier bags that they provide will have to have a serial number and a sign that displays the place and time of production, as well as the producer’s ID number from the national registry.
If businesses are found to be ignoring the new regulation, they face fines of between 200€ and 5,000€. Producers of plastic bags can be fined between 1,000€ and 10,000€ if they do not comply.
The funds raised by the environmental charge, as well as any fines collected, will be used by EOAN to provide incentives for the wider use of reusable bags and to run awareness programmes in association with the Municipalities.
From January 1st 2018, 3 cents will be charged for lightweight plastic bags such as those currently given away at supermarkets and other stores. The charge will rise to 7 cents from January 1st 2019.
The aim of the measure is to drastically reduce the number of plastic bags in Greece. At the moment each person in Greece uses an average of nearly 400 plastic bags per year. Authorities want to reduce this number to 90 by 2020.
The special charge that will apply from next year will be collected by the Independent Authority for Public Revenue (AADE) and the funds will then be transferred to the Hellenic Recycling Agency (EOAN). If there are problems meeting the targets that have been set, the sale of some types of bags may be banned completely.
The measure, agreed by the Finance Ministry and AADE, relates to polythene bags whose thickness is no more than 50 microns. Businesses will be allowed to charge customers for thicker carrier bags, measuring between 50 and 70 microns. Retailers will be allowed to provide customers with free reusable bags as long as this is part of a scheme to collect lightweight plastic bags so they can be recycled.
The decision taken by authorities also bans the use of oxo-degradable bags as these are deemed to contribute to pollution when they break up into smaller particles. Biodegradable bags can continue to be supplied to customers free of charge.
Kiosks and other outdoor businesses, such as produce sellers at open-air markets, will be able to continue to provide their customers with lightweight plastic bags free of charge after January 1st next year. However, the carrier bags that they provide will have to have a serial number and a sign that displays the place and time of production, as well as the producer’s ID number from the national registry.
If businesses are found to be ignoring the new regulation, they face fines of between 200€ and 5,000€. Producers of plastic bags can be fined between 1,000€ and 10,000€ if they do not comply.
The funds raised by the environmental charge, as well as any fines collected, will be used by EOAN to provide incentives for the wider use of reusable bags and to run awareness programmes in association with the Municipalities.
"The Organisation and Functioning of Higher Education, Arrangements for Research"
12.8.2017
Following the successful passing of the Government’s Higher Education Bill by Parliament, Minister of Education, Research & Religious Affairs, Kostas Gavroglou gave this interview last week.
"When all is said and done, is the Left opposed to excellence? On the occasion of the decision for the standard bearer [in parades on National Days Ed] to be identified in Primary Schools by lottery, from the first moment, New Democracy spoke about "the leadership of the Ministry of Education being faithful to the dogma of levelling downwards"; the River party talked about an ideological allergy to any form of recognition and excellence etc.
These are the words of those who really fear excellence and so they trivialize it. How many times we have called on them to take a position publicly about a phenomenon that every Greek family knows: are there or are not parents who oppressively pressurise teachers to give their children grades which they do not qualify for? A few parents, but enough to create many problems for teachers. The result is to have a large number of "Ariston" [“Excellent” Ed] and today there is a lottery to distinguish between them. Is this excellence? Why don't the Opposition denounce these phenomena? Why don’t they protect teachers? Why may a child with a disability not be able to become a standard-bearer? And why should the responsibility not be shared and in that way respect for the flag shared by all the children of the class, tomorrow's citizens with the same rights and the same obligations? The Left is primarily in favour of social justice and equal opportunities for all, especially when talking about a social good like education. A sense of fair play must be cultivated but in terms of a moral code of values rather than in terms of market forces. Our school system is not Darwinian. And it does not have to be."
Our aim must be to discover the different interests and skills of each student and in this framework to strive for excellence.
Education aims to cultivate learning in all citizens. This is our basic starting difference with the neoliberalism of today’s New Democracy of Mr. Mitsotakis.
Excellence for us is for all children to be able to get an education at school, whichever one suits them, and above all, for them to be able to get the experience of the joy of knowledge."
What is the most important change in relation to the existing law for the universities?
"The change in philosophy. It is the first law since the 1974 law that goes into not just administrative arrangements, but establishes new institutions and sets up procedures that ensure a genuine accessibility of Higher Education. The creation of Regional Academic Councils with the participation in them of representatives of the Universities, Institutions of Technical Education (ΤΕΙs) and Research Centres, the establishment in each Higher Educational Institution of a Training Centre and a Centre for Life-Long Learning, the possibility of establishing biennial structures for providing accreditation for professional European certificate qualifications and the route-map of procedures for sorting out the professional rights of Higher Education graduates are some of the innovations in the law to ensure the further strengthening of relationships between Higher Education and the society. The image of deregulation brought by the previous law has led the Universities to the brink of dissolution. It had to change. And this we have done by legislating academic rules.
There are many important changes relating to the Higher Education and therefore society. I don't want to single out any single one of these important changes, since together all constitute a single whole with which our policy is marked. We are establishing academic rules restoring once more the significance of the public University and barring the way for those who off their own bat use the institution of the University for their own benefit. The law gives for the first time the ability to register for Postgraduate Programmes without the economically disadvantaged students paying tuition fees. At the same time it obliges those graduate programmes needing additional staff to first approach young scientists. It satisfies a decades’ old demand by Polytechnics for the academic upgrading of their five-year degrees and it creates the conditions for the definitive arrangement of the professional rights of Engineering graduates of Higher Education. It provides university departments with the possibility of setting up undergraduate foreign language studies in collaboration with the International University, where they meet certain academic criteria. It restores the democratic achievement of the University asylum for ideas and the student representation on governing bodies, the establishment of the Chancellor’s Council and the participation of all sections in the University Senate. It introduces for the first time the Regional Academic Councils in which the representatives of the Universities, the Institutions of Technical Education (ΤΕΙs) and the Research Centres will participate together in every region of the country.
It is the first law that launches the gradual creation of a Single Sector of Higher Education and Research. It establishes, in every University and Institute of Technical Education (TEI), Training and Lifelong Learning Centres. Lifelong learning is for the first time normalized under the scientific supervision of Higher Education Institutions. It sets down the election of Chancellors and Vice-Chancellors on separate ballots, ensuring the widest representatiion on the University body.
New Democracy has said a lot - and inexcusably so in certain cases - during the whole time the public debate on the Bill was going on. And unfortunately they also said it in Parliament. No one understood what New Democracy wanted. Don’t they want to change anything in the Postgraduate Studies Programme? Don’t they want to change anything in the way it is administered? Don’t they want the new institutions that we are establishing to ensure outward orientation, institutions like the Regional Academic Councils and the biennial structures that will provide professional accreditation? Don’t they want the National Council for Education and Human Resources? Do they want everyone regardless of their financial situation to pay tuition fees? Do they want the tuition fees on Postgraduate Programmes at a public University to be determined on the basis of demand rather than on cost as we are proposing? And New Democracy accuses us of being backward-looking? Have they understood exactly what they are defending?
Let's be very clear and let New Democracy understand. We will do our utmost to upgrade the public universities. And we will demonstrate every kinds of resistance to their gradual privatisation.
Declare a champion of consensus in the area of Education.
It is difficult but we will strive for a consensus. I have said many times and on each occasion that consensus does not mean complete unanimity. But on all those educational issues on which we can agree, let us agree and take a step forward. Unfortunately, I see that in this political bloc of New Democracy, the Democratic Coalition [PASOK, the Democratic Left and the Movement of Democratic Socialists (KIDISO) ] and the River, an extreme nationalist-populist and neoliberal discourse is dominating.
With such extreme cries that we are hearing, unfortunately consensus cannot be achieved. Of course, because these parties are not in a position to enter into all-out conflict with academia, apart from the bullies that would repeal the law etc, they voted for a remarkably large number of the Articles!
You come from academia. What is your view of the Greek universities and the level of education that they provide?
My personal opinion coincides fully with what the reality tells us: the Greek students who complete Greek University are highly sought after not only by all of the major universities of the world but also in the global labour market. This says it all. Furthermore, as you know the Greek universities hold high positions in global institutional assessment lists. It is very high in relation to their success in securing research programmes. And because we're in the seventh year of economic crisis, let's point out that this was not due to the assistance provided by the State during these years to academics and researchers. It is the feat of the vast majority of my fellow teachers, of the young researchers and all those who silently decided that the responsibility was theirs for the Universities and our Research Centres not to buckle. The State owes them a generous thank you. We owe it to them because it is very difficult in a bankrupt country to manage, with less money, to maintain a high level of university education. However, this recognition of the decisive role of professors and researchers, goes hand in hand with with the public commitment that we will do everything to establish an everyday life that is governed by academic rules. We undertook this with the law that was passed. We have also strengthened the Universities with additional funding.
What is the next step in the changes that you want to bring to education?
We are committed to change in the High School and the system of access to Higher Education. The intention of the Ministry of Education is for the system that is totally anti-education to soon become a thing of the past. A system of access to Further Education will be brought in based on a rigorous National Baccalaureate. The current system of Panhellenic Examinations, even if it is fair, has run its course and is one of the biggest thorns that undermines the educational and pedagogic functioning of the Lyceum as an autonomous Secondary School level of education. That is why it is imperative for the Examinations to be removed to restore the educational autonomy of the Lyceum. Everyone agrees that today we do not have a High School. Don't we want a High School? I don't think anyone can support the proposition of us being the only European country without a High School. The serious debate is exactly this and already the Educational Policy Institute has submitted its proposals, which the Ministry will process and will arrive at final decisions. Students are not going to be caught unawares. However it will be a system with pedagogical characteristics as sovereign and, certainly, a more humane one and more friendly to young people than the current system can be categorised.
On the issues of the Church ... regarding the utilization of its assets, is there any progress?
We have created together with the Deputy Minister of Development, Mr. Alexis Haritsis, a joint committee with the Church to record the property of the Church, and we are starting from the Metropolises that have already completed this project. Immediately after that we will see what the problems are that exist as to the status of experiences of each property and we will embark on a process to unravel the cases’ legal tangle. And then we proceed. Already, though, the first two steps are very time consuming but also very important.
Minister Gavroglou studied Physics at the Universities of Lancaster, Cambridge and London
where he received his doctorate . He has taught Physics at the National Technical University of Athens , the Universities of Patras , Cambridge, Harvard , MIT , Boston and the Polytechnic of Constantinople. He was Emeritus Professor of History of Science in the Department of Methodology, History and Theory of Science (MITE) of the National and Kapodistrian University of Athens.
"When all is said and done, is the Left opposed to excellence? On the occasion of the decision for the standard bearer [in parades on National Days Ed] to be identified in Primary Schools by lottery, from the first moment, New Democracy spoke about "the leadership of the Ministry of Education being faithful to the dogma of levelling downwards"; the River party talked about an ideological allergy to any form of recognition and excellence etc.
These are the words of those who really fear excellence and so they trivialize it. How many times we have called on them to take a position publicly about a phenomenon that every Greek family knows: are there or are not parents who oppressively pressurise teachers to give their children grades which they do not qualify for? A few parents, but enough to create many problems for teachers. The result is to have a large number of "Ariston" [“Excellent” Ed] and today there is a lottery to distinguish between them. Is this excellence? Why don't the Opposition denounce these phenomena? Why don’t they protect teachers? Why may a child with a disability not be able to become a standard-bearer? And why should the responsibility not be shared and in that way respect for the flag shared by all the children of the class, tomorrow's citizens with the same rights and the same obligations? The Left is primarily in favour of social justice and equal opportunities for all, especially when talking about a social good like education. A sense of fair play must be cultivated but in terms of a moral code of values rather than in terms of market forces. Our school system is not Darwinian. And it does not have to be."
Our aim must be to discover the different interests and skills of each student and in this framework to strive for excellence.
Education aims to cultivate learning in all citizens. This is our basic starting difference with the neoliberalism of today’s New Democracy of Mr. Mitsotakis.
Excellence for us is for all children to be able to get an education at school, whichever one suits them, and above all, for them to be able to get the experience of the joy of knowledge."
What is the most important change in relation to the existing law for the universities?
"The change in philosophy. It is the first law since the 1974 law that goes into not just administrative arrangements, but establishes new institutions and sets up procedures that ensure a genuine accessibility of Higher Education. The creation of Regional Academic Councils with the participation in them of representatives of the Universities, Institutions of Technical Education (ΤΕΙs) and Research Centres, the establishment in each Higher Educational Institution of a Training Centre and a Centre for Life-Long Learning, the possibility of establishing biennial structures for providing accreditation for professional European certificate qualifications and the route-map of procedures for sorting out the professional rights of Higher Education graduates are some of the innovations in the law to ensure the further strengthening of relationships between Higher Education and the society. The image of deregulation brought by the previous law has led the Universities to the brink of dissolution. It had to change. And this we have done by legislating academic rules.
There are many important changes relating to the Higher Education and therefore society. I don't want to single out any single one of these important changes, since together all constitute a single whole with which our policy is marked. We are establishing academic rules restoring once more the significance of the public University and barring the way for those who off their own bat use the institution of the University for their own benefit. The law gives for the first time the ability to register for Postgraduate Programmes without the economically disadvantaged students paying tuition fees. At the same time it obliges those graduate programmes needing additional staff to first approach young scientists. It satisfies a decades’ old demand by Polytechnics for the academic upgrading of their five-year degrees and it creates the conditions for the definitive arrangement of the professional rights of Engineering graduates of Higher Education. It provides university departments with the possibility of setting up undergraduate foreign language studies in collaboration with the International University, where they meet certain academic criteria. It restores the democratic achievement of the University asylum for ideas and the student representation on governing bodies, the establishment of the Chancellor’s Council and the participation of all sections in the University Senate. It introduces for the first time the Regional Academic Councils in which the representatives of the Universities, the Institutions of Technical Education (ΤΕΙs) and the Research Centres will participate together in every region of the country.
It is the first law that launches the gradual creation of a Single Sector of Higher Education and Research. It establishes, in every University and Institute of Technical Education (TEI), Training and Lifelong Learning Centres. Lifelong learning is for the first time normalized under the scientific supervision of Higher Education Institutions. It sets down the election of Chancellors and Vice-Chancellors on separate ballots, ensuring the widest representatiion on the University body.
New Democracy has said a lot - and inexcusably so in certain cases - during the whole time the public debate on the Bill was going on. And unfortunately they also said it in Parliament. No one understood what New Democracy wanted. Don’t they want to change anything in the Postgraduate Studies Programme? Don’t they want to change anything in the way it is administered? Don’t they want the new institutions that we are establishing to ensure outward orientation, institutions like the Regional Academic Councils and the biennial structures that will provide professional accreditation? Don’t they want the National Council for Education and Human Resources? Do they want everyone regardless of their financial situation to pay tuition fees? Do they want the tuition fees on Postgraduate Programmes at a public University to be determined on the basis of demand rather than on cost as we are proposing? And New Democracy accuses us of being backward-looking? Have they understood exactly what they are defending?
Let's be very clear and let New Democracy understand. We will do our utmost to upgrade the public universities. And we will demonstrate every kinds of resistance to their gradual privatisation.
Declare a champion of consensus in the area of Education.
It is difficult but we will strive for a consensus. I have said many times and on each occasion that consensus does not mean complete unanimity. But on all those educational issues on which we can agree, let us agree and take a step forward. Unfortunately, I see that in this political bloc of New Democracy, the Democratic Coalition [PASOK, the Democratic Left and the Movement of Democratic Socialists (KIDISO) ] and the River, an extreme nationalist-populist and neoliberal discourse is dominating.
With such extreme cries that we are hearing, unfortunately consensus cannot be achieved. Of course, because these parties are not in a position to enter into all-out conflict with academia, apart from the bullies that would repeal the law etc, they voted for a remarkably large number of the Articles!
You come from academia. What is your view of the Greek universities and the level of education that they provide?
My personal opinion coincides fully with what the reality tells us: the Greek students who complete Greek University are highly sought after not only by all of the major universities of the world but also in the global labour market. This says it all. Furthermore, as you know the Greek universities hold high positions in global institutional assessment lists. It is very high in relation to their success in securing research programmes. And because we're in the seventh year of economic crisis, let's point out that this was not due to the assistance provided by the State during these years to academics and researchers. It is the feat of the vast majority of my fellow teachers, of the young researchers and all those who silently decided that the responsibility was theirs for the Universities and our Research Centres not to buckle. The State owes them a generous thank you. We owe it to them because it is very difficult in a bankrupt country to manage, with less money, to maintain a high level of university education. However, this recognition of the decisive role of professors and researchers, goes hand in hand with with the public commitment that we will do everything to establish an everyday life that is governed by academic rules. We undertook this with the law that was passed. We have also strengthened the Universities with additional funding.
What is the next step in the changes that you want to bring to education?
We are committed to change in the High School and the system of access to Higher Education. The intention of the Ministry of Education is for the system that is totally anti-education to soon become a thing of the past. A system of access to Further Education will be brought in based on a rigorous National Baccalaureate. The current system of Panhellenic Examinations, even if it is fair, has run its course and is one of the biggest thorns that undermines the educational and pedagogic functioning of the Lyceum as an autonomous Secondary School level of education. That is why it is imperative for the Examinations to be removed to restore the educational autonomy of the Lyceum. Everyone agrees that today we do not have a High School. Don't we want a High School? I don't think anyone can support the proposition of us being the only European country without a High School. The serious debate is exactly this and already the Educational Policy Institute has submitted its proposals, which the Ministry will process and will arrive at final decisions. Students are not going to be caught unawares. However it will be a system with pedagogical characteristics as sovereign and, certainly, a more humane one and more friendly to young people than the current system can be categorised.
On the issues of the Church ... regarding the utilization of its assets, is there any progress?
We have created together with the Deputy Minister of Development, Mr. Alexis Haritsis, a joint committee with the Church to record the property of the Church, and we are starting from the Metropolises that have already completed this project. Immediately after that we will see what the problems are that exist as to the status of experiences of each property and we will embark on a process to unravel the cases’ legal tangle. And then we proceed. Already, though, the first two steps are very time consuming but also very important.
Minister Gavroglou studied Physics at the Universities of Lancaster, Cambridge and London
where he received his doctorate . He has taught Physics at the National Technical University of Athens , the Universities of Patras , Cambridge, Harvard , MIT , Boston and the Polytechnic of Constantinople. He was Emeritus Professor of History of Science in the Department of Methodology, History and Theory of Science (MITE) of the National and Kapodistrian University of Athens.
"A new vision for Higher Education"
Two different worlds: The Higher Education Institutions of knowledge as against neoliberal competition
5.8.2017
e model of the democratic university of knowledge on Tuesday found itself in Parliament pitted against the model of neoliberal university of competition. The two basic directions which exist for Higher Education were outlined clearly in Prime Minister Alexis Tsipras’ introduction of the Bill relating to universities.
The political confrontation between the Government and the Οpposition was clear. Prime Minister Alexis Tsipras stressed that it is "a day of effort at restarting the country’s universities and Higher Technical Institues" and described "a new vision for education". "The philosophy of the Bill is more democracy, the establishment of educational standards, opening up Universities to the economically weaker sections of the population and linking institutions with the reconstruction of economic production," he said.
The new measures are designed to strengthen the role of students in the management of universities while making it more difficult for police to enter university grounds. Another provision foresees 40% of students enrolled in postgraduate programme being exempt from having to pay university and college fees.
Article 3 of the new law restored older provisions that prevent police interventions on university campuses except in cases of serious offences. “We must safeguard free access to all ideas and free expression in the universities with respect to the democratic procedures. The only way to solve the problem is dialogue in the universities and not by police interventions that remind us of other historical periods”, said Prime Minister Alexis Tsipras alluding to the repression of students protesting against the military dictatorship.
The Bill, as the Prime Minister said, removed the administration councils "to restore democracy and the self-management of university foundations".
“Evaluation ‘yes’, jungle ‘no’: the model of “destructive assessment” that promotes "University Darwinism" and the "academic survivor" is rejected. "Progress can come from solidarity and cooperation and not from destructive competition, not from one trying to gouge out the eye of the other and the survival of the strongest with the best connections."
"At Postgraduate level we have put a stop to the very high level of tuition costs. There will be strict conditions for setting the amount of tuition fees "and above all, we set out that no student who has been accepted as a Postgraduate will be excluded if there is a proven inability to pay tuition fees."
"On this occasion, New Democracy had an alternative: for everything to be private and, if possible, at a cost. Private schools. Private universities. Private hospitals. Private insurance. Private cleaning services and private prisons. We do not favour this option which feeds on the holes in public policy and in the end results in costing citizens more."
Finance Minister, Euclid Tsakalotos, intervening in the debate of the Bill "The Organisation and Functioning of Higher Education, Arrangements for Research" said "The new law does not provide all the answers, but it does set the stage for us to discuss the sort of university we want."
He also referred to the dark sides of institutions abroad, highlighting the debt problem that has been created for many students because they take out loans to cover the costs of their studies, including high tuition fees.
"Do we want a business model with competitive fees? Do we want the commercialisation of higher education? The one who pays, influences the course content and methodology. This means that knowledge is not open to everyone."
He made particular reference to the issue of evaluation: "in England, university academics are leaving because they are fed up with filling out evaluation forms instead of teaching." He also talked about "little tricks" which American and European universities resort to in order to achieve better performance in their assessment. He pointed out the need to protect higher education from private interests. "Competitiveness has no place in the University. Education has nothing to do with competition. Education is a public undertaking."
The political confrontation between the Government and the Οpposition was clear. Prime Minister Alexis Tsipras stressed that it is "a day of effort at restarting the country’s universities and Higher Technical Institues" and described "a new vision for education". "The philosophy of the Bill is more democracy, the establishment of educational standards, opening up Universities to the economically weaker sections of the population and linking institutions with the reconstruction of economic production," he said.
The new measures are designed to strengthen the role of students in the management of universities while making it more difficult for police to enter university grounds. Another provision foresees 40% of students enrolled in postgraduate programme being exempt from having to pay university and college fees.
Article 3 of the new law restored older provisions that prevent police interventions on university campuses except in cases of serious offences. “We must safeguard free access to all ideas and free expression in the universities with respect to the democratic procedures. The only way to solve the problem is dialogue in the universities and not by police interventions that remind us of other historical periods”, said Prime Minister Alexis Tsipras alluding to the repression of students protesting against the military dictatorship.
The Bill, as the Prime Minister said, removed the administration councils "to restore democracy and the self-management of university foundations".
“Evaluation ‘yes’, jungle ‘no’: the model of “destructive assessment” that promotes "University Darwinism" and the "academic survivor" is rejected. "Progress can come from solidarity and cooperation and not from destructive competition, not from one trying to gouge out the eye of the other and the survival of the strongest with the best connections."
"At Postgraduate level we have put a stop to the very high level of tuition costs. There will be strict conditions for setting the amount of tuition fees "and above all, we set out that no student who has been accepted as a Postgraduate will be excluded if there is a proven inability to pay tuition fees."
"On this occasion, New Democracy had an alternative: for everything to be private and, if possible, at a cost. Private schools. Private universities. Private hospitals. Private insurance. Private cleaning services and private prisons. We do not favour this option which feeds on the holes in public policy and in the end results in costing citizens more."
Finance Minister, Euclid Tsakalotos, intervening in the debate of the Bill "The Organisation and Functioning of Higher Education, Arrangements for Research" said "The new law does not provide all the answers, but it does set the stage for us to discuss the sort of university we want."
He also referred to the dark sides of institutions abroad, highlighting the debt problem that has been created for many students because they take out loans to cover the costs of their studies, including high tuition fees.
"Do we want a business model with competitive fees? Do we want the commercialisation of higher education? The one who pays, influences the course content and methodology. This means that knowledge is not open to everyone."
He made particular reference to the issue of evaluation: "in England, university academics are leaving because they are fed up with filling out evaluation forms instead of teaching." He also talked about "little tricks" which American and European universities resort to in order to achieve better performance in their assessment. He pointed out the need to protect higher education from private interests. "Competitiveness has no place in the University. Education has nothing to do with competition. Education is a public undertaking."
Greece’s return to the Bond Market
In an interview with Kathimerini newspaper, Greek Finance Minister Euclid Tsakalotos said the Government must prove its credibility by fully implementing the reforms agreed with its international creditors. Commenting on the recent return to bond markets, he said “it was a successful foray, as was seen in the statements by the Institutions [the European Central Bank, European Commission and European Stability Mechanism] and the media.”
“Our future target is not just to reduce the cost of borrowing but to return Greece to normalcy with regards to market access, which will force borrowing rates in the private sector downwards and allow banks and businesses to borrow again on better terms.”
Prime Minister Alexis Tsipras last week hailed Tuesday’s sale of Greek bonds, the first in three years, as a milestone on the country's way to exiting the crisis and international bailouts. The bond issue, which raised 3€ billion, is “the most important message and the most significant step in order to finish this unpleasant adventure of the Memorandum,” he said.
Addressing SYRIZA's Central Committee on Friday, he Tsipras outlined the strategy: "To implement the Agreement, to restore conditions of stability that will allow a rapid recovery of the economy, to reestablish the social state and to confront the "state within the state" – that is the state of corruption and graft."
"Greece's credibility and prestige has been restored, not only because of the wide-ranging reforms to the state, public administration and tax mechanisms but also through the battles that the Government has fought, its determination during both its first and its second term."
New Auction for TV Licences
The National Council of Radio and Television (ESR) has set the starting price for each of seven national terrestrial television licences to be put up for auction at 35€ million.
In a letter sent to Digital Policy and Media Minister Nikos Pappas, the ESR said the decision was taken unanimously and takes into account the tendering process held in 2016.
It also noted that the television broadcasting spectrum i.e. the number of licences possible, was not “unlimited”.
Alternate Finance Minister George Chouliarakis on Friday signed a Joint Ministerial Decision setting the starting price for each of the seven national television content broadcasting licences to be offered by the Greek state. The licences are for the provision of national-range terrestrial digital broadband free reception television content.
Πόθεν έσχες for Channel Owners too!
Owners of private television stations will have to submit declarations listing the provenance of all of their assets, a form known as “pothen esches” in Greek [Literally “Where did you get that from?” Ed], after the Council of State on Wednesday rejected a request by their union, EITISEE, that they should be exempt from the obligation. These declarations are part of the Government’s drive to stop money laundering and capital flight.The country’s Supreme Court said that there were no grounds for the union’s argument that businesspeople involved in broadcasting would be exposed to damage if the provenance of their wealth is made public
The Struggle against Corruption continues
Former PASOK Transport Minister, Tassos Mantelis was found guilty on Friday of money laundering over contracts between Siemens Hellas and the then state-controlled telecomms group OTE.
Allegations that Greek politicians and political parties received bribes during successive administrations to grant German industrial giant Siemens lucrative contracts in the run-up to the 2004 Olympics have dominated local media for years.
The Court ruled that Mr. Mantelis had concealed a 450,000 deutsche mark back-hander he had demanded of Siemens via a third party to approve a contract with OTE. The money, which was received in two instalments in 1998 and 2000, was deposited in a Swiss bank.
Mantelis, who was alleged to have committed the offence while he was transport minister from 1996-2000 in the PASOK Government of Costas Simitis, was found guilty of money laundering and given an eight-year suspended sentence.
In 2010, Mr. Mantelis had told an investigating parliamentary committee that he had accepted the money from Siemens while in office as a "campaign donation."
In the same case, a former Executive at Siemens Hellas, Ilias Georgiou was found guilty of bribery and money laundering and handed a 12-year suspended prison sentence with orders not to leave the country.
Siemens ended one of the biggest corporate corruption probes in history when it agreed in 2008 to pay about 1€ billion in fines and penalties after investigations by U.S. and German authorities into bribes it paid to win contracts.
In an interview with Kathimerini newspaper, Greek Finance Minister Euclid Tsakalotos said the Government must prove its credibility by fully implementing the reforms agreed with its international creditors. Commenting on the recent return to bond markets, he said “it was a successful foray, as was seen in the statements by the Institutions [the European Central Bank, European Commission and European Stability Mechanism] and the media.”
“Our future target is not just to reduce the cost of borrowing but to return Greece to normalcy with regards to market access, which will force borrowing rates in the private sector downwards and allow banks and businesses to borrow again on better terms.”
Prime Minister Alexis Tsipras last week hailed Tuesday’s sale of Greek bonds, the first in three years, as a milestone on the country's way to exiting the crisis and international bailouts. The bond issue, which raised 3€ billion, is “the most important message and the most significant step in order to finish this unpleasant adventure of the Memorandum,” he said.
Addressing SYRIZA's Central Committee on Friday, he Tsipras outlined the strategy: "To implement the Agreement, to restore conditions of stability that will allow a rapid recovery of the economy, to reestablish the social state and to confront the "state within the state" – that is the state of corruption and graft."
"Greece's credibility and prestige has been restored, not only because of the wide-ranging reforms to the state, public administration and tax mechanisms but also through the battles that the Government has fought, its determination during both its first and its second term."
New Auction for TV Licences
The National Council of Radio and Television (ESR) has set the starting price for each of seven national terrestrial television licences to be put up for auction at 35€ million.
In a letter sent to Digital Policy and Media Minister Nikos Pappas, the ESR said the decision was taken unanimously and takes into account the tendering process held in 2016.
It also noted that the television broadcasting spectrum i.e. the number of licences possible, was not “unlimited”.
Alternate Finance Minister George Chouliarakis on Friday signed a Joint Ministerial Decision setting the starting price for each of the seven national television content broadcasting licences to be offered by the Greek state. The licences are for the provision of national-range terrestrial digital broadband free reception television content.
Πόθεν έσχες for Channel Owners too!
Owners of private television stations will have to submit declarations listing the provenance of all of their assets, a form known as “pothen esches” in Greek [Literally “Where did you get that from?” Ed], after the Council of State on Wednesday rejected a request by their union, EITISEE, that they should be exempt from the obligation. These declarations are part of the Government’s drive to stop money laundering and capital flight.The country’s Supreme Court said that there were no grounds for the union’s argument that businesspeople involved in broadcasting would be exposed to damage if the provenance of their wealth is made public
The Struggle against Corruption continues
Former PASOK Transport Minister, Tassos Mantelis was found guilty on Friday of money laundering over contracts between Siemens Hellas and the then state-controlled telecomms group OTE.
Allegations that Greek politicians and political parties received bribes during successive administrations to grant German industrial giant Siemens lucrative contracts in the run-up to the 2004 Olympics have dominated local media for years.
The Court ruled that Mr. Mantelis had concealed a 450,000 deutsche mark back-hander he had demanded of Siemens via a third party to approve a contract with OTE. The money, which was received in two instalments in 1998 and 2000, was deposited in a Swiss bank.
Mantelis, who was alleged to have committed the offence while he was transport minister from 1996-2000 in the PASOK Government of Costas Simitis, was found guilty of money laundering and given an eight-year suspended sentence.
In 2010, Mr. Mantelis had told an investigating parliamentary committee that he had accepted the money from Siemens while in office as a "campaign donation."
In the same case, a former Executive at Siemens Hellas, Ilias Georgiou was found guilty of bribery and money laundering and handed a 12-year suspended prison sentence with orders not to leave the country.
Siemens ended one of the biggest corporate corruption probes in history when it agreed in 2008 to pay about 1€ billion in fines and penalties after investigations by U.S. and German authorities into bribes it paid to win contracts.
Registered - Cleaning - use of Manta Net - Sea Bed Camera - Sampling
Plastic Pollution in Greek Seas – new research
Sampling of microscopic plastics has been carried out in the Ionian, Cretan and Aegean Seas. There have been visits to remote and inaccessible beaches, as well as video inspections of the sea bed in the caldera of Santorini and north of Mykonos.
Telltale evidence of the magnitude of the problem of plastic pollution in Greek seas was published by Greenpeace. "Distress signals are being sent out by our seas, according to the findings of the survey, both from the beaches of caretta caretta turtles in Zakynthos to the more secluded beaches of Irakleia and Mykonos, and from the bottom of the Caldera of Santorini to the open sea, plastics are found everywhere, driving the delicate ecosystem of the Mediterranean close to the point of no return", the Organization announced.
Upon completion of the tour of the legendary ship, the Rainbow Warrior to Greece, Greenpeace is publishing the preliminary results of the scientific research which it conducted with the Hellenic Centre for Marine Research (ΕΛΚΕΘΕ), during its 12 day tour.
The first pictures [of the sea bed Ed.] showed that plastics are found everywhere and are broken down into tiny pieces, even to a size that is not visible to the human eye. They never leave the environment and remain in terrestrial and marine ecosystems, while they get into the food chain through marine organisms that ingest them.
"Plastic has invaded everywhere, even where no human being sets foot. Plastic pollution is a disease that has spread, literally, to every corner of our seas, and, as with any disease, the best solution is prevention, i.e. the drastic reduction in the use of plastic,"said Alkis Kafetzis, campaign manager of Greenpeace for the marine environment.
"The problem of the appearance of plastics in Greek seas started to be recorded only in the last five years," said the researcher of the ΕΛΚΕΘΕ, Vassilis Gerovassiliou, who participated in the surveys. "Within the framework of the current cooperation between Greenpeace and the ΕΛΚΕΘΕ, but also from previous research, large concentrations of plastics have been recorded in protected habitats with rich biodiversity and important areas of conservation.
A huge variety of rubbish, particularly of plastics, has been observed at the bottom of the Greek seas, often far away from the source of the pollution, while pieces of plastic bags and other objects even end up inside underwater caves,"he added.
Specifically, at a depth of 317 metres the underwater camera in the Caldera of Santorini recorded 84 items of rubbish, which, for the most part, were plastic bags, cups and lids for cups of coffee and other single-use objects.
In two small inaccessible beaches of Irakleia, inside the bay of the North Cave, a total of 514 plastic objects were counted. In a small secluded beach between Armenisti and Avlemona of Mykonos 821 plastic objects were counted.
In the vast majority of the 13 samples collected from the surface of the sea were found plastic fragments and plastic fibres visible with the naked eye. The analyses which the ΕΛΚΕΘΕ will conduct will reveal more information, especially about those that require special procedures to identify them.
During the cleanup of beaches Brontonero, Laganas (inside the Zakynthos National Park) and Kryoneri on Zakynthos, over 50 60-litre bags were collected, with the majority of rubbish being plastic single-use objects.
"What the example of Syros shows us is that a major change in the daily practices of the citizens can be achieved with simultaneous information campaigns among the public and shops. This can be achieved in other places. Supportive measures from the Government, as well as voluntary agreements with big supermarket chains have a direct affect and act as a guide for behaviour change at the national level, making change easier for the citizen" commented Antigone Dalamagka, Director of Ecological Recycling Company.
Greenpeace is calling on the State to ensure that the evolving European legislation will reduce the major causes of plastic pollution and will take steps in our country to drasticly reduce the production of single-use plastic objects disposable, and to change consumer behaviours and foster innovation.
Sampling of microscopic plastics has been carried out in the Ionian, Cretan and Aegean Seas. There have been visits to remote and inaccessible beaches, as well as video inspections of the sea bed in the caldera of Santorini and north of Mykonos.
Telltale evidence of the magnitude of the problem of plastic pollution in Greek seas was published by Greenpeace. "Distress signals are being sent out by our seas, according to the findings of the survey, both from the beaches of caretta caretta turtles in Zakynthos to the more secluded beaches of Irakleia and Mykonos, and from the bottom of the Caldera of Santorini to the open sea, plastics are found everywhere, driving the delicate ecosystem of the Mediterranean close to the point of no return", the Organization announced.
Upon completion of the tour of the legendary ship, the Rainbow Warrior to Greece, Greenpeace is publishing the preliminary results of the scientific research which it conducted with the Hellenic Centre for Marine Research (ΕΛΚΕΘΕ), during its 12 day tour.
The first pictures [of the sea bed Ed.] showed that plastics are found everywhere and are broken down into tiny pieces, even to a size that is not visible to the human eye. They never leave the environment and remain in terrestrial and marine ecosystems, while they get into the food chain through marine organisms that ingest them.
"Plastic has invaded everywhere, even where no human being sets foot. Plastic pollution is a disease that has spread, literally, to every corner of our seas, and, as with any disease, the best solution is prevention, i.e. the drastic reduction in the use of plastic,"said Alkis Kafetzis, campaign manager of Greenpeace for the marine environment.
"The problem of the appearance of plastics in Greek seas started to be recorded only in the last five years," said the researcher of the ΕΛΚΕΘΕ, Vassilis Gerovassiliou, who participated in the surveys. "Within the framework of the current cooperation between Greenpeace and the ΕΛΚΕΘΕ, but also from previous research, large concentrations of plastics have been recorded in protected habitats with rich biodiversity and important areas of conservation.
A huge variety of rubbish, particularly of plastics, has been observed at the bottom of the Greek seas, often far away from the source of the pollution, while pieces of plastic bags and other objects even end up inside underwater caves,"he added.
Specifically, at a depth of 317 metres the underwater camera in the Caldera of Santorini recorded 84 items of rubbish, which, for the most part, were plastic bags, cups and lids for cups of coffee and other single-use objects.
In two small inaccessible beaches of Irakleia, inside the bay of the North Cave, a total of 514 plastic objects were counted. In a small secluded beach between Armenisti and Avlemona of Mykonos 821 plastic objects were counted.
In the vast majority of the 13 samples collected from the surface of the sea were found plastic fragments and plastic fibres visible with the naked eye. The analyses which the ΕΛΚΕΘΕ will conduct will reveal more information, especially about those that require special procedures to identify them.
During the cleanup of beaches Brontonero, Laganas (inside the Zakynthos National Park) and Kryoneri on Zakynthos, over 50 60-litre bags were collected, with the majority of rubbish being plastic single-use objects.
"What the example of Syros shows us is that a major change in the daily practices of the citizens can be achieved with simultaneous information campaigns among the public and shops. This can be achieved in other places. Supportive measures from the Government, as well as voluntary agreements with big supermarket chains have a direct affect and act as a guide for behaviour change at the national level, making change easier for the citizen" commented Antigone Dalamagka, Director of Ecological Recycling Company.
Greenpeace is calling on the State to ensure that the evolving European legislation will reduce the major causes of plastic pollution and will take steps in our country to drasticly reduce the production of single-use plastic objects disposable, and to change consumer behaviours and foster innovation.
Greece makes a successful return to Money Markets
29.07.2017
Οn Monday the Government began the process of issuing a government bond. The notes were to be issued on Tuesday, and the target was a yield below 4.95%.
Athens had mandated BNP Paribas, Bank of America Merrill Lynch, Citigroup, Deutsche Bank, Goldman Sachs and HSBC as joint lead managers for a five-year euro bond. At the same time, Greece invited holders of its current 4.75% percent bonds maturing in 2019 to tender them for cash, along with a plan to offer new five-year paper.
The bond sale – Greece’s first since 2014 - followed an upgrade of the country’s sovereign credit rating outlook to positive from stable by Standard & Poor’s last Friday.
On Tuesday Greece’s return to the financial markets after three years was a success. The country sold 3€ billion worth of a new five-year bond, at a yield of 4.625%, lower than the targeted 4.95% of its last five-year bond sale in 2014.
Greek Government sources called the sale an "absolute success" which confirms the positive course of the Greek economy and leads to the step-by-step exit from the economic crisis.
The same source revealed that there were more than 200 official offers for the new paper, worth 6.5€ billion euros, saying the majority were "real investors" and not speculation funds.
Speaking during a meeting with Europe’s Economics Commissioner, Pierre Moscovici, in Athens on Tuesday, Prime Minister Alexis Tsipras said that “investors were welcoming the Greek bond sale.”
“It is now time to talk about the future of Greece, about how we shall work together so that the programme can come to a successful conclusion next year,” PM Tsipras said. “We must make plans about Greece in the post-programme period.”
Finance Minister Euclid Tsakalotos stated that the sale was satisfactory, adding that it proved doubters wrong. He also revealed that Greece will go back to the market for a second and a third time before the bailout programme ends in 2018.
Finance Minister Euclid Tsakalotos said after meeting with Prime Minister Alexis Tsipras:
“It was something more than we expected,” while putting emphasis on the “quality” of the investors that had shown an interest.
“We came out with a coupon of 4.375%, which is roughly 0.3% less than the last time we tried to access the markets.” he noted. The number and quality of the investors that had shown an interest in the issue “shows us that there are the first steady steps of confidence in the Greek economy,” he added.
Minister Tsakalotos was critical of the Opposition’s reaction to the bond issue, saying the Opposition parties had been proved wrong. According to the Minister, what had happened on Tuesday was not the end but a beginning “that we discussed at length…with responsibility, in order to find the right time to return to the markets. We decided that the conditions were right today and we returned in this satisfactory way.”
“We know that the Greek people have suffered greatly, have suffered more than they deserved, but I think also that we have laid the first stone, the first process for accessing the markets. There will be a second and third, so that we can approach August 2018 with confidence and exit the memoranda on different terms, so that our Government can do the things it has promised.”
Athens had mandated BNP Paribas, Bank of America Merrill Lynch, Citigroup, Deutsche Bank, Goldman Sachs and HSBC as joint lead managers for a five-year euro bond. At the same time, Greece invited holders of its current 4.75% percent bonds maturing in 2019 to tender them for cash, along with a plan to offer new five-year paper.
The bond sale – Greece’s first since 2014 - followed an upgrade of the country’s sovereign credit rating outlook to positive from stable by Standard & Poor’s last Friday.
On Tuesday Greece’s return to the financial markets after three years was a success. The country sold 3€ billion worth of a new five-year bond, at a yield of 4.625%, lower than the targeted 4.95% of its last five-year bond sale in 2014.
Greek Government sources called the sale an "absolute success" which confirms the positive course of the Greek economy and leads to the step-by-step exit from the economic crisis.
The same source revealed that there were more than 200 official offers for the new paper, worth 6.5€ billion euros, saying the majority were "real investors" and not speculation funds.
Speaking during a meeting with Europe’s Economics Commissioner, Pierre Moscovici, in Athens on Tuesday, Prime Minister Alexis Tsipras said that “investors were welcoming the Greek bond sale.”
“It is now time to talk about the future of Greece, about how we shall work together so that the programme can come to a successful conclusion next year,” PM Tsipras said. “We must make plans about Greece in the post-programme period.”
Finance Minister Euclid Tsakalotos stated that the sale was satisfactory, adding that it proved doubters wrong. He also revealed that Greece will go back to the market for a second and a third time before the bailout programme ends in 2018.
Finance Minister Euclid Tsakalotos said after meeting with Prime Minister Alexis Tsipras:
“It was something more than we expected,” while putting emphasis on the “quality” of the investors that had shown an interest.
“We came out with a coupon of 4.375%, which is roughly 0.3% less than the last time we tried to access the markets.” he noted. The number and quality of the investors that had shown an interest in the issue “shows us that there are the first steady steps of confidence in the Greek economy,” he added.
Minister Tsakalotos was critical of the Opposition’s reaction to the bond issue, saying the Opposition parties had been proved wrong. According to the Minister, what had happened on Tuesday was not the end but a beginning “that we discussed at length…with responsibility, in order to find the right time to return to the markets. We decided that the conditions were right today and we returned in this satisfactory way.”
“We know that the Greek people have suffered greatly, have suffered more than they deserved, but I think also that we have laid the first stone, the first process for accessing the markets. There will be a second and third, so that we can approach August 2018 with confidence and exit the memoranda on different terms, so that our Government can do the things it has promised.”
PM Tsipras: Alpha TV Interview
In his first interview after the return of Greece to the financial markets on Alpha TV, Prime Minister Tsipras said "The completion of the Assessment, the decision about the debt and the return to the financial markets constitute a steady journey for the end of the Memoranda." "We are working with a plan to build a new, sustainable and fair productive model."
"This will be a quieter summer, but we should not be complacent," he said, stressing that it had been many years since the world press had such positive comments about Greece.
According to the Prime Minister, the return to the financial markets has opened a new road, "a chink of hope". "The test return must be repeated successfully for us to go permanently to the markets in the summer of 2018," he said, for us to have a gradual reduction of interest rates, so that in a year from now the country can finance its needs.
"We have taken an important step which is the beginning of the end of an adventure," "The biggest difficulties we have left behind us"
"We have all begun to see a recovery of confidence in investments and in jobs. In the last two years more than 300,000 jobs have been created, while in the years of crisis we had lost 900,000. We have covered one third of the destruction." "The road is long".
"There is no need to celebrate. What we are saying is that we have made a start; we are not complacent "The foundations have been laid" and the PM expressed the view that after the German elections the measures for debt relief will be quantified.
"The IMF is insisting on further debt relief" he pointed out, noting that the process was not complete and underlining that the Eurogroup of 15th June secured not only the growth clause for Greece but also and the “locking-in” of the algorithm for the sustainability of the public debt.
He stressed that "we are in uncharted waters," - "the objective of inclusion in the quantitative easing programme remains and, indeed, after returning to the financial markets, this possibility comes closer.
"If our partners deliver on their commitments, and we will deliver on ours"
The PM explained that he expects the measures for debt relief to be implemented before the country’s obligations regarding the measures and countermeasures. " These are of equal weight and will start on 1.1.2019. But the measures on the debt will begin immediately after the end of the programme in August 2018. So, first we see if our partners fulfill their commitments partners and after that we will implement what we have pledged, having, however, exited the Programme and having regained degrees of our freedom."
"The next day will not be worse. We have an obligation to reduce the tax-free allowance, but what we collect will be given in tax deductions at the same time. Exactly what we take is what we will give."
In addition, he noted that the positive growth rates will give the possibility of creating some financial leeway. "We will return it to society and to the economy. In the budget for 2019 we will have the possibility of giving relief to those who have borne the greatest brunt."
"We are building a surplus in EFKA"
Referring to National Insurance, he stated that 80% of the insured and 90% of farmers are paying less contributions while underlined that "we are building a surplus in EFKA," noting however that "there is a percentage of workers who are being squeezed by insurance contributions and taxes". "Some economically strong in the previous period were keeping a low profile," he added.
On tax evasion, he recalled the Bill for the voluntary declaration of incomes while he underlined that controls have been stepped up and he stressed that the political will exists to combat it.
"I did not expect the struggle of an entire people to be dealt with with such cynicism," stressed the Prime Minister referring to the European partners. "I waged this battle with all my strength to vindicate the people's mandate to negotiate. The opposition accuses us of being liars. If we were liars, we would not have go on to the end to see that there is no tomorrow," he commented about the first half of 2015.
Referring to Yannis Varoufakis, he was tight lipped, wishing him "good sales with his book". "Mr. Varoufakis has written a book three months ago. I am struck how three newspapers on the same Sunday decided to have the same subject. It is an attempt by the Opposition and the media which support it to change the agenda." "We are the ones who are leading the country out of the Stewardship and many do not want that."
"An independent judiciary is one thing, an unscrutinised judiciary is another"
"There is no Government-Judiciary confrontation, there are problems in the Judiciary, which I discussed with the judges," said the Prime Minister, noting that he could not blame all the judges and stressing that there are some "who commit perjury" and there are decisions that are inconsistent with the society’s common legal sense.
"The separation of powers is not disputed by anyone and should not be questioned. The fact that justice must be independent is not disputed and nor should it be. "An independent judiciary is one thing, an unscrutinised judiciary is another"
"Greece is a security pillar"
"We are the safest capital in Europe. Greece is a pillar of security"said the Prime Minister referring to security and crime, stressing that the problems observed in Exarchia and in other areas, such as Menidi, won't be solved with repression and police interventions. "Civil society, the inhabitants, the Municipality have a role to play," he stressed, pointing to the millions of tourists who enjoy safe holidays in our country.
On foreign policy and the challenges of Turkey, PM Tsipras replied that our country has a multi-dimensional foreign policy and a pragmatic approach. "To protect the country's security, you must take care of peace" Prime Minister stressed and stressed that "Greece is a country that, despite the economic crisis, holds an important geopolitical position, which has been enhanced." He reiterated that "we are ready to defend the national interests of the country".
In his first interview after the return of Greece to the financial markets on Alpha TV, Prime Minister Tsipras said "The completion of the Assessment, the decision about the debt and the return to the financial markets constitute a steady journey for the end of the Memoranda." "We are working with a plan to build a new, sustainable and fair productive model."
"This will be a quieter summer, but we should not be complacent," he said, stressing that it had been many years since the world press had such positive comments about Greece.
According to the Prime Minister, the return to the financial markets has opened a new road, "a chink of hope". "The test return must be repeated successfully for us to go permanently to the markets in the summer of 2018," he said, for us to have a gradual reduction of interest rates, so that in a year from now the country can finance its needs.
"We have taken an important step which is the beginning of the end of an adventure," "The biggest difficulties we have left behind us"
"We have all begun to see a recovery of confidence in investments and in jobs. In the last two years more than 300,000 jobs have been created, while in the years of crisis we had lost 900,000. We have covered one third of the destruction." "The road is long".
"There is no need to celebrate. What we are saying is that we have made a start; we are not complacent "The foundations have been laid" and the PM expressed the view that after the German elections the measures for debt relief will be quantified.
"The IMF is insisting on further debt relief" he pointed out, noting that the process was not complete and underlining that the Eurogroup of 15th June secured not only the growth clause for Greece but also and the “locking-in” of the algorithm for the sustainability of the public debt.
He stressed that "we are in uncharted waters," - "the objective of inclusion in the quantitative easing programme remains and, indeed, after returning to the financial markets, this possibility comes closer.
"If our partners deliver on their commitments, and we will deliver on ours"
The PM explained that he expects the measures for debt relief to be implemented before the country’s obligations regarding the measures and countermeasures. " These are of equal weight and will start on 1.1.2019. But the measures on the debt will begin immediately after the end of the programme in August 2018. So, first we see if our partners fulfill their commitments partners and after that we will implement what we have pledged, having, however, exited the Programme and having regained degrees of our freedom."
"The next day will not be worse. We have an obligation to reduce the tax-free allowance, but what we collect will be given in tax deductions at the same time. Exactly what we take is what we will give."
In addition, he noted that the positive growth rates will give the possibility of creating some financial leeway. "We will return it to society and to the economy. In the budget for 2019 we will have the possibility of giving relief to those who have borne the greatest brunt."
"We are building a surplus in EFKA"
Referring to National Insurance, he stated that 80% of the insured and 90% of farmers are paying less contributions while underlined that "we are building a surplus in EFKA," noting however that "there is a percentage of workers who are being squeezed by insurance contributions and taxes". "Some economically strong in the previous period were keeping a low profile," he added.
On tax evasion, he recalled the Bill for the voluntary declaration of incomes while he underlined that controls have been stepped up and he stressed that the political will exists to combat it.
"I did not expect the struggle of an entire people to be dealt with with such cynicism," stressed the Prime Minister referring to the European partners. "I waged this battle with all my strength to vindicate the people's mandate to negotiate. The opposition accuses us of being liars. If we were liars, we would not have go on to the end to see that there is no tomorrow," he commented about the first half of 2015.
Referring to Yannis Varoufakis, he was tight lipped, wishing him "good sales with his book". "Mr. Varoufakis has written a book three months ago. I am struck how three newspapers on the same Sunday decided to have the same subject. It is an attempt by the Opposition and the media which support it to change the agenda." "We are the ones who are leading the country out of the Stewardship and many do not want that."
"An independent judiciary is one thing, an unscrutinised judiciary is another"
"There is no Government-Judiciary confrontation, there are problems in the Judiciary, which I discussed with the judges," said the Prime Minister, noting that he could not blame all the judges and stressing that there are some "who commit perjury" and there are decisions that are inconsistent with the society’s common legal sense.
"The separation of powers is not disputed by anyone and should not be questioned. The fact that justice must be independent is not disputed and nor should it be. "An independent judiciary is one thing, an unscrutinised judiciary is another"
"Greece is a security pillar"
"We are the safest capital in Europe. Greece is a pillar of security"said the Prime Minister referring to security and crime, stressing that the problems observed in Exarchia and in other areas, such as Menidi, won't be solved with repression and police interventions. "Civil society, the inhabitants, the Municipality have a role to play," he stressed, pointing to the millions of tourists who enjoy safe holidays in our country.
On foreign policy and the challenges of Turkey, PM Tsipras replied that our country has a multi-dimensional foreign policy and a pragmatic approach. "To protect the country's security, you must take care of peace" Prime Minister stressed and stressed that "Greece is a country that, despite the economic crisis, holds an important geopolitical position, which has been enhanced." He reiterated that "we are ready to defend the national interests of the country".
Nikos Pappas, the Minister for Digital Policy, Media and Telecommunication gave a wide-ranging interview to EURACTIV.com
The Second Assessment of the bailout programme was successfully concluded. What is your next step?
From now on, a growth plan must be implemented that does not repeat the mistakes of the past. These mistakes are related to excessive borrowing on both public and household accounts, but also the huge inequalities that arose from a model of economic policy that put both European societies and political leaderships to the test.
Greece is at a unique point on the map, regaining its role internationally and taking advantage of its geostrategic position. It can be a telecommunications, commerce and transport hub, but in order to do that in a compact and reliable way, it needs modern networks.
We have already completed major motorways and we are now entering the process of building modern internet networks. The high-speed internet networks for all Greeks will bring the country into a new phase. These technologies can make all sectors of the Greek economy more efficient and productive. They are in a position to revolutionise the way in which Greek producers produce, the way consumers consume and the way the Greek businesses operate.
Is Europe convinced that Greece has turned the page? There are still voices which claim the opposite.
You are right to point it out, but I think the pessimists that see the glass half-empty are becoming ever smaller in number as time passes, under the unbearable weight of a growing economic reality.
This reality says that Greece has increased employment by 320,000 jobs in two-and-a-half years, while unemployment has dropped 5.5% compared to the previous coalition Government of centre-right New Democracy and the Pan-Hellenic Socialist Movement. In addition, the budget is in order and exports and investments have increased.
Industrial production, for example, according to official statistics, has risen this month by 19% compared to last year. Consequently, the signs of economic recovery are strengthening and I think whatever solution is chosen and should be pursued, it should not undermine these growth prospects.
What could be a major obstacle to the continuation of the country’s recovery?
I think any new delay, but it does not seem that will be the case. Because all sides have understood that it is in everyone’s interest to complete the negotiations about the medium-term debt relief measures that will be implemented after the end of the programme.
We need to note that, with the Eurogroup decision, two very important steps have been taken.
Firstly, it’s the provision for the implementation of the Greek debt growth clause and its repayment. The economic logic changes. In the two previous programmes, we had to restrain the economy to service the debt, even at the cost of recession. Now the debt is serviced by growth, so we become partners with our partners in the prospect of economic growth.
The second important issue is the final paragraph of the decision, which provides for the creation of the proper reserves that will guarantee Greece’s return to the financial markets without any other conditions. The European Stability Mechanism (ESM), Europe’s financial arm and its political leaderships, guarantee the smooth financing of a country in a programme. This is a huge step.
The first successful return to the markets shows that the country is on the rise.
We have difficult and complicated negotiations for Brexit ahead. Some believe that Europeans will have one voice; others claim that there will be significant divisions. How does Greece see it?
Europe is faced with some choices that have long been leading to these deadlocks. There is a governance problem.
Europe has lost its ability to persuade people that it works in their interest. Of course, we must say that the critical political developments of the last year, a year that some looked at with curiosity and others with horror – the British Referendum, a French and a Dutch election – has come and gone without the European project being dismantled. Therefore, it has to be recognised that the EU project has more stamina than anyone could have believed.
The solution, in my opinion, lies in a progressive federalism; this is the road that Europe has to take. The progressive ones who perceive this as a priority need to consolidate their initiatives so that policies can be implemented in this direction.
At what stage is the issue of the tender for TV licenses?
Here we have made some positive steps in the last few weeks. Greece’s independent regulatory authority, the National Council for Radio and Television (NCRTV), which was set up last October, seems to be determined to make progress.
We will soon have the notice for a new TV licence auction. The first necessary steps have been taken, the number of licences has been set and there seems to be a willingness to complete this process and to close a wound for the country, which has been open for decades.
What often makes it difficult for our negotiating team or the Greek Prime Minister himself during discussions at European level is that the negotiating counterparts do not understand why there may be some special categories of citizens who do not meet their obligations.
What do you mean exactly?
Apart from the owners of the television stations, who for 30 years have been doing business without a licence, we also have the example of some lawyers who feel that their profession cannot be subject to the Electronic Transactions Act, because, as they claim, privacy issues arise from the cases they undertake. The same opinion is shared by some “high-ranking” doctors. Let’s not forget that some judges have also claimed the right not to file a wealth statement, as most civil servants do.
This is a distortion that dates back to the period when New Democracy and PASOK were in power, but I am optimistic that we will make a breakthrough.
We all have to understand this. Such wounds cannot be left open in a Greece that is trying and ultimately emerging from the crisis, slowly but surely. The current Government will not allow these wounds to remain open. We should show our partners and ourselves and send a message to society that we will not repeat these mistakes.
Recently, a TV station (Star Channel) filed a lawsuit against the State for “loss of profits” due to the loss of its television programming. Specifically, it blamed last year’s television licence auction. How do you comment on this legal move?
It is clear now. After this lawsuit and the announcements of the owners of the television stations, they [the TV channel owners] do not want a new auction to take place in order to get legal licences for their operations. And above all, they do not want to put their hands in their pockets to pay for their use of public property.
Our answer is clear. The implementation of the laws and the Constitution will not accept any exemptions. No matter how many attacks we receive, we do not back down.
As for the actions of the channels, you should also ask the Opposition parties. Can a television station, which for many years has broadcast without a legal licence, seek compensation – after 30 years – for the first auction for television licences? Can it demand the preservation of this lawlessness, taking advantage of the irresponsibility of New Democracy and PASOK which did not enforce the licencing of the channels?
A response from these political parties would also be interesting in the sense that the owners of the TV stations recently claimed to have been ‘hostages to insecurity’ for decades. What does this mean and how exactly did the two parties behave when they were in power?
They should finally take a position. Mr Mitsotakis [leader of New Democracy] and Ms Gennimata [Leader of PASOK] should not bury statements suggesting that their parties ‘kept the Press hostage’.
TV channel owners have now opened a new row with the Government when they asked the country’s Supreme Court to exempt their top executives from filing a wealth statement, citing privacy concerns.
What has been happening with the Greek justice system lately? The opposition blames you for attacking its independence.
There was a judicial decision recently which asserted that the non-payment of employees’ salaries does not constitute an unfavorable change in the employment contract. This goes beyond what we consider to be the European norm.
We are entitled to judge it, even in public. Justice representatives’ assessments are not beyond criticism.
If this is seen as an attack on the independence of the institution, we should also look at the cases of interference, as perhaps – according to press reports – we had in the past.
The opposition also accuses you of having imposed excessive taxation; that the state’s debt to individuals is huge and calls for elections to follow a different policy mix.
The elections will be held at the end of our term. Alexis Tsipras will be the first Prime Minister since the country joined the bailout programme to stay until the end of the four-year mandate. Such a development would be a signal of stability and recovery. We challenge the main Opposition party to stop focusing on nonsense and talk about the essence of politics. It should come to the table and discuss the hard core of policy and the results we bring. But because it cannot stand this debate, as the reality is clear and resounding, it brings up other issues that provoke ridicule and mockery among the Greek people.
The Second Assessment of the bailout programme was successfully concluded. What is your next step?
From now on, a growth plan must be implemented that does not repeat the mistakes of the past. These mistakes are related to excessive borrowing on both public and household accounts, but also the huge inequalities that arose from a model of economic policy that put both European societies and political leaderships to the test.
Greece is at a unique point on the map, regaining its role internationally and taking advantage of its geostrategic position. It can be a telecommunications, commerce and transport hub, but in order to do that in a compact and reliable way, it needs modern networks.
We have already completed major motorways and we are now entering the process of building modern internet networks. The high-speed internet networks for all Greeks will bring the country into a new phase. These technologies can make all sectors of the Greek economy more efficient and productive. They are in a position to revolutionise the way in which Greek producers produce, the way consumers consume and the way the Greek businesses operate.
Is Europe convinced that Greece has turned the page? There are still voices which claim the opposite.
You are right to point it out, but I think the pessimists that see the glass half-empty are becoming ever smaller in number as time passes, under the unbearable weight of a growing economic reality.
This reality says that Greece has increased employment by 320,000 jobs in two-and-a-half years, while unemployment has dropped 5.5% compared to the previous coalition Government of centre-right New Democracy and the Pan-Hellenic Socialist Movement. In addition, the budget is in order and exports and investments have increased.
Industrial production, for example, according to official statistics, has risen this month by 19% compared to last year. Consequently, the signs of economic recovery are strengthening and I think whatever solution is chosen and should be pursued, it should not undermine these growth prospects.
What could be a major obstacle to the continuation of the country’s recovery?
I think any new delay, but it does not seem that will be the case. Because all sides have understood that it is in everyone’s interest to complete the negotiations about the medium-term debt relief measures that will be implemented after the end of the programme.
We need to note that, with the Eurogroup decision, two very important steps have been taken.
Firstly, it’s the provision for the implementation of the Greek debt growth clause and its repayment. The economic logic changes. In the two previous programmes, we had to restrain the economy to service the debt, even at the cost of recession. Now the debt is serviced by growth, so we become partners with our partners in the prospect of economic growth.
The second important issue is the final paragraph of the decision, which provides for the creation of the proper reserves that will guarantee Greece’s return to the financial markets without any other conditions. The European Stability Mechanism (ESM), Europe’s financial arm and its political leaderships, guarantee the smooth financing of a country in a programme. This is a huge step.
The first successful return to the markets shows that the country is on the rise.
We have difficult and complicated negotiations for Brexit ahead. Some believe that Europeans will have one voice; others claim that there will be significant divisions. How does Greece see it?
Europe is faced with some choices that have long been leading to these deadlocks. There is a governance problem.
Europe has lost its ability to persuade people that it works in their interest. Of course, we must say that the critical political developments of the last year, a year that some looked at with curiosity and others with horror – the British Referendum, a French and a Dutch election – has come and gone without the European project being dismantled. Therefore, it has to be recognised that the EU project has more stamina than anyone could have believed.
The solution, in my opinion, lies in a progressive federalism; this is the road that Europe has to take. The progressive ones who perceive this as a priority need to consolidate their initiatives so that policies can be implemented in this direction.
At what stage is the issue of the tender for TV licenses?
Here we have made some positive steps in the last few weeks. Greece’s independent regulatory authority, the National Council for Radio and Television (NCRTV), which was set up last October, seems to be determined to make progress.
We will soon have the notice for a new TV licence auction. The first necessary steps have been taken, the number of licences has been set and there seems to be a willingness to complete this process and to close a wound for the country, which has been open for decades.
What often makes it difficult for our negotiating team or the Greek Prime Minister himself during discussions at European level is that the negotiating counterparts do not understand why there may be some special categories of citizens who do not meet their obligations.
What do you mean exactly?
Apart from the owners of the television stations, who for 30 years have been doing business without a licence, we also have the example of some lawyers who feel that their profession cannot be subject to the Electronic Transactions Act, because, as they claim, privacy issues arise from the cases they undertake. The same opinion is shared by some “high-ranking” doctors. Let’s not forget that some judges have also claimed the right not to file a wealth statement, as most civil servants do.
This is a distortion that dates back to the period when New Democracy and PASOK were in power, but I am optimistic that we will make a breakthrough.
We all have to understand this. Such wounds cannot be left open in a Greece that is trying and ultimately emerging from the crisis, slowly but surely. The current Government will not allow these wounds to remain open. We should show our partners and ourselves and send a message to society that we will not repeat these mistakes.
Recently, a TV station (Star Channel) filed a lawsuit against the State for “loss of profits” due to the loss of its television programming. Specifically, it blamed last year’s television licence auction. How do you comment on this legal move?
It is clear now. After this lawsuit and the announcements of the owners of the television stations, they [the TV channel owners] do not want a new auction to take place in order to get legal licences for their operations. And above all, they do not want to put their hands in their pockets to pay for their use of public property.
Our answer is clear. The implementation of the laws and the Constitution will not accept any exemptions. No matter how many attacks we receive, we do not back down.
As for the actions of the channels, you should also ask the Opposition parties. Can a television station, which for many years has broadcast without a legal licence, seek compensation – after 30 years – for the first auction for television licences? Can it demand the preservation of this lawlessness, taking advantage of the irresponsibility of New Democracy and PASOK which did not enforce the licencing of the channels?
A response from these political parties would also be interesting in the sense that the owners of the TV stations recently claimed to have been ‘hostages to insecurity’ for decades. What does this mean and how exactly did the two parties behave when they were in power?
They should finally take a position. Mr Mitsotakis [leader of New Democracy] and Ms Gennimata [Leader of PASOK] should not bury statements suggesting that their parties ‘kept the Press hostage’.
TV channel owners have now opened a new row with the Government when they asked the country’s Supreme Court to exempt their top executives from filing a wealth statement, citing privacy concerns.
What has been happening with the Greek justice system lately? The opposition blames you for attacking its independence.
There was a judicial decision recently which asserted that the non-payment of employees’ salaries does not constitute an unfavorable change in the employment contract. This goes beyond what we consider to be the European norm.
We are entitled to judge it, even in public. Justice representatives’ assessments are not beyond criticism.
If this is seen as an attack on the independence of the institution, we should also look at the cases of interference, as perhaps – according to press reports – we had in the past.
The opposition also accuses you of having imposed excessive taxation; that the state’s debt to individuals is huge and calls for elections to follow a different policy mix.
The elections will be held at the end of our term. Alexis Tsipras will be the first Prime Minister since the country joined the bailout programme to stay until the end of the four-year mandate. Such a development would be a signal of stability and recovery. We challenge the main Opposition party to stop focusing on nonsense and talk about the essence of politics. It should come to the table and discuss the hard core of policy and the results we bring. But because it cannot stand this debate, as the reality is clear and resounding, it brings up other issues that provoke ridicule and mockery among the Greek people.
43rd Anniversary of end of Military Dictatorship
In a message on Monday marking the toppling of the seven-year military junta in 1974, Prime Minister Alexis Tsipras said the 43rd anniversary since democracy was restored in Greece coincides with the final restoration of economic stability and the recovery of the country.
“This is a day to honour the thousands of citizens that resisted the dictatorship and our people’s struggles for popular rule, independence and social justice,” PM Tsipras said, while noting that the country’s path toward realizing these goals in the years that followed “was not always easy, nor straight.”
“In the distant 1974, the issue was national independence, popular sovereignty and social justice. This fight is ongoing, despite the setbacks of the Memoranda.
Today's anniversary is overshadowed by the jarring chords of an extreme opposition which in defiance of reality maintains that the Government is circumventing democracy.
“The extensive intertwining of powerful economic interests with centres and ‘circles’ of power, the lack of accountability and social control and, of course, the multiple repercussions of the economic crisis have raised serious obstacles, especially in recent years,” he noted.
It was now everyone’s collective duty to avoid the mistakes of the past in order to build Greece anew, he added, into a country freed of the games of major interests, petty politics and intolerance. “A Greece of democracy, productive reorganization and social solidarity. A Greece of justice,” he added.
This will require determination and a political will for major reforms and clashes with established interests, he said, “in order to restore a sense of justice to the Greek people.” He called for more active participation by citizens in decision-making centres, restoring the lost credibility of the political system and “giving content to the concept of democracy,” while noting that this was owed not only to the younger generations “but also to those that have devoted their lives to democracy and freedom in our country.”
In a message on Monday marking the toppling of the seven-year military junta in 1974, Prime Minister Alexis Tsipras said the 43rd anniversary since democracy was restored in Greece coincides with the final restoration of economic stability and the recovery of the country.
“This is a day to honour the thousands of citizens that resisted the dictatorship and our people’s struggles for popular rule, independence and social justice,” PM Tsipras said, while noting that the country’s path toward realizing these goals in the years that followed “was not always easy, nor straight.”
“In the distant 1974, the issue was national independence, popular sovereignty and social justice. This fight is ongoing, despite the setbacks of the Memoranda.
Today's anniversary is overshadowed by the jarring chords of an extreme opposition which in defiance of reality maintains that the Government is circumventing democracy.
“The extensive intertwining of powerful economic interests with centres and ‘circles’ of power, the lack of accountability and social control and, of course, the multiple repercussions of the economic crisis have raised serious obstacles, especially in recent years,” he noted.
It was now everyone’s collective duty to avoid the mistakes of the past in order to build Greece anew, he added, into a country freed of the games of major interests, petty politics and intolerance. “A Greece of democracy, productive reorganization and social solidarity. A Greece of justice,” he added.
This will require determination and a political will for major reforms and clashes with established interests, he said, “in order to restore a sense of justice to the Greek people.” He called for more active participation by citizens in decision-making centres, restoring the lost credibility of the political system and “giving content to the concept of democracy,” while noting that this was owed not only to the younger generations “but also to those that have devoted their lives to democracy and freedom in our country.”
"The most significant positive news in recent years is the steady decline in unemployment rates and the growth in full-time employment"
Prime Minister Alexis Tsipras at the Ministry of Labour
22.7.2017
The Prime Minister, Alexis Tsipras described his visit to the Ministry of Labour as a special moment, noting that it is the most crucial Ministry with regard to the outcome of the battle to tackle the crisis.
He unveiled a programme that will see the Government subsidize social security payments providing that employers switch freelance contracts with permanent ones for their employees. The programme will aim to correct the current situation where thousands of salaried employees appear to be self-employed.
In a joint press conference with Labour Minister Effi Achtsioglou, the PM said employers will be required to register their staff with the special platform of the EFKA social security fund. Those who employ uninsured staff will face strict penalties as the Government seeks to crack down on the rampant “undeclared” labour market.
The new programme will run for 12 months per employee with 350€ per month subsidized by the State. It will initially affect 40,000 employees. Employers will be obliged to keep staff on the books for a certain amount of time after the 12-month period expires.
According to the Prime Minister, the recently established EFKA fund is performing well, allaying fears and doomsday scenarios that it has already run into huge debt. “In 2015 we were handed a 1.5€ billion cash deficit… the Fund now has a surplus of approximately 150€ million.”
PM Tsipras went on to point out that social security spending increased from 780€ million in 2015 to 1.57€ billion in 2017 while in 2019 it is expected to exceed 2.5€ billion.
"My visit today may help us understand the difference between the supposed success story of the governments of New Democracy and PASOK and the real success which is leading to recovery which can be felt in people's daily lives," he said, adding that unemployment in Greece will drop by 2.5% annually in the next few years, while State programmes will help 120,000 jobless Greeks by the end of this year alone.
“The most significant positive news in recent years is the steady decline in unemployment rates and the growth in employment. This is the most important success of the Government.”
The Prime Minister talked about the effort being made to recover jobs and to build the new social State; he noted in his speech that the unemployment level fell to 21.7% at the end of April compared to 27.2% two years earlier. He said that the unemployment rate would fall by 2.5 percentage points per year over the coming years. He also said the Government will spend 100€ million on a retraining programme for some 50,000 people.
Programmes to address unemployment, all in all by the end of the year, will cover 120,000 unemployed people, he said.
“To tackle unemployment we are implementing programmes that don't waste money on middlemen and perpetual training. Over the 1/3 of the people participating in the community service programmes which provide training, are finding work after the end of the programmes and this is one of the highest rates in Europe.”
“It is no exaggeration for me to say that most important national goal is the recovery of jobs and the creation of a new social state that can respond to the needs of citizens.
“When there exists the political will, you are not afraid of conflicts with “names” with great political influence or banks which refuse to pay their fines.
We are promoting legislation which will exclude businesses that systematically break the law from any kind of State funding.
The National Insurance reform addresses the enduring lack of transparency, the irrationality and fragmentation that characterised the insurance system.”
“According to official figures, over the last period, we have seen in the private sector a 9.34% increase in the average monthly salary.
As regards the protection of employees, he said "From the first moment, we upgraded the Labour Inspectorate which is a critical authority with regard to workers' protection. We are not afraid to deal with employers who took the crisis as an opportunity to violate labour legislation."
"Soon, we will bring forward for legislation in Parliament a set of arrangements for dealing with violations of labour legislation, a comprehensive action plan to combat undeclared, under-declared work and unpaid work, a framework which will set rules in agriculture as well, putting a definitive end to repetitions of the Manolada incident.[In April 2013, farmers in Manolada on the Peloponnesos shot and wounded 28 Bangladeshi strawberry pickers when they asked to be paid. The case highlighted issues of human trafficking and the enslavement of migrant workers in Greece Ed.]
He unveiled a programme that will see the Government subsidize social security payments providing that employers switch freelance contracts with permanent ones for their employees. The programme will aim to correct the current situation where thousands of salaried employees appear to be self-employed.
In a joint press conference with Labour Minister Effi Achtsioglou, the PM said employers will be required to register their staff with the special platform of the EFKA social security fund. Those who employ uninsured staff will face strict penalties as the Government seeks to crack down on the rampant “undeclared” labour market.
The new programme will run for 12 months per employee with 350€ per month subsidized by the State. It will initially affect 40,000 employees. Employers will be obliged to keep staff on the books for a certain amount of time after the 12-month period expires.
According to the Prime Minister, the recently established EFKA fund is performing well, allaying fears and doomsday scenarios that it has already run into huge debt. “In 2015 we were handed a 1.5€ billion cash deficit… the Fund now has a surplus of approximately 150€ million.”
PM Tsipras went on to point out that social security spending increased from 780€ million in 2015 to 1.57€ billion in 2017 while in 2019 it is expected to exceed 2.5€ billion.
"My visit today may help us understand the difference between the supposed success story of the governments of New Democracy and PASOK and the real success which is leading to recovery which can be felt in people's daily lives," he said, adding that unemployment in Greece will drop by 2.5% annually in the next few years, while State programmes will help 120,000 jobless Greeks by the end of this year alone.
“The most significant positive news in recent years is the steady decline in unemployment rates and the growth in employment. This is the most important success of the Government.”
The Prime Minister talked about the effort being made to recover jobs and to build the new social State; he noted in his speech that the unemployment level fell to 21.7% at the end of April compared to 27.2% two years earlier. He said that the unemployment rate would fall by 2.5 percentage points per year over the coming years. He also said the Government will spend 100€ million on a retraining programme for some 50,000 people.
Programmes to address unemployment, all in all by the end of the year, will cover 120,000 unemployed people, he said.
“To tackle unemployment we are implementing programmes that don't waste money on middlemen and perpetual training. Over the 1/3 of the people participating in the community service programmes which provide training, are finding work after the end of the programmes and this is one of the highest rates in Europe.”
“It is no exaggeration for me to say that most important national goal is the recovery of jobs and the creation of a new social state that can respond to the needs of citizens.
“When there exists the political will, you are not afraid of conflicts with “names” with great political influence or banks which refuse to pay their fines.
We are promoting legislation which will exclude businesses that systematically break the law from any kind of State funding.
The National Insurance reform addresses the enduring lack of transparency, the irrationality and fragmentation that characterised the insurance system.”
“According to official figures, over the last period, we have seen in the private sector a 9.34% increase in the average monthly salary.
As regards the protection of employees, he said "From the first moment, we upgraded the Labour Inspectorate which is a critical authority with regard to workers' protection. We are not afraid to deal with employers who took the crisis as an opportunity to violate labour legislation."
"Soon, we will bring forward for legislation in Parliament a set of arrangements for dealing with violations of labour legislation, a comprehensive action plan to combat undeclared, under-declared work and unpaid work, a framework which will set rules in agriculture as well, putting a definitive end to repetitions of the Manolada incident.[In April 2013, farmers in Manolada on the Peloponnesos shot and wounded 28 Bangladeshi strawberry pickers when they asked to be paid. The case highlighted issues of human trafficking and the enslavement of migrant workers in Greece Ed.]
Effie Achtsioglou the Minister of Labour
“In conditions of financial stringency and the trusteeship, this Ministry is supporting as a priority the Welfare State on four pillars: the Labour Inspectorate (ΣΕΠΕ) –the Social Security Office (ΕΦΚΑ) – a revamped Farmers’ National Insurance Scheme (νέος ΟΓΑ) – the Employment Service (ΟΑΕΔ).”
Labour Minister, Effie Achtsiogloy, as part of her speech during the PM’s visit to the Ministry announced:
"On the basis of these institutional interventions, there will be a strengthening and updating of the Labour Inspectorate (ΣΕΠΕ) as the key institutional mechanism for intervention in the labour market and improving working relations."
In the area of social solidarity, she stressed that a nationwide network for social protection is being established. "This is a huge reorganization of the sector of social solidarity, which removes the clientelist relationships of the past and gives the weakest social strata the dignity they deserve in their contacts with the State."
"From the moment this Government took office, the Labour Ministry set specific key objectives: To deal with the rapid impact of the crisis, the unemployment that had jumped to a huge percentage and the humanitarian crisis that swept through Greek society in the 2010-2014 period, and to lay the foundations of the Welfare State, which historically our country has been without. An extremely difficult undertaking, because we have been called upon to make it happen not in normal circumstances, not in conditions of normality, but in conditions of strict budgetary constraints and, many times, asphyxiating supervision. I think, that with collective work and a plan, we are getting ever closer to these objectives."
"The primary central political commitment undertaken by this Government was the immediate response to the humanitarian crisis and the sharp impoverishment suffered by a large proportion of the population in the period 2010-2014. And to this commitment our Government responded with absolute consistency. With the first law that we brought to Parliament, Law 4320/2015, in early 2015, a lattice of measures was put in place to meet the pressing needs of 405,000 people: prepaid cards for basic necessities, free electricity and a rent subsidy to households that were in a precarious housing situation.
This intervention was not temporary, but has evolved into a structural programme, the Social Solidarity Income (ΚΕΑ), which more than 570,000 of our fellow citizens currently receive. In asphyxiating financial circumstances, we created a programme that is something much more than a subsistence allowance. It seeks to be the tool for impoverished people to return to a social life, - and here is the qualitative difference, - the connection of this programme with the return to work. Because, already within 2017, a significant proportion of unemployed beneficiaries of the Social Solidarity Income will be absorbed into work programmes. This is the main goal, the inclusion in work and not trapping them in poverty. It is about a huge social relief intervention and a hallmark of the reorganization of the Welfare State and of public policy in the field of social protection.
"Our second central political commitment was to make an effective intervention to reduce unemployment," said Labour Minister, expressing the view that on this front "things are going quite well".
According to ELSTAT, she said, the unemployment rate in April 2017 was 21.7%, about five percentage points down from the beginning of 2015, when this Government started its work. "And I must say that this outcome did not just happen nor was it easy. The positive data recorded in the last period are the result of a complex effort with many factors contributing; they are the result of the great effort that this Government is making to stabilize the economy; they are the result of integrated plans of programmes of work, based on labour market needs, programmes that are being implemented by the upgraded Employment Service (ΟΑΕΔ); they are, in the end, the result of both the systematic work being done to tackle undeclared work and to end a situation of widespread lawlessness and arbitrariness in the labour market, a situation that peaked in the 2010-2014 period, due not only to the complete collapse of the whole framework of labour protection, but also the policy choices of the previous Governments to tolerate the phenomena of arbitrary employer behaviour."
"And this brings me to the third central commitment: a basic commitment of our Government and of the political leadership of this Ministry was not just to create new jobs, but also to intervene in industrial relations themselves for the benefit of working people, imposing legality in the workplace, so that gradually quality jobs are taking shape. Because a strategic objective of this Government is not the achievement of a development in terms of simply numerical growth, returning to a model of development that we have seen in previous decades, a development that exacerbated social inequalities and did not respect the labour relations, but the achievement of a development, with labour placed at its core. And to meet this commitment we have been working hard and in a coordinated way from the first moment. In particular, recently, through the intensification of SEPE's interventions, we targeted undeclared, under-declared and unpaid work. Already, since the beginning of 2015 until today, trilateral conciliatory meetings have been held at the Ministry of Labour, between employers, workers and the State, in the presence of the political leadership, on more than 300 employment issues, when in the previous three years not even half that number had been held. In the vast majority of them, these meetings resulted in satisfying the demands of workers whether they related to revoking dismissals, or the payment of accrued earnings."
"From the first moment of this Government’s term of office, and despite the restrictive financial conditions, we put into operation the contingency allowance of economic support for workers, giving out more than 4€ million in the two-year period 2015-2016, (a tool that previous Governments kept inactive). At the same time, in the two-year period 2015-2016, thanks to the interventions of SEPE, more than 24€ million have been paid out of the accrued amounts owed to employees. The imposition of fines on banks for labour rights breaches, amounting to 1.9€ million, demonstrates our political will and determination to combat law-breaking. We are demonstrating that there is no more immunity, there are no “no-go areas” for control mechanisms."
"And it was precisely the combination of all of these pathogens that we have opposed over the last two and a half years and which previous political forces chose not to address, that led the public social security system to the verge of collapse. A system that we are committed to get back on its feet, making a truly titanic effort.
"The fact is that in the first stage of its operation were revealed all the mistakes and the bad management of the past. The insurance system was characterized from time immemorial by red-tape, clientelist arrangements, variations and inequalities. The utter lack of information and computerised systems and of an organized registry of insured persons had led to huge delays in the payment of pensions, with the result that in January 2015 there were piled up 160,000 retirement requests pending, while there were many cases of widespread mismanagement. We imposed rules on the system, we paid overdue payments, we closed the wounds of the past and today we are working to go to the next level to upgrade the public social security system and to recover its lost credibility. And, more significantly, a positive outlook is opening up. The reduction of unemployment and the ending of the dismantling of labour relations constitute the missing link in the connection between work and social security."
"In addition, however, to these central interventions, at the Ministry of Labour, we have concerned ourselves from the first moment also with a set of issues that remained 'unseen' to the previous Governments, such as resolving the issue of social housing, which concerns 36,000 of our fellow citizens, the substantive use of the fixed assets of the insurance funds using social benefit criteria, creating a node for information and service to citizens on labour issues, and the substantial upgrading of audits and of the framework for health and safety at work. Initiatives that may seem small, but which will have a substantial effect on the everyday life of thousands of citizens."
"From the first moment this Government took office, we set specific goals in the Labour Ministry. In the previous period, we concentrated on the first goal, social relief, flagging up, however, at the same time, the second objective, the reorganization of the Welfare State and public policy in the area of social protection. On this pillar we are now focussing with institutional interventions which we are implementing today and which we are striving for them to be the solid foundations of the Welfare State, interventions which will rolled out by 2019. In conditions of financial stringency and the trusteeship, this Ministry is supporting as a priority the Welfare State on four pillars: the Labour Inspectorate (ΣΕΠΕ) –the Social Security Office (ΕΦΚΑ) – a revamped Farmers’ National Insurance Scheme (νέος ΟΓΑ) – the Employment Service (ΟΑΕΔ). It is a great investment at work and in social protection, an investment in social cohesion, an investment in the credibility of institutions and of democracy. We hope that in the next period our efforts here will be felt in the everyday lives of citizens."
Primary Health Care Units
Speaking at a workshop about Primary Public Health Care, organized in Heraklion by the 7th Health Region of Crete, Health Minister Andreas Xanthos announced that 1,700 doctors and 1,300 ancillary workers will staff the new structure that will operate in the second half of 2017.
He said that Primary Care is one of the key objectives of the political leadership of the Ministry and the Government.
"We have got agreement with the Institutions and by August 5th we will legislate for the first Local Health Units."
"The necessary resources have been found from European funds, and funding is guaranteed for four years.
"In public health policies a new model is being applied, we are not talking about miserly management. And obviously it is not privatization, as many critics maintain."
The universal and free health coverage of the population, the provision of high quality health services, the outward looking functioning of Primary Health Care Structures and the whole person approach with the emphasis on prevention and health education in the community, are the key elements of this reform.
Germany Profits…
Germany’s Finance Ministry has published details of the profits Germany has made on loans to Greece and its debt buying programmes: €1.34bn since 2009, according to a report in the German newspaper Süddeutsche Zeitung.
The German development bank KfW has taken some €393m in interest payments on a loan of €15.2bn that it made to Athens in 2010. Between 2010 and 2012, a state debt-buying scheme by the Eurozone’s central banks brought the Bundesbank a profit of €952m. The European Central Bank collected more than €1.1 billion in 2016 in interest payments on the nearly €20 billion-worth of Greek bonds it holds.
Eurozone members had agreed to hand any profits back to the Greek central bank as a point of EU solidarity. But this pay-back operation was brought to a halt in 2015 when the SYRIZA-ANEL Government took office.
“It may be legal the way Germany deals with the crisis in Greece. It is not legitimate in the moral sense of solidarity,” the speaker for budgetary affairs in the Bundestag for the Green Party, Sven Christian Kindler said.
“ Finally the interest gained must be paid to Greece. It can not be that (German Finance Minister) Wolfgang Schaeuble wants to rehabilitate the German budget using Greek interest,” said the Greens’ EU expert in the Bundestag, Manuel Sarrazin.
IMF
The International Monetary Fund on Thursday approved in principle a $1.8 billion standby loan arrangement for Greece, making a conditional commitment to help underpin the country's long-running bailout programme for the first time in two years.
But the IMF's approval-in-principle means the Fund will not make any money available until after it receives "specific and credible assurances" from Greece's European lenders that ensure the sustainability of the country's debt. The current bailout funds are currently provided exclusively by European institutions.
“In conditions of financial stringency and the trusteeship, this Ministry is supporting as a priority the Welfare State on four pillars: the Labour Inspectorate (ΣΕΠΕ) –the Social Security Office (ΕΦΚΑ) – a revamped Farmers’ National Insurance Scheme (νέος ΟΓΑ) – the Employment Service (ΟΑΕΔ).”
Labour Minister, Effie Achtsiogloy, as part of her speech during the PM’s visit to the Ministry announced:
"On the basis of these institutional interventions, there will be a strengthening and updating of the Labour Inspectorate (ΣΕΠΕ) as the key institutional mechanism for intervention in the labour market and improving working relations."
In the area of social solidarity, she stressed that a nationwide network for social protection is being established. "This is a huge reorganization of the sector of social solidarity, which removes the clientelist relationships of the past and gives the weakest social strata the dignity they deserve in their contacts with the State."
"From the moment this Government took office, the Labour Ministry set specific key objectives: To deal with the rapid impact of the crisis, the unemployment that had jumped to a huge percentage and the humanitarian crisis that swept through Greek society in the 2010-2014 period, and to lay the foundations of the Welfare State, which historically our country has been without. An extremely difficult undertaking, because we have been called upon to make it happen not in normal circumstances, not in conditions of normality, but in conditions of strict budgetary constraints and, many times, asphyxiating supervision. I think, that with collective work and a plan, we are getting ever closer to these objectives."
"The primary central political commitment undertaken by this Government was the immediate response to the humanitarian crisis and the sharp impoverishment suffered by a large proportion of the population in the period 2010-2014. And to this commitment our Government responded with absolute consistency. With the first law that we brought to Parliament, Law 4320/2015, in early 2015, a lattice of measures was put in place to meet the pressing needs of 405,000 people: prepaid cards for basic necessities, free electricity and a rent subsidy to households that were in a precarious housing situation.
This intervention was not temporary, but has evolved into a structural programme, the Social Solidarity Income (ΚΕΑ), which more than 570,000 of our fellow citizens currently receive. In asphyxiating financial circumstances, we created a programme that is something much more than a subsistence allowance. It seeks to be the tool for impoverished people to return to a social life, - and here is the qualitative difference, - the connection of this programme with the return to work. Because, already within 2017, a significant proportion of unemployed beneficiaries of the Social Solidarity Income will be absorbed into work programmes. This is the main goal, the inclusion in work and not trapping them in poverty. It is about a huge social relief intervention and a hallmark of the reorganization of the Welfare State and of public policy in the field of social protection.
"Our second central political commitment was to make an effective intervention to reduce unemployment," said Labour Minister, expressing the view that on this front "things are going quite well".
According to ELSTAT, she said, the unemployment rate in April 2017 was 21.7%, about five percentage points down from the beginning of 2015, when this Government started its work. "And I must say that this outcome did not just happen nor was it easy. The positive data recorded in the last period are the result of a complex effort with many factors contributing; they are the result of the great effort that this Government is making to stabilize the economy; they are the result of integrated plans of programmes of work, based on labour market needs, programmes that are being implemented by the upgraded Employment Service (ΟΑΕΔ); they are, in the end, the result of both the systematic work being done to tackle undeclared work and to end a situation of widespread lawlessness and arbitrariness in the labour market, a situation that peaked in the 2010-2014 period, due not only to the complete collapse of the whole framework of labour protection, but also the policy choices of the previous Governments to tolerate the phenomena of arbitrary employer behaviour."
"And this brings me to the third central commitment: a basic commitment of our Government and of the political leadership of this Ministry was not just to create new jobs, but also to intervene in industrial relations themselves for the benefit of working people, imposing legality in the workplace, so that gradually quality jobs are taking shape. Because a strategic objective of this Government is not the achievement of a development in terms of simply numerical growth, returning to a model of development that we have seen in previous decades, a development that exacerbated social inequalities and did not respect the labour relations, but the achievement of a development, with labour placed at its core. And to meet this commitment we have been working hard and in a coordinated way from the first moment. In particular, recently, through the intensification of SEPE's interventions, we targeted undeclared, under-declared and unpaid work. Already, since the beginning of 2015 until today, trilateral conciliatory meetings have been held at the Ministry of Labour, between employers, workers and the State, in the presence of the political leadership, on more than 300 employment issues, when in the previous three years not even half that number had been held. In the vast majority of them, these meetings resulted in satisfying the demands of workers whether they related to revoking dismissals, or the payment of accrued earnings."
"From the first moment of this Government’s term of office, and despite the restrictive financial conditions, we put into operation the contingency allowance of economic support for workers, giving out more than 4€ million in the two-year period 2015-2016, (a tool that previous Governments kept inactive). At the same time, in the two-year period 2015-2016, thanks to the interventions of SEPE, more than 24€ million have been paid out of the accrued amounts owed to employees. The imposition of fines on banks for labour rights breaches, amounting to 1.9€ million, demonstrates our political will and determination to combat law-breaking. We are demonstrating that there is no more immunity, there are no “no-go areas” for control mechanisms."
"And it was precisely the combination of all of these pathogens that we have opposed over the last two and a half years and which previous political forces chose not to address, that led the public social security system to the verge of collapse. A system that we are committed to get back on its feet, making a truly titanic effort.
"The fact is that in the first stage of its operation were revealed all the mistakes and the bad management of the past. The insurance system was characterized from time immemorial by red-tape, clientelist arrangements, variations and inequalities. The utter lack of information and computerised systems and of an organized registry of insured persons had led to huge delays in the payment of pensions, with the result that in January 2015 there were piled up 160,000 retirement requests pending, while there were many cases of widespread mismanagement. We imposed rules on the system, we paid overdue payments, we closed the wounds of the past and today we are working to go to the next level to upgrade the public social security system and to recover its lost credibility. And, more significantly, a positive outlook is opening up. The reduction of unemployment and the ending of the dismantling of labour relations constitute the missing link in the connection between work and social security."
"In addition, however, to these central interventions, at the Ministry of Labour, we have concerned ourselves from the first moment also with a set of issues that remained 'unseen' to the previous Governments, such as resolving the issue of social housing, which concerns 36,000 of our fellow citizens, the substantive use of the fixed assets of the insurance funds using social benefit criteria, creating a node for information and service to citizens on labour issues, and the substantial upgrading of audits and of the framework for health and safety at work. Initiatives that may seem small, but which will have a substantial effect on the everyday life of thousands of citizens."
"From the first moment this Government took office, we set specific goals in the Labour Ministry. In the previous period, we concentrated on the first goal, social relief, flagging up, however, at the same time, the second objective, the reorganization of the Welfare State and public policy in the area of social protection. On this pillar we are now focussing with institutional interventions which we are implementing today and which we are striving for them to be the solid foundations of the Welfare State, interventions which will rolled out by 2019. In conditions of financial stringency and the trusteeship, this Ministry is supporting as a priority the Welfare State on four pillars: the Labour Inspectorate (ΣΕΠΕ) –the Social Security Office (ΕΦΚΑ) – a revamped Farmers’ National Insurance Scheme (νέος ΟΓΑ) – the Employment Service (ΟΑΕΔ). It is a great investment at work and in social protection, an investment in social cohesion, an investment in the credibility of institutions and of democracy. We hope that in the next period our efforts here will be felt in the everyday lives of citizens."
Primary Health Care Units
Speaking at a workshop about Primary Public Health Care, organized in Heraklion by the 7th Health Region of Crete, Health Minister Andreas Xanthos announced that 1,700 doctors and 1,300 ancillary workers will staff the new structure that will operate in the second half of 2017.
He said that Primary Care is one of the key objectives of the political leadership of the Ministry and the Government.
"We have got agreement with the Institutions and by August 5th we will legislate for the first Local Health Units."
"The necessary resources have been found from European funds, and funding is guaranteed for four years.
"In public health policies a new model is being applied, we are not talking about miserly management. And obviously it is not privatization, as many critics maintain."
The universal and free health coverage of the population, the provision of high quality health services, the outward looking functioning of Primary Health Care Structures and the whole person approach with the emphasis on prevention and health education in the community, are the key elements of this reform.
Germany Profits…
Germany’s Finance Ministry has published details of the profits Germany has made on loans to Greece and its debt buying programmes: €1.34bn since 2009, according to a report in the German newspaper Süddeutsche Zeitung.
The German development bank KfW has taken some €393m in interest payments on a loan of €15.2bn that it made to Athens in 2010. Between 2010 and 2012, a state debt-buying scheme by the Eurozone’s central banks brought the Bundesbank a profit of €952m. The European Central Bank collected more than €1.1 billion in 2016 in interest payments on the nearly €20 billion-worth of Greek bonds it holds.
Eurozone members had agreed to hand any profits back to the Greek central bank as a point of EU solidarity. But this pay-back operation was brought to a halt in 2015 when the SYRIZA-ANEL Government took office.
“It may be legal the way Germany deals with the crisis in Greece. It is not legitimate in the moral sense of solidarity,” the speaker for budgetary affairs in the Bundestag for the Green Party, Sven Christian Kindler said.
“ Finally the interest gained must be paid to Greece. It can not be that (German Finance Minister) Wolfgang Schaeuble wants to rehabilitate the German budget using Greek interest,” said the Greens’ EU expert in the Bundestag, Manuel Sarrazin.
IMF
The International Monetary Fund on Thursday approved in principle a $1.8 billion standby loan arrangement for Greece, making a conditional commitment to help underpin the country's long-running bailout programme for the first time in two years.
But the IMF's approval-in-principle means the Fund will not make any money available until after it receives "specific and credible assurances" from Greece's European lenders that ensure the sustainability of the country's debt. The current bailout funds are currently provided exclusively by European institutions.
“The Greek economy is improving and very soon it will return to competitive and sustainable levels in terms of its borrowing.”
8.7.2017
Speaking in Parliament on Monday, PM Alexis Tsipras defended the recent Eurogroup agreement and expressed optimism on the prospects for the economy. He attacked the Opposition who have criticized the agreement saying that they are “prophets of disaster”.
“The Greek economy is improving and very soon it will return to competitive and sustainable levels in terms of its borrowing.” “The agreement is a positive landmark towards the conclusion of the programme because it includes, for the first time, commitments not just promises about the settlement of the Greek debt.”
“The debt settlement measures will start to be implemented immediately after the conclusion of the programme.”
He also said that investors know how to read the agreement and for this reason they “throw any attempts at scaremongering in the dustbin.”
Greece’s return to the money markets would not be feasible without the debt settlement, Tsipras stated adding that in the negotiations the Government had secured lower Primary Surplus targets and had made the creditors commit to the alleviation of the debt.
He also said that the terms and conditions for a sustainable and definitive return to the money markets have been given shape adding that the Government’s plan for reducing unemployment is bearing fruit.
PM Tsipras referred to the re-building of the social state by reminding Parliament of the offset measures voted by the Government which will start to be implemented from 2019.
"Greece will not become either the Chile of Pinochet nor the Britain of Thatcher"
Referring to the economy, the Prime Minister spoke of "accessing the money markets without haste and above all not for publicity purposes".
"Our analysis is not confined to accessing the money markets. We think the country needs a plan of reconstruction with work at its core and not with the aim of crushing labour." "Greece will not become either the Chile of Pinochet nor the Britain of Thatcher". "We have brought forward an effective model of economic strength and high value with emphasis on the quality of the product and not on the reduction of production costs." The Prime Minister recalled some of the "fruits" of the programme: " In the period of Papandreou’s Government 500,000 jobs were lost, under Papademos 93,000 and under Samaras 293,000. Under SYRIZA, 230,000 jobs have been gained.
"For the first time we have a positive indicator of an increase in wages. For the first time the balance is tilting in favour of full-time employment. The proportion of flexible employment to full-time employment from being 60%-40% is 45%-55%."
"We have an economy that "is turning the page". "A fabrication of doom-mongering with dystopias and false predictions had been erected. But now … events have intervened to contradict them:
-"the Greek Government Bonds are at their lowest levels since 2009 and the Stock Market shows that it is returning to stability".
-"Moody's [the Bond Credit Rating Agency Ed.] which constitutes the most rigorous evaluation has upgraded the economy. The economy is correcting its position and soon enough will have recovered from the moment when the absence of the political factors shaped its image. The fundamental economic indicators do not reflect the current level of the bonds."
"We have positive trends of economic growth; indicators of production, employment, consumption and work are positive."
As regards the decision by the Eurogroup, Alexis Tsipras noted that " it is a convincing response to the reservations of the markets concerning the sustainability of the debt in stark contrast Mitsotakis’ view that we gave everything and got nothing."
"The facts about what we obtained from the Eurogroup are
(a) The Borrowing Requirements of the Treasury are not to exceed 15% of GDP. "We have a ceiling as to the annual financing needs of the debt which we will not exceed whatever happens."
b) As to the Primary Surpluses over the medium term, we have agreed on 2% after 2022. "Greece will be the only country in the Eurozone that will be a positive exception to the Stability Pact." "New Democracy have got a nerve talking about Primary Surpluses. New Democracy had committed the country to a Primary Surplus of 4% up to 2030."
(c)) the final quantification of the medium-term measures [“reforms” Ed]
d) "We have a locked algorithm for the reduction of the debt. Anyone who wants to can study the algorithm and calculate the reduction. The financial investors want to be able to do this and that's why they have thrown the doom-mongering in the rubbish bin."
Addressing the President of New Democracy Kyriakos Mitsotakis, he said "The people will compare your actions with our actions, our proposals with your proposals."
Responding to Mr. Mitsotakis’ reference to the "institutional crudeness" of the Government, he said "You are not some troll on social media; you are the leader of the official opposition. I was expecting you to have something of substance to say but you have a poverty of arguments about the economy. You spoke about the institutional crudeness of the Government. It is not institutional crudeness when someone makes a criticism about respected Judicial decisions. Institutional crudeness is when you talk about tax evasion and lists that you had in your drawer while offering immunity to the Big Shots, the sea of debt, the SIEMENS kickbacks that ended up in the coffers of your party. Institutional crudeness is making a gift of the Dunant Hospital to private interests but not before you took care to have members of your family treated for free or for your family members to “work” there in sinecures that required little or no work, and not before taking care to get personal or business loans borrowed and not repaid…Institutional crudeness is to turn your party into the servant of business interests.
Referring to the fight against tax evasion, Alexis Tsipras pointed out to New Democracy that "from the joy you got from the decision of the Council of State (ΣτΕ) [which stated that debts to the Greek State were constitutionally subject to a Statute of Limitations, thereby threatening to make it impossible for the Government to recover unpaid taxes from those on the Lagarde and Borgian Lists of wealthy Greeks banking abroad Ed] I understand that probably you are siding with those who want to avoid paying up". PM Tsipras announced these confirmed fines
- for fuel and tobacco smuggling: as from January 1st 2015 the fines total 711€ million. (in the previous period they were approximately 150€ million).
-on the Lagarde list, the fines are up from 26€ million in the period of Samaras to 267€ million.
-on the Borgian list: fines have reached 12,710,000€.
-from the voluntary disclosure of undisclosed income: we managed, with our approach, to get 3.7€ billion declared. We expect you to support us to collect these fines and not to rejoice that there might be a small institutional delay – because “the good lad knows another path”.
NOTES:
Unemployment
Greece's unemployment rate dropped to 21.7% in April from 22.0% in the previous month, statistics agency ELSTAT said on Thursday, but remains the Eurozone's highest. Unemployment in the 19 countries sharing the euro stood at an average of 9.3% in April.
Greece's jobless rate hit a record high of 27.9% in September 2013. Greece's economy expanded in the first three months of 2017. Economic output grew 0.4% compared to the final quarter of 2016.
The seasonally adjusted data showed that the number of officially unemployed people reached 1.04 million. The unemployment rate among young people aged 15 to 24 years dropped to 45.5% from 49.9% in April last year.
Graduate Unemployment
A recent study by the Foundation for Economic and Industrial Research (IOBE) on the situation of university graduates in Greece found that 36% of those who received their degrees after 2011 are currently unemployed and 57% are earning salaries ranging between 400€ and 800€ a month.
Overall, the percentage of university or college graduates who have jobs is the lowest in the European Union at 65%. This percentage was double in 2016 compared with 2011.
Tax Arrears
Greece’s tax office has had to resort to confiscations, auctions and criminal prosecutions in order to collect outstanding debts to the State which were almost 4.75€ billion in the first five months of this year.
According to Independent Public Revenue Authority (AADE) data, 91,104 seizures from bank accounts of wages, pensions and savings have been made since the beginning of the year. 24,059 seizures were made in May.
“The debt settlement measures will start to be implemented immediately after the conclusion of the programme.”
He also said that investors know how to read the agreement and for this reason they “throw any attempts at scaremongering in the dustbin.”
Greece’s return to the money markets would not be feasible without the debt settlement, Tsipras stated adding that in the negotiations the Government had secured lower Primary Surplus targets and had made the creditors commit to the alleviation of the debt.
He also said that the terms and conditions for a sustainable and definitive return to the money markets have been given shape adding that the Government’s plan for reducing unemployment is bearing fruit.
PM Tsipras referred to the re-building of the social state by reminding Parliament of the offset measures voted by the Government which will start to be implemented from 2019.
"Greece will not become either the Chile of Pinochet nor the Britain of Thatcher"
Referring to the economy, the Prime Minister spoke of "accessing the money markets without haste and above all not for publicity purposes".
"Our analysis is not confined to accessing the money markets. We think the country needs a plan of reconstruction with work at its core and not with the aim of crushing labour." "Greece will not become either the Chile of Pinochet nor the Britain of Thatcher". "We have brought forward an effective model of economic strength and high value with emphasis on the quality of the product and not on the reduction of production costs." The Prime Minister recalled some of the "fruits" of the programme: " In the period of Papandreou’s Government 500,000 jobs were lost, under Papademos 93,000 and under Samaras 293,000. Under SYRIZA, 230,000 jobs have been gained.
"For the first time we have a positive indicator of an increase in wages. For the first time the balance is tilting in favour of full-time employment. The proportion of flexible employment to full-time employment from being 60%-40% is 45%-55%."
"We have an economy that "is turning the page". "A fabrication of doom-mongering with dystopias and false predictions had been erected. But now … events have intervened to contradict them:
-"the Greek Government Bonds are at their lowest levels since 2009 and the Stock Market shows that it is returning to stability".
-"Moody's [the Bond Credit Rating Agency Ed.] which constitutes the most rigorous evaluation has upgraded the economy. The economy is correcting its position and soon enough will have recovered from the moment when the absence of the political factors shaped its image. The fundamental economic indicators do not reflect the current level of the bonds."
"We have positive trends of economic growth; indicators of production, employment, consumption and work are positive."
As regards the decision by the Eurogroup, Alexis Tsipras noted that " it is a convincing response to the reservations of the markets concerning the sustainability of the debt in stark contrast Mitsotakis’ view that we gave everything and got nothing."
"The facts about what we obtained from the Eurogroup are
(a) The Borrowing Requirements of the Treasury are not to exceed 15% of GDP. "We have a ceiling as to the annual financing needs of the debt which we will not exceed whatever happens."
b) As to the Primary Surpluses over the medium term, we have agreed on 2% after 2022. "Greece will be the only country in the Eurozone that will be a positive exception to the Stability Pact." "New Democracy have got a nerve talking about Primary Surpluses. New Democracy had committed the country to a Primary Surplus of 4% up to 2030."
(c)) the final quantification of the medium-term measures [“reforms” Ed]
d) "We have a locked algorithm for the reduction of the debt. Anyone who wants to can study the algorithm and calculate the reduction. The financial investors want to be able to do this and that's why they have thrown the doom-mongering in the rubbish bin."
Addressing the President of New Democracy Kyriakos Mitsotakis, he said "The people will compare your actions with our actions, our proposals with your proposals."
Responding to Mr. Mitsotakis’ reference to the "institutional crudeness" of the Government, he said "You are not some troll on social media; you are the leader of the official opposition. I was expecting you to have something of substance to say but you have a poverty of arguments about the economy. You spoke about the institutional crudeness of the Government. It is not institutional crudeness when someone makes a criticism about respected Judicial decisions. Institutional crudeness is when you talk about tax evasion and lists that you had in your drawer while offering immunity to the Big Shots, the sea of debt, the SIEMENS kickbacks that ended up in the coffers of your party. Institutional crudeness is making a gift of the Dunant Hospital to private interests but not before you took care to have members of your family treated for free or for your family members to “work” there in sinecures that required little or no work, and not before taking care to get personal or business loans borrowed and not repaid…Institutional crudeness is to turn your party into the servant of business interests.
Referring to the fight against tax evasion, Alexis Tsipras pointed out to New Democracy that "from the joy you got from the decision of the Council of State (ΣτΕ) [which stated that debts to the Greek State were constitutionally subject to a Statute of Limitations, thereby threatening to make it impossible for the Government to recover unpaid taxes from those on the Lagarde and Borgian Lists of wealthy Greeks banking abroad Ed] I understand that probably you are siding with those who want to avoid paying up". PM Tsipras announced these confirmed fines
- for fuel and tobacco smuggling: as from January 1st 2015 the fines total 711€ million. (in the previous period they were approximately 150€ million).
-on the Lagarde list, the fines are up from 26€ million in the period of Samaras to 267€ million.
-on the Borgian list: fines have reached 12,710,000€.
-from the voluntary disclosure of undisclosed income: we managed, with our approach, to get 3.7€ billion declared. We expect you to support us to collect these fines and not to rejoice that there might be a small institutional delay – because “the good lad knows another path”.
NOTES:
Unemployment
Greece's unemployment rate dropped to 21.7% in April from 22.0% in the previous month, statistics agency ELSTAT said on Thursday, but remains the Eurozone's highest. Unemployment in the 19 countries sharing the euro stood at an average of 9.3% in April.
Greece's jobless rate hit a record high of 27.9% in September 2013. Greece's economy expanded in the first three months of 2017. Economic output grew 0.4% compared to the final quarter of 2016.
The seasonally adjusted data showed that the number of officially unemployed people reached 1.04 million. The unemployment rate among young people aged 15 to 24 years dropped to 45.5% from 49.9% in April last year.
Graduate Unemployment
A recent study by the Foundation for Economic and Industrial Research (IOBE) on the situation of university graduates in Greece found that 36% of those who received their degrees after 2011 are currently unemployed and 57% are earning salaries ranging between 400€ and 800€ a month.
Overall, the percentage of university or college graduates who have jobs is the lowest in the European Union at 65%. This percentage was double in 2016 compared with 2011.
Tax Arrears
Greece’s tax office has had to resort to confiscations, auctions and criminal prosecutions in order to collect outstanding debts to the State which were almost 4.75€ billion in the first five months of this year.
According to Independent Public Revenue Authority (AADE) data, 91,104 seizures from bank accounts of wages, pensions and savings have been made since the beginning of the year. 24,059 seizures were made in May.
"We will win the battle for the public health system"
PM Tsipras at the Ministry of Health
"We will win the battle for the public health system," stressed the Prime Minister and he announced recruitment and the establishment of new positions at health units.
For Health to stand on its own feet was and still is one of the key priorities of Government policy.
"It is a Herculean struggle, in very difficult circumstances, which despite that has already yielded excellent results. However, it is not feasible to have completely transformed the image of public hospitals."
The Prime Minister said he knows that the picture isn't pleasant and that there is a lot more to be done. "Both the leadership of the Ministry of Health and the medical, nursing, paramedical and other hospital staff are waging a great battle, a difficult struggle to put the public hospitals back on their feet. And this fight we will support as much as we can and I believe that we will win. "
The Prime Minister referred to the Government's priorities for public health. These are “the universal access of the population to health services and health coverage for uninsured citizens, the strengthening of the public health system with resources and staff and finally, to eliminate chronic distortions and deal with the phenomena of waste and corruption.”
"The state of Public Health, when we took office in 2015 was beyond critical. It was on the verge of collapse. Not from being weakened by obligations of the Memoranda nor as a result of either incompetence or indifference. "It had been consciously targeted by choices of an ideological nature to open the sector to private interests.”
"Long before the crisis, Health was a privileged space for squandering resources, for the temptation of overpricing medicines and supplies, and for dirty dealings. A long-term pillaging of the public interest on an outrageous scale, with the national insurance funds and the State budget as the prime victims.”
He stressed that despite the dramatic cuts, imposed on the health sector, by the Memoranda, "this jamboree that continued as normal up until January 2015. He said that the objective of the Memorandum cuts in the period 2010-2014 wasn't to deal with the lack of transparency and the vested interests, but it was the level of health services which were squeezed even more. "The business interests and corruption remained untouched, but the staff shortages and lack of basic materials proliferated, the suffering of patients and their families grew, our hospitals were driven to the brink of bankruptcy and operational collapse.”
" Changes have been promoted in matters of private contracts in security, cleaning and catering, with significant economic benefits for the functioning of hospitals and substantial savings for the public purse.”
The Prime Minister stated that a systematic effort has been started and is on-going to support the National Health Service with the necessary staff. He also stressed that in the framework of the new medium-term 2015-2018 plan, the operating costs of hospitals and Primary Health Care units have been cumulatively supported with over 600€ million.
At the same time, the Prime Minister said that there is underway in Parliament an investigation process of large health scandals, scandals involving the well-known case of KEELPNO, the bankruptcy and disposal of the Dunant hospital, the widespread bribery by Novartis.
He noted that the revelations “indicate the impoverishment and the defilement of an entire political system that had turned the public health service into a field of interest for making profit and squandering public money.”
“The immediate goal is, by the end of 2017, for 239 Health Units in 80 areas of the country to be up and running.” “In the next period there will be faster steps in order to secure a Public Health System that is suited to a normal European country.
After meeting with Alexis Tsipras, during the PM’s visit to his Ministry, Health Minister Andreas Xanthos said that this Government, when it took over, had said it would do three major things in Health.
-It said it would address the issue of the exclusion from the National Health Service of millions of uninsured citizens. This it has done with absolute consistency.
-The second central political commitment was that the public health system would be supported as an absolute priority. Every citizen is gradually coming to realize that this has been implemented or is in hand.
-The third main political commitment was that we would raise the ethical level of the Health system, with interventions of consolidation, control, institutional reorganization and reduction of well- known vast problems of waste and corruption and the exploitation of the patient.”
The Minister said that with all the interventions that have been made, and with the related Inquiry into the Health Scandals at the forefront, the Government has given the political signal that there will be no more immunity, no more political cover-ups and no more tolerance of the corrupt policies of the previous period.
"We will win the battle for the public health system," stressed the Prime Minister and he announced recruitment and the establishment of new positions at health units.
For Health to stand on its own feet was and still is one of the key priorities of Government policy.
"It is a Herculean struggle, in very difficult circumstances, which despite that has already yielded excellent results. However, it is not feasible to have completely transformed the image of public hospitals."
The Prime Minister said he knows that the picture isn't pleasant and that there is a lot more to be done. "Both the leadership of the Ministry of Health and the medical, nursing, paramedical and other hospital staff are waging a great battle, a difficult struggle to put the public hospitals back on their feet. And this fight we will support as much as we can and I believe that we will win. "
The Prime Minister referred to the Government's priorities for public health. These are “the universal access of the population to health services and health coverage for uninsured citizens, the strengthening of the public health system with resources and staff and finally, to eliminate chronic distortions and deal with the phenomena of waste and corruption.”
"The state of Public Health, when we took office in 2015 was beyond critical. It was on the verge of collapse. Not from being weakened by obligations of the Memoranda nor as a result of either incompetence or indifference. "It had been consciously targeted by choices of an ideological nature to open the sector to private interests.”
"Long before the crisis, Health was a privileged space for squandering resources, for the temptation of overpricing medicines and supplies, and for dirty dealings. A long-term pillaging of the public interest on an outrageous scale, with the national insurance funds and the State budget as the prime victims.”
He stressed that despite the dramatic cuts, imposed on the health sector, by the Memoranda, "this jamboree that continued as normal up until January 2015. He said that the objective of the Memorandum cuts in the period 2010-2014 wasn't to deal with the lack of transparency and the vested interests, but it was the level of health services which were squeezed even more. "The business interests and corruption remained untouched, but the staff shortages and lack of basic materials proliferated, the suffering of patients and their families grew, our hospitals were driven to the brink of bankruptcy and operational collapse.”
" Changes have been promoted in matters of private contracts in security, cleaning and catering, with significant economic benefits for the functioning of hospitals and substantial savings for the public purse.”
The Prime Minister stated that a systematic effort has been started and is on-going to support the National Health Service with the necessary staff. He also stressed that in the framework of the new medium-term 2015-2018 plan, the operating costs of hospitals and Primary Health Care units have been cumulatively supported with over 600€ million.
At the same time, the Prime Minister said that there is underway in Parliament an investigation process of large health scandals, scandals involving the well-known case of KEELPNO, the bankruptcy and disposal of the Dunant hospital, the widespread bribery by Novartis.
He noted that the revelations “indicate the impoverishment and the defilement of an entire political system that had turned the public health service into a field of interest for making profit and squandering public money.”
“The immediate goal is, by the end of 2017, for 239 Health Units in 80 areas of the country to be up and running.” “In the next period there will be faster steps in order to secure a Public Health System that is suited to a normal European country.
After meeting with Alexis Tsipras, during the PM’s visit to his Ministry, Health Minister Andreas Xanthos said that this Government, when it took over, had said it would do three major things in Health.
-It said it would address the issue of the exclusion from the National Health Service of millions of uninsured citizens. This it has done with absolute consistency.
-The second central political commitment was that the public health system would be supported as an absolute priority. Every citizen is gradually coming to realize that this has been implemented or is in hand.
-The third main political commitment was that we would raise the ethical level of the Health system, with interventions of consolidation, control, institutional reorganization and reduction of well- known vast problems of waste and corruption and the exploitation of the patient.”
The Minister said that with all the interventions that have been made, and with the related Inquiry into the Health Scandals at the forefront, the Government has given the political signal that there will be no more immunity, no more political cover-ups and no more tolerance of the corrupt policies of the previous period.
Finance Minister Tsakalotos takes on critics
The Memorandum records the obligation to “de-politicise” the state sector, moving away from a politicisation “that existed in a bad sense, and it is the reason the Public Enterprises and Organizations (ΔΕΚΟ) have got to where they are". “This “dishwater” of favouritism will stop,” said Minister Tsakalotos.
Responding to the criticisms of New Democracy and the Democratic Coalition MPs, who spoke "about the selling-off of public property by a left-wing Government," Minister Tsakalotos argued that the agreement with Greece’s creditors had nothing to do with New Democracy’s previous policy choices: with regard to the Hellenic Republic Asset Development Fund S.A. (ΤΑΙΠΕΔ), "the difference is that you proposed a Fund just for privatisation, while we are creating a Fund that will also deal with regional and sectoral policy,which will include both privatisation and the utilisation of public property for the social good."
"We went with this compromise to the Greek people, and it is clear that if we had not had that pressure from the creditors, this Fund would not be in our programme. We neither celebrate neither are we overjoyed. " He stressed the Fund won't get its income just from the privatisations, but also from other ways of utilising public property. From these revenues, half will go to the creditors and the rest will be for investment and development.
"The Fund will work independently, and no Minister will be able to make it their own fiefdom. It will operate according to criteria of merit." He added that the Government's strategy is to cut political ties and to find ways for any business included in the Fund to develop and grow. In contrast, he said, "you had no plan for the Public Enterprises and Organizations (ΔΕΚΟ)."
"The Government's Strategy is to finish with the debt and to have public enterprises. I don't think you wanted to negotiate this solution. And the Public Sector against which your leader makes these attacks, is not to blame. We will protect this Public Sector and this is the huge difference between us that you can't hide."
The Memorandum records the obligation to “de-politicise” the state sector, moving away from a politicisation “that existed in a bad sense, and it is the reason the Public Enterprises and Organizations (ΔΕΚΟ) have got to where they are". “This “dishwater” of favouritism will stop,” said Minister Tsakalotos.
Responding to the criticisms of New Democracy and the Democratic Coalition MPs, who spoke "about the selling-off of public property by a left-wing Government," Minister Tsakalotos argued that the agreement with Greece’s creditors had nothing to do with New Democracy’s previous policy choices: with regard to the Hellenic Republic Asset Development Fund S.A. (ΤΑΙΠΕΔ), "the difference is that you proposed a Fund just for privatisation, while we are creating a Fund that will also deal with regional and sectoral policy,which will include both privatisation and the utilisation of public property for the social good."
"We went with this compromise to the Greek people, and it is clear that if we had not had that pressure from the creditors, this Fund would not be in our programme. We neither celebrate neither are we overjoyed. " He stressed the Fund won't get its income just from the privatisations, but also from other ways of utilising public property. From these revenues, half will go to the creditors and the rest will be for investment and development.
"The Fund will work independently, and no Minister will be able to make it their own fiefdom. It will operate according to criteria of merit." He added that the Government's strategy is to cut political ties and to find ways for any business included in the Fund to develop and grow. In contrast, he said, "you had no plan for the Public Enterprises and Organizations (ΔΕΚΟ)."
"The Government's Strategy is to finish with the debt and to have public enterprises. I don't think you wanted to negotiate this solution. And the Public Sector against which your leader makes these attacks, is not to blame. We will protect this Public Sector and this is the huge difference between us that you can't hide."
“The reforms and macroeconomic stability will play the crucial role.”
At a conference organised by the Economist magazine in Attica on Wednesday, representing the Greek Government, Alternate Finance Minister, Giorgos Chouliarakis said that cutting red tape, exiting the supervision and speeding up privatizations are of the utmost importance. He also spoke of the need to communicate the results of the reforms more effectively in order to attract investment.
On the issue of Quantitative Easing, the Minister said that remains a target but it is not essential in order to tap the markets. “It is the implementation of the reforms and macroeconomic stability that will play the crucial role.”
Mr. Chouliarakis also offered some insight on how the Government plans to increase revenues without stifling growth. “We need to do more regarding redistribution and the management of tax revenue in order to make the budget more growth-friendly.”
Touching upon the controversial issue of Greek debt relief, the Minister said “we all knew that the debt relief measures would be clarified towards the end of the programme”.
Speaking at the same event, the European Commission's mission chief to Greece, Declan Costello, complemented Greece on exceeding the fiscal targets for 2016 and said he firmly believed the country has the opportunity to successfully conclude the programme as long as it is committed to its targets.
POVERTY
Poverty data from the Hellenic Statistical Authority (ELSTAT) illustrate the significance of pensions when it comes to containing poverty risk in Greece, and the protection pensions provide for the retired when compared with other social groups such as the unemployed or women.
Social benefits in Greece contribute just four percentage points toward helping reduce the poverty risk, while pensions contribute 27.7 percentage points, from a total of 31.7 percent for all social handouts.
ELSTAT data show that 35.6% of the Greek population was at risk of poverty last year, marginally lower than in 2015 (35.7%).
The poverty line was set at an annual income of 4,500€ per person and 9,450€ for a four-member family in 2016. The poverty risk for people aged up to 17 amounts to 26.3% (down 0.3% from 2015), meaning that more than one in four Greek children is classified as poor. The poverty risk for over-65s was at 12.4% last year (down 1.3% from the year before).
There was a 1.3-percentage point increase in the rate of women at risk of poverty to 12.3%, while that for the unemployed rose 2.3 percentage points to 47.1% and of households with two adults and three or more dependent children 2.4 percentage points to 32%.
At a conference organised by the Economist magazine in Attica on Wednesday, representing the Greek Government, Alternate Finance Minister, Giorgos Chouliarakis said that cutting red tape, exiting the supervision and speeding up privatizations are of the utmost importance. He also spoke of the need to communicate the results of the reforms more effectively in order to attract investment.
On the issue of Quantitative Easing, the Minister said that remains a target but it is not essential in order to tap the markets. “It is the implementation of the reforms and macroeconomic stability that will play the crucial role.”
Mr. Chouliarakis also offered some insight on how the Government plans to increase revenues without stifling growth. “We need to do more regarding redistribution and the management of tax revenue in order to make the budget more growth-friendly.”
Touching upon the controversial issue of Greek debt relief, the Minister said “we all knew that the debt relief measures would be clarified towards the end of the programme”.
Speaking at the same event, the European Commission's mission chief to Greece, Declan Costello, complemented Greece on exceeding the fiscal targets for 2016 and said he firmly believed the country has the opportunity to successfully conclude the programme as long as it is committed to its targets.
POVERTY
Poverty data from the Hellenic Statistical Authority (ELSTAT) illustrate the significance of pensions when it comes to containing poverty risk in Greece, and the protection pensions provide for the retired when compared with other social groups such as the unemployed or women.
Social benefits in Greece contribute just four percentage points toward helping reduce the poverty risk, while pensions contribute 27.7 percentage points, from a total of 31.7 percent for all social handouts.
ELSTAT data show that 35.6% of the Greek population was at risk of poverty last year, marginally lower than in 2015 (35.7%).
The poverty line was set at an annual income of 4,500€ per person and 9,450€ for a four-member family in 2016. The poverty risk for people aged up to 17 amounts to 26.3% (down 0.3% from 2015), meaning that more than one in four Greek children is classified as poor. The poverty risk for over-65s was at 12.4% last year (down 1.3% from the year before).
There was a 1.3-percentage point increase in the rate of women at risk of poverty to 12.3%, while that for the unemployed rose 2.3 percentage points to 47.1% and of households with two adults and three or more dependent children 2.4 percentage points to 32%.
“a clear corridor to exit the crisis and the Memoranda has opened up with the Eurogroup's decision.”
On Wednesday Prime Minister Alexis Tsipras chaired a cabinet meeting to discuss the results of the Eurogroup meeting and the Government’s work over the next few weeks.
PM Tsipras argued that “a clear corridor to exit the crisis and the Memoranda has opened up with the Eurogroup's decision.” However, “we must not relax”, he told Ministers.
PM Tsipras argued that “a clear corridor to exit the crisis and the Memoranda has opened up with the Eurogroup's decision.” However, “we must not relax”, he told Ministers.
PM Tsipras in Cabinet
He explained why the agreement reached with creditors to conclude the Second Assessment meets the targets the Government had set beforehand. He said one of the most important aspects of the agreement is that it clarifies the mid-term measures to address the country’s debt after the end of the programme.
He noted that the agreement incorporated a French proposal for a growth clause to be factored into decisions for debt relief while a commitment was expressed to assist Greece in boosting growth and establishing a new Development Bank. The agreement commits Greece’s EU partners to the successful conclusion of the programme in August 2018 and ensures support for Greece’s return to the bond markets.
The PM urged Ministers to step up their efforts and keep working hard for Greece’s return to the money markets and the end of the bailout programme. He added that regardless of what critics say, the result of the agreement reached with creditors will be judged by the number of investors in Greece and the cost of the country’s bonds.
The Greek PM cautioned cabinet members that there was no room for complacency and that efforts had to intensify. He criticised opposition parties for pointing the finger at the SYRIZA-ANEL coalition Government, despite the fact that New Democracy and PASOK Governments had led Greece to economic catastrophe. “We still have not managed to make up all the lost ground of the catastrophic 2010-2015 period”.
Addressing the nation last Friday, PM Tsipras said Greece got what it wanted from the Institutions, which was an agreement that will point the way for the country’s exit from supervision.
“The road is now open for a return to the money markets, for the definitive end, one year from now, of the aid programmes and the Memoranda accompanying them,” he said. Alexis Tsipras said Thursday was a “good day for Greece,” noting the Government had “mobilized its alliances and common sense in Europe”. “We got what we wanted, but also what we deserved,” he continued, adding that this is the first time since the difficult compromise of July 2015 when “we feel vindicated.” He then expressed his satisfaction with the Government’s negotiating line : the Government had been right not to take what it was offered three weeks earlier.
He mentioned the main elements of the deal, noting the most important of all was the commitment included in the Eurogroup statement concerning the pledge to “end the Memoranda” in August 2018.
“After yesterday’s development, a clear road opens ahead of us for an exit [from the programme],” he said, adding he is aware of the difficulties and sacrifices of the Greek people all these years, noting however it is “one thing to endure without a ray of light and another to see before you the road towards the exit.”
Describing as the targets for the next phase for the country, he named fair growth for all, employment and egalitarianism. “Now is not the time for complacency, for rest, but for determination,” he said.
“Now is the time to push for the great changes that the Greek economy and society needs, to leave behind the Greece of unreliability, corruption, clientelism, tax evasion, scandals large and small.”
"This sends a signal out abroad, to investors and to the markets that they can trust Greece again. Trust has been put in Greece and that trust is very strong. However the signal is also for here at home and that signal must be even stronger. Yes we can. We can stand on our own two feet, by our own strength, to regain our sovereignty and our future. We can and we will succeed."
In an interview on Saturday,Thomas Wieser, the head of the Euro Working Group, said “Greece could return to the markets soon […] subject to proper handling and good economic policy”. He also said he expects talks on debt relief measures to start in mid-2018. “There’s political will to look at the framework of relief at the end of the programme and if it is necessary to provide the agreed relief.”
He explained why the agreement reached with creditors to conclude the Second Assessment meets the targets the Government had set beforehand. He said one of the most important aspects of the agreement is that it clarifies the mid-term measures to address the country’s debt after the end of the programme.
He noted that the agreement incorporated a French proposal for a growth clause to be factored into decisions for debt relief while a commitment was expressed to assist Greece in boosting growth and establishing a new Development Bank. The agreement commits Greece’s EU partners to the successful conclusion of the programme in August 2018 and ensures support for Greece’s return to the bond markets.
The PM urged Ministers to step up their efforts and keep working hard for Greece’s return to the money markets and the end of the bailout programme. He added that regardless of what critics say, the result of the agreement reached with creditors will be judged by the number of investors in Greece and the cost of the country’s bonds.
The Greek PM cautioned cabinet members that there was no room for complacency and that efforts had to intensify. He criticised opposition parties for pointing the finger at the SYRIZA-ANEL coalition Government, despite the fact that New Democracy and PASOK Governments had led Greece to economic catastrophe. “We still have not managed to make up all the lost ground of the catastrophic 2010-2015 period”.
Addressing the nation last Friday, PM Tsipras said Greece got what it wanted from the Institutions, which was an agreement that will point the way for the country’s exit from supervision.
“The road is now open for a return to the money markets, for the definitive end, one year from now, of the aid programmes and the Memoranda accompanying them,” he said. Alexis Tsipras said Thursday was a “good day for Greece,” noting the Government had “mobilized its alliances and common sense in Europe”. “We got what we wanted, but also what we deserved,” he continued, adding that this is the first time since the difficult compromise of July 2015 when “we feel vindicated.” He then expressed his satisfaction with the Government’s negotiating line : the Government had been right not to take what it was offered three weeks earlier.
He mentioned the main elements of the deal, noting the most important of all was the commitment included in the Eurogroup statement concerning the pledge to “end the Memoranda” in August 2018.
“After yesterday’s development, a clear road opens ahead of us for an exit [from the programme],” he said, adding he is aware of the difficulties and sacrifices of the Greek people all these years, noting however it is “one thing to endure without a ray of light and another to see before you the road towards the exit.”
Describing as the targets for the next phase for the country, he named fair growth for all, employment and egalitarianism. “Now is not the time for complacency, for rest, but for determination,” he said.
“Now is the time to push for the great changes that the Greek economy and society needs, to leave behind the Greece of unreliability, corruption, clientelism, tax evasion, scandals large and small.”
"This sends a signal out abroad, to investors and to the markets that they can trust Greece again. Trust has been put in Greece and that trust is very strong. However the signal is also for here at home and that signal must be even stronger. Yes we can. We can stand on our own two feet, by our own strength, to regain our sovereignty and our future. We can and we will succeed."
In an interview on Saturday,Thomas Wieser, the head of the Euro Working Group, said “Greece could return to the markets soon […] subject to proper handling and good economic policy”. He also said he expects talks on debt relief measures to start in mid-2018. “There’s political will to look at the framework of relief at the end of the programme and if it is necessary to provide the agreed relief.”
Greece and China
On Sunday it was reported that Greece has vetoed an EU condemnation of China’s human rights record at the UN. Greece refused to endorse an EU statement criticising the crackdown on activists and dissidents under the Chinese president, Xi Jinping. The statement was due to be submitted to the UN’s human rights council in Geneva last Thursday.
“We acted from a position of principle,” an official at the Greek Foreign Ministry told reporters on Sunday. “There is an upcoming dialogue between the EU and China on human rights and we think that could be a more efficient and constructive way of delivering better results.”
"Greece's position is that unproductive and in many cases, selective criticism against specific countries does not facilitate the promotion of human rights in these states, nor the development of their relation with the EU."
Human Rights Groups including Amnesty International said it was the first time the EU had failed to make such a statement at the UN.
Despite modest improvements in some areas, Beijing has faced criticism for what Human Rights Watch has described as “the Government’s systematic efforts to silence independent civil society voices”.
China and some European countries have a different criteria for the evaluation of human rights, Chang Jian, director of the Center for the Study of Human Rights in Nankai University, told the official Chinese Government Foreign Affairs newspaper The Global Times on Sunday. "China pays more attention to people's survival and development rights, while European or Western countries focus more on citizens' political rights and freedoms."
The Greek foreign ministry spokesperson said that "during the formulation of the common statement there were also other countries that expressed similar reservations" and that “Greece participates on an equal footing in establishing the EU's common foreign policy”.
It also underscores the EU's awkward ties with China, its second-largest trade partner, diplomats said.
Brussels has welcomed Beijing as an ally against U.S. President Donald Trump in the fight against climate change and trade protectionism. But as business ties grow, the bloc is struggling to speak out against a Chinese Government crackdown on human rights lawyers and other activists since 2015.
On Sunday it was reported that Greece has vetoed an EU condemnation of China’s human rights record at the UN. Greece refused to endorse an EU statement criticising the crackdown on activists and dissidents under the Chinese president, Xi Jinping. The statement was due to be submitted to the UN’s human rights council in Geneva last Thursday.
“We acted from a position of principle,” an official at the Greek Foreign Ministry told reporters on Sunday. “There is an upcoming dialogue between the EU and China on human rights and we think that could be a more efficient and constructive way of delivering better results.”
"Greece's position is that unproductive and in many cases, selective criticism against specific countries does not facilitate the promotion of human rights in these states, nor the development of their relation with the EU."
Human Rights Groups including Amnesty International said it was the first time the EU had failed to make such a statement at the UN.
Despite modest improvements in some areas, Beijing has faced criticism for what Human Rights Watch has described as “the Government’s systematic efforts to silence independent civil society voices”.
China and some European countries have a different criteria for the evaluation of human rights, Chang Jian, director of the Center for the Study of Human Rights in Nankai University, told the official Chinese Government Foreign Affairs newspaper The Global Times on Sunday. "China pays more attention to people's survival and development rights, while European or Western countries focus more on citizens' political rights and freedoms."
The Greek foreign ministry spokesperson said that "during the formulation of the common statement there were also other countries that expressed similar reservations" and that “Greece participates on an equal footing in establishing the EU's common foreign policy”.
It also underscores the EU's awkward ties with China, its second-largest trade partner, diplomats said.
Brussels has welcomed Beijing as an ally against U.S. President Donald Trump in the fight against climate change and trade protectionism. But as business ties grow, the bloc is struggling to speak out against a Chinese Government crackdown on human rights lawyers and other activists since 2015.
Greece and Turkey
“The relations of trust and cooperation between Greece and Turkey can only benefit the peoples of both countries,” PM Tsipras said on Monday, welcoming Turkish Prime Minister Binali Yildirim to Athens, adding that people should support their neighbors in hard times, something that both countries had faced in the past year.
“I look forward to the opportunity to face challenges in a constructive way in order to provide solutions, I am looking forward to the opportunity to approach the issues in a positive way,” he said.
“We are neighbours, we share the same fate and we have to face the issues with calmness,” said the Turkish Prime Minister. He also said there should be a positive way of dealing with issues without prejudice or misunderstandings.
“We have a saying in Turkish, that the neighbour needs even the ash of the wood his neighbour is burning. We need each other and on everything we depend on each other,” PM Yildirim said.
PM Tsipras said “The Aegean must remain a sea of peace and stability”
In the joint press conference after their meeting, the Greek PM said that Turkish provocations in the Aegean are not helping the building of good relations. He was referring to the frequent Turkish aircraft violations of Greek airspace. To that, PM Yildirim replied that Greek fighter jets violate Turkish airspace as well.
Alexis Tsipras spoke of the importance of a “positive agenda” between the two countries in areas such as energy, transport, counter-terrorism and the refugee-migration crisis. He stressed that the Turkish provocations do not help in that direction.
However, the Greek PM said, Greece supports Turkey’s accession to the European Union and good neighbourly relations and mutual respect can contribute to the country’s quicker inclusion in the EU.
Turkish Prime Minister Binali Yildirim said that Turkey respects Greece’s decision not to extradite eight soldiers who fled to Greece after last July’s attempted coup. “We would like Greece to extradite those who clearly staged a coup against our nation. However, we respect the judiciary’s decision, and we do not want these putschists to strike a blow at Turkish-Greek relations.”
Mr.Tsipras added that they [the soldiers] are not welcome in Greece, while stressing that his is a political stance. The issue of the eight Turkish soldiers is a matter for the Greek Judiciary and its decisions must be fully respected, PM Tsipras said.
Henry Dunant Hospital Scandal
The Parliamentary Commission of Inquiry into Health Scandals this week heard how leaders and top executives of the two political parties bankrupted the hospital and set up a clientelist State
That New Democracy and PASOK for decades set themselves up as the pinnacle of state patronage and of the system of corruption and that was one of the major reasons that ultimately led to the country’s bankruptcy is finally being demonstrated by the case of the Henry Dunant Hospital scandal.
After the disclosure of the 17,000 "free" hospital admissions, it was revealed to the Parliamentary Select Committee on Health that the hospital was used for years for rewarding the clan loyalties of ND and PASOK, on many occasions and unnecessarily.
Mitsotakis, Bakoyannis, Samaras, Simitis, Venizelos, Protopapas, are just some of those “involved” among the more than 500 paid staff taken on in a single year.
TV Channels
In full plenary Parliament passed into law Minister of Digital Policy, Telecommunications and Information Nikos Pappas’ Amendment which repeals Article 2A of law 4339/2015 on the licensing of private television stations.
The Ministry has noted that the application of this article had been suspended until the publication of the the Council of State’s decision, which was taken in January 2017, and in view of efforts to form a new all-party National Broadcasting Council (ESR).
The Ministry of Digital Policy announced "after the passing of the Amendment, the ESR will be asked to submit its opinion on the number of television licenses which should be auctioned, as well as the minimum starting price for each one of them" and "in this way, the road opens to conducting a new auction".
Tourism
The tourism sector is showing genuine signs of growth this year that suggest it will be the main driver of the Greek recovery, as it will help state revenues, the private economy, the country’s current accounts and employment. The Government is for the first time speaking of 30 million arrivals in 2017.
Bank of Greece data show that in the first four months of the year travel receipts increased by 2.4% or 23€ million year-on-year, reaching 997€ million. This increase was thanks to the 3.2% rise in arrivals and not on average spending per trip, which posted a 0.8% decline. This means the 4.8% drop in travel receipts during the first quarter was offset in April, when arrivals rose 12% and receipts 11.3% compared to 2016. This positive picture is expected to have continued in May.
Retail sector representatives are looking forward to cashing in on the increase in arrivals, to offset the losses resulting from Greek households’ ever shrinking disposable incomes. Based on the bookings picture, turnover in retail commerce could rise by up to 5% this year.
Addressing a conference organized by the Panhellenic Exporters Federation, Tourism Minister Elena Kountoura said that the data of the first five months point to an increase in arrivals, revenues, nights stayed and occupancy rates. They also show an increase in bookings for the summer ranging between 15% and 70%, depending on area, which led to her conclusion that Greece will have more then 30 million tourists this year after welcoming 28 million in 2016 and 26 million in 2015.
The growth in tourism is also reflected in employment and commerce. The number of unemployed registered with the Manpower Organization (OAED) last month dropped by 56,820 people from April to 913,518, mainly thanks to the rise in seasonal employment in tourism and commerce.
In May seven out of 10 new jobs were in the tourism sector, the Ergani hirings database of the Labour Ministry shows: Of the 89,534 new jobs in tourism, 42,871 concerned the accommodation sector, 19,952 were in food service and 2,389 in leasing and renting activities.
“The relations of trust and cooperation between Greece and Turkey can only benefit the peoples of both countries,” PM Tsipras said on Monday, welcoming Turkish Prime Minister Binali Yildirim to Athens, adding that people should support their neighbors in hard times, something that both countries had faced in the past year.
“I look forward to the opportunity to face challenges in a constructive way in order to provide solutions, I am looking forward to the opportunity to approach the issues in a positive way,” he said.
“We are neighbours, we share the same fate and we have to face the issues with calmness,” said the Turkish Prime Minister. He also said there should be a positive way of dealing with issues without prejudice or misunderstandings.
“We have a saying in Turkish, that the neighbour needs even the ash of the wood his neighbour is burning. We need each other and on everything we depend on each other,” PM Yildirim said.
PM Tsipras said “The Aegean must remain a sea of peace and stability”
In the joint press conference after their meeting, the Greek PM said that Turkish provocations in the Aegean are not helping the building of good relations. He was referring to the frequent Turkish aircraft violations of Greek airspace. To that, PM Yildirim replied that Greek fighter jets violate Turkish airspace as well.
Alexis Tsipras spoke of the importance of a “positive agenda” between the two countries in areas such as energy, transport, counter-terrorism and the refugee-migration crisis. He stressed that the Turkish provocations do not help in that direction.
However, the Greek PM said, Greece supports Turkey’s accession to the European Union and good neighbourly relations and mutual respect can contribute to the country’s quicker inclusion in the EU.
Turkish Prime Minister Binali Yildirim said that Turkey respects Greece’s decision not to extradite eight soldiers who fled to Greece after last July’s attempted coup. “We would like Greece to extradite those who clearly staged a coup against our nation. However, we respect the judiciary’s decision, and we do not want these putschists to strike a blow at Turkish-Greek relations.”
Mr.Tsipras added that they [the soldiers] are not welcome in Greece, while stressing that his is a political stance. The issue of the eight Turkish soldiers is a matter for the Greek Judiciary and its decisions must be fully respected, PM Tsipras said.
Henry Dunant Hospital Scandal
The Parliamentary Commission of Inquiry into Health Scandals this week heard how leaders and top executives of the two political parties bankrupted the hospital and set up a clientelist State
That New Democracy and PASOK for decades set themselves up as the pinnacle of state patronage and of the system of corruption and that was one of the major reasons that ultimately led to the country’s bankruptcy is finally being demonstrated by the case of the Henry Dunant Hospital scandal.
After the disclosure of the 17,000 "free" hospital admissions, it was revealed to the Parliamentary Select Committee on Health that the hospital was used for years for rewarding the clan loyalties of ND and PASOK, on many occasions and unnecessarily.
Mitsotakis, Bakoyannis, Samaras, Simitis, Venizelos, Protopapas, are just some of those “involved” among the more than 500 paid staff taken on in a single year.
TV Channels
In full plenary Parliament passed into law Minister of Digital Policy, Telecommunications and Information Nikos Pappas’ Amendment which repeals Article 2A of law 4339/2015 on the licensing of private television stations.
The Ministry has noted that the application of this article had been suspended until the publication of the the Council of State’s decision, which was taken in January 2017, and in view of efforts to form a new all-party National Broadcasting Council (ESR).
The Ministry of Digital Policy announced "after the passing of the Amendment, the ESR will be asked to submit its opinion on the number of television licenses which should be auctioned, as well as the minimum starting price for each one of them" and "in this way, the road opens to conducting a new auction".
Tourism
The tourism sector is showing genuine signs of growth this year that suggest it will be the main driver of the Greek recovery, as it will help state revenues, the private economy, the country’s current accounts and employment. The Government is for the first time speaking of 30 million arrivals in 2017.
Bank of Greece data show that in the first four months of the year travel receipts increased by 2.4% or 23€ million year-on-year, reaching 997€ million. This increase was thanks to the 3.2% rise in arrivals and not on average spending per trip, which posted a 0.8% decline. This means the 4.8% drop in travel receipts during the first quarter was offset in April, when arrivals rose 12% and receipts 11.3% compared to 2016. This positive picture is expected to have continued in May.
Retail sector representatives are looking forward to cashing in on the increase in arrivals, to offset the losses resulting from Greek households’ ever shrinking disposable incomes. Based on the bookings picture, turnover in retail commerce could rise by up to 5% this year.
Addressing a conference organized by the Panhellenic Exporters Federation, Tourism Minister Elena Kountoura said that the data of the first five months point to an increase in arrivals, revenues, nights stayed and occupancy rates. They also show an increase in bookings for the summer ranging between 15% and 70%, depending on area, which led to her conclusion that Greece will have more then 30 million tourists this year after welcoming 28 million in 2016 and 26 million in 2015.
The growth in tourism is also reflected in employment and commerce. The number of unemployed registered with the Manpower Organization (OAED) last month dropped by 56,820 people from April to 913,518, mainly thanks to the rise in seasonal employment in tourism and commerce.
In May seven out of 10 new jobs were in the tourism sector, the Ergani hirings database of the Labour Ministry shows: Of the 89,534 new jobs in tourism, 42,871 concerned the accommodation sector, 19,952 were in food service and 2,389 in leasing and renting activities.
Eurogroup :
“an agreement on all elements”
17.6.2017
On Thursday, the Eurogroup agreed to conclude the Second Assessment so paving the way for the release of 8.5€ billion support loans and put in place a mechanism for future debt relief.
German Finance Minister Wolfgang Schaeuble, left, speaks with from right, European Commissioner for Economy Pierre Moscovici, Greek Finance Minister Euclid Tsakalotos, and French Finance Minister Bruno Le Maire during the meeting of eurogroup finance ministers at the European Council building in Luxembourg on Thursday.
The key to breaking the deadlock was the French proposal to link debt relief measures to the country’s growth rate. To bridge the wide differences in assumptions about Greek growth rates over the next decades, French Finance Minister Bruno Le Maire proposed to link the extent of the debt relief to Greek economic growth.
The conclusion of the Second Assessment comes with the granting of a 8.5€ billion support loan, while the mechanism of linking debt repayment to growth - the so-called "development clause" of the French proposal, will be further clarified before the end of the Programme, when the medium-term measures will be implemented.
The IMF's involvement with funding and the European commitment to support the Greek effort to enter the money markets also marks the countdown for an exit from the so-called Greek drama. After today "there is light at the end of the tunnel," said Euclid Tsakalotos, while Alexis Tsipras spoke about "turning the page".
"Today the Greece turns the page. We have an agreement that corresponds to the sacrifices of the Greek people. With unity and determination we are moving forward towards equitable growth and the healing of the wounds of the crisis."
A Government Briefing on the outcome of the Eurogroup meeting stated:
"For the first time there is a clear commitment by the Eurogroup to support Greece’s entry into the money markets and its successful completion of the Programme.
The French proposal essentially bridged the gap between the different growth estimates of the IMF and the European Institutions. The Eurogroup is committed to ensuring that the measures for debt relief will correspond to any variation of growth rates. This converts Greece’s European partners into allies in pursuit of its objective of growth, since the more the Greek economy grows, the less debt relief will be required.
A period of grace and an extension of the terms of loan maturity, certainly by 15 years, and possibly for longer, were agreed if high growth rates are not achieved. This ensured the adoption of the development clause. Also the agreement established Primary Surpluses targets of 2% from 2023 and an average of approximately 2% up to 2060.
There is provision for the gradual reduction of surpluses under 2%. This is a very important commitment, as it determines the amount of debt relief required, which can be calculated by the markets and the Institutions. In addition to these Primary Surpluses, Greece will be the only EU country that will be a positive exception to the Stability Pact, on the basis of which Greece would have been obliged to have a Primary Surplus of 2.6% in the long term rather than the 2% as finally agreed.
There is a commitment to an ambitious development package from European funds that will give the prospect of high rates of growth in the Greek economy in the medium term (2018-2022).
The standing Government request for the establishment of a Development Bank was accepted.
The IMF's assessment was positive with regard to the sustainability of debt unlike its forecast of 22nd May, when the IMF believed that the Greek debt was not on track to viability.
An instalment greater than the financing needs of the Greek Treasury was agreed since that provides the possibility of paying off arrears amounting to approximately 1.6€ billion."
Eurogroup President, Jeroen Dijsselbloem, said Greece will receive 8.5€ billion, allowing it to meet a big repayment on July 19th. The funds are to be released once European Parliaments ratify the deal.
“I am pleased to announce that we have achieved an agreement on all elements,” He also said the IMF was ready to provide more financial assistance to Greece via a stand-by arrangement. IMF Managing Director, Christine Lagarde, said in a statement that it was her “intention to propose to the IMF’s Executive Board the approval in principle of a new IMF Stand-By Arrangement for Greece”.
“We have recently seen significant progress by the Greek Government on policy reforms, with a staff-level agreement followed by supportive legislation from the Greek Parliament. We have also seen progress on debt relief, although further discussions are needed on the scope and type of measures to be provided by Greece’s European creditors” Mrs. Lagarde added.
Finance Minister Euclid Tsakalotos welcomed the decision, highlighting the importance of further clarity on debt re-profiling. He said the country can “look forward with much greater confidence.” “We didn’t want the perfect to be the enemy of the good.”
He went on to say that one big benefit from the deal was that future debt repayments would be linked to Greece’s growth. In essence that could mean payments could be postponed in the event of an adverse shock.
"It's a big step forward from what was on the table at the last Eurogroup meeting," he said. "It gives much greater clarity to the markets and the Greek people."
European Stability Mechanism (ESM) head Klaus Regling said Greece should be able to return to the money markets late this year or early next year.
The conclusion of the Second Assessment comes with the granting of a 8.5€ billion support loan, while the mechanism of linking debt repayment to growth - the so-called "development clause" of the French proposal, will be further clarified before the end of the Programme, when the medium-term measures will be implemented.
The IMF's involvement with funding and the European commitment to support the Greek effort to enter the money markets also marks the countdown for an exit from the so-called Greek drama. After today "there is light at the end of the tunnel," said Euclid Tsakalotos, while Alexis Tsipras spoke about "turning the page".
"Today the Greece turns the page. We have an agreement that corresponds to the sacrifices of the Greek people. With unity and determination we are moving forward towards equitable growth and the healing of the wounds of the crisis."
A Government Briefing on the outcome of the Eurogroup meeting stated:
"For the first time there is a clear commitment by the Eurogroup to support Greece’s entry into the money markets and its successful completion of the Programme.
The French proposal essentially bridged the gap between the different growth estimates of the IMF and the European Institutions. The Eurogroup is committed to ensuring that the measures for debt relief will correspond to any variation of growth rates. This converts Greece’s European partners into allies in pursuit of its objective of growth, since the more the Greek economy grows, the less debt relief will be required.
A period of grace and an extension of the terms of loan maturity, certainly by 15 years, and possibly for longer, were agreed if high growth rates are not achieved. This ensured the adoption of the development clause. Also the agreement established Primary Surpluses targets of 2% from 2023 and an average of approximately 2% up to 2060.
There is provision for the gradual reduction of surpluses under 2%. This is a very important commitment, as it determines the amount of debt relief required, which can be calculated by the markets and the Institutions. In addition to these Primary Surpluses, Greece will be the only EU country that will be a positive exception to the Stability Pact, on the basis of which Greece would have been obliged to have a Primary Surplus of 2.6% in the long term rather than the 2% as finally agreed.
There is a commitment to an ambitious development package from European funds that will give the prospect of high rates of growth in the Greek economy in the medium term (2018-2022).
The standing Government request for the establishment of a Development Bank was accepted.
The IMF's assessment was positive with regard to the sustainability of debt unlike its forecast of 22nd May, when the IMF believed that the Greek debt was not on track to viability.
An instalment greater than the financing needs of the Greek Treasury was agreed since that provides the possibility of paying off arrears amounting to approximately 1.6€ billion."
Eurogroup President, Jeroen Dijsselbloem, said Greece will receive 8.5€ billion, allowing it to meet a big repayment on July 19th. The funds are to be released once European Parliaments ratify the deal.
“I am pleased to announce that we have achieved an agreement on all elements,” He also said the IMF was ready to provide more financial assistance to Greece via a stand-by arrangement. IMF Managing Director, Christine Lagarde, said in a statement that it was her “intention to propose to the IMF’s Executive Board the approval in principle of a new IMF Stand-By Arrangement for Greece”.
“We have recently seen significant progress by the Greek Government on policy reforms, with a staff-level agreement followed by supportive legislation from the Greek Parliament. We have also seen progress on debt relief, although further discussions are needed on the scope and type of measures to be provided by Greece’s European creditors” Mrs. Lagarde added.
Finance Minister Euclid Tsakalotos welcomed the decision, highlighting the importance of further clarity on debt re-profiling. He said the country can “look forward with much greater confidence.” “We didn’t want the perfect to be the enemy of the good.”
He went on to say that one big benefit from the deal was that future debt repayments would be linked to Greece’s growth. In essence that could mean payments could be postponed in the event of an adverse shock.
"It's a big step forward from what was on the table at the last Eurogroup meeting," he said. "It gives much greater clarity to the markets and the Greek people."
European Stability Mechanism (ESM) head Klaus Regling said Greece should be able to return to the money markets late this year or early next year.
Changing the European Game: Momentum for Growth
Prime Minister Alexis Tsipras wrote this article which earlier in the week was published in Le Monde and Die Welt
“The European ideal must not fade. But there is more to it than its mere survival. It will take more than that: the European ideal must inspire people again. It needs to become stronger, today more than ever. The voices, which call for a new governance of the Eurozone, are increasing, as well as those who demand a new impetus for growth across Europe and these voices must prevail again.
These are the voices of European people. Among them, a new European identity has emerged, as well as the expectation for a new course of equality and social justice. For a new era, away from the mistakes and exaggerations of the past. An era of sustainable development and prosperity for all.
Europeans as well as Greeks have suffered a lot during the financial crisis. Although Greece has been affected by the crisis more than any other country, we have not asked for any exceptions or favour. We have instead made, probably harder than anybody else, efforts to restore our dignity at the international and European levels. And that is why today we are striving to rebuild our lives, to create jobs and to regain our status in the European economy.
The Greek people and Government have been working in this direction over the past two years. The facts speak by themselves:
The country has been going through a lot since 2010. The implementation of fiscal adjustment programmes skyrocketed unemployment to as much as 30% in 2013, shrinking GDP by 25%. They have pushed large parts of the population into social exclusion and undermined the economic recovery of our country. But today we do not want to talk about the past. Today there is an urgency to talk about the future.
In favour of that future, the Greek Government made tough decisions in the summer of 2015. Ever since, it has implemented a programme of structural adjustment and reforms that has led to expenditure reduction and increased revenue amid an already shrunk economy. We have liberalized regulated professions, implemented a VAT reform, reformed the energy market, and implemented reforms for depoliticizing the public administration. We have put forward an agreement on a privatisation programme, while passing legislation for improving the framework for investment.
Over the two years of our governance, Greece has implemented more reforms than all other European countries combined. Additionally, we have taken a step further; we agreed on changing our fiscal policy mix in 2019 and 2020, and we have already passed the proper legislation, so as to reduce the reservations of all our lenders regarding our ability to achieve consistently the agreed budgetary goals; yet another difficult decision for Greece for the sake of a common European future.
We have undertaken all this effort in order not to shift the burden onto the coming generations; neither in Greece nor in Germany. The outcomes are obvious: OECD projects a growth rate of 1.1% for 2017. In 2016, we achieved a Primary Surplus of 4.2% of GDP, astonishingly far beyond the target of 0.5% for the whole of Europe. And in 2017, too, it is expected to exceed the targets and to be higher than 2%.
Greek debt, however, constitutes a constant impediment to growth. Currently, it amounts to 320€ billion approximately, equivalent to 180% of our country’s GDP. Why is that? Because the GDP has shrunk by almost 50€ billion since 2010.
Therefore, the answer to the problem of Greek debt sustainability is, above all, growth. A just, viable and sustainable economic growth.
The first prerequisite is a solution on the debt issue. So that the Greek economy can breathe again and to restore market credibility towards our country. The debt measures that need to be agreed cannot be considered just as a reward for reforms implemented by Greece, but mainly as a rational choice to the benefit of growth and Greece’s capability to continuously meet its debt obligations. This is not about lending more money to Greece, but on the contrary, to prevent the necessity of new loans.
The second element of the answer is none other than an ambitious growth programme. A programme that will not be based on new loans but it will be focused on actions to promote and attract private investment to Greece. A strong reform dynamism can be observed across the Eurozone. Whereas Europe seeks to champion energy transition, we should jointly invest in a growth model focusing on people and climate change. Let us invest in a real, job-generating European growth policy. Let us invest in education and research, creating future industries and the jobs of tomorrow.
For Frenchmen, Germans or Italians, the Greek debt is hardly more than a headline in the newspapers. For my fellow citizens, however, it is a daily agony amid an effort to change their country, to stand on its own two feet again, to start-up businesses that create jobs and growth.
While the British and the EU begin negotiations regarding a historic break, our task, as members of the Eurozone, is to make a historic decision to the benefit of growth and employment.
In the next days, a substantial meeting will take place. It will be of historic importance for democracy and growth. We look forward to that Eurogroup meeting with hope and expectation. Because we have implemented our commitments and remain committed to our European course. With respect for the rules of our common European home, we expect the same from our creditors; to respect the very rules they have made — to respect Greece.
Let us not allow prejudice, stereotypes and resentment to continue the damage they have already done in Europe. Let us trust reason, let us trust the facts. Europe must re-inspire us and we must re-inspire the people of Europe. They need it, just like we need it!”
Prime Minister Alexis Tsipras wrote this article which earlier in the week was published in Le Monde and Die Welt
“The European ideal must not fade. But there is more to it than its mere survival. It will take more than that: the European ideal must inspire people again. It needs to become stronger, today more than ever. The voices, which call for a new governance of the Eurozone, are increasing, as well as those who demand a new impetus for growth across Europe and these voices must prevail again.
These are the voices of European people. Among them, a new European identity has emerged, as well as the expectation for a new course of equality and social justice. For a new era, away from the mistakes and exaggerations of the past. An era of sustainable development and prosperity for all.
Europeans as well as Greeks have suffered a lot during the financial crisis. Although Greece has been affected by the crisis more than any other country, we have not asked for any exceptions or favour. We have instead made, probably harder than anybody else, efforts to restore our dignity at the international and European levels. And that is why today we are striving to rebuild our lives, to create jobs and to regain our status in the European economy.
The Greek people and Government have been working in this direction over the past two years. The facts speak by themselves:
The country has been going through a lot since 2010. The implementation of fiscal adjustment programmes skyrocketed unemployment to as much as 30% in 2013, shrinking GDP by 25%. They have pushed large parts of the population into social exclusion and undermined the economic recovery of our country. But today we do not want to talk about the past. Today there is an urgency to talk about the future.
In favour of that future, the Greek Government made tough decisions in the summer of 2015. Ever since, it has implemented a programme of structural adjustment and reforms that has led to expenditure reduction and increased revenue amid an already shrunk economy. We have liberalized regulated professions, implemented a VAT reform, reformed the energy market, and implemented reforms for depoliticizing the public administration. We have put forward an agreement on a privatisation programme, while passing legislation for improving the framework for investment.
Over the two years of our governance, Greece has implemented more reforms than all other European countries combined. Additionally, we have taken a step further; we agreed on changing our fiscal policy mix in 2019 and 2020, and we have already passed the proper legislation, so as to reduce the reservations of all our lenders regarding our ability to achieve consistently the agreed budgetary goals; yet another difficult decision for Greece for the sake of a common European future.
We have undertaken all this effort in order not to shift the burden onto the coming generations; neither in Greece nor in Germany. The outcomes are obvious: OECD projects a growth rate of 1.1% for 2017. In 2016, we achieved a Primary Surplus of 4.2% of GDP, astonishingly far beyond the target of 0.5% for the whole of Europe. And in 2017, too, it is expected to exceed the targets and to be higher than 2%.
Greek debt, however, constitutes a constant impediment to growth. Currently, it amounts to 320€ billion approximately, equivalent to 180% of our country’s GDP. Why is that? Because the GDP has shrunk by almost 50€ billion since 2010.
Therefore, the answer to the problem of Greek debt sustainability is, above all, growth. A just, viable and sustainable economic growth.
The first prerequisite is a solution on the debt issue. So that the Greek economy can breathe again and to restore market credibility towards our country. The debt measures that need to be agreed cannot be considered just as a reward for reforms implemented by Greece, but mainly as a rational choice to the benefit of growth and Greece’s capability to continuously meet its debt obligations. This is not about lending more money to Greece, but on the contrary, to prevent the necessity of new loans.
The second element of the answer is none other than an ambitious growth programme. A programme that will not be based on new loans but it will be focused on actions to promote and attract private investment to Greece. A strong reform dynamism can be observed across the Eurozone. Whereas Europe seeks to champion energy transition, we should jointly invest in a growth model focusing on people and climate change. Let us invest in a real, job-generating European growth policy. Let us invest in education and research, creating future industries and the jobs of tomorrow.
For Frenchmen, Germans or Italians, the Greek debt is hardly more than a headline in the newspapers. For my fellow citizens, however, it is a daily agony amid an effort to change their country, to stand on its own two feet again, to start-up businesses that create jobs and growth.
While the British and the EU begin negotiations regarding a historic break, our task, as members of the Eurozone, is to make a historic decision to the benefit of growth and employment.
In the next days, a substantial meeting will take place. It will be of historic importance for democracy and growth. We look forward to that Eurogroup meeting with hope and expectation. Because we have implemented our commitments and remain committed to our European course. With respect for the rules of our common European home, we expect the same from our creditors; to respect the very rules they have made — to respect Greece.
Let us not allow prejudice, stereotypes and resentment to continue the damage they have already done in Europe. Let us trust reason, let us trust the facts. Europe must re-inspire us and we must re-inspire the people of Europe. They need it, just like we need it!”
Greek Prime Minister Alexis Tsipras and Han Zheng, a member of the Political Bureau of the Central Committee of the Communist Party of China (CPC) and secretary of the CPC Shanghai Municipal Committee during their meeting in Athens, Greece on June 12, 2017.
Greece – China Relations Growing
Two Chinese officials were in Piraeus on Monday to sign a memorandum of cooperation between Piraeus Port Authority (OLP), its owner Cosco, and the port of Shanghai, concerning the increase in incoming cargo from China to Europe. The deal will be signed by China Cosco Shipping Corporation Limited head Xu Lirong and the Shanghai International Port Group (SIPG) chairman Chen Xuyuan. The agreement highlights the significance of Piraeus for Beijing’s “One Belt, One Road” initiative.
An agreement will also be signed by Athanasios Liagos, a senior OLP official, and by SIPG’s Chen. It will concern cooperation on funding and port works, and on programmes for training, technical assistance and information exchange. Crucially, it consolidates the joint planning for promotion campaigns “toward strengthening the use of the two ports that could lead to a greater utilization of cargo handling, trade and business opportunities for both ports,” according to the Chinese. The two sides will “explore more business opportunities and be able to jointly negotiate with shipping companies on the increase of regular routes linking Shanghai with Piraeus.”
On Tuesday, China and Greece agreed to boost cooperation through the One Belt One Road Initiative.
China-Greece relations have witnessed steady progress in recent years with frequent high-level visits, substantial economic and trade cooperation and increasing people-to-people exchanges, Chinese official Han Zheng told Greek Prime Minister Alexis Tsipras on Monday.
Han, a member of the Political Bureau of the Central Committee of the Communist Party of China (CPC) and secretary of the CPC Shanghai Municipal Committee, said this year marks the 45th anniversary for the establishment of diplomatic relations between the two countries and China is willing to work with Greece to bring the comprehensive strategic partnership to a new level.
Han said China is willing to align the two countries' development strategies and promote practical cooperation in all fields through the One Belt, One Road Initiative.
He said the CPC attaches great importance to the development of relations with PM Tsipras' Syriza party and wishes to strengthen exchanges and cooperation between the two parties, contributing to Sino-Greek ties.
Alexis Tsipras said Greece attaches great importance to its relations with China and wish to take the One Belt, One Road Initiative as an opportunity to further advance dialogue and cooperation with China in fields such as development and global governance.
Han led a Chinese delegation for a visit to Greece from Sunday to Tuesday at the invitation of the country's ruling Syriza party.
During the visit, Han also held talks with Greek Parliamentary Speaker Nikos Voutsis and Athens Mayor Yiorgos Kaminis, and oversaw the signing of a memorandum of understanding on friendly cooperation between Athens and Shanghai.
He also attended New Oriental Chinese Music Scene concert dedicated to the 45th anniversary of Greece-China diplomatic relations and visited the Piraeus port project managed by China COSCO Shipping.
Two Chinese officials were in Piraeus on Monday to sign a memorandum of cooperation between Piraeus Port Authority (OLP), its owner Cosco, and the port of Shanghai, concerning the increase in incoming cargo from China to Europe. The deal will be signed by China Cosco Shipping Corporation Limited head Xu Lirong and the Shanghai International Port Group (SIPG) chairman Chen Xuyuan. The agreement highlights the significance of Piraeus for Beijing’s “One Belt, One Road” initiative.
An agreement will also be signed by Athanasios Liagos, a senior OLP official, and by SIPG’s Chen. It will concern cooperation on funding and port works, and on programmes for training, technical assistance and information exchange. Crucially, it consolidates the joint planning for promotion campaigns “toward strengthening the use of the two ports that could lead to a greater utilization of cargo handling, trade and business opportunities for both ports,” according to the Chinese. The two sides will “explore more business opportunities and be able to jointly negotiate with shipping companies on the increase of regular routes linking Shanghai with Piraeus.”
On Tuesday, China and Greece agreed to boost cooperation through the One Belt One Road Initiative.
China-Greece relations have witnessed steady progress in recent years with frequent high-level visits, substantial economic and trade cooperation and increasing people-to-people exchanges, Chinese official Han Zheng told Greek Prime Minister Alexis Tsipras on Monday.
Han, a member of the Political Bureau of the Central Committee of the Communist Party of China (CPC) and secretary of the CPC Shanghai Municipal Committee, said this year marks the 45th anniversary for the establishment of diplomatic relations between the two countries and China is willing to work with Greece to bring the comprehensive strategic partnership to a new level.
Han said China is willing to align the two countries' development strategies and promote practical cooperation in all fields through the One Belt, One Road Initiative.
He said the CPC attaches great importance to the development of relations with PM Tsipras' Syriza party and wishes to strengthen exchanges and cooperation between the two parties, contributing to Sino-Greek ties.
Alexis Tsipras said Greece attaches great importance to its relations with China and wish to take the One Belt, One Road Initiative as an opportunity to further advance dialogue and cooperation with China in fields such as development and global governance.
Han led a Chinese delegation for a visit to Greece from Sunday to Tuesday at the invitation of the country's ruling Syriza party.
During the visit, Han also held talks with Greek Parliamentary Speaker Nikos Voutsis and Athens Mayor Yiorgos Kaminis, and oversaw the signing of a memorandum of understanding on friendly cooperation between Athens and Shanghai.
He also attended New Oriental Chinese Music Scene concert dedicated to the 45th anniversary of Greece-China diplomatic relations and visited the Piraeus port project managed by China COSCO Shipping.
“The only thing that ultimately everyone is waiting for is a signal from the political leadership of Europe and the Institutions that investors can trust Greece again”
PM Tsipras
10.6.2017
The week was spent preparing the ground for a successful Eurogroup Meeting on June 15th.
Parliament completes the “Prior Actions”
On Friday the Greek Government tabled legislation containing “prior actions” in Parliament ahead of the Eurogroup meeting on June 15th during which it is hoped that the Second Assessment will be officially signed off. These constitute the final group of the 140 prior actions agreed by Greece and its creditors which must be implemented to conclude the Assessment.
One of the “prior actions” makes provision to balance the 250€ million resulting from a “freeze” on pensions in 2022 required by the Institutions. Further clauses cover the restoration of collective bargaining, the bringing forward to 2019 of the cut in the income tax-free threshold and the arrangements for the compulsory auctioning-off of properties belonging to serial defaulters to be administered online. There are also provisions redefining political party funding rules with the aim of increasing transparency and reducing political parties’ dependency on bank loans.
In a roll-call vote requested by New Democracy, the new legislation passed into law with the support of the 153 MPs of SYRIZA and Independent Greeks (AN-EL) while 84 were against (ND, Golden Dawn, Potami, Centrists’ Union). There were 63 absences - the Democratic Coalition and the Communist Party left the session before the vote.
Intense Activity to make June 15th Eurogroup a success
Greek President Prokopis Pavlopoulos urged German Finance Minister Wolfgang Schaeuble not to let domestic politics influence his decision on providing debt relief to Greece. He told Die Welt newspaper in an interview published on Friday that Greece had implemented pension cuts and tax reforms as promised, and Germany should also keep its promises and approve debt relief measures.
"I appeal to Wolfgang Schaeuble not to let the German election influence his decision on debt relief. This is about something bigger; it's about Europe," the Greek President said.
"I know that Mr. Schaeuble is a role model when it comes to sticking to the rules ... Now my chance has come to demand that the German Finance Ministry sticks to the rules," he said. "Wolfgang Schaeuble is strict, but just, and that is why he will find a formula that allows us to reduce the mountain of debt."
He said Greece's request would not result in any problems for Germany, noting that German Foreign Minister Sigmar Gabriel, a member of the Social Democrats, junior partners in the ruling coalition, also believed Greece had lived up to its reform promises and was acting in good faith.
He said he did not believe that German voters would cast their election votes on the basis of Greece debt relief, noting that perhaps the German Government should remind its citizens that Greece had made huge sacrifices to get a grip on the debt crisis, and it had not cost Germany a single euro.
Euclid Tsakalotos held meetings with Mario Draghi, and with the ECB’s Benoit Coeure, the EU’s Declan Costello and the ESM’s Nicola Giammarioli, on the sidelines of the Economist conference.
The fact that Christine Lagarde will now participate in the 15th June Eurogroup meeting suggests that these efforts have met with some success.
"The European Commission and I do not want there to be any doubt about the sustainability of the Greek debt" said European Commissioner Pierre Moscovici and went on to say "I'd really like to get a very clear message across to Greece’s creditors not to play with fire in a decisive week during which the Eurogroup will meet on the issue of Greece's debt."
Speaking at the Concordia Europe Summit 2017, Alexis Tsipras stated the Greek Government’s request for a political solution to the question of closing the Second Assessment so that Greece can move forward. “The only thing that ultimately everyone is waiting for is a signal from the political leadership of Europe, and the Institutions, that investors can trust Greece again”, the Greek PM noted.
PM Tsipras congratulates Jeremy Corbyn
Prime Minister Alexis Tsipras sent congratulations to Jeremy Corbyn, the Leader of the British Labour Party on the result achieved in the British General Election.
"The result achieved by my friend Jeremy Corbyn shows that the Left, which dares, can inspire and mobilize the people. Two months ago the opinion polls had decided he would be crushed. But in elections it is the voters who decide, especially young people.
The Left who dares can inspire and mobilize the people. Neither the proponents of neoliberalism and of austerity nor rightwing populism can give the people hope."
Tax Avoidance
On Wednesday Greece joined 76 other countries and territories in signing the “Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting” (BEPS), on the sidelines of the Organisation for Economic Co-operation and Development’s annual Ministerial Council Meeting and Forum in Paris. The Convention was signed by Deputy Finance Minister Katerina Papanatsiou.
The Convention modifies the application of thousands of bilateral tax treaties concluded to eliminate double taxation. It also contributes to the reduction of tax avoidance by multinational companies and avoids double taxation, while creating a “more stable and well-functioning global tax system”.
It includes agreed minimum standards to counter treaty abuse and to improve dispute resolution mechanisms.
The Finance Ministry said in a press release “the signing of the Convention by Greece shows the Government’s will to limit tax avoidance by modernising taxation and participating actively in the international effort in this direction”.
On Friday the Greek Government tabled legislation containing “prior actions” in Parliament ahead of the Eurogroup meeting on June 15th during which it is hoped that the Second Assessment will be officially signed off. These constitute the final group of the 140 prior actions agreed by Greece and its creditors which must be implemented to conclude the Assessment.
One of the “prior actions” makes provision to balance the 250€ million resulting from a “freeze” on pensions in 2022 required by the Institutions. Further clauses cover the restoration of collective bargaining, the bringing forward to 2019 of the cut in the income tax-free threshold and the arrangements for the compulsory auctioning-off of properties belonging to serial defaulters to be administered online. There are also provisions redefining political party funding rules with the aim of increasing transparency and reducing political parties’ dependency on bank loans.
In a roll-call vote requested by New Democracy, the new legislation passed into law with the support of the 153 MPs of SYRIZA and Independent Greeks (AN-EL) while 84 were against (ND, Golden Dawn, Potami, Centrists’ Union). There were 63 absences - the Democratic Coalition and the Communist Party left the session before the vote.
Intense Activity to make June 15th Eurogroup a success
Greek President Prokopis Pavlopoulos urged German Finance Minister Wolfgang Schaeuble not to let domestic politics influence his decision on providing debt relief to Greece. He told Die Welt newspaper in an interview published on Friday that Greece had implemented pension cuts and tax reforms as promised, and Germany should also keep its promises and approve debt relief measures.
"I appeal to Wolfgang Schaeuble not to let the German election influence his decision on debt relief. This is about something bigger; it's about Europe," the Greek President said.
"I know that Mr. Schaeuble is a role model when it comes to sticking to the rules ... Now my chance has come to demand that the German Finance Ministry sticks to the rules," he said. "Wolfgang Schaeuble is strict, but just, and that is why he will find a formula that allows us to reduce the mountain of debt."
He said Greece's request would not result in any problems for Germany, noting that German Foreign Minister Sigmar Gabriel, a member of the Social Democrats, junior partners in the ruling coalition, also believed Greece had lived up to its reform promises and was acting in good faith.
He said he did not believe that German voters would cast their election votes on the basis of Greece debt relief, noting that perhaps the German Government should remind its citizens that Greece had made huge sacrifices to get a grip on the debt crisis, and it had not cost Germany a single euro.
Euclid Tsakalotos held meetings with Mario Draghi, and with the ECB’s Benoit Coeure, the EU’s Declan Costello and the ESM’s Nicola Giammarioli, on the sidelines of the Economist conference.
The fact that Christine Lagarde will now participate in the 15th June Eurogroup meeting suggests that these efforts have met with some success.
"The European Commission and I do not want there to be any doubt about the sustainability of the Greek debt" said European Commissioner Pierre Moscovici and went on to say "I'd really like to get a very clear message across to Greece’s creditors not to play with fire in a decisive week during which the Eurogroup will meet on the issue of Greece's debt."
Speaking at the Concordia Europe Summit 2017, Alexis Tsipras stated the Greek Government’s request for a political solution to the question of closing the Second Assessment so that Greece can move forward. “The only thing that ultimately everyone is waiting for is a signal from the political leadership of Europe, and the Institutions, that investors can trust Greece again”, the Greek PM noted.
PM Tsipras congratulates Jeremy Corbyn
Prime Minister Alexis Tsipras sent congratulations to Jeremy Corbyn, the Leader of the British Labour Party on the result achieved in the British General Election.
"The result achieved by my friend Jeremy Corbyn shows that the Left, which dares, can inspire and mobilize the people. Two months ago the opinion polls had decided he would be crushed. But in elections it is the voters who decide, especially young people.
The Left who dares can inspire and mobilize the people. Neither the proponents of neoliberalism and of austerity nor rightwing populism can give the people hope."
Tax Avoidance
On Wednesday Greece joined 76 other countries and territories in signing the “Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting” (BEPS), on the sidelines of the Organisation for Economic Co-operation and Development’s annual Ministerial Council Meeting and Forum in Paris. The Convention was signed by Deputy Finance Minister Katerina Papanatsiou.
The Convention modifies the application of thousands of bilateral tax treaties concluded to eliminate double taxation. It also contributes to the reduction of tax avoidance by multinational companies and avoids double taxation, while creating a “more stable and well-functioning global tax system”.
It includes agreed minimum standards to counter treaty abuse and to improve dispute resolution mechanisms.
The Finance Ministry said in a press release “the signing of the Convention by Greece shows the Government’s will to limit tax avoidance by modernising taxation and participating actively in the international effort in this direction”.
“The country’s creditors - including the European Central Bank - must now assume their responsibilities. They have a moral and legal obligation.”
3.6.2017
Greece has done its part and this is recognised by the majority of the lenders, Prime Minister Alexis Tsipras told Greek Business Leaders at the Hellenic Federation of Enterprises (SEV) annual General Assembly on Wednesday, marking the 100th anniversary of SEV’s foundation.
"Our demand is for an acceptable overall debt solution which will bring about a number of positive consequences, such as the reduction of interest rates, the boosting of the country's creditworthiness and the recovery of the banking system’s vitality to finance the economy"
"Greece will accept only a solution that guarantees the country's access to the financial markets, immediately and under sustainable conditions - a solution that secures stability, guarantees a dynamic for economic recovery and opens the way for Greece to enter the money markets - initially, and swiftly, through trial issues, that will allow the country to cover its borrowing needs from markets after its bailout programme ends in September 2018 - that is the measure of success."
“The country’s creditors - including the European Central Bank - must now assume their responsibilities. “They have a moral and legal obligation to do this.”
The Prime Minister called on what he called the “healthy” forces in the country to assist in achieving the exit from the crisis and the Memoranda, urging a dialogue based on mutual respect and the principles of democracy, “in spite of our known disagreements and views.”
“The future of the economy for many decades will be judged at this time. We must be united as we face a goal of national importance.”
“A clear solution for the Greek side is one that does not create insecurity for investors. At this time, both Greece and Europe have the capability to provide such a solution.”
PM Tsipras called on the productive forces of the country to “come together in our common struggle for the next day in Greece – for a Greece that is fair and productive. At all costs - we have no other choice but to succeed.”
He said that from the beginning of this Government channels of communication had been established with both the Ministries and the Prime Minister's Office directly, so that the exchange of views and proposals is prompt and effective.
In another part of his speech he said “I will not hide the fact that we have ideological differences and different approaches but these do not count in the situation in which the country and the economy find themselves.
He invited all parties to enter into a dialogue in good faith, without deceit or falsehood - with scientific arguments, without concealing important data and without denigrating efforts and achievements and above all without extreme characterisations.
“We must with a sense of urgency make up for lost time, planning the country’s next day.
“These days are critical for the future of the economy for many decades to come. We must unite in the face of a national importance goal.
“A pre-requisite of equitable and sustainable development in the modern world economic environment is the transformation to a new productive model based on openness and on human capital.
The share of exports in GDP reached 30% in 2016, when in 2009 exports stood at 19%. The fiscal consolidation that we have achieved has put State finances on a solid basis.
Measures such as electronic transactions and electronic invoicing, the technological and digital upgrade of public services are bringing revenue to the State and creating the necessary fiscal space for the reducing the burdens borne by enterprises and households. Bureaucratic barriers are being removed, licensing is being made easier and incentives for investments are being provided. At the same time the redesign of social programmes ensures that more support is being given to those who really need it.
As regards the public investment programme, liquidity is being increased and strengthened with new financial instruments.
We have shown that Greece is not "incapable" of change, transformations and reforms, including as some in a lecturing style accuse us. We have made choices with significant costs, using the criterion of extricating us as quickly as possible from the Memoranda.The great effort made is now recognised as much by our partner Institutions, as by authoritative international organisations like the OECD and the World Bank.”
PM Tsipras said the Government was currently working hard so that differences with all the lenders can be bridged and everyone can arrive at a positive analysis for achieving the sustainability of Greece’s debt. He also pointed to the heightened interest currently being displayed by investors, who he said were waiting for a clear signal that the Greek Programme will be successfully concluded.
He stressed, however, that any solution put forward must be commensurate to the sacrifices of the Greek people.
Other Reactions ahead of June 15th Eurogroup
Earlier Wednesday, the European Union's Finance Commissioner urged the Lenders to "act responsibly" and reach an agreement with Greece. Pierre Moscovici said Greece had "delivered on its commitments" on reforms and budget cuts. "We will do everything to conclude as soon as possible." he said. "I will continue in the name of the European Commission to urge that all players act responsibly."
Greek Finance Minister Euclid Tsakalotos told reporters on Monday that the ideal scenario for the next meeting of Eurozone finance ministers on June 15th would be to ensure the IMF’s involvement in the program, something that would certify that the Greek debt is sustainable, thereby integrating Greece into the quantitative easing (QE) programme of the European Central Bank.
European Central Bank President Mario Draghi clarified that although independent, the ECB can not accept what the IMF refuses to accept on the Greek issue, meaning that Greece can not be in the QE programme without the IMF approval. The approval will be given only when the Fund’s Board is convinced that the Greek debt is sustainable.
In an interview with Spiegel magazine, Minister Tsakalotos said that postponing the solution to the Greek debt problem until after the German elections in September would increase the risk of Greece’s failure in the third rescue programme. He estimates that Greece will be supported by France and Italy, who were in favour of a clear decision on the measures to ease the Greek debt at the May 22nd Eurogroup.
"The Greek government feels it's done its part of what it promised," Finance Minister Euclid Tsakalotos said, referring to parliamentary approval this month on a package of reforms to be implemented in 2019-20, when its existing bailout expires.
"We feel that the ball is very much on the side of our creditors and the IMF, that there are no excuses for not getting this overall deal that the Greek economy so desperately needs in its efforts to access the markets."
"There is very little point in entering a programme if the goal is not to leave the programme and leaving the programme should not only be the responsibility of the debtor country but also of the creditor countries as well," he told reporters.
"Greece will accept only a solution that guarantees the country's access to the financial markets, immediately and under sustainable conditions - a solution that secures stability, guarantees a dynamic for economic recovery and opens the way for Greece to enter the money markets - initially, and swiftly, through trial issues, that will allow the country to cover its borrowing needs from markets after its bailout programme ends in September 2018 - that is the measure of success."
“The country’s creditors - including the European Central Bank - must now assume their responsibilities. “They have a moral and legal obligation to do this.”
The Prime Minister called on what he called the “healthy” forces in the country to assist in achieving the exit from the crisis and the Memoranda, urging a dialogue based on mutual respect and the principles of democracy, “in spite of our known disagreements and views.”
“The future of the economy for many decades will be judged at this time. We must be united as we face a goal of national importance.”
“A clear solution for the Greek side is one that does not create insecurity for investors. At this time, both Greece and Europe have the capability to provide such a solution.”
PM Tsipras called on the productive forces of the country to “come together in our common struggle for the next day in Greece – for a Greece that is fair and productive. At all costs - we have no other choice but to succeed.”
He said that from the beginning of this Government channels of communication had been established with both the Ministries and the Prime Minister's Office directly, so that the exchange of views and proposals is prompt and effective.
In another part of his speech he said “I will not hide the fact that we have ideological differences and different approaches but these do not count in the situation in which the country and the economy find themselves.
He invited all parties to enter into a dialogue in good faith, without deceit or falsehood - with scientific arguments, without concealing important data and without denigrating efforts and achievements and above all without extreme characterisations.
“We must with a sense of urgency make up for lost time, planning the country’s next day.
“These days are critical for the future of the economy for many decades to come. We must unite in the face of a national importance goal.
“A pre-requisite of equitable and sustainable development in the modern world economic environment is the transformation to a new productive model based on openness and on human capital.
The share of exports in GDP reached 30% in 2016, when in 2009 exports stood at 19%. The fiscal consolidation that we have achieved has put State finances on a solid basis.
Measures such as electronic transactions and electronic invoicing, the technological and digital upgrade of public services are bringing revenue to the State and creating the necessary fiscal space for the reducing the burdens borne by enterprises and households. Bureaucratic barriers are being removed, licensing is being made easier and incentives for investments are being provided. At the same time the redesign of social programmes ensures that more support is being given to those who really need it.
As regards the public investment programme, liquidity is being increased and strengthened with new financial instruments.
We have shown that Greece is not "incapable" of change, transformations and reforms, including as some in a lecturing style accuse us. We have made choices with significant costs, using the criterion of extricating us as quickly as possible from the Memoranda.The great effort made is now recognised as much by our partner Institutions, as by authoritative international organisations like the OECD and the World Bank.”
PM Tsipras said the Government was currently working hard so that differences with all the lenders can be bridged and everyone can arrive at a positive analysis for achieving the sustainability of Greece’s debt. He also pointed to the heightened interest currently being displayed by investors, who he said were waiting for a clear signal that the Greek Programme will be successfully concluded.
He stressed, however, that any solution put forward must be commensurate to the sacrifices of the Greek people.
Other Reactions ahead of June 15th Eurogroup
Earlier Wednesday, the European Union's Finance Commissioner urged the Lenders to "act responsibly" and reach an agreement with Greece. Pierre Moscovici said Greece had "delivered on its commitments" on reforms and budget cuts. "We will do everything to conclude as soon as possible." he said. "I will continue in the name of the European Commission to urge that all players act responsibly."
Greek Finance Minister Euclid Tsakalotos told reporters on Monday that the ideal scenario for the next meeting of Eurozone finance ministers on June 15th would be to ensure the IMF’s involvement in the program, something that would certify that the Greek debt is sustainable, thereby integrating Greece into the quantitative easing (QE) programme of the European Central Bank.
European Central Bank President Mario Draghi clarified that although independent, the ECB can not accept what the IMF refuses to accept on the Greek issue, meaning that Greece can not be in the QE programme without the IMF approval. The approval will be given only when the Fund’s Board is convinced that the Greek debt is sustainable.
In an interview with Spiegel magazine, Minister Tsakalotos said that postponing the solution to the Greek debt problem until after the German elections in September would increase the risk of Greece’s failure in the third rescue programme. He estimates that Greece will be supported by France and Italy, who were in favour of a clear decision on the measures to ease the Greek debt at the May 22nd Eurogroup.
"The Greek government feels it's done its part of what it promised," Finance Minister Euclid Tsakalotos said, referring to parliamentary approval this month on a package of reforms to be implemented in 2019-20, when its existing bailout expires.
"We feel that the ball is very much on the side of our creditors and the IMF, that there are no excuses for not getting this overall deal that the Greek economy so desperately needs in its efforts to access the markets."
"There is very little point in entering a programme if the goal is not to leave the programme and leaving the programme should not only be the responsibility of the debtor country but also of the creditor countries as well," he told reporters.
New Loans & Debt Relief - More Delay
27.5.2017
Eurozone Finance Ministers failed to agree on debt relief for Greece with the International Monetary Fund on Monday and did not release new loans.
Greece needs the next tranche of bailout funds from the Eurozone to avoid a default in July when it has to repay some 7.3€ billion worth of maturing loans. To get the money, the Greek Parliament approved further austerity measures last Thursday.
For the disbursement to take place, Greece needs to implement some 140 "prior actions". Most of them had been done; some still remained to be completed. According to European Commissioner, Pierre Moscovici: “We are talking about a range of very considerable commitments… these prior actions involve 140 measures, and they are not minor reforms. I briefed the Eurogroup that 104 of the 140 mentioned could already be regarded as done. Indeed today the number was increased slightly because further progress was achieved so we stand now at 115 completed actions.”
After the eight-hour meeting in Brussels on Monday, Eurogroup Chairman Jeroen Dijsselbloem said Greece had made progress and that a broad settlement to unfreeze money including progress on debt relief was “close,” but decisions were then deferred to the next meeting of the 19 Eurozone Finance Ministers on June 15th.
Mr.Dijsselbloem said the IMF had welcomed the progress made by Greece, and was "impressed" by the reforms undertaken by Greece and that it stands ready to go to the Board to get involved financially.
"Overall, positive developments from Greece, lots of work done tonight, I think we are very close to that agreement, but tonight we are unable to close a possible gap between what could be done and what some of us expected should be done or could be done," he said. "We need to close that gap by looking at additional options or by adjusting our expectations. Both are possible and perhaps both should be done and that I think should bring us to a more definite conclusion at the next Eurogroup in June."
The other reason why no new loans could be agreed was the lack of agreement between the Eurozone and the IMF on debt relief for Greece.
Countries including Germany and the Netherlands have said they will refuse to lend more money to Greece unless the IMF participates in the programme.
A German proposal at the Eurogroup stipulated the IMF should join the bailout programme now, without having to lend money to Greece until 2018. The proposal, which was rejected, also suggested that the discussion of debt relief measures should be deferred until after the German elections in September.
On Tuesday Poul Thomsen, the IMF's European Department head said the Fund wanted to see 'specificity'. Lenders agreed in principle in 2016 to consider debt relief but have not specified how.
Government spokesman Dimitris Tzanakopoulos said on Tuesday “If it is not possible to bridge the differences between Germany and the IMF, then a decision should be taken immediately for the IMF’s non-participation in the Greek programme,”. In light of this eventuality, he added that Greece and its European partners should discuss how to move forward with the current programme. "It was clear .. that a decision for a short postponement giving us time to prepare and work on a better solution is preferable to taking a decision which just defers the problem," he told reporters.
After the meeting, the Eurozone Ministers said in a statement "The Eurogroup held an in-depth discussion on the sustainability of Greece's public debt but did not reach an overall agreement". "Work will continue in the coming weeks within the framework agreed in May 2016 with a view to reaching a definitive conclusion at the next Eurogroup meeting. This includes an ambitious and economically sound medium-term Primary Surplus path for Greece," the statement said.
Greek Finance Minister Euclid Tsakalotos said "The feeling was.... more work was needed to be able to have that kind of clarity that the financial markets understood and the Greek people understood about what to expect at the end of the programme period in terms of debt relief". He also said he was optimistic that a definitive deal could be brokered by the time of the next formal meeting in June.
While the Eurozone has ruled out any debt write off, it has indicated that extending Greece's repayment periods or reducing the interest rates on its loans are possible at the conclusion of the bailout next year.
On Monday, Emmanuel Macron, France's new President spoke to PM Tsipras and stressed "his determination to find an accord soon to lighten the burden of Greek debt over the long term."
For the disbursement to take place, Greece needs to implement some 140 "prior actions". Most of them had been done; some still remained to be completed. According to European Commissioner, Pierre Moscovici: “We are talking about a range of very considerable commitments… these prior actions involve 140 measures, and they are not minor reforms. I briefed the Eurogroup that 104 of the 140 mentioned could already be regarded as done. Indeed today the number was increased slightly because further progress was achieved so we stand now at 115 completed actions.”
After the eight-hour meeting in Brussels on Monday, Eurogroup Chairman Jeroen Dijsselbloem said Greece had made progress and that a broad settlement to unfreeze money including progress on debt relief was “close,” but decisions were then deferred to the next meeting of the 19 Eurozone Finance Ministers on June 15th.
Mr.Dijsselbloem said the IMF had welcomed the progress made by Greece, and was "impressed" by the reforms undertaken by Greece and that it stands ready to go to the Board to get involved financially.
"Overall, positive developments from Greece, lots of work done tonight, I think we are very close to that agreement, but tonight we are unable to close a possible gap between what could be done and what some of us expected should be done or could be done," he said. "We need to close that gap by looking at additional options or by adjusting our expectations. Both are possible and perhaps both should be done and that I think should bring us to a more definite conclusion at the next Eurogroup in June."
The other reason why no new loans could be agreed was the lack of agreement between the Eurozone and the IMF on debt relief for Greece.
Countries including Germany and the Netherlands have said they will refuse to lend more money to Greece unless the IMF participates in the programme.
A German proposal at the Eurogroup stipulated the IMF should join the bailout programme now, without having to lend money to Greece until 2018. The proposal, which was rejected, also suggested that the discussion of debt relief measures should be deferred until after the German elections in September.
On Tuesday Poul Thomsen, the IMF's European Department head said the Fund wanted to see 'specificity'. Lenders agreed in principle in 2016 to consider debt relief but have not specified how.
Government spokesman Dimitris Tzanakopoulos said on Tuesday “If it is not possible to bridge the differences between Germany and the IMF, then a decision should be taken immediately for the IMF’s non-participation in the Greek programme,”. In light of this eventuality, he added that Greece and its European partners should discuss how to move forward with the current programme. "It was clear .. that a decision for a short postponement giving us time to prepare and work on a better solution is preferable to taking a decision which just defers the problem," he told reporters.
After the meeting, the Eurozone Ministers said in a statement "The Eurogroup held an in-depth discussion on the sustainability of Greece's public debt but did not reach an overall agreement". "Work will continue in the coming weeks within the framework agreed in May 2016 with a view to reaching a definitive conclusion at the next Eurogroup meeting. This includes an ambitious and economically sound medium-term Primary Surplus path for Greece," the statement said.
Greek Finance Minister Euclid Tsakalotos said "The feeling was.... more work was needed to be able to have that kind of clarity that the financial markets understood and the Greek people understood about what to expect at the end of the programme period in terms of debt relief". He also said he was optimistic that a definitive deal could be brokered by the time of the next formal meeting in June.
While the Eurozone has ruled out any debt write off, it has indicated that extending Greece's repayment periods or reducing the interest rates on its loans are possible at the conclusion of the bailout next year.
On Monday, Emmanuel Macron, France's new President spoke to PM Tsipras and stressed "his determination to find an accord soon to lighten the burden of Greek debt over the long term."
Health Scandals
A secret Memorandum of Understanding between the then President of the Henry Dunant [Hospital ed.], Andreas Martinis of the Bank of Piraeus Bank and the then Minister of Health Adonis Georgiades [currently Vice-President of New Democracy Ed], concerning the arrangements for the transfer of the Dunant Hospital to the Bank, which took place six months later, is included the file of the case. Up until now this Memorandum has not seen the light of day.
Tax Evasion
Finance Ministry inspectors are about to start seeking out the owners of undeclared properties, while the law will be amended to allow for financial assets and the content of safe deposit boxes to be confiscated electronically.
The plan for the identification of taxpayers who have “forgotten” to declare their properties to the tax authorities is expected to be ready by the end of the year, according to the timetable released by the Independent Authority for Public Revenue (IAPR).
The Tax Authorities by the end of September are set to obtain access to the Land Registry database. Any taxpayers identified as having omitted the complete declaration of all their assets will be required to comply and declare them, along with paying the tax and fines dictated by law.
The IAPR is also waiting for Parliament to pass regulations permitting the mass confiscation electronically of safe deposit box contents and financial assets such as securities. To date the process has been conducted in handwriting and has therefore been particularly slow in locating the assets of taxpayers who have either concealed incomes or have major debts to the state.
Once the necessary regulations are in place for the operation of an automatic system to collect debts, the tax authorities will be able to issue online confiscation notices and immediately access the contents of safe deposit boxes, confiscating cash, precious stones, jewelry and so on. They will also be able to confiscate shares and other securities.
This year the tax authorities will focus their efforts on confiscations as they try to reduce the mountain of outstanding debts to the state. In this context the Independent Authority for Public Revenue will auction 27 properties belonging to state debtors by the end of next month, with the aim of collecting 2.7€ billion by the end of the 2017 from old debts and another 690€ million of new debts from major debtors.
A secret Memorandum of Understanding between the then President of the Henry Dunant [Hospital ed.], Andreas Martinis of the Bank of Piraeus Bank and the then Minister of Health Adonis Georgiades [currently Vice-President of New Democracy Ed], concerning the arrangements for the transfer of the Dunant Hospital to the Bank, which took place six months later, is included the file of the case. Up until now this Memorandum has not seen the light of day.
Tax Evasion
Finance Ministry inspectors are about to start seeking out the owners of undeclared properties, while the law will be amended to allow for financial assets and the content of safe deposit boxes to be confiscated electronically.
The plan for the identification of taxpayers who have “forgotten” to declare their properties to the tax authorities is expected to be ready by the end of the year, according to the timetable released by the Independent Authority for Public Revenue (IAPR).
The Tax Authorities by the end of September are set to obtain access to the Land Registry database. Any taxpayers identified as having omitted the complete declaration of all their assets will be required to comply and declare them, along with paying the tax and fines dictated by law.
The IAPR is also waiting for Parliament to pass regulations permitting the mass confiscation electronically of safe deposit box contents and financial assets such as securities. To date the process has been conducted in handwriting and has therefore been particularly slow in locating the assets of taxpayers who have either concealed incomes or have major debts to the state.
Once the necessary regulations are in place for the operation of an automatic system to collect debts, the tax authorities will be able to issue online confiscation notices and immediately access the contents of safe deposit boxes, confiscating cash, precious stones, jewelry and so on. They will also be able to confiscate shares and other securities.
This year the tax authorities will focus their efforts on confiscations as they try to reduce the mountain of outstanding debts to the state. In this context the Independent Authority for Public Revenue will auction 27 properties belonging to state debtors by the end of next month, with the aim of collecting 2.7€ billion by the end of the 2017 from old debts and another 690€ million of new debts from major debtors.
Parliament Agrees
Bill of Measures and Counter Measures
20.5.2017
The multi-bill containing the latest austerity measures, reform obligations and countermeasures agreed with International Creditors was approved late on Thursday night by the Greek Parliament.
Speaking after the vote, Prime Minister Alexis Tsipras said Greece had met its commitments on reforms and now expected lenders to agree to debt relief.
"It's their [the Lenders'] turn to fulfil their commitments, just as we have done," he told reporters. "We deserve and we expect from Monday's Eurogroup a decision regulating debt relief which will correspond to the sacrifices of the Greek people."
Speaking after the vote, Prime Minister Alexis Tsipras said Greece had met its commitments on reforms and now expected lenders to agree to debt relief.
"It's their [the Lenders'] turn to fulfil their commitments, just as we have done," he told reporters. "We deserve and we expect from Monday's Eurogroup a decision regulating debt relief which will correspond to the sacrifices of the Greek people."
Addressing Parliament’s Economic Affairs Committee ahead of Parliament’s Plenary, Finance Minister Euclid Tsakalotos admitted that the multi-bill was far from ideal but indicated that it was a step in the right direction.
“We are not in the world we want right now,” he said. “Our basic struggle is to reduce the oversight, our key aim is to emerge from tough stewardship,” he said.
“The positive countermeasures amount to 7.6€ billion over the period 2018-2021 at the time the negative measures amount to 4.9€ billion.” said Finance Minister, Euclid Tsakalotos, in his presentation to Parliamentary Committees processing the Bill for the completion of the Second Assessment. Minister Tsakalotos commented that the Bill made compromises, but also "opens some avenues", while he berated the opposition for its insistence on muddying the water over the possibility of the non-implementation of the positive counter measures.
He pointed out that the Government does not buy into the logic of the “success story”, as did the previous Government did, but did emphasise that there are things in the agreement with which "we are delighted", such as the reintroduction of collective bargaining, the foundations for building a modern social State and measures for attracting investment. He recalled that if the agreement had been finalised in December as called for by the opposition then the result would have been measures amounting to 2% of GDP without the corresponding countermeasures.
On the necessity of the measures, Minister Tsakalotos also observed that in the Memorandum of summer 2015 which the opposition voted for, the participation of the IMF was envisaged. He noted that the main battle is the battle over the Stewardship, which is what the Government is trying to reduce.
As regards the effort to build a modern welfare State, he remarked that the lowest economic strata can be confident that in the growth they would not be in the same position that they found themselves in under previous Governments, when strong growth made no improvement to their position at all. He put a special emphasis on the countermeasures and on the first attempt to build a social State with serious provisions and not through favouritism, redeployment and permanent tax evasion, that is to say not a welfare state as previous Governments understood it.
Minister Tsakalotos added that the countermeasures, proposing social benefits for lower-income Greeks, would basically offset the new austerity. He spent much of his speech focusing on the issue of child poverty in Greece and noting that the Government planned to increase free school meal coverage and subsidise the rents of poor families.
In response to the Opposition’s attempted belittling of the countermeasures, he cited a series of statistics on the increase in the already high levels of child poverty during the period of crisis. He referred also to the start of the counter measures to lighten the burden on the middle strata of the population, pointing to the examples of the countermeasures on rental subsidies and nursery/infant daycare.
“We are not in the world we want right now,” he said. “Our basic struggle is to reduce the oversight, our key aim is to emerge from tough stewardship,” he said.
“The positive countermeasures amount to 7.6€ billion over the period 2018-2021 at the time the negative measures amount to 4.9€ billion.” said Finance Minister, Euclid Tsakalotos, in his presentation to Parliamentary Committees processing the Bill for the completion of the Second Assessment. Minister Tsakalotos commented that the Bill made compromises, but also "opens some avenues", while he berated the opposition for its insistence on muddying the water over the possibility of the non-implementation of the positive counter measures.
He pointed out that the Government does not buy into the logic of the “success story”, as did the previous Government did, but did emphasise that there are things in the agreement with which "we are delighted", such as the reintroduction of collective bargaining, the foundations for building a modern social State and measures for attracting investment. He recalled that if the agreement had been finalised in December as called for by the opposition then the result would have been measures amounting to 2% of GDP without the corresponding countermeasures.
On the necessity of the measures, Minister Tsakalotos also observed that in the Memorandum of summer 2015 which the opposition voted for, the participation of the IMF was envisaged. He noted that the main battle is the battle over the Stewardship, which is what the Government is trying to reduce.
As regards the effort to build a modern welfare State, he remarked that the lowest economic strata can be confident that in the growth they would not be in the same position that they found themselves in under previous Governments, when strong growth made no improvement to their position at all. He put a special emphasis on the countermeasures and on the first attempt to build a social State with serious provisions and not through favouritism, redeployment and permanent tax evasion, that is to say not a welfare state as previous Governments understood it.
Minister Tsakalotos added that the countermeasures, proposing social benefits for lower-income Greeks, would basically offset the new austerity. He spent much of his speech focusing on the issue of child poverty in Greece and noting that the Government planned to increase free school meal coverage and subsidise the rents of poor families.
In response to the Opposition’s attempted belittling of the countermeasures, he cited a series of statistics on the increase in the already high levels of child poverty during the period of crisis. He referred also to the start of the counter measures to lighten the burden on the middle strata of the population, pointing to the examples of the countermeasures on rental subsidies and nursery/infant daycare.
The 153 SYRIZA-ANEL Coalition Government MPs voted in favour of the multi-bill while 128 opposition party MPs voted against it. A total of 281 deputies out of the 300 in Greece's Parliament attended the debate and voted in the process, with all 19 absent MPs belonging to the opposition.
Golden Dawn did not participate in the vote. The party was expelled from the debate after one of the party’s MPs allegedly assaulted a New Democracy MP during the debate.
The vast majority of deputies – 280 in total – approved articles 70 and 71 which provide a reduction of VAT from 24% to 13% for agricultural supplies and the abolition of tax breaks for MPs.
The Government now hopes that a Eurogroup meeting scheduled for 22nd May will approve the conclusion of the Second Assessment of the bailout programme and the disbursement of €7.5bn in bailout loans. The IMF and its international creditors must now reach a deal on debt relief measures. This in turn will allow Greece to be included in the European Central Bank's asset-buying programme and for the country to return to bond markets in the coming months.
"The counter-measures will provide relief to thousands," Alexis Tsipras said, adding that the entire package presented to Parliament would open the way to a strong economic recovery and an end to Greece's supervision by its creditors.
Deputy Finance Minister George Houliarakis said the austerity measures are a "necessary compromise" between meeting creditors' demands and extending the uncertainty over the country's economic recovery.
"This is the only road map that guarantees ... the country's exit from the great Greek recession," Mr. Houliarakis told MPs.
Finance Minister Euclid Tsakalotos said he expects it to be possible to lift restrictions on bank cash withdrawals and capital flows imposed in 2015 by the end of this year.
Speaking after the vote, Prime Minister Alexis Tsipras said Greece had met its commitments on reforms and now expected lenders to agree to debt relief.
Golden Dawn did not participate in the vote. The party was expelled from the debate after one of the party’s MPs allegedly assaulted a New Democracy MP during the debate.
The vast majority of deputies – 280 in total – approved articles 70 and 71 which provide a reduction of VAT from 24% to 13% for agricultural supplies and the abolition of tax breaks for MPs.
The Government now hopes that a Eurogroup meeting scheduled for 22nd May will approve the conclusion of the Second Assessment of the bailout programme and the disbursement of €7.5bn in bailout loans. The IMF and its international creditors must now reach a deal on debt relief measures. This in turn will allow Greece to be included in the European Central Bank's asset-buying programme and for the country to return to bond markets in the coming months.
"The counter-measures will provide relief to thousands," Alexis Tsipras said, adding that the entire package presented to Parliament would open the way to a strong economic recovery and an end to Greece's supervision by its creditors.
Deputy Finance Minister George Houliarakis said the austerity measures are a "necessary compromise" between meeting creditors' demands and extending the uncertainty over the country's economic recovery.
"This is the only road map that guarantees ... the country's exit from the great Greek recession," Mr. Houliarakis told MPs.
Finance Minister Euclid Tsakalotos said he expects it to be possible to lift restrictions on bank cash withdrawals and capital flows imposed in 2015 by the end of this year.
Speaking after the vote, Prime Minister Alexis Tsipras said Greece had met its commitments on reforms and now expected lenders to agree to debt relief.
"One Belt – One Road"
"Greece - after many years of serious crisis – is returning to the path of growth, opening up great opportunities for investment and trade"
A "sustainable initiative for the 21st century, built on the wisdom of the idea of ancient China, the Silk Road," is how Prime Minister Alexis Tsipras characterised the "One Belt – One Road" plan, speaking in China from the platform of the Forum of that name. He congratulated China and President Xi Jinping personally for his vision and his warm hospitality as the host of the Forum.
The Greek Prime Minister stressed "the great importance of such a vision in our time, especially at a time when everybody around this table is facing growing challenges at international and regional level - the economic and financial system, the movement of people and migration, security and regional stability. In these times-where the great temptation is to respond to the crises of globalization with greater isolationism, protectionism, raising walls - this initiative comes along to bring forth a vision of coherence, cooperation and dialogue across the length of Europe and Asia, but also in other regions of the world.
"Therefore, this initiative is a critical instrument for the expansion of economic development, trade and investment - with partnerships in investment and the boosting of trade, transport, energy and telecommunications networks through projects that can have a big impact on national economies. And so, on this basis, the Greek Government will actively support the countries participating in this initiative in their paying attention to fostering scientific and technological innovation, including the integration of small and medium-sized enterprises in global chains of value."
The Prime Minister said he was convinced that coordination with other regional frameworks such as the ASEM, EU-China Interface platform or the China Europe Land Sea Express Route will add further value to the Initiative. While all the time promoting an international trading system based on rules, it will be transparent and open to all, with the World Trade Organization at its core.
"What is particularly positive for us is that the objectives of the Initiative of "One Belt – One Road" are compatible with our own economic objectives at the regional level. And our dynamic, comprehensive, strategic cooperation with China sets a firm basis for us to work in that direction."
"Greece - after many years of serious crisis – is returning to the path of growth, opening up great opportunities for investment and trade"
"My country once again is in a position to take full advantage of its unique geopolitical identity, as a country of Europe, the Mediterranean, the Balkans and the wider Black Sea region as well as a maritime nation with the capabilities to promote its connections far beyond its neighborhood. In this context, Greece is expanding its role as an important regional hub in the areas of trade, transport, energy, telecommunications, security, culture and tourism.
"Greek citizens have been living at the crossroads of three continents for thousands of years, trading, working and migrating across the globe." "Greece is a country with a rich cultural heritage and dynamic leadership globally in the tourism industry. It places particular value on the importance of this Initiative, through people-to-people contacts, cultural exchanges and tourism. This year is the year of cultural exchanges between Greece and China. A few weeks ago there was close cooperation in the holding of the first Conference at Ministerial level of the Forum of Ancient Civilizations, while in the tourism sector, the direct air link between Greece and China will start very soon.
"As a leading maritime nation, seeking new avenues of commerce, Greece sees major Greek shipowners building their ships in China, while the largest port, the port of Piraeus saw a very significant investment by COSCO and is emerging as a global gateway to Europe for products originating from Chinese and other Asian ports, including those coming via the Suez Canal.
From the port of Piraeus, the goods can easily be transported by rail to numerous destinations in the Balkans and Central Europe. In this spirit, 2015 was the year of shipping between Greece and China, and China will be the main guest country at the International Exhibition of Thessaloniki this year, while great efforts have also been made for the development of new infrastructure projects in the region. "
Finally, on a diplomatic level, "this multilateral Forum lays the groundwork for significant new initiatives. Greece in every case is actively promoting ambitious diplomatic initiatives aimed at cooperation and dialogue, on the basis of international law, with all the countries in the wider region. And there are major opportunities for the establishment of tripartite relations around infrastructure projects in the Balkans and the Eastern Mediterranean.
In this context, Mr President, I would like once again to thank for today's very important forum and to stress the importance that Greece attaches to the development of the initiative of "One Belt – One Road"."
Greece-China Three -Year Investment Plan
Greece and China signed a “three-year action plan” for joint projects last weekend that will see Greece sharing in Beijing’s 100€ billion investment programme in the countries along the New Silk Road – the initiative entitled "One Belt – One Road".
The plan was a signed statement of intent concerning investments in transport, energy and telecommunications, “whose successful implementation could bring investments running into billions of euros,” according to Deputy Economy Minister Stergios Pitsiorlas, who signed the action plan on Greece’s behalf.
“There are investment plans on the table concerning the rail network, ports and airports, and stretching to telecom and energy network interconnections and investment in power plants, including those using renewable energy sources,” added Deputy Minister Pitsiorlas.
In his meeting with Greek Prime Minister Alexis Tsipras on Saturday, Chinese President Xi Jinping issued a call to Greek and Chinese enterprises to expand cooperation between the two countries in the domains of infrastructure, shipping and telecoms.
"Greece - after many years of serious crisis – is returning to the path of growth, opening up great opportunities for investment and trade"
A "sustainable initiative for the 21st century, built on the wisdom of the idea of ancient China, the Silk Road," is how Prime Minister Alexis Tsipras characterised the "One Belt – One Road" plan, speaking in China from the platform of the Forum of that name. He congratulated China and President Xi Jinping personally for his vision and his warm hospitality as the host of the Forum.
The Greek Prime Minister stressed "the great importance of such a vision in our time, especially at a time when everybody around this table is facing growing challenges at international and regional level - the economic and financial system, the movement of people and migration, security and regional stability. In these times-where the great temptation is to respond to the crises of globalization with greater isolationism, protectionism, raising walls - this initiative comes along to bring forth a vision of coherence, cooperation and dialogue across the length of Europe and Asia, but also in other regions of the world.
"Therefore, this initiative is a critical instrument for the expansion of economic development, trade and investment - with partnerships in investment and the boosting of trade, transport, energy and telecommunications networks through projects that can have a big impact on national economies. And so, on this basis, the Greek Government will actively support the countries participating in this initiative in their paying attention to fostering scientific and technological innovation, including the integration of small and medium-sized enterprises in global chains of value."
The Prime Minister said he was convinced that coordination with other regional frameworks such as the ASEM, EU-China Interface platform or the China Europe Land Sea Express Route will add further value to the Initiative. While all the time promoting an international trading system based on rules, it will be transparent and open to all, with the World Trade Organization at its core.
"What is particularly positive for us is that the objectives of the Initiative of "One Belt – One Road" are compatible with our own economic objectives at the regional level. And our dynamic, comprehensive, strategic cooperation with China sets a firm basis for us to work in that direction."
"Greece - after many years of serious crisis – is returning to the path of growth, opening up great opportunities for investment and trade"
"My country once again is in a position to take full advantage of its unique geopolitical identity, as a country of Europe, the Mediterranean, the Balkans and the wider Black Sea region as well as a maritime nation with the capabilities to promote its connections far beyond its neighborhood. In this context, Greece is expanding its role as an important regional hub in the areas of trade, transport, energy, telecommunications, security, culture and tourism.
"Greek citizens have been living at the crossroads of three continents for thousands of years, trading, working and migrating across the globe." "Greece is a country with a rich cultural heritage and dynamic leadership globally in the tourism industry. It places particular value on the importance of this Initiative, through people-to-people contacts, cultural exchanges and tourism. This year is the year of cultural exchanges between Greece and China. A few weeks ago there was close cooperation in the holding of the first Conference at Ministerial level of the Forum of Ancient Civilizations, while in the tourism sector, the direct air link between Greece and China will start very soon.
"As a leading maritime nation, seeking new avenues of commerce, Greece sees major Greek shipowners building their ships in China, while the largest port, the port of Piraeus saw a very significant investment by COSCO and is emerging as a global gateway to Europe for products originating from Chinese and other Asian ports, including those coming via the Suez Canal.
From the port of Piraeus, the goods can easily be transported by rail to numerous destinations in the Balkans and Central Europe. In this spirit, 2015 was the year of shipping between Greece and China, and China will be the main guest country at the International Exhibition of Thessaloniki this year, while great efforts have also been made for the development of new infrastructure projects in the region. "
Finally, on a diplomatic level, "this multilateral Forum lays the groundwork for significant new initiatives. Greece in every case is actively promoting ambitious diplomatic initiatives aimed at cooperation and dialogue, on the basis of international law, with all the countries in the wider region. And there are major opportunities for the establishment of tripartite relations around infrastructure projects in the Balkans and the Eastern Mediterranean.
In this context, Mr President, I would like once again to thank for today's very important forum and to stress the importance that Greece attaches to the development of the initiative of "One Belt – One Road"."
Greece-China Three -Year Investment Plan
Greece and China signed a “three-year action plan” for joint projects last weekend that will see Greece sharing in Beijing’s 100€ billion investment programme in the countries along the New Silk Road – the initiative entitled "One Belt – One Road".
The plan was a signed statement of intent concerning investments in transport, energy and telecommunications, “whose successful implementation could bring investments running into billions of euros,” according to Deputy Economy Minister Stergios Pitsiorlas, who signed the action plan on Greece’s behalf.
“There are investment plans on the table concerning the rail network, ports and airports, and stretching to telecom and energy network interconnections and investment in power plants, including those using renewable energy sources,” added Deputy Minister Pitsiorlas.
In his meeting with Greek Prime Minister Alexis Tsipras on Saturday, Chinese President Xi Jinping issued a call to Greek and Chinese enterprises to expand cooperation between the two countries in the domains of infrastructure, shipping and telecoms.
Government begins to implement its strategic plan
13.5.2017
Education Reform
“We believe that all Greek people have the right to a modern public education system,” Prime Minister Alexis Tsipras said on visiting the Ministry of Education.
“We believe that all Greek people have the right to a modern public education system,” Prime Minister Alexis Tsipras said on visiting the Ministry of Education.
He was visiting the Ministry in order to announce the changes in the education system that will be applied within the next three years. He said that education will be centered on learning and not examinations.
The changes in the education system are based on five pillars:
1. Strengthening elementary schools.
2. Upgrading the importance of high school
3. Improving the examination system for admission to universities
4. Improving junior and technical colleges with more resources and changes
5. Investing in research and technical knowledge
“Starting in September, the all-day school system will apply in all elementary schools, all 830 of them in every corner of our country,” he said. He also announced that the new system will have 14 years of compulsory education starting with pre-nursery school and nursery school. “No child age 4 and up will be left out of school, even in the most remote village.”
Furthermore, he said that the number of pupils in each class will be reduced and in two years there will be no class with more than 22 students.
He also reiterated a recent statement by Education Minister Costas Gavroglou that there will be major changes in the curriculum, particularly in History, Religion and Technical courses.
There will be major change in the university and college entry examination system: “We are going through a radical upgrading of the last two grades of high school that will lead to the abolition of entry exams.”
The Prime Minister also announced that in the coming days the Government will bring to Parliament a bill on higher education, which will enable students who have no financial means to attend free postgraduate programmes. In addition, he referred to changes in university administration management, with “increased participation” by students.
Also the Ministry will establish the University of Western Attica through the merger of the Technological Educational Institutions of Athens and Piraeus, which will provide two-year European professional qualification programmes for graduates of vocational high schools.
The changes in the education system are based on five pillars:
1. Strengthening elementary schools.
2. Upgrading the importance of high school
3. Improving the examination system for admission to universities
4. Improving junior and technical colleges with more resources and changes
5. Investing in research and technical knowledge
“Starting in September, the all-day school system will apply in all elementary schools, all 830 of them in every corner of our country,” he said. He also announced that the new system will have 14 years of compulsory education starting with pre-nursery school and nursery school. “No child age 4 and up will be left out of school, even in the most remote village.”
Furthermore, he said that the number of pupils in each class will be reduced and in two years there will be no class with more than 22 students.
He also reiterated a recent statement by Education Minister Costas Gavroglou that there will be major changes in the curriculum, particularly in History, Religion and Technical courses.
There will be major change in the university and college entry examination system: “We are going through a radical upgrading of the last two grades of high school that will lead to the abolition of entry exams.”
The Prime Minister also announced that in the coming days the Government will bring to Parliament a bill on higher education, which will enable students who have no financial means to attend free postgraduate programmes. In addition, he referred to changes in university administration management, with “increased participation” by students.
Also the Ministry will establish the University of Western Attica through the merger of the Technological Educational Institutions of Athens and Piraeus, which will provide two-year European professional qualification programmes for graduates of vocational high schools.
Health Service Reforms
239 Urban Health Centres to provide Primary Health Care
On Wednesday during his visit to Thessaloniki, the Prime Minister announced the creation of 239 Urban Health Centres to provide Primary Health Care. The aim is to set up the Health Centres by the end of the year, employing 3,000 family doctors and nursing staff. The first 60 are to start operating by the summer; poorer areas will be prioritized.
"For too many years, Governments have forgotten to visit those districts, have forgotten they exist. When I said that I would come to Thessaloniki I did not mean the city centre but I find myself in those areas so I can at the side of citizens so that we can struggle together with them."
"These Health Centres should have been created in the period of the Olympic Games, of the stock market, of armament spending, all of which let us not forget bankrupted the country. They are being created today despite the fact that we are governing in conditions of strict budgetary adjustment."
He spoke of "revolutionary movement in the area of health" that changes the map of primary care and is designed solely with the protection of the public interest in mind.
"When people hear about “reforms”, they are worried instead of being enthusiastic. Primary health care is a reform with social imprint."
"What I would like to be the legacy of the SYRIZA-ANEL Government is a very substantial flagship reform in health - primary health care. Announcing the establishment of 14 Health Centre in Thessaloniki, the Prime Minister said that by the end of the year 239 such units will be in operation throughout the country.
Some have emerged as beneficiaries of the absence of primary health care provision, and today we are waging huge battles to keep the public hospitals working. The hospital in Santorini was kept closed by those who wanted to subsidise private clinics. Today, the hospital in Zakynthos does not accept surgeons who seek to work privately.
There is no rejoicing at these reforms by those who have an interest in the development of private diagnostic centres which have developed rapidly in the country in recent years, as the demand for drugs has rapidly grown … We have no bias against the private sector, we want to work with rules, as in every states in the world. Our commitment is unfettered access to the Health system and for every last citizen.
Alexis Tsipras mentioned the "draining away" of young scientists abroad, saying that "we are waging a battle to stop it" and addressing young doctors, he said: I want to take this opportunity to address the doctors who are finishing their training and are now taking up their specialisms to put their faith in this important health reform and to stay here.
The conditions are difficult; our predecessors bequeathed us a country with empty coffers, planning for a leftwing blip. We took their budgets and we managed to increase spending on health." "No one is saying that we are in paradise, but we fought against the vested interests and we managed it and I want to thank the political leadership of the Ministry but mainly the doctors the nurses the hospital workers put up a fierce battle."
"When we hear that the primary health reform's is Soviet-style, when we hear from New Democracy’s sector chief that will change everything and will lay people off , we ignore them, because lately everything they hear is fake, fake countermeasures, the Cup to PAOK’s Cup win fake, fake health centers. What is fake is their sensitivity towards the people". He spoke about the "great jamboree in the health sector," adding that "everything will come to light".
"Our priority are the working-class areas of great need. Living there are those workers who do not have the ability to go to a private diagnostic Centre. 25 local health units will operate, 14 in Evosmos and in Kordelio, 7 in Tuba."
In closing Mr. Tsipras stressed: "There is no doubt, for two years we have been waging a difficult battle with the old system inside the country, but also outside. But I am convinced that in these days we have passed the last difficult headland, we know the major sacrifices, but, after 7 years, everyone of us can see where this hard road is leading. There is a horizon, there is a future perspective. Let the mass media carry on, our vision of concern and support for the Welfare State which they looted during the years of growth and did away with in the years of crisis, will succeed."
In 2014 Health Service expenditure on “advertising” was 6€ million.
"How much of the mass media have referred to the evidence which I tabled in Parliament about the jamboree in health and the “black” money?" wondered Mr.Polakis saying, The Deputy Minister of Health Pavlos Polakis underlined the fact that "one quarter of the public debt is the “black money” in health. The mass media did not speak about it because they have been bought off "' and he explained in detail how the triangle of vested interests operated.
"Some of the media are regularly bought off by the month "that is why today they present everything in Health as negative and say everything has been destroyed in the last two years when this Government has been in power," he added. "There are news sites in the health sector that only exist because they take advertising revenue from certain companies".
"Public bodies poured advertising money into a number of media organisations to give adulation to those companies." Mr. Polakis denounced specific sites and channels that were "fed" and mentioned particular journalists’ names, specific names which were uncovered by the General Accounts Office during a management audit of the Disease Control & Prevention Centre (ΚΕΕΛΠΝΟ). "In 2014 6€ million went on advertising expenses. The reason they see destruction is that we have cut off their “grub”."
"On the other hand, no one speaks about the fact that the budget expenditure for health has been increased by 300€ million or that we brought the uninsured back into the health care system or that since October 2015, 7,500 people have been employed and another 11,000 are in the process of being appointed to the National Health Service (ΕΣΥ). "
Health Scandals' Commission of Inquiry
The Commission of Inquiry for the investigation of scandals in the health service during the period 1997-2014 is moving towards the opening of politicians’ bank accounts.
Following a proposal by SYRIZA MPs, members of the Commission will not take any payment for their participation in the meetings.
The work of the Commission will start with the scandal of the privatization of the Henry Dunant hospital, while the issue of "soaring expenditure on pharmaceuticals" will be examined after the complaints about the Disease Control & Prevention Centre (ΚΕΕΛΠΝΟ). "Every act that directly or indirectly caused harm to the public" will be investigated, underlined Commission Chairman Antonis Balomenakis, pointing out that each witness will be called on a specific issue and the Commission will have the power to call them back.
The list of witnesses will be drawn up on Monday, but already former Health Minister and current PASOK MP Dimitris Kremastinos has asked to testify first. Among the witnesses will also be the former Health Minister Alekos Papadopoulos.
239 Urban Health Centres to provide Primary Health Care
On Wednesday during his visit to Thessaloniki, the Prime Minister announced the creation of 239 Urban Health Centres to provide Primary Health Care. The aim is to set up the Health Centres by the end of the year, employing 3,000 family doctors and nursing staff. The first 60 are to start operating by the summer; poorer areas will be prioritized.
"For too many years, Governments have forgotten to visit those districts, have forgotten they exist. When I said that I would come to Thessaloniki I did not mean the city centre but I find myself in those areas so I can at the side of citizens so that we can struggle together with them."
"These Health Centres should have been created in the period of the Olympic Games, of the stock market, of armament spending, all of which let us not forget bankrupted the country. They are being created today despite the fact that we are governing in conditions of strict budgetary adjustment."
He spoke of "revolutionary movement in the area of health" that changes the map of primary care and is designed solely with the protection of the public interest in mind.
"When people hear about “reforms”, they are worried instead of being enthusiastic. Primary health care is a reform with social imprint."
"What I would like to be the legacy of the SYRIZA-ANEL Government is a very substantial flagship reform in health - primary health care. Announcing the establishment of 14 Health Centre in Thessaloniki, the Prime Minister said that by the end of the year 239 such units will be in operation throughout the country.
Some have emerged as beneficiaries of the absence of primary health care provision, and today we are waging huge battles to keep the public hospitals working. The hospital in Santorini was kept closed by those who wanted to subsidise private clinics. Today, the hospital in Zakynthos does not accept surgeons who seek to work privately.
There is no rejoicing at these reforms by those who have an interest in the development of private diagnostic centres which have developed rapidly in the country in recent years, as the demand for drugs has rapidly grown … We have no bias against the private sector, we want to work with rules, as in every states in the world. Our commitment is unfettered access to the Health system and for every last citizen.
Alexis Tsipras mentioned the "draining away" of young scientists abroad, saying that "we are waging a battle to stop it" and addressing young doctors, he said: I want to take this opportunity to address the doctors who are finishing their training and are now taking up their specialisms to put their faith in this important health reform and to stay here.
The conditions are difficult; our predecessors bequeathed us a country with empty coffers, planning for a leftwing blip. We took their budgets and we managed to increase spending on health." "No one is saying that we are in paradise, but we fought against the vested interests and we managed it and I want to thank the political leadership of the Ministry but mainly the doctors the nurses the hospital workers put up a fierce battle."
"When we hear that the primary health reform's is Soviet-style, when we hear from New Democracy’s sector chief that will change everything and will lay people off , we ignore them, because lately everything they hear is fake, fake countermeasures, the Cup to PAOK’s Cup win fake, fake health centers. What is fake is their sensitivity towards the people". He spoke about the "great jamboree in the health sector," adding that "everything will come to light".
"Our priority are the working-class areas of great need. Living there are those workers who do not have the ability to go to a private diagnostic Centre. 25 local health units will operate, 14 in Evosmos and in Kordelio, 7 in Tuba."
In closing Mr. Tsipras stressed: "There is no doubt, for two years we have been waging a difficult battle with the old system inside the country, but also outside. But I am convinced that in these days we have passed the last difficult headland, we know the major sacrifices, but, after 7 years, everyone of us can see where this hard road is leading. There is a horizon, there is a future perspective. Let the mass media carry on, our vision of concern and support for the Welfare State which they looted during the years of growth and did away with in the years of crisis, will succeed."
In 2014 Health Service expenditure on “advertising” was 6€ million.
"How much of the mass media have referred to the evidence which I tabled in Parliament about the jamboree in health and the “black” money?" wondered Mr.Polakis saying, The Deputy Minister of Health Pavlos Polakis underlined the fact that "one quarter of the public debt is the “black money” in health. The mass media did not speak about it because they have been bought off "' and he explained in detail how the triangle of vested interests operated.
"Some of the media are regularly bought off by the month "that is why today they present everything in Health as negative and say everything has been destroyed in the last two years when this Government has been in power," he added. "There are news sites in the health sector that only exist because they take advertising revenue from certain companies".
"Public bodies poured advertising money into a number of media organisations to give adulation to those companies." Mr. Polakis denounced specific sites and channels that were "fed" and mentioned particular journalists’ names, specific names which were uncovered by the General Accounts Office during a management audit of the Disease Control & Prevention Centre (ΚΕΕΛΠΝΟ). "In 2014 6€ million went on advertising expenses. The reason they see destruction is that we have cut off their “grub”."
"On the other hand, no one speaks about the fact that the budget expenditure for health has been increased by 300€ million or that we brought the uninsured back into the health care system or that since October 2015, 7,500 people have been employed and another 11,000 are in the process of being appointed to the National Health Service (ΕΣΥ). "
Health Scandals' Commission of Inquiry
The Commission of Inquiry for the investigation of scandals in the health service during the period 1997-2014 is moving towards the opening of politicians’ bank accounts.
Following a proposal by SYRIZA MPs, members of the Commission will not take any payment for their participation in the meetings.
The work of the Commission will start with the scandal of the privatization of the Henry Dunant hospital, while the issue of "soaring expenditure on pharmaceuticals" will be examined after the complaints about the Disease Control & Prevention Centre (ΚΕΕΛΠΝΟ). "Every act that directly or indirectly caused harm to the public" will be investigated, underlined Commission Chairman Antonis Balomenakis, pointing out that each witness will be called on a specific issue and the Commission will have the power to call them back.
The list of witnesses will be drawn up on Monday, but already former Health Minister and current PASOK MP Dimitris Kremastinos has asked to testify first. Among the witnesses will also be the former Health Minister Alekos Papadopoulos.
Debt Relief
Greek Prime Minister Alexis Tsipras kept up his demand for debt relief from international lenders on Tuesday, saying Athens was close to securing a solution to ease its debt mountain but that creditors must meet their commitments.
"We are closer than ever to a substantial solution on debt relief," said PM Tsipras reiterating that Greece had already agreed to apply more austerity after its current bailout expires and it was the Lenders' turn to fulfill their promises of discussions about debt relief. "Τhe ball is no longer in our court."
The Government wants Eurozone Finance Ministers to approve the Second Assessment at a scheduled Eurogroup meeting on May 22nd - a key condition for unlocking vital loans - but also agree on a formula to make Greece’s debt sustainable in the medium-term and long term.
Debt sustainability is key for the European Central Bank and the IMF which has yet to announce whether it will join Greece's current programme.
The new measures agreed with Greece’s creditors in order to complete the Second bailout programme Assessment will be legislated on May 18th, the President of the Greek Parliament Nikos Voutsis announced on Monday.
Mr.Voutsis said that the measures and countermeasures will be tabled for debate on May 15th and the voting process by the full meeting of Parliament will be completed in two sessions on May 17th and 18th.
He said he is certain that all SYRIZA and ANEL MPs will vote for the measures and countermeasures. As for the countermeasures, he said that Opposition MPs will vote for some of them. He also said that, “The main opposition, New Democracy, will have a very big problem if they don’t vote for some countermeasures, especially those that have to do with [reducing Ed.] taxes.”
“When MP’s are called to vote they will have a clear picture of the measures and the debt,” Mr.Voutsis said. “Four days later the Eurogroup will be called upon to decide.”
Parliament is expected to vote on the new package of measures and counter measures by May 18th in time for the Eurozone meeting.
During his briefing of SYRIZA MPs on the multi-bill containing the reforms from the agreement with the Lenders, Euclid Tsakalotos announced a VAT reduction from 24% to 13% on agricultural supplies such as fertilizers, seeds, plants, etc. that are a significant cost of agricultural production. This has been a persistent demand of the farmers.
This change will take effect from 1st July this year.
As regards the planned tax arrangements, the Finance Minister pointed out that the reduction of the tax rate from 22% to 20% for individuals, it is essentially as if the tax-free allowance increases to 6,250€. "The agreement is neither white nor black." "We're not like New Democracy who brought back Memoranda without any countermeasures, Memoranda that ravaged the weaker sections."
"The official Opposition will find itself in a very difficult position with the countermeasures. How is it possible for New Democracy to complain about a 3.5% Primary Surplus target, when they had agreed to 4.5%?"
Greek Prime Minister Alexis Tsipras kept up his demand for debt relief from international lenders on Tuesday, saying Athens was close to securing a solution to ease its debt mountain but that creditors must meet their commitments.
"We are closer than ever to a substantial solution on debt relief," said PM Tsipras reiterating that Greece had already agreed to apply more austerity after its current bailout expires and it was the Lenders' turn to fulfill their promises of discussions about debt relief. "Τhe ball is no longer in our court."
The Government wants Eurozone Finance Ministers to approve the Second Assessment at a scheduled Eurogroup meeting on May 22nd - a key condition for unlocking vital loans - but also agree on a formula to make Greece’s debt sustainable in the medium-term and long term.
Debt sustainability is key for the European Central Bank and the IMF which has yet to announce whether it will join Greece's current programme.
The new measures agreed with Greece’s creditors in order to complete the Second bailout programme Assessment will be legislated on May 18th, the President of the Greek Parliament Nikos Voutsis announced on Monday.
Mr.Voutsis said that the measures and countermeasures will be tabled for debate on May 15th and the voting process by the full meeting of Parliament will be completed in two sessions on May 17th and 18th.
He said he is certain that all SYRIZA and ANEL MPs will vote for the measures and countermeasures. As for the countermeasures, he said that Opposition MPs will vote for some of them. He also said that, “The main opposition, New Democracy, will have a very big problem if they don’t vote for some countermeasures, especially those that have to do with [reducing Ed.] taxes.”
“When MP’s are called to vote they will have a clear picture of the measures and the debt,” Mr.Voutsis said. “Four days later the Eurogroup will be called upon to decide.”
Parliament is expected to vote on the new package of measures and counter measures by May 18th in time for the Eurozone meeting.
During his briefing of SYRIZA MPs on the multi-bill containing the reforms from the agreement with the Lenders, Euclid Tsakalotos announced a VAT reduction from 24% to 13% on agricultural supplies such as fertilizers, seeds, plants, etc. that are a significant cost of agricultural production. This has been a persistent demand of the farmers.
This change will take effect from 1st July this year.
As regards the planned tax arrangements, the Finance Minister pointed out that the reduction of the tax rate from 22% to 20% for individuals, it is essentially as if the tax-free allowance increases to 6,250€. "The agreement is neither white nor black." "We're not like New Democracy who brought back Memoranda without any countermeasures, Memoranda that ravaged the weaker sections."
"The official Opposition will find itself in a very difficult position with the countermeasures. How is it possible for New Democracy to complain about a 3.5% Primary Surplus target, when they had agreed to 4.5%?"
Second Assessment
Technical Level Agreement!
6.5.2017
On Tuesday at 6am, after the last round of negotiations with the heads of the Institutions’s Teams that lasted for 12 hours, Finance Minister Euclid Tsakalotos told reporters on Tuesday "There was white smoke. The negotiations for a technical deal were concluded on all issues... the way has now been paved for debt relief talks."
The 22nd May meeting of Eurozone Finance Ministers is required to approve the agreement. Reducing Greece's debt will also be discussed at that meeting.
Minister of Finance Euclid Tsakalotos noted that the technical agreement means that "on the one hand what the Greek Government has to do now is to implement it - either by primary or by secondary legislation - and on the other hand, in order to complete the agreement, the discussion must start on the sustainability of the debt".
"From tomorrow [Wednesday] the Government will be working at all levels both for the implementation of the programme, but also on its contribution to the second leg of the agreement. I am certain that there will now be a discussion about the debt. Because there is no excuse whatsoever that there is no agreement on the measures and countermeasures."
He said that there were compromises on both sides during the negotiations and that "with some things we're happy, with some things we are less happy". He added that "There were also positives, at one level they did not ask us for additional measures for 2018." "Obviously the countermeasures are positive."
According to the Minister, the issue of primary surpluses after 2018 "is in abeyance because in the context of the debate on debt, the primary surpluses are "the other side of the coin".
The Bills for the agreement and measures-countermeasures will be tabled in Parliament next week, in order for them to have been voted on by 13th May. Then the Bills will be translated and will be sent to the European Commission, in order for them to draw up the ' compliance report ' for the Euro Working Group and then the Eurogroup of 22nd May.
On Thursday the Euro Working Group (EWG) met to prepare for the Eurogroup meeting of Eurozone Finance Ministers on May 22nd. At the conclusion of the meeting, a joint statement was issued:
“The EWG evaluated the Second Assessment of the Greek European Stability Mechanism (ESM) programme. The EWG welcomes the preliminary agreement between the Greek Authorities and the Institutions on a policy package that will form the basis for completing the Second Assessment. Once the prerequisites have been implemented by Greece, the Eurogroup will be able to approve the policy package and the conditions for the next disbursement, and to resolve the viability of the Greek debt in the immediate future on the basis of the May 2016 agreement.”
Regarding the debt issue, Germany seems reluctant to agree on medium term debt relief measures before the bailout programme is completed in August 2018. The differences between Berlin and the International Monetary Fund remain as the IMF insists on immediate debt restructuring. Germany, however, does not want to commit to debt relief before its upcoming elections in September.
Minister of Finance Euclid Tsakalotos noted that the technical agreement means that "on the one hand what the Greek Government has to do now is to implement it - either by primary or by secondary legislation - and on the other hand, in order to complete the agreement, the discussion must start on the sustainability of the debt".
"From tomorrow [Wednesday] the Government will be working at all levels both for the implementation of the programme, but also on its contribution to the second leg of the agreement. I am certain that there will now be a discussion about the debt. Because there is no excuse whatsoever that there is no agreement on the measures and countermeasures."
He said that there were compromises on both sides during the negotiations and that "with some things we're happy, with some things we are less happy". He added that "There were also positives, at one level they did not ask us for additional measures for 2018." "Obviously the countermeasures are positive."
According to the Minister, the issue of primary surpluses after 2018 "is in abeyance because in the context of the debate on debt, the primary surpluses are "the other side of the coin".
The Bills for the agreement and measures-countermeasures will be tabled in Parliament next week, in order for them to have been voted on by 13th May. Then the Bills will be translated and will be sent to the European Commission, in order for them to draw up the ' compliance report ' for the Euro Working Group and then the Eurogroup of 22nd May.
On Thursday the Euro Working Group (EWG) met to prepare for the Eurogroup meeting of Eurozone Finance Ministers on May 22nd. At the conclusion of the meeting, a joint statement was issued:
“The EWG evaluated the Second Assessment of the Greek European Stability Mechanism (ESM) programme. The EWG welcomes the preliminary agreement between the Greek Authorities and the Institutions on a policy package that will form the basis for completing the Second Assessment. Once the prerequisites have been implemented by Greece, the Eurogroup will be able to approve the policy package and the conditions for the next disbursement, and to resolve the viability of the Greek debt in the immediate future on the basis of the May 2016 agreement.”
Regarding the debt issue, Germany seems reluctant to agree on medium term debt relief measures before the bailout programme is completed in August 2018. The differences between Berlin and the International Monetary Fund remain as the IMF insists on immediate debt restructuring. Germany, however, does not want to commit to debt relief before its upcoming elections in September.
PM Tsipras in Cabinet
Prime Minister Alexis Tsipras used Thursday’s cabinet meeting as an opportunity to defend the agreement, which he called “balanced and sustainable,” but also to make it clear that the coalition did not agree with many of the policies it will have to implement.
"The day after the formal completion of the Assessment, we begin the implementation of our strategic plan - a plan that unfolds over a six year timescale, the two years up to the next elections, in September 2019, and the four years which will follow that reckoning. That will be the first period for a decade that a Greek Government will be able to implement its project outside the vice of the Stewardship."
"September 2018 will mark the definitive implementation of the mandate that the Government received in September 2015: Let us be the ones who ensure a smooth and irreversible exit of the country from the period of Memoranda and of Stewardship."
The Government negotiated hard rather than adopt the demands of those who said it should sign whatever agreement the Institutions brought to it. In fact the Government sent a message to its partners that Greece has done its part and now expects them to comply with the decisions on solving the debt problem.
"Despite the IMF’s absurd demand for additional financial burdens after the end of the programme amounting to €4.5 billion, we reached an agreement which has zero fiscal impact."
"The Lenders are no friends of ours."
"However, let us not forget, the current agreement does not cease to be part of the framework from which we are struggling to extricate ourselves."
He noted that he is very aware of his responsibilities and fully aware of the situation: "The Lenders are no friends of ours. Neither were they in July of 2015, nor in May 2016, nor are they now. The Lenders, on the one hand, are trying to safeguard the money they lent to Greece and, on the other hand, have a particular model and strategy for how our economy and society should be organised. A single model that many times is in conflict with what the Government seeks for the country, for the economy and to meet social needs."
"We have, however, prioritized the fundamental objective. To take the country out of the Memoranda. To permanently end the period of humiliating Stewardship. This objective constitutes the foremost left, progressive and patriotic duty."
PM Tsipras said that the Government is not prepared to pursue this goal at any cost. "We never were devotees of the logic of "at all costs". We never listened to the voices that repeatedly called upon us to sign whatever agreement the Institutions brought. For this reason, we negotiated hard. In some places we retreated, but in many other, we managed to gain things that will give a breathing space to millions of our fellow citizens."
The Prime Minister explained why the technical agreement is balanced, referring to the restrictive measures and to the counter-measures. "The overall effect will be neutral, i.e. there won't be a single penny more austerity, always provided that we are within the targets of the programme."
As to the content of the Agreement, he noted:
-For 2019 the restrictive measures aim for the reduction of pension expenditure by 1%.
-For 2020 it was agreed to save 1% of GDP by reducing the tax-free threshold which will be re-configured so in 2020 it is on average 5,900€.
"In contrast to these, for the first time in concluding the Assessment, countermeasures of equal value are described for 2019 and 2020, provided that in 2018 the 3.5% primary surplus goal is achieved."
What the Government achieved in the negotiations
First and foremost on the question of energy, where we managed to keep the ΔΕΗ under public control and limited the sale of units to 40% of the lignite operations, i.e. approximately 10% of total production.
On the issue of contracted staff, on the one hand we managed to not cut down the number of those charged to the State budget and and on the other hand we managed to get exemption clauses introduced covering those recruited to meet the needs of the refugee crisis.
On the issue of public property, public companies and estate belonging to the Hellenic Republic Asset Development Fund (ΤΑΙΠΕΔ) have finally been included in Greek Holding and Property Company so we can now look at their use over and above selling them off.
The opening of shops on Sundays, where the demand was for a complete liberalisation, but we have ended up with a framework of Sunday opening in certain tourist areas.
Regarding the saving of 0.2% of GDP, which will take place in 2018, this had been agreed since last November and is to be accomplished without any negative social impact.
PM Tsipras explained that the Government reached this agreement, by providing, in essence, a statutory commitment to fiscal measures in 2019 and 2020, "because it was the best possible solution to break the deadlock caused by the attitude of the IMF".
"We made this difficult political choice, basically to get a discharge from the Stewardship and end the era of Memoranda that has left huge wounds in the country."
Achieving a technical agreement is the first crucial step to concluding the other important unfinished business, first and foremost the debt. It stands as a a whole - without a solution for the debt, the measures do not exist. By the meeting of the Eurogroup on May 22nd the medium-term measures for the debt must have been clearly specified."
"Greece has done its part and now it is up to everyone to assume their responsibilities and to comply with the decisions of last May".
PM Tsipras said that the specification of the medium-term measures on the debt is also the basic condition for Greece to gain access to the ECB's quantitative easing programme, noting that "already, delays, due to the unreasonable requirements mainly from the IMF in the negotiations, have cost the Greek economy dearly and we must quickly make up for lost ground."
Prime Minister Alexis Tsipras used Thursday’s cabinet meeting as an opportunity to defend the agreement, which he called “balanced and sustainable,” but also to make it clear that the coalition did not agree with many of the policies it will have to implement.
"The day after the formal completion of the Assessment, we begin the implementation of our strategic plan - a plan that unfolds over a six year timescale, the two years up to the next elections, in September 2019, and the four years which will follow that reckoning. That will be the first period for a decade that a Greek Government will be able to implement its project outside the vice of the Stewardship."
"September 2018 will mark the definitive implementation of the mandate that the Government received in September 2015: Let us be the ones who ensure a smooth and irreversible exit of the country from the period of Memoranda and of Stewardship."
The Government negotiated hard rather than adopt the demands of those who said it should sign whatever agreement the Institutions brought to it. In fact the Government sent a message to its partners that Greece has done its part and now expects them to comply with the decisions on solving the debt problem.
"Despite the IMF’s absurd demand for additional financial burdens after the end of the programme amounting to €4.5 billion, we reached an agreement which has zero fiscal impact."
"The Lenders are no friends of ours."
"However, let us not forget, the current agreement does not cease to be part of the framework from which we are struggling to extricate ourselves."
He noted that he is very aware of his responsibilities and fully aware of the situation: "The Lenders are no friends of ours. Neither were they in July of 2015, nor in May 2016, nor are they now. The Lenders, on the one hand, are trying to safeguard the money they lent to Greece and, on the other hand, have a particular model and strategy for how our economy and society should be organised. A single model that many times is in conflict with what the Government seeks for the country, for the economy and to meet social needs."
"We have, however, prioritized the fundamental objective. To take the country out of the Memoranda. To permanently end the period of humiliating Stewardship. This objective constitutes the foremost left, progressive and patriotic duty."
PM Tsipras said that the Government is not prepared to pursue this goal at any cost. "We never were devotees of the logic of "at all costs". We never listened to the voices that repeatedly called upon us to sign whatever agreement the Institutions brought. For this reason, we negotiated hard. In some places we retreated, but in many other, we managed to gain things that will give a breathing space to millions of our fellow citizens."
The Prime Minister explained why the technical agreement is balanced, referring to the restrictive measures and to the counter-measures. "The overall effect will be neutral, i.e. there won't be a single penny more austerity, always provided that we are within the targets of the programme."
As to the content of the Agreement, he noted:
-For 2019 the restrictive measures aim for the reduction of pension expenditure by 1%.
-For 2020 it was agreed to save 1% of GDP by reducing the tax-free threshold which will be re-configured so in 2020 it is on average 5,900€.
"In contrast to these, for the first time in concluding the Assessment, countermeasures of equal value are described for 2019 and 2020, provided that in 2018 the 3.5% primary surplus goal is achieved."
What the Government achieved in the negotiations
First and foremost on the question of energy, where we managed to keep the ΔΕΗ under public control and limited the sale of units to 40% of the lignite operations, i.e. approximately 10% of total production.
On the issue of contracted staff, on the one hand we managed to not cut down the number of those charged to the State budget and and on the other hand we managed to get exemption clauses introduced covering those recruited to meet the needs of the refugee crisis.
On the issue of public property, public companies and estate belonging to the Hellenic Republic Asset Development Fund (ΤΑΙΠΕΔ) have finally been included in Greek Holding and Property Company so we can now look at their use over and above selling them off.
The opening of shops on Sundays, where the demand was for a complete liberalisation, but we have ended up with a framework of Sunday opening in certain tourist areas.
Regarding the saving of 0.2% of GDP, which will take place in 2018, this had been agreed since last November and is to be accomplished without any negative social impact.
PM Tsipras explained that the Government reached this agreement, by providing, in essence, a statutory commitment to fiscal measures in 2019 and 2020, "because it was the best possible solution to break the deadlock caused by the attitude of the IMF".
"We made this difficult political choice, basically to get a discharge from the Stewardship and end the era of Memoranda that has left huge wounds in the country."
Achieving a technical agreement is the first crucial step to concluding the other important unfinished business, first and foremost the debt. It stands as a a whole - without a solution for the debt, the measures do not exist. By the meeting of the Eurogroup on May 22nd the medium-term measures for the debt must have been clearly specified."
"Greece has done its part and now it is up to everyone to assume their responsibilities and to comply with the decisions of last May".
PM Tsipras said that the specification of the medium-term measures on the debt is also the basic condition for Greece to gain access to the ECB's quantitative easing programme, noting that "already, delays, due to the unreasonable requirements mainly from the IMF in the negotiations, have cost the Greek economy dearly and we must quickly make up for lost ground."
The Positive Counter Measures
After the conclusion of the agreement with the Institutions, Government circles announced the Government’s positive countermeasures to be applied from 1st January 2019 and 2020.
These measures fall into two categories, spending and reducing taxes.
As regards expenditure, rent subsidies and increases in family allowances are included while on tax cuts, the reduction of rates for businesses and individuals, and also the reduction of the Property Tax (ΕΝΦΙΑ).
Specifically, it is envisaged a rental subsidy of an average grant approximately 1,000€ a year to 600,000 families.
In the list of counter-measures also included the creation of over 30,000 new jobs and a significant reduction of Solidarity Levy, which on incomes up to 30,000€ will be zero.
On child poverty, the aim is to enhance the benefit for the first and second child, at the same time strengthening support for three child and large families.
There will be an extension of the school meals programme in primary and secondary schools in areas with high unemployment and poverty. The aim is to cover 50% of the students of elementary and high school.
On nurseries, the target is to increase by 50% the total number of children of pre-school age (0-4) who will be able to enroll in free kindergartens.
Today 90,000 children benefit. In 2019 places will grow to 120,000 and to 135,000 in 2020. 1,200 new units will be created in 2019 and 600 new units in 2020, in addition to 2,800 units operating today.
Each unit accommodates up to 25 children.
Contributions to Medicine Expenditure
Currently the patient covers a percentage of the prescribed medicine, depending on their illness, at percentages amounting to 0%, 10% or 25%.
Currently there is a discount, across the population, depending on a person’s income:
-For incomes up to 700€ per month, contributions will be zero, regardless of the illness.
-For incomes from 700€ up to 1,200€ the contribution is reduced by 50%.
Over 30,000 new jobs will be created. The goal of the Programme is the reconstruction of the productive base and the halting of the flight of young scientists, the brain drain. The Programme will be addressed to the public and the private sector. The enterprise is committed to maintain the employee for six months after the end of the programme.
Free collective bargaining will be restored from September 1st 2018
Public Investment Programmes will be increased in agricultural production infrastructure (water supply, rural roads, irrigation channels, etc.) as well as programmes for energy saving buildings.
With regard to revenue, the tax rate for businesses will be reduced from 29% to 26%. Rates of taxation of individuals will be reduced from 22% to 20%.
The Property Tax will be reduced by 200€ million and there will be a redefinition, in the immediate future, of property prices on the basis of their commercial values.
The Solidarity Levy will be reduced. Annual contributions as a percentage of income will be
0-12,000€ 0% (0%) , 12,000-20,000€ 0% (down from 2.2%) , 20,001-30,000€ 0% (down from 5.0%)
30,001-40,000€ 5.0% (from 6.5%), 40,001-65,000€ 7.0% (from 7.5%) , 65,001-220,000€ 9.0% (same) 220,000€ and over 10% (same).
Tax Evasion
Greek Deputy Finance Minister Katerina Papanatsiou announced on Sunday that the Finance Ministry is currently arranging the introduction of mechanisms that will prevent tax evaders from erasing records of sales from their cash registers at the end of the day.
Deputy Minister Papanatsiou recently visited the German state of Brandenburg, whose government has developed a mechanism that does precisely that, and the Brandenburg authorities agreed to share the technical specifications of the mechanism with Greece.
The device is attached to cash registers and records all transactions, preventing all forms of tampering. Brandenburg state developed the system to combat high rates of tax evasion among freelance professionals, such as doctors and lawyers.
The Finance Ministry’s next step will be to link all wholesale trade transactions with the TAXIS system. The aim is to to implement the measure in 2018 and it will give tax authorities a picture of all wholesale transactions between businesses in real-time. This will allow extensive cross-checking of such transactions, thus tracing undeclared revenue and unpaid VAT.
Once this system is in place, it is intended to introduce a similar system linking cash registers in retail outlets directly to the TAXIS system, so all retail transactions can be monitored in real-time.
After the conclusion of the agreement with the Institutions, Government circles announced the Government’s positive countermeasures to be applied from 1st January 2019 and 2020.
These measures fall into two categories, spending and reducing taxes.
As regards expenditure, rent subsidies and increases in family allowances are included while on tax cuts, the reduction of rates for businesses and individuals, and also the reduction of the Property Tax (ΕΝΦΙΑ).
Specifically, it is envisaged a rental subsidy of an average grant approximately 1,000€ a year to 600,000 families.
In the list of counter-measures also included the creation of over 30,000 new jobs and a significant reduction of Solidarity Levy, which on incomes up to 30,000€ will be zero.
On child poverty, the aim is to enhance the benefit for the first and second child, at the same time strengthening support for three child and large families.
There will be an extension of the school meals programme in primary and secondary schools in areas with high unemployment and poverty. The aim is to cover 50% of the students of elementary and high school.
On nurseries, the target is to increase by 50% the total number of children of pre-school age (0-4) who will be able to enroll in free kindergartens.
Today 90,000 children benefit. In 2019 places will grow to 120,000 and to 135,000 in 2020. 1,200 new units will be created in 2019 and 600 new units in 2020, in addition to 2,800 units operating today.
Each unit accommodates up to 25 children.
Contributions to Medicine Expenditure
Currently the patient covers a percentage of the prescribed medicine, depending on their illness, at percentages amounting to 0%, 10% or 25%.
Currently there is a discount, across the population, depending on a person’s income:
-For incomes up to 700€ per month, contributions will be zero, regardless of the illness.
-For incomes from 700€ up to 1,200€ the contribution is reduced by 50%.
Over 30,000 new jobs will be created. The goal of the Programme is the reconstruction of the productive base and the halting of the flight of young scientists, the brain drain. The Programme will be addressed to the public and the private sector. The enterprise is committed to maintain the employee for six months after the end of the programme.
Free collective bargaining will be restored from September 1st 2018
Public Investment Programmes will be increased in agricultural production infrastructure (water supply, rural roads, irrigation channels, etc.) as well as programmes for energy saving buildings.
With regard to revenue, the tax rate for businesses will be reduced from 29% to 26%. Rates of taxation of individuals will be reduced from 22% to 20%.
The Property Tax will be reduced by 200€ million and there will be a redefinition, in the immediate future, of property prices on the basis of their commercial values.
The Solidarity Levy will be reduced. Annual contributions as a percentage of income will be
0-12,000€ 0% (0%) , 12,000-20,000€ 0% (down from 2.2%) , 20,001-30,000€ 0% (down from 5.0%)
30,001-40,000€ 5.0% (from 6.5%), 40,001-65,000€ 7.0% (from 7.5%) , 65,001-220,000€ 9.0% (same) 220,000€ and over 10% (same).
Tax Evasion
Greek Deputy Finance Minister Katerina Papanatsiou announced on Sunday that the Finance Ministry is currently arranging the introduction of mechanisms that will prevent tax evaders from erasing records of sales from their cash registers at the end of the day.
Deputy Minister Papanatsiou recently visited the German state of Brandenburg, whose government has developed a mechanism that does precisely that, and the Brandenburg authorities agreed to share the technical specifications of the mechanism with Greece.
The device is attached to cash registers and records all transactions, preventing all forms of tampering. Brandenburg state developed the system to combat high rates of tax evasion among freelance professionals, such as doctors and lawyers.
The Finance Ministry’s next step will be to link all wholesale trade transactions with the TAXIS system. The aim is to to implement the measure in 2018 and it will give tax authorities a picture of all wholesale transactions between businesses in real-time. This will allow extensive cross-checking of such transactions, thus tracing undeclared revenue and unpaid VAT.
Once this system is in place, it is intended to introduce a similar system linking cash registers in retail outlets directly to the TAXIS system, so all retail transactions can be monitored in real-time.
Alexis Tsipras on May Day
Despite the economic straitjacket imposed on Greece by its foreign creditors, the Government has made significant steps in enforcing labour regulations and clamping down on undeclared work, Prime Minister Alexis Tsipras said Monday in a statement to mark May Day.
“The economic bankruptcy and the crisis, resulting from the recessionary policies of the bailout agreements that followed, resulted in sky-high unemployment, growing insecurity and increasing labour flexibility,” PM Tsipras said.
"Let us bring back our young people, let us restore hope to Greek society" - that Prime Minister Alexis Tsipras’ message for May 1st Labour Day.
The new grand national objective for a Post-Memorandum era in our homeland is to heal the social wounds of the crisis, to win back work that has dignity and a future perspective, to bring back our young people looking for work abroad, to restore hope and a future perspective to Greek society and especially to the new generation.
"Just as 130 years ago, so today the struggles of the world of work are struggles for social progress and the prosperity of society. In Chicago, USA, in 1886, the workers struggled for the eight hour work day and for better conditions. Today at the global level, the world of work is under attack from the hegemony of neo-liberalism that worships profit and at its altar, demands policies that shrink labour costs in every way."
"In our country bankruptcy and crisis, with the recessional policies of the Memoranda that followed, resulted in unemployment, the spread of precarious employment and work flexibility.
The Government in the last two years, despite the suffocating Stewardship and blackmail, in striving for the implementation of labour legislation and the combating of undeclared work, having accomplished significant results.
We successfully waged the most difficult negotiating battle with our Lenders to restore free collective bargaining and the regulation of employment."
"Thanks to our alliances at the European political and trade union level and despite the opposition of the Parliamentary Opposition in Greece, which characterised our persistence as "obsessive ", as well as the remarkable indifference of the domestic trade union bureaucracy, we managed to win this battle for the benefit of working people.
We staved off the unreasonable demands for increasing the proportion of workers threatened by collective redundancies [before Government intervention Ed], demands for the right of employers to lock workers out. Soon we shall restore the principle of the expansion and more favourable arrangement of sectoral collective agreements, while we wage a coordinated daily battle against undeclared work, so all working people find themselves within the framework of the guarantees of the State.
The struggle, however, for the safeguarding of acquired labour rights and the protection of working people continues."
"After the conclusion of the Second Assessment, which brings us closer than ever to the exit from the Memoranda, we set as a strategic goal of our governance, equitable development. We set down, in this way, the foundations for reducing unemployment and creating new decently paid and high-quality jobs.
This will be the new great national goal of the Post Memoranda era in our country: To heal the social wounds of the crisis, to win back the world of work in terms of dignity and perspective for the future, to bring back our young people who are seeking work abroad, to restore hope and a future perspective to Greek society and especially to the new generation.
Have a good Labour Day and have good struggles!"
Despite the economic straitjacket imposed on Greece by its foreign creditors, the Government has made significant steps in enforcing labour regulations and clamping down on undeclared work, Prime Minister Alexis Tsipras said Monday in a statement to mark May Day.
“The economic bankruptcy and the crisis, resulting from the recessionary policies of the bailout agreements that followed, resulted in sky-high unemployment, growing insecurity and increasing labour flexibility,” PM Tsipras said.
"Let us bring back our young people, let us restore hope to Greek society" - that Prime Minister Alexis Tsipras’ message for May 1st Labour Day.
The new grand national objective for a Post-Memorandum era in our homeland is to heal the social wounds of the crisis, to win back work that has dignity and a future perspective, to bring back our young people looking for work abroad, to restore hope and a future perspective to Greek society and especially to the new generation.
"Just as 130 years ago, so today the struggles of the world of work are struggles for social progress and the prosperity of society. In Chicago, USA, in 1886, the workers struggled for the eight hour work day and for better conditions. Today at the global level, the world of work is under attack from the hegemony of neo-liberalism that worships profit and at its altar, demands policies that shrink labour costs in every way."
"In our country bankruptcy and crisis, with the recessional policies of the Memoranda that followed, resulted in unemployment, the spread of precarious employment and work flexibility.
The Government in the last two years, despite the suffocating Stewardship and blackmail, in striving for the implementation of labour legislation and the combating of undeclared work, having accomplished significant results.
We successfully waged the most difficult negotiating battle with our Lenders to restore free collective bargaining and the regulation of employment."
"Thanks to our alliances at the European political and trade union level and despite the opposition of the Parliamentary Opposition in Greece, which characterised our persistence as "obsessive ", as well as the remarkable indifference of the domestic trade union bureaucracy, we managed to win this battle for the benefit of working people.
We staved off the unreasonable demands for increasing the proportion of workers threatened by collective redundancies [before Government intervention Ed], demands for the right of employers to lock workers out. Soon we shall restore the principle of the expansion and more favourable arrangement of sectoral collective agreements, while we wage a coordinated daily battle against undeclared work, so all working people find themselves within the framework of the guarantees of the State.
The struggle, however, for the safeguarding of acquired labour rights and the protection of working people continues."
"After the conclusion of the Second Assessment, which brings us closer than ever to the exit from the Memoranda, we set as a strategic goal of our governance, equitable development. We set down, in this way, the foundations for reducing unemployment and creating new decently paid and high-quality jobs.
This will be the new great national goal of the Post Memoranda era in our country: To heal the social wounds of the crisis, to win back the world of work in terms of dignity and perspective for the future, to bring back our young people who are seeking work abroad, to restore hope and a future perspective to Greek society and especially to the new generation.
Have a good Labour Day and have good struggles!"
Second Assessment:
Technical Level Talks resume
29.04.2017
There was no mention of Greece in the press conference held on the second day of the IMF Spring Meeting in Washington last weekend. The IMF appears to be continuing to refuse to sign up to the debt bailout deal. IMF top officials reportedly repeated the standing position of the IMF that the programme must be based on two legs – credible reforms and debt relief – in order for the Fund to participate in the programme.
"It is urgent that we agree on a programme and that we conclude these discussions because it's taking a toll on the Greek economy," Poul Thomsen, head of the IMF's European department, said. "There is no doubt about that, it's serious," he told reporters.
Officials representing Greece’s lenders returned to in Athens last week to resume direct talks with the Government. The latest “unofficial deadline” for a Staff Level Agreement is the Eurogroup meeting on May 22nd. Greek Government sources point out that Athens will not implement any austerity measures agreed unless debt relief is offered in the medium-term.
The IMF and the European Lenders appear to have moved closer on the debt issue during talks in Washington, but a comprehensive agreement has not yet been reached. Eurogroup chief Jeroen Dijsselbloem told Bloomberg in an interview that “debt talks are tough” because of political constraints in Europe, but “I can see the solution ahead”. He added that “we are very close, it is really the last stretch before we have a full agreement on the major reforms, how they are to be designed and when they are to be implemented and the size of them, with the IMF”.
Although there was a broad agreement between the government and the creditors at the Eurogroup in Malta earlier this month over what needs to be done, there are several details that need to be ironed out. Once the SLA has been secured, the Government will have to pass, including pension cuts and a reduction to the tax-free threshold, through Parliament.
The Government’s spokesman, Dimitris Tzanakopoulos, indicated last week that the vote would take place on the new measures and the Government’s counter measures in the first half of May. He said that the Government wants everything, including the debt relief scheme, to be wrapped up by May 22nd for the next Eurogroup.
With Greece burdened by a debt load of more than €300 billion, the IMF insists on debt forgiveness by European institutions as the only way to put Greece on a sustainable path. Germany, however, has rejected calls for outright debt forgiveness, saying such a step would violate European rules and create a dangerous precedent. Under its guidelines, the IMF can’t commit any resources to a bailout programme until it is convinced of the country’s medium-term prospects. Non-European members of the IMF’s board are reluctant to do more without debt relief.
Germany remains the biggest obstacle. With national elections set for late September, fear of electoral repercussions means the German Government is refusing to back down and agree to a debt deal.
At the same time, German Chancellor Angela Merkel’s Government needs to get the IMF on board. When Germany endorsed Greece’s latest bailout in 2015, it did so on the condition that the IMF would join at some point. Mrs. Merkel’s conservative backbenchers want IMF oversight and IMF money involved. Other countries, including the Netherlands and Finland, also want the IMF to participate.
During the IMF Spring Meeting, Finance Minister Euclid Tsakalotos held talks with key figures, IMF Managing Director Christine Lagarde and his German counterpart Wolfgang Schaeuble, in Washington. Sources said that during the meeting, Mrs. Lagarde acknowledged that the Greek Government had agreed to the measures the IMF wanted and that it is now time for Greece to get something back with regards to debt.
Following his 40-minute meeting with Minister Tsakalotos, German Finance Minister Schaeuble stressed again that Greece will have to adopt more measures if it does not meet its fiscal targets in the future.
Primary Surplus reached 3.9% of GDP in 2016
After months of claim and counter-claim, the Hellenic Statistical Authority (ELSTAT) announced that the general government primary surplus reached 3.9% of GDP last year. The target agreed with the lenders for 2016 was 0.5%.
This figure is regarded as impressive, especially when continuing capital controls hindered economic activity and that an economic growth spurt faltered as a result of the uncertainty over whether there would be an agreement between Greece and its creditors on how to conclude the Second Assessment of the Greek programme.
One of the key disagreements in those protracted negotiations was over fiscal targets. The IMF doubted that Greece could reach the 3.5% of GDP goal it was set for 2018 and the medium-term beyond without additional measures. The IMF also argued that such a high target should not be kept for too long because it is unrealistic and damaging for the economy.
The compromise “Agreement in Principle” saw Greece adopt another 2% of GDP (or 3.6€ billion) in new fiscal measures, half in 2019 and the rest in 2020, to ensure that the 3.5% primary surplus target is attainable, while, for its part, the Eurozone will provide medium-term debt relief and limit the high fiscal targets demanded to just a few years (less than five, it is thought) before they drop to levels that the IMF considers more sustainable.
The figures published by ELSTAT on Friday suggest that there was little basis in economic reality for the IMF to dispute the Eurozone lenders’ fiscal forecasts for Greece.
A day before the 2016 primary surplus figure was made public, the IMF issued its Fiscal Monitor report, in which the Washington-based organisation made a timely revision of its forecast for last year. In the previous Fiscal Monitor, published last October, the IMF had predicted that Greece’s primary surplus in 2016 would reach just 0.1% of GDP. On Thursday, it put the same number at 3.3%, which represented a huge revision and one that was much closer to the figure produced by ELSTAT.
In comments to journalists in Washington on Friday, the Director of the IMF’s European Department, Poul Thomsen, suggested that the IMF may have overestimated the impact that capital controls would have on the Greek economy, causing its fiscal forecasts to be much more pessimistic than the ones made by the European creditors.
However, there is concern that pursuing these large surpluses is a severe obstacle to economic development. Enduring such extreme fiscal adjustment since 2010, against the backdrop of a deep recession, for Greece to still be producing a primary surplus of 3.9% of GDP seven years later is seen as an incredible achievement. It has also been immensely damaging.
Greece’s public finances have been brought under control but at the cost of choking the life out of the local economy. The fiscal targets have been met and exceeded by paring back public spending and piling more taxes onto individuals and businesses that have seen their wealth and resources dwindle over the last seven years.
Recent data released by the Independent Authority for Public Revenue provided an insight into the changes in personal income tax declarations and payments over recent years. Despite a 9% increase in the number of taxpayers between 2010 and 2016, and taxes due increased by 10%, declared income during this period fell by 23.3%. The average income registered with tax authorities in 2010 was 17,241€ euros but by 2015, it had dropped to 12,133€, with all types of income-earners, from salaried employees to pensioners and farmers, deeply affected.
Officials representing Greece’s lenders returned to in Athens last week to resume direct talks with the Government. The latest “unofficial deadline” for a Staff Level Agreement is the Eurogroup meeting on May 22nd. Greek Government sources point out that Athens will not implement any austerity measures agreed unless debt relief is offered in the medium-term.
The IMF and the European Lenders appear to have moved closer on the debt issue during talks in Washington, but a comprehensive agreement has not yet been reached. Eurogroup chief Jeroen Dijsselbloem told Bloomberg in an interview that “debt talks are tough” because of political constraints in Europe, but “I can see the solution ahead”. He added that “we are very close, it is really the last stretch before we have a full agreement on the major reforms, how they are to be designed and when they are to be implemented and the size of them, with the IMF”.
Although there was a broad agreement between the government and the creditors at the Eurogroup in Malta earlier this month over what needs to be done, there are several details that need to be ironed out. Once the SLA has been secured, the Government will have to pass, including pension cuts and a reduction to the tax-free threshold, through Parliament.
The Government’s spokesman, Dimitris Tzanakopoulos, indicated last week that the vote would take place on the new measures and the Government’s counter measures in the first half of May. He said that the Government wants everything, including the debt relief scheme, to be wrapped up by May 22nd for the next Eurogroup.
With Greece burdened by a debt load of more than €300 billion, the IMF insists on debt forgiveness by European institutions as the only way to put Greece on a sustainable path. Germany, however, has rejected calls for outright debt forgiveness, saying such a step would violate European rules and create a dangerous precedent. Under its guidelines, the IMF can’t commit any resources to a bailout programme until it is convinced of the country’s medium-term prospects. Non-European members of the IMF’s board are reluctant to do more without debt relief.
Germany remains the biggest obstacle. With national elections set for late September, fear of electoral repercussions means the German Government is refusing to back down and agree to a debt deal.
At the same time, German Chancellor Angela Merkel’s Government needs to get the IMF on board. When Germany endorsed Greece’s latest bailout in 2015, it did so on the condition that the IMF would join at some point. Mrs. Merkel’s conservative backbenchers want IMF oversight and IMF money involved. Other countries, including the Netherlands and Finland, also want the IMF to participate.
During the IMF Spring Meeting, Finance Minister Euclid Tsakalotos held talks with key figures, IMF Managing Director Christine Lagarde and his German counterpart Wolfgang Schaeuble, in Washington. Sources said that during the meeting, Mrs. Lagarde acknowledged that the Greek Government had agreed to the measures the IMF wanted and that it is now time for Greece to get something back with regards to debt.
Following his 40-minute meeting with Minister Tsakalotos, German Finance Minister Schaeuble stressed again that Greece will have to adopt more measures if it does not meet its fiscal targets in the future.
Primary Surplus reached 3.9% of GDP in 2016
After months of claim and counter-claim, the Hellenic Statistical Authority (ELSTAT) announced that the general government primary surplus reached 3.9% of GDP last year. The target agreed with the lenders for 2016 was 0.5%.
This figure is regarded as impressive, especially when continuing capital controls hindered economic activity and that an economic growth spurt faltered as a result of the uncertainty over whether there would be an agreement between Greece and its creditors on how to conclude the Second Assessment of the Greek programme.
One of the key disagreements in those protracted negotiations was over fiscal targets. The IMF doubted that Greece could reach the 3.5% of GDP goal it was set for 2018 and the medium-term beyond without additional measures. The IMF also argued that such a high target should not be kept for too long because it is unrealistic and damaging for the economy.
The compromise “Agreement in Principle” saw Greece adopt another 2% of GDP (or 3.6€ billion) in new fiscal measures, half in 2019 and the rest in 2020, to ensure that the 3.5% primary surplus target is attainable, while, for its part, the Eurozone will provide medium-term debt relief and limit the high fiscal targets demanded to just a few years (less than five, it is thought) before they drop to levels that the IMF considers more sustainable.
The figures published by ELSTAT on Friday suggest that there was little basis in economic reality for the IMF to dispute the Eurozone lenders’ fiscal forecasts for Greece.
A day before the 2016 primary surplus figure was made public, the IMF issued its Fiscal Monitor report, in which the Washington-based organisation made a timely revision of its forecast for last year. In the previous Fiscal Monitor, published last October, the IMF had predicted that Greece’s primary surplus in 2016 would reach just 0.1% of GDP. On Thursday, it put the same number at 3.3%, which represented a huge revision and one that was much closer to the figure produced by ELSTAT.
In comments to journalists in Washington on Friday, the Director of the IMF’s European Department, Poul Thomsen, suggested that the IMF may have overestimated the impact that capital controls would have on the Greek economy, causing its fiscal forecasts to be much more pessimistic than the ones made by the European creditors.
However, there is concern that pursuing these large surpluses is a severe obstacle to economic development. Enduring such extreme fiscal adjustment since 2010, against the backdrop of a deep recession, for Greece to still be producing a primary surplus of 3.9% of GDP seven years later is seen as an incredible achievement. It has also been immensely damaging.
Greece’s public finances have been brought under control but at the cost of choking the life out of the local economy. The fiscal targets have been met and exceeded by paring back public spending and piling more taxes onto individuals and businesses that have seen their wealth and resources dwindle over the last seven years.
Recent data released by the Independent Authority for Public Revenue provided an insight into the changes in personal income tax declarations and payments over recent years. Despite a 9% increase in the number of taxpayers between 2010 and 2016, and taxes due increased by 10%, declared income during this period fell by 23.3%. The average income registered with tax authorities in 2010 was 17,241€ euros but by 2015, it had dropped to 12,133€, with all types of income-earners, from salaried employees to pensioners and farmers, deeply affected.
PM Tsipras: Greece Ready to Legislate Reforms Depending on Debt Relief
During a television interview on Tuesday, PM Alexis Tsipras underlined the Government’s willingness to legislate the additional reforms demanded by its lenders but their implementation in 2019 and 2020 depends on securing debt relief.
“We will obviously legislate the measures in order to secure a deal on debt relief,” he stated, saying that he wanted a solution to Greece’s debt burden by the end of May.
“They won’t be implemented… unless we get a solution on debt,” he said, adding that “a sovereign government can take back something it has voted on if an agreement is not honored,” he said, noting that the only reason coalition MPs will approve a new agreement is to secure debt relief.
During the interview, Mr. Tsipras pointed out that there is a substantial discrepancy between the reality and the IMF’s forecasts in October 2016, when the Second Assessment should have been completed. He stressed that the final figure for the primary surplus published in April was 42 times higher than the 0.1% of GDP forecast made by the IMF.
“This means that they were asking us for 42 times more measures [than necessary Ed]. This is the pressure we were up against all this time,” the Prime Minister said.
When asked about countermeasures, and how “these don’t mean anything to the pensioner”, he said:
"Let’s not undermine the countermeasures. They are 2% of GDP, as much as the burden. They have to do with the non-existence of the welfare state, with a reduction in tax rates, a reduction in the solidarity levy and with support for the welfare state, for rent, childcare, and so on. It is also about a reduction in ENFIA (Single Property Tax)". PM Tsipras added that everything that is being discussed “is always on the assumption that we will be within our [fiscal] targets”.
When asked about the seizure of bank deposits for debts to the state, he admitted that this was a serious problem. He pointed out that the General Secretariat for Public Revenues was an independent authority with which the Government “has good cooperation and discusses matters, so that there is moderation and those that are unable are protected.”
The Prime Minister agreed that tax rates are high, but noted that this was true under the previous Government and added: "I thank God that we were able to reach this surplus; if we had not achieved it, we would have been a ping pong ball going back and forth between IMF chief Christine Lagarde and German Finance Minister Wolfgang Schaeuble."
PM Tsipras defended his Government’s performance in the negotiations despite vehement criticism by the Opposition, which, he insisted, has offered no viable alternative.
"We inherited a bankrupt country," he said. "We had a negotiation. We lost on some points, but we also won on others, such as the countermeasures and labour relations," he said, adding: "They asked us for an increase in mass redundancies and lock-outs. We managed to isolate the IMF through the mechanism of politicizing the deal."
"I have said that we were a guinea pig and I am not saying that Greek Governments were not to blame, but it is not the fault of the Greek people. It was imperative for the political forces to put an end to the country’s misadventure following 2010."
Finally, regarding the completion of the Second Assessment, the Prime Minister said that Greece had already achieved a political agreement and expressed his firm conviction that there would also be a Staff-Level Agreement by May 22nd followed by an agreement for alleviating Greece’s debt burden.
"SYRIZA is a force that could not stand up for a minute if it did not have social acceptance. We did not accept bribes. We did not take out high risk, high interest loans. We are not the descendants of Byzantine Emperors”, he said.
During a television interview on Tuesday, PM Alexis Tsipras underlined the Government’s willingness to legislate the additional reforms demanded by its lenders but their implementation in 2019 and 2020 depends on securing debt relief.
“We will obviously legislate the measures in order to secure a deal on debt relief,” he stated, saying that he wanted a solution to Greece’s debt burden by the end of May.
“They won’t be implemented… unless we get a solution on debt,” he said, adding that “a sovereign government can take back something it has voted on if an agreement is not honored,” he said, noting that the only reason coalition MPs will approve a new agreement is to secure debt relief.
During the interview, Mr. Tsipras pointed out that there is a substantial discrepancy between the reality and the IMF’s forecasts in October 2016, when the Second Assessment should have been completed. He stressed that the final figure for the primary surplus published in April was 42 times higher than the 0.1% of GDP forecast made by the IMF.
“This means that they were asking us for 42 times more measures [than necessary Ed]. This is the pressure we were up against all this time,” the Prime Minister said.
When asked about countermeasures, and how “these don’t mean anything to the pensioner”, he said:
"Let’s not undermine the countermeasures. They are 2% of GDP, as much as the burden. They have to do with the non-existence of the welfare state, with a reduction in tax rates, a reduction in the solidarity levy and with support for the welfare state, for rent, childcare, and so on. It is also about a reduction in ENFIA (Single Property Tax)". PM Tsipras added that everything that is being discussed “is always on the assumption that we will be within our [fiscal] targets”.
When asked about the seizure of bank deposits for debts to the state, he admitted that this was a serious problem. He pointed out that the General Secretariat for Public Revenues was an independent authority with which the Government “has good cooperation and discusses matters, so that there is moderation and those that are unable are protected.”
The Prime Minister agreed that tax rates are high, but noted that this was true under the previous Government and added: "I thank God that we were able to reach this surplus; if we had not achieved it, we would have been a ping pong ball going back and forth between IMF chief Christine Lagarde and German Finance Minister Wolfgang Schaeuble."
PM Tsipras defended his Government’s performance in the negotiations despite vehement criticism by the Opposition, which, he insisted, has offered no viable alternative.
"We inherited a bankrupt country," he said. "We had a negotiation. We lost on some points, but we also won on others, such as the countermeasures and labour relations," he said, adding: "They asked us for an increase in mass redundancies and lock-outs. We managed to isolate the IMF through the mechanism of politicizing the deal."
"I have said that we were a guinea pig and I am not saying that Greek Governments were not to blame, but it is not the fault of the Greek people. It was imperative for the political forces to put an end to the country’s misadventure following 2010."
Finally, regarding the completion of the Second Assessment, the Prime Minister said that Greece had already achieved a political agreement and expressed his firm conviction that there would also be a Staff-Level Agreement by May 22nd followed by an agreement for alleviating Greece’s debt burden.
"SYRIZA is a force that could not stand up for a minute if it did not have social acceptance. We did not accept bribes. We did not take out high risk, high interest loans. We are not the descendants of Byzantine Emperors”, he said.
The Forum of Ancient Civilizations
"The cooperation of cultures is of the utmost necessity today against the darkness of those who want to plunge humanity into paranoia and hatred"
Prime Minister Alexis Tsipras characterised the Forum of Ancient Civilizations held in Athens as an important initiative launched by Greece with the participation of cultures which have left a significant footprint in history.
"Our pride unites us, but so also does the responsibility of a great cultural heritage, which does not belong to us exclusively, but it is the heritage of the whole of humanity," he said.
Our responsibility to build on the past, underlined Alexis Tsipras.
The Prime Minister went on to say "it is our steadfast belief that history, religion and culture can serve as bridges of understanding and communication, not as tools of oppression and extremism, not as well springs of hatred and conflict."
"It is of the utmost necessity to carry over to today the light of humanity’s greatness of spirit which our ancient civilizations radiated in the past. From Athens, under the shadow of the Acropolis, we send a very strong, very powerful message to humanity. It is a message of cooperation for world peace, mutual respect and mutual understanding."
"Our responsibility is not to stay stuck in the glorious past because in that way we are unable to build a vision for the future."
"The roots of Hellenism are deep," he noted and went on to stress that Greek foreign policy is predicated on dialogue, "we have a positive agenda in our bilateral relations".
Referring to the current situation with the war in Syria and the terrorist attacks to the fore, PM Tsipras stated: "Today we are completely inundated with negative developments. The solution, however, is not in retrenchment and isolationism, the solution lies in cooperation and collective action."
Health Scandals Inquiry
The health scandals over the period 1997-2015 are the first concern of the Commission of Inquiry that was formally established on Friday. The Commission is to consist of 23 members -11 SYRIZA, 5 New Democracy and one each from the remaining parties and the group of independent MPs.
There are three "sections" to be investigated in accordance with the decision of Parliament:
The second section to be looked at is expected to be the Centre for Disease Control & Prevention (ΚΕΕΛΠΝΟ) and after the issue of medicine pricing will be looked at.
This order of business will give extra time to the Judiciary to complete its investigation of the scandal of Novartis.
Action on Debts to the State
Tax Office confiscations for those who owe money to the Greek State are increasing rapidly. In the first two months of this year 33,933 taxpayers with debts over 500€ euros had money withheld from their salaries, pensions, bank accounts or had their real estate property seized.
According to data from the newly established Independent Public Revenue Authority (AADE), in 2016, there were 140,000 confiscations for debts to the state. AADE figures show that more and more Greek taxpayers are unable to meet their tax obligations. In the first two months of 2017, Greeks failed to pay taxes amounting to 2.6€ billion. In total, 4 million taxpayers owe about 94€ billion to the Greek State.
"The cooperation of cultures is of the utmost necessity today against the darkness of those who want to plunge humanity into paranoia and hatred"
Prime Minister Alexis Tsipras characterised the Forum of Ancient Civilizations held in Athens as an important initiative launched by Greece with the participation of cultures which have left a significant footprint in history.
"Our pride unites us, but so also does the responsibility of a great cultural heritage, which does not belong to us exclusively, but it is the heritage of the whole of humanity," he said.
Our responsibility to build on the past, underlined Alexis Tsipras.
The Prime Minister went on to say "it is our steadfast belief that history, religion and culture can serve as bridges of understanding and communication, not as tools of oppression and extremism, not as well springs of hatred and conflict."
"It is of the utmost necessity to carry over to today the light of humanity’s greatness of spirit which our ancient civilizations radiated in the past. From Athens, under the shadow of the Acropolis, we send a very strong, very powerful message to humanity. It is a message of cooperation for world peace, mutual respect and mutual understanding."
"Our responsibility is not to stay stuck in the glorious past because in that way we are unable to build a vision for the future."
"The roots of Hellenism are deep," he noted and went on to stress that Greek foreign policy is predicated on dialogue, "we have a positive agenda in our bilateral relations".
Referring to the current situation with the war in Syria and the terrorist attacks to the fore, PM Tsipras stated: "Today we are completely inundated with negative developments. The solution, however, is not in retrenchment and isolationism, the solution lies in cooperation and collective action."
Health Scandals Inquiry
The health scandals over the period 1997-2015 are the first concern of the Commission of Inquiry that was formally established on Friday. The Commission is to consist of 23 members -11 SYRIZA, 5 New Democracy and one each from the remaining parties and the group of independent MPs.
There are three "sections" to be investigated in accordance with the decision of Parliament:
- The Centre for Disease Control & Prevention (ΚΕΕΛΠΝΟ)
- The pricing of medicines and
- The privatisation of the Henry Dynant Hospital Centre
The second section to be looked at is expected to be the Centre for Disease Control & Prevention (ΚΕΕΛΠΝΟ) and after the issue of medicine pricing will be looked at.
This order of business will give extra time to the Judiciary to complete its investigation of the scandal of Novartis.
Action on Debts to the State
Tax Office confiscations for those who owe money to the Greek State are increasing rapidly. In the first two months of this year 33,933 taxpayers with debts over 500€ euros had money withheld from their salaries, pensions, bank accounts or had their real estate property seized.
According to data from the newly established Independent Public Revenue Authority (AADE), in 2016, there were 140,000 confiscations for debts to the state. AADE figures show that more and more Greek taxpayers are unable to meet their tax obligations. In the first two months of 2017, Greeks failed to pay taxes amounting to 2.6€ billion. In total, 4 million taxpayers owe about 94€ billion to the Greek State.
IMF to discuss participation
in Greek Bailout
22.04.2017
Attention this week-end is focussed on the IMF’ Spring Meeting at which it is anticipated that decisions will be made regarding the participation of the IMF in the next Greek bailout programme.
Greek Finance Minister Euclid Tsakalotos and his deputy George Chouliarakis will attend the annual meeting in Washington (21st-23rd April). They will hold discussions, on the sidelines of the Summit, at which a compromise is expected between Europeans and the Fund over the debt issue, something that will bring the IMF back into the Greek programme.
Included in the “armoury” of the Greek Mission will be the level of the Primary Surplus reached in 2016 announced by ELSTAT on Friday. The Greek statistics office data showed that the country far exceeded its international lenders' budget demands, with a primary surplus of 3.9% of GDP last year. The target was 0.5%. This will create a positive carry over for the following years.
European Commissioner Pierre Moscovici welcomed the primary surplus data. “This should contribute to the will to take the steps that lie ahead to find a lasting and comprehensive solution,” he said on the sidelines of the IMF spring meeting.
French Economy Minister Michel Sapin was also optimistic. “I am quite confident that we will find, with the IMF and Germany, a solution that will help Greece and thus the EU to stabilize the situation.”
THE IMF’s View
"The number that came out this morning is well above what we have been projecting, what anybody has been projecting," said Poul Thomsen, the head of the IMF's European department.
The latest assessment has been delayed partly because the Eurozone and the IMF have been unable to agree on a common set of economic forecasts for Greece. Mr.Thomsen conceded that the IMF had been too pessimistic of late. "The reality is that for the first five years we were constantly wrong on one side - we constantly overestimated the fiscal reforms," he said. "It is true that in the last one-and-a-half years we have been consistently wrong on the other side. It is clear we did not fully understand, we were more wrong on assessing the impact of capital controls in 2015 and 2016 on the economy, we were too conservative about this, no doubt," he said.
[The IMF’s Fiscal Monitor report, prepared for its Spring Meeting, estimates that Greece will miss its Primary Surplus target for 2018 by 1.5%, opening a 2.7€ billion “gap” in the budget. The Greek Statistical Authority and Eurostat are forecasting a much better financial performance. Greek Government sources pointed out on Wednesday that the IMF has made wrong projections about Greece before. “There will be no additional measures for 2018,” stated the Greek Government spokesman regarding the IMF forecast for the primary surplus.
The IMF Fiscal Monitor report forecast a 3.3% Primary Surplus for 2016. ELSTAT on Friday announced a Primary Surplus of 3.9% of GDP.]
Mr. Thomsen continued "The issue is not the [current Ed.]targets but the credibility of targets being maintained over the medium term while the economy is growing."
He said the IMF would send experts to Athens next week to help finalise the reform package agreed in principle between Eurozone finance ministers and Greece two weeks ago in Malta.
However, he said, before the IMF would join the latest bailout programme for Greece, now shouldered by the Eurozone alone, Eurozone governments would have to give the Fund an idea of how long they expected Greece to maintain a primary surplus of 3.5% of GDP and what kind of debt relief Greece could expect after 2018. "We will not disburse before we have a deal on policies and on a credible debt strategy," Mr. Thomsen said.
IMF Managing Director Christine Lagarde said this week that the Greek economy could achieve a Primary Surplus of 1.5% of GDP in the long run rather than 3.5% as the EU institutions believe. “If the Europeans deem differently, then we need to take this into account. But we cannot adopt unreasonable predictions or build upon unjustified macroeconomic frameworks,” she said.
The USA will keep an “open mind” regarding the participation of the IMF in the Greek bailout programme, a senior US Treasury official said.
The Government’s "road map":
1. Completion of the technical agreement (SLA) that includes within a single reform programme both the positive and negative measures in 2019-2020.
2. Specification at the forthcoming Eurogroup of the medium-term measures on the debt, which will be applied after the end of the programme (September 2018). The specification of the measures on the debt and the feasibility study (DSA) by the IMF is a precondition for the participation of the Fund in the programme.
3. After the implementation of medium-term measures on the debt, both the measures and the countermeasures will be implemented as provided for in the agreement of Malta on 1st April.
The aim of the Government is to have completed everything by the Eurogroup on 22nd May (including medium-term debt measures) in order to pave the way for the inclusion of the country in the ECB's quantitative easing programme (QE). An extraordinary Eurogroup will have been called at the beginning of May, at which the go-ahead will be given for the completion of the technical level agreement and the specifying of the medium-term measures on the debt. Between the two meetings of Eurozone Finance Ministers, the package of the measures-countermeasures to be implemented in 2019 and 2020 will have been legislated on.
The Government has maintained that it will not bring new measures to parliament if an agreement on Greek debt relief is not reached.
Included in the “armoury” of the Greek Mission will be the level of the Primary Surplus reached in 2016 announced by ELSTAT on Friday. The Greek statistics office data showed that the country far exceeded its international lenders' budget demands, with a primary surplus of 3.9% of GDP last year. The target was 0.5%. This will create a positive carry over for the following years.
European Commissioner Pierre Moscovici welcomed the primary surplus data. “This should contribute to the will to take the steps that lie ahead to find a lasting and comprehensive solution,” he said on the sidelines of the IMF spring meeting.
French Economy Minister Michel Sapin was also optimistic. “I am quite confident that we will find, with the IMF and Germany, a solution that will help Greece and thus the EU to stabilize the situation.”
THE IMF’s View
"The number that came out this morning is well above what we have been projecting, what anybody has been projecting," said Poul Thomsen, the head of the IMF's European department.
The latest assessment has been delayed partly because the Eurozone and the IMF have been unable to agree on a common set of economic forecasts for Greece. Mr.Thomsen conceded that the IMF had been too pessimistic of late. "The reality is that for the first five years we were constantly wrong on one side - we constantly overestimated the fiscal reforms," he said. "It is true that in the last one-and-a-half years we have been consistently wrong on the other side. It is clear we did not fully understand, we were more wrong on assessing the impact of capital controls in 2015 and 2016 on the economy, we were too conservative about this, no doubt," he said.
[The IMF’s Fiscal Monitor report, prepared for its Spring Meeting, estimates that Greece will miss its Primary Surplus target for 2018 by 1.5%, opening a 2.7€ billion “gap” in the budget. The Greek Statistical Authority and Eurostat are forecasting a much better financial performance. Greek Government sources pointed out on Wednesday that the IMF has made wrong projections about Greece before. “There will be no additional measures for 2018,” stated the Greek Government spokesman regarding the IMF forecast for the primary surplus.
The IMF Fiscal Monitor report forecast a 3.3% Primary Surplus for 2016. ELSTAT on Friday announced a Primary Surplus of 3.9% of GDP.]
Mr. Thomsen continued "The issue is not the [current Ed.]targets but the credibility of targets being maintained over the medium term while the economy is growing."
He said the IMF would send experts to Athens next week to help finalise the reform package agreed in principle between Eurozone finance ministers and Greece two weeks ago in Malta.
However, he said, before the IMF would join the latest bailout programme for Greece, now shouldered by the Eurozone alone, Eurozone governments would have to give the Fund an idea of how long they expected Greece to maintain a primary surplus of 3.5% of GDP and what kind of debt relief Greece could expect after 2018. "We will not disburse before we have a deal on policies and on a credible debt strategy," Mr. Thomsen said.
IMF Managing Director Christine Lagarde said this week that the Greek economy could achieve a Primary Surplus of 1.5% of GDP in the long run rather than 3.5% as the EU institutions believe. “If the Europeans deem differently, then we need to take this into account. But we cannot adopt unreasonable predictions or build upon unjustified macroeconomic frameworks,” she said.
The USA will keep an “open mind” regarding the participation of the IMF in the Greek bailout programme, a senior US Treasury official said.
The Government’s "road map":
1. Completion of the technical agreement (SLA) that includes within a single reform programme both the positive and negative measures in 2019-2020.
2. Specification at the forthcoming Eurogroup of the medium-term measures on the debt, which will be applied after the end of the programme (September 2018). The specification of the measures on the debt and the feasibility study (DSA) by the IMF is a precondition for the participation of the Fund in the programme.
3. After the implementation of medium-term measures on the debt, both the measures and the countermeasures will be implemented as provided for in the agreement of Malta on 1st April.
The aim of the Government is to have completed everything by the Eurogroup on 22nd May (including medium-term debt measures) in order to pave the way for the inclusion of the country in the ECB's quantitative easing programme (QE). An extraordinary Eurogroup will have been called at the beginning of May, at which the go-ahead will be given for the completion of the technical level agreement and the specifying of the medium-term measures on the debt. Between the two meetings of Eurozone Finance Ministers, the package of the measures-countermeasures to be implemented in 2019 and 2020 will have been legislated on.
The Government has maintained that it will not bring new measures to parliament if an agreement on Greek debt relief is not reached.
"We need a
major political counterattack"
These are the key points from the Government Cabinet meeting on Thursday
“Tearing the Government machine, but also public debate, away from the topic of the negotiations on the Second Assessment is the Prime Minister’s first priority with the aim of reversing the negative climate in the political, economic and social life of the country over the next two years. In the Cabinet on Thursday the Prime Minister’s said "The Government, after the Second Assessment, is recovering the initiative within the country." "We need a major political counterattack" on the basis of four pillars: (a) economic growth –reduction of unemployment, (b) Changes to the State and institutions, c) Radical reforms with a progressive imprint, d) Perseverance in investigating all cases of previous years which continue to “overshadow” the country. Government projects are to be accelerated and their coordination improved; an action plan for the coming 3-5 months, which extend to Ministry level is being put in place.
This reorientation of the Government is due to two main reasons.
Firstly, there seems to be more than a little glimmer of hope for a successful conclusion of the negotiations, whose outcome is evaluated under the title "a defensible agreement". In addition, the overall agreement which is being shaped (the Assessment, the debt, the path of public finances after 2018, the stabilization of how the IMF will participate) is creating optimism that the country will not find itself again facing a completely new negotiation about the Greek programme, but rather assessments more akin to performance management.
Secondly, the Government knows well that it is not enough for the economy and society for there to be an end to the uncertainty posed by the negotiations, even if the compromise achieved is "tolerable". On the contrary, there is the need for very profound changes that will establish new foundations for the country. Indeed, this direction was expressed very intensely and publicly by all wings inside SYRIZA. The "Parallel Programme" as its title suggests, continues to express exactly this need.
The most crucial area is considered to be development, with the Government wanting to use all available tools: attracting major foreign investments (which give an immediate boost to the growth of GDP), incentives and financing for small and medium-sized enterprises (which give higher added value in the medium term), the continuation of infrastructure projects (which will assist development, particularly in rural areas).
At the meeting Alexis Tsipras asked that there should be no stonewalling and that all bureaucratic obstacles should be overcome to accelerate the large investment projects, as well as the ESPA programmes. A list of projects should be created in energy, transportation, infrastructure, networks, tourism, and agricultural production.
In parallel with this development policy, the Government is moving forward in the sector of employment, aiming to speed up community programmes and programmes to combat structural unemployment. In addition, it wants to change the conditions of work, limiting the excesses on the part of employers.
Priorities as regards the social State ...
Also, it is expecting the acceleration of reforms in Health, Education and social solidarity, which are the three areas where the Government aspires to make the interventions most characteristic of its nature in the everyday life of citizens.
In health, a Bill for the reform of primary care has already been filed and in June the first decentralised centres are expected to start operating. Also a new law is in the pipeline for the procurement system and changes in medicine provision policy, while planning for the protection of patients' rights (measures about the “envelope” [see below. Ed], the list of surgical operations etc.) is going ahead.
In Education, before June it is expected that the relevant consultation will be completed and the new system of university entrance will be introduced, while in the coming weeks changes in the management of Institutions of Higher Education and Postgraduate Studies will be introduced in Parliament.
In the area of social solidarity, the work continues with the measures for the protection of children and young people, while there is a very important legislative intervention which paves the way for adoption services. Also, the unification of all policies of support through the designation of ΟΓΑ [the Agricultural Insurance Body] as a single support service and through the establishment of a framework for institutions and NGOs operating in the sector. Furthermore, the information system is being completed which will cover all beneficiaries, institutions and programmes in the sector and which will serve citizens through 254 community centres.
... and the Institutions
Major changes are pending also in Local Government, where a multi-Bill has already been filed various provisions. Also, in May a Bill will be lodged concerning gender equality and between June and September it is expected that the review of the "Kallikratis" Law (the institutional framework, the responsibilities, relations with Local Government), which will include the introduction of straightforward proportional representation will be completed.
Finally, in the coming months the consultation will intensify on the review of the Constitution. Already many open discussions are planned by the regions and other social and scientific bodies and movements.
major political counterattack"
These are the key points from the Government Cabinet meeting on Thursday
“Tearing the Government machine, but also public debate, away from the topic of the negotiations on the Second Assessment is the Prime Minister’s first priority with the aim of reversing the negative climate in the political, economic and social life of the country over the next two years. In the Cabinet on Thursday the Prime Minister’s said "The Government, after the Second Assessment, is recovering the initiative within the country." "We need a major political counterattack" on the basis of four pillars: (a) economic growth –reduction of unemployment, (b) Changes to the State and institutions, c) Radical reforms with a progressive imprint, d) Perseverance in investigating all cases of previous years which continue to “overshadow” the country. Government projects are to be accelerated and their coordination improved; an action plan for the coming 3-5 months, which extend to Ministry level is being put in place.
This reorientation of the Government is due to two main reasons.
Firstly, there seems to be more than a little glimmer of hope for a successful conclusion of the negotiations, whose outcome is evaluated under the title "a defensible agreement". In addition, the overall agreement which is being shaped (the Assessment, the debt, the path of public finances after 2018, the stabilization of how the IMF will participate) is creating optimism that the country will not find itself again facing a completely new negotiation about the Greek programme, but rather assessments more akin to performance management.
Secondly, the Government knows well that it is not enough for the economy and society for there to be an end to the uncertainty posed by the negotiations, even if the compromise achieved is "tolerable". On the contrary, there is the need for very profound changes that will establish new foundations for the country. Indeed, this direction was expressed very intensely and publicly by all wings inside SYRIZA. The "Parallel Programme" as its title suggests, continues to express exactly this need.
The most crucial area is considered to be development, with the Government wanting to use all available tools: attracting major foreign investments (which give an immediate boost to the growth of GDP), incentives and financing for small and medium-sized enterprises (which give higher added value in the medium term), the continuation of infrastructure projects (which will assist development, particularly in rural areas).
At the meeting Alexis Tsipras asked that there should be no stonewalling and that all bureaucratic obstacles should be overcome to accelerate the large investment projects, as well as the ESPA programmes. A list of projects should be created in energy, transportation, infrastructure, networks, tourism, and agricultural production.
In parallel with this development policy, the Government is moving forward in the sector of employment, aiming to speed up community programmes and programmes to combat structural unemployment. In addition, it wants to change the conditions of work, limiting the excesses on the part of employers.
Priorities as regards the social State ...
Also, it is expecting the acceleration of reforms in Health, Education and social solidarity, which are the three areas where the Government aspires to make the interventions most characteristic of its nature in the everyday life of citizens.
In health, a Bill for the reform of primary care has already been filed and in June the first decentralised centres are expected to start operating. Also a new law is in the pipeline for the procurement system and changes in medicine provision policy, while planning for the protection of patients' rights (measures about the “envelope” [see below. Ed], the list of surgical operations etc.) is going ahead.
In Education, before June it is expected that the relevant consultation will be completed and the new system of university entrance will be introduced, while in the coming weeks changes in the management of Institutions of Higher Education and Postgraduate Studies will be introduced in Parliament.
In the area of social solidarity, the work continues with the measures for the protection of children and young people, while there is a very important legislative intervention which paves the way for adoption services. Also, the unification of all policies of support through the designation of ΟΓΑ [the Agricultural Insurance Body] as a single support service and through the establishment of a framework for institutions and NGOs operating in the sector. Furthermore, the information system is being completed which will cover all beneficiaries, institutions and programmes in the sector and which will serve citizens through 254 community centres.
... and the Institutions
Major changes are pending also in Local Government, where a multi-Bill has already been filed various provisions. Also, in May a Bill will be lodged concerning gender equality and between June and September it is expected that the review of the "Kallikratis" Law (the institutional framework, the responsibilities, relations with Local Government), which will include the introduction of straightforward proportional representation will be completed.
Finally, in the coming months the consultation will intensify on the review of the Constitution. Already many open discussions are planned by the regions and other social and scientific bodies and movements.
Prime Minister Tsipras in Corfu
"Let's learn from the resourceful Odysseus, to close our ears to the sirens’ voices, and to overcome the final stormy waters. It is perhaps symbolic that the island of Corfu was his last stop before Ithaca. We just have to believe that Ithaca exists and we'll get there soon"
In Corfu to join in the local Easter celebrations, Prime Minister Tsipras wished “good resurrection, health and happiness to all” saying that it is a day of joy for all Greek men and women. “It is a day on which the Holy Spirit should warm the hearts of us all and give us courage to move forward.”
Tackling the Envelope
This week the Greek Government announced that it will be tackling the problem of corruption in the health care system in Greece by introducing an electronic, or e-platform to monitor the “envelope system”.
This is the first time that the “envelope” system in Greece is being addressed, Health Minister Andreas Ksanthos said at a conference. The system is one of corruption where patients who are about to undergo surgery or spend a specific amount of time in a public hospital hand over an envelope of additional money to their doctors in order to receive better care.
“We must examine the causes. The system’s weaknesses and delays should be taken into account but they are not the main causes. It has always existed, but it has got worse during the economic crisis period,” He said.
He added that the creation of an electronic anti-corruption platform will allow patients to report such incidences and that the allegations will then be investigated by the appropriate monitoring authorities.
“We believe that a new culture is needed, another style of the social health system, to convince patients that they can be offered services with dignity without seeking connections with people in charge or making financial transactions.”
"Let's learn from the resourceful Odysseus, to close our ears to the sirens’ voices, and to overcome the final stormy waters. It is perhaps symbolic that the island of Corfu was his last stop before Ithaca. We just have to believe that Ithaca exists and we'll get there soon"
In Corfu to join in the local Easter celebrations, Prime Minister Tsipras wished “good resurrection, health and happiness to all” saying that it is a day of joy for all Greek men and women. “It is a day on which the Holy Spirit should warm the hearts of us all and give us courage to move forward.”
Tackling the Envelope
This week the Greek Government announced that it will be tackling the problem of corruption in the health care system in Greece by introducing an electronic, or e-platform to monitor the “envelope system”.
This is the first time that the “envelope” system in Greece is being addressed, Health Minister Andreas Ksanthos said at a conference. The system is one of corruption where patients who are about to undergo surgery or spend a specific amount of time in a public hospital hand over an envelope of additional money to their doctors in order to receive better care.
“We must examine the causes. The system’s weaknesses and delays should be taken into account but they are not the main causes. It has always existed, but it has got worse during the economic crisis period,” He said.
He added that the creation of an electronic anti-corruption platform will allow patients to report such incidences and that the allegations will then be investigated by the appropriate monitoring authorities.
“We believe that a new culture is needed, another style of the social health system, to convince patients that they can be offered services with dignity without seeking connections with people in charge or making financial transactions.”
Agreement in Principle - has "both positive and negative implications"
15.04.2017
Addressing the Syriza Central Committee on Sunday, Prime Minister Alexis Tsipras said the compromise agreement with the country’s bailout monitors will allow Greece to better plan and determine its own future without the supervision of international creditors.
Explaining the results of last Friday’s Eurogroup meeting in Malta, PM Tsipras said there were both positive and negative implications, adding that the Government had to compromise and accept measures that it would not have chosen.
Labour relations was a policy area with which the PM was satisfied as demands for easier routes to mass redundancies and the removal of restrictions on employer lock-outs had been successfully resisted. Furthermore the Government had also secured the prospect of the reinstatement of collective bargaining in the “agreement in principle” with creditors.
Greek PM says debt relief is a condition for more austerity
Greece will implement additional austerity measures agreed with its official creditors on condition of further debt relief that will enable the country to be included in the ECB's bond buying scheme, Prime Minister Alexis Tsipras said on Sunday.
Alexis Tsipras spoke about the new austerity measures his administration has agreed to with creditors. He spoke of the compromise that had to be made and pledged that these measures would be counter-balanced by social relief measures of equal fiscal value.
“There are measures that are neither necessary, nor are they the ones we would ever choose, but the compromise achieved includes counter-measures that will counterbalance the fiscal impact and generate a zero fiscal balance, and both will be legislated and implemented simultaneously.”
“After Malta the way for the identification of the medium-term measures for the debt is open. This will send a clear message to the markets that the uncertainty is over.”
“Now we will be the ones to decide the fiscal path the country will follow after the end of the programme.” He stressed that without medium-term measures for debt relief that would allow Greece to enter the QE programme, he would not implement the new measures.
The Prime Minister also unleashed an indirect attack against New Democracy claiming that, “Some were scheming so that the evaluation would not close, because they didn’t want us to be the ones who will pull Greece out of the crisis.” He accused ND leader Kyriakos Mitsotakis of “rushing to meet with the German Finance Minister [Wolfgang Schoeble] to get his blessing and undermine the negotiations.” He also said that New Democracy espouses extreme neoliberalism.
PM Tsipras concluded by putting forward the four main pillars for Government policy over the next two years.
a) Equitable Development (reducing unemployment and ensuring labour rights),
b) Institutional Reconstruction (constitutional reform),
c) Progressive reforms (primary health, change the system of entrance to higher education, changes in local government),
d) Restoring to health the political life of the country.
In the package of post 2019 Countermeasures
To be included in the package of countermeasures that will be legislated on now in return for a cut of 1% of the pension expenditure from 2019 will be zero medicine prescription charges for pensioners who receive less than 700€ (that is, 40% of all pensioners).
The same reform also includes tiered reduction of prescription charges, depending on the amount of the pension, for other retirees: 50% reduction for pensions of 700€ up to 1,200€ euros and a 25% reduction for pensions over 1,200€.
THE IMF persists
"Debt restructuring will be needed," if the International Monetary Fund (IMF) is to lend to Greece, the fund's Managing Director Christine Lagarde said on Wednesday. She said the IMF was still working out under what terms it will lend to Greece. "We are not there yet, but what I have seen in the last couple of weeks is heading in the right direction. We are only half-way through the discussion that needs to be had," Lagarde told a conference in Brussels.
She reiterated Greece's debt - now 178% of GDP - will need to be restructured to guarantee the stability of the country's finances.
The Malta “Road Map”
Following the “agreement in principle” reached by the Greek Government and its Creditors, a Government spokesman made a statement early last week repeating the main points of the Malta agreement ‘roadmap’ in order to “avoid misinterpretations.”
This called firstly for the completion of the Staff-Level Agreement on the measures included in the current programme and the positive compensatory measures and reforms for the years 2019 and 2020. Following this, the medium-term measures for easing Greek debt, which will be implemented after the end of the current programme (September 2018), will be made specific by a subsequent Eurogroup in order for the IMF to be able to draw up a positive report on the sustainability of Greece’s debt and thus be able to participate in the Greek Programme. The third step after the implementation of the medium-term measures on the debt (in September 2018) will be the implementation of the reforms and positive measures in the Malta Agreement as of January 1st, 2019. “This is the road map and it is not questioned by anyone: not even Mr. Wolfgang Schaeuble, who described exactly this agreement in his statement today.”
The Greek government is looking for an extraordinary Eurogroup in early May to conclude the agreement, in order to meet the deadline to participate in the European Central Bank quantitative easing (QE) programme. The issue of Greece will be discussed at the ECB board meeting that will take place on June 22nd.
Greece has loan repayments of almost 7€ billion due in July.
Labour relations was a policy area with which the PM was satisfied as demands for easier routes to mass redundancies and the removal of restrictions on employer lock-outs had been successfully resisted. Furthermore the Government had also secured the prospect of the reinstatement of collective bargaining in the “agreement in principle” with creditors.
Greek PM says debt relief is a condition for more austerity
Greece will implement additional austerity measures agreed with its official creditors on condition of further debt relief that will enable the country to be included in the ECB's bond buying scheme, Prime Minister Alexis Tsipras said on Sunday.
Alexis Tsipras spoke about the new austerity measures his administration has agreed to with creditors. He spoke of the compromise that had to be made and pledged that these measures would be counter-balanced by social relief measures of equal fiscal value.
“There are measures that are neither necessary, nor are they the ones we would ever choose, but the compromise achieved includes counter-measures that will counterbalance the fiscal impact and generate a zero fiscal balance, and both will be legislated and implemented simultaneously.”
“After Malta the way for the identification of the medium-term measures for the debt is open. This will send a clear message to the markets that the uncertainty is over.”
“Now we will be the ones to decide the fiscal path the country will follow after the end of the programme.” He stressed that without medium-term measures for debt relief that would allow Greece to enter the QE programme, he would not implement the new measures.
The Prime Minister also unleashed an indirect attack against New Democracy claiming that, “Some were scheming so that the evaluation would not close, because they didn’t want us to be the ones who will pull Greece out of the crisis.” He accused ND leader Kyriakos Mitsotakis of “rushing to meet with the German Finance Minister [Wolfgang Schoeble] to get his blessing and undermine the negotiations.” He also said that New Democracy espouses extreme neoliberalism.
PM Tsipras concluded by putting forward the four main pillars for Government policy over the next two years.
a) Equitable Development (reducing unemployment and ensuring labour rights),
b) Institutional Reconstruction (constitutional reform),
c) Progressive reforms (primary health, change the system of entrance to higher education, changes in local government),
d) Restoring to health the political life of the country.
In the package of post 2019 Countermeasures
To be included in the package of countermeasures that will be legislated on now in return for a cut of 1% of the pension expenditure from 2019 will be zero medicine prescription charges for pensioners who receive less than 700€ (that is, 40% of all pensioners).
The same reform also includes tiered reduction of prescription charges, depending on the amount of the pension, for other retirees: 50% reduction for pensions of 700€ up to 1,200€ euros and a 25% reduction for pensions over 1,200€.
THE IMF persists
"Debt restructuring will be needed," if the International Monetary Fund (IMF) is to lend to Greece, the fund's Managing Director Christine Lagarde said on Wednesday. She said the IMF was still working out under what terms it will lend to Greece. "We are not there yet, but what I have seen in the last couple of weeks is heading in the right direction. We are only half-way through the discussion that needs to be had," Lagarde told a conference in Brussels.
She reiterated Greece's debt - now 178% of GDP - will need to be restructured to guarantee the stability of the country's finances.
The Malta “Road Map”
Following the “agreement in principle” reached by the Greek Government and its Creditors, a Government spokesman made a statement early last week repeating the main points of the Malta agreement ‘roadmap’ in order to “avoid misinterpretations.”
This called firstly for the completion of the Staff-Level Agreement on the measures included in the current programme and the positive compensatory measures and reforms for the years 2019 and 2020. Following this, the medium-term measures for easing Greek debt, which will be implemented after the end of the current programme (September 2018), will be made specific by a subsequent Eurogroup in order for the IMF to be able to draw up a positive report on the sustainability of Greece’s debt and thus be able to participate in the Greek Programme. The third step after the implementation of the medium-term measures on the debt (in September 2018) will be the implementation of the reforms and positive measures in the Malta Agreement as of January 1st, 2019. “This is the road map and it is not questioned by anyone: not even Mr. Wolfgang Schaeuble, who described exactly this agreement in his statement today.”
The Greek government is looking for an extraordinary Eurogroup in early May to conclude the agreement, in order to meet the deadline to participate in the European Central Bank quantitative easing (QE) programme. The issue of Greece will be discussed at the ECB board meeting that will take place on June 22nd.
Greece has loan repayments of almost 7€ billion due in July.
The 3rd Summit of the South took place in Madrid on 10th April. At the end of the meeting, the Declaration below was signed by all the participants.
The Greek Government on Monday declared itself very satisfied with the Declaration adopted by the seven southern EU leaders meeting in Madrid. It noted the clear references to the continued commitment to European social and labour rights on the basis of the Communautare Aquis.
The Declaration also included positions on the refugee and migration crisis, especially in relation to revising the European asylum system on the basis of solidarity, that are in line with the Greek Government’s views. It was further agreed there should be new impetus to economic convergence between member-states, noting that this was a political priority in the fight against unemployment.
On Syria the Madrid Declaration stated that the solution to the conflict in Syria cannot be military and that only a credible political solution, as outlined by UNSCR 2254 [The United Nations Security Council Resolution 2254 was unanimously adopted on 18 December 2015, calling for a ceasefire and political settlement in Syria] when the roadmap to the Syria peace process was unanimously accepted.
The Declaration [Full Text]
1. We, the heads of State and Government of Cyprus, France, Greece, Italy, Malta, Portugal and Spain met in Madrid for the 3rd Summit of the countries of the South of the European Union on 10th April 2017.
Following the 1st Summit held on 9th September 2016 in Athens, and the 2nd Summit in Lisbon on 28th January 2017, we have met again, this time in Madrid, in order to confirm our commitment to work for a strong and united European Union. Together, we would like to reflect on our common project and contribute to the current debate about our common future. We declare our commitment to continue this process in a new meeting in Cyprus.
2. We welcome the outcome of the Rome Summit on 25th March. From the Declaration, signed in Rome, we underline the unswerving defence of the united action of the Union, its institutions, its shared values -freedom, democracy, human rights, solidarity and the rule of law and the support of our system for social protection and welfare. We fully support the agenda contained in the Rome Declaration, and its priorities: a safe and secure Europe, a prosperous and sustainable Europe, a social Europe and a stronger Europe on the world stage. As stated in the Declaration, we reaffirm our commitment to cooperation within the European Council and among our institutions for the implementation of this agenda.
3. In the context of the debate on the future of the Union, the Commission's White Paper is a valuable contribution. We await the Commission’s presentation of the discussion documents, as announced in the White Paper. These documents should contribute to the debate about alternative possibilities that lie ahead as we move forward together in the process of integration.
4. We reaffirm the statement made by the European Council on 29th March 2017, after the United Kingdom gave notice of its intention to withdraw from the Union. We regret the decision of the United Kingdom, but we respect its wish. In view of the imminent opening of negotiations, we stress the importance of the common principles on which the 27 agreed in accordance with the Declarations of 29th June and 15th December 2016. We reaffirm the importance of preserving the unity of the 27 and of safeguarding the interests of the European Union in the negotiations, which must be based on a gradual approach. We reiterate our support for and our confidence in the negotiator Mr Michel Barnier. In the future, we hope the United Kingdom will become a close partner of the EU.
5. In accordance with the Declarations of Athens and Lisbon, we reaffirm the importance of strengthening cooperation across the whole Mediterranean basin and the African countries. We affirm that migration requires a global approach. This includes:
-Strengthening dialogue and cooperation with countries of origin, transit and destination of migration, mainly with African and Mediterranean countries, in accordance with the principles of the joint action plan of Valletta, and also with the countries of Asia,
-Intensifying the fight against people traffickers and smugglers,
-Promoting of the return of irregular (illegal) migrants,
-Promoting a truly European return policy and the full operation of the European Border and Coast Guard Agency (FRONTEX),
-Strengthening controls at the external borders,
-Improving supervision and the utilization of new technological tools, such as the entry-exit system and the European information system and the licensing of travel to the EU and
-Ensuring international protection for individuals who fulfil the conditions for being granted asylum.
EU migration policy must be based on shared responsibility and solidarity towards countries affected by migratory pressures due to their location on the Union's external borders, in particular with regard to the ongoing reform of the Common European Asylum System. Currently, the Central Mediterranean route is receiving extreme migratory pressure, as described in the Declaration concerning the external aspects of migration, adopted at the Summit held in Malta in February. Migratory routes, such as those through the Eastern and Western Mediterranean also require our full attention. Indeed, the situation in the Eastern Mediterranean remains volatile and the continuous, complete, sustained and non-discriminatory implementation of the EU-Turkey Statement of 18th March 2016 is vital.
6. We agree on the need to promote sustainable growth and employment and for the maintenance and further development of our social welfare state models. Economic convergence between Member States deserves a new impetus. Combating unemployment and particularly long-term unemployment and unemployment among young people is a political priority for us. The internal market and the euro are powerful tools for economic development and social progress. We must ensure that they operate efficiently and that the benefits reach all citizens.
In the short term, in accordance with the agenda of Bratislava, we reaffirm our commitment to complete the single market, in particular in the energy and digital domain to promote growth and investment and enhance competitiveness. We reiterate our support for the investment plan for Europe and the expansion of European Fund Investment Strategies. We are also fully committed to a trade policy that is open and rules-based - free and fair trade is an essential factor for competitiveness, employment and prosperity.
The social dimension of the European Union requires that citizens remain at the heart of integration plans. To enable Europeans to make the most of the advantages of the single market, labour mobility must be enhanced in a context that ensures full respect for social and labour rights, as well as national responsibilities. To promote social convergence, options for strengthening the coordination of education and social security systems can be explored, as well as ways of improving the portability of social benefits and rights. A European pillar of social rights, on the basis of the European social and employment acquis can contribute towards this end. The proper functioning of national labour markets with adequate levels of social protection and the European policy of cohesion play a central role in reducing inequality and poverty and the promotion of social inclusion, in particular through the creation of jobs. In addition, investments in education and training is of vital importance for reducing the risk of unemployment and for preparing workers for the challenges ahead, in particular through the development of skills, especially computer skills.
Further, the decisive progress on the completion of Economic and Monetary Union in accordance with the Rome Declaration should be noted. We call for the speedy completion of the Banking Union, together with the creation of a European System of Insurance of Bank Deposits. Economic policy coordination should promote convergence in the long term, towards further integration, in particular financial integration, while ensuring full respect for national competences, something which is also vital for the effective development of the social dimension of the European Union.
7. The security of our citizens is our main priority and largely depends on peace and stability beyond our borders. Of crucial importance is the cooperation between law enforcement authorities of the countries of the European Union and, where appropriate, with third countries, particularly in our immediate neighbourhood. We welcome the prompt entry into force of a series of new European Union rules that contribute to achieving this objective, as the new directive for combating terrorism, the Directive on firearms, and the reform of the Schengen borders code, which extends the systematic checks also European citizens crossing external borders.
It is imperative to strengthen the measures for curbing terrorist financing and to stem the flow of revenue to terrorist groups. Our countries have called for the strengthening of the international framework for the fight against the illegal destruction of cultural heritage, religious sites and monuments, and the illegal trafficking of cultural goods from terrorist groups during armed conflicts. We welcome the recent adoption of resolution 2347 (2017) of the UN Security Council on this issue.
Efforts to prevent radicalisation must be strengthened. At the same time, more and urgent attention should be given to the issue of foreign terrorists/militants, especially those who are returning. EU measures to combat financing of terrorism and the prevention of radicalisation must be strengthened. Victims of terrorism deserve special attention from the EU. In this context, we strongly condemn the recent terrorist attacks in Russia, Sweden and Egypt and we express our solidarity with their peoples.
8. We want the EU to become a real security and defence provider, a reliable power for addressing security challenges. In this context, we express our commitment to implement fully the conclusions of the European Council of 15th December 2016 and the conclusions of the President of the European Council of 9th March 2017, - upgrading the EU's strategic autonomy and ability to take action, to participate more and more in the protection of Europe and its citizens, to share more responsibility with NATO, with full respect for the decision-making autonomy of both Organizations, and to strengthen cooperation in enhancing the effectiveness of the ESDP (Common Security and Defence Policy of the EU) and the development of defence capabilities of the Member States, supported by the creation of a European Defence Fund. In addition, economic stability, economic development and the convergence arising from the reform of the Economic & Monetary Union could also contribute to the strengthening of European defence capabilities. We are convinced that the increasing resilience of Europe and the transition towards real common security and defence cooperation will enable Europe to contribute to peace and stability in its neighbourhood and beyond, especially in the Mediterranean region and in Africa, including through the intensification of support in the area of capacity building for security and development.
9. We believe that the Union for the Mediterranean (UFM) plays a central role in the consolidation of Euro-Mediterranean regional cooperation as an expression of shared responsibility in managing the common regional agenda in order to address collectively and effectively our current problems. In addition, the review of the European neighbourhood policy stressed the EU's political will to proceed in the further strengthening of the Union for the Mediterranean. We express our satisfaction at the success of the second Regional Forum held in Barcelona in January, and we maintain our support for the Union for the Mediterranean and to the Secretary-General.
10. We are watching closely and we reiterate our support for the reunification process of Cyprus without guarantees, in accordance with the decisions of the UN Security Council and of the EU acquis. We recall that the Republic of Cyprus is and will remain a member of our Union, after the settlement, and that EU membership is the best guarantee for a reunified Cyprus.
11. The countries of the South of the European Union unequivocally condemn the air strikes with chemical weapons on 4th April in Idlib (Syria). The repeated use of chemical weapons in Syria, both by the Assad regime from 2013, and by Daesh constitute war crimes. All perpetrators must be held accountable for this violation of international law and should be punished under the auspices of the United Nations. The attack carried out by the United States military airbase on al-Shayrat in Syria had the understood intent to forestall and to prevent the spread and use of chemical weapons and was limited and focused on this goal. We will continue to support the efforts and the work of the OPCW (Organisation for the Prohibition of Chemical Weapons) and the UN regarding the investigation of the use of chemical weapons. The countries of the South of the European Union, reiterate that there can be no military solution to the conflict in Syria. Only a credible political solution, as defined in UN Security Council resolution 2254 and the Geneva communiqué of 2012, will ensure peace and stability in Syria and will allow a decisive fight against Daesh and others designated by the UN as terrorist groups in Syria. We reiterate our support for the United Nations talks in Geneva to find a political solution in Syria.
*****************
Alexis Tsipras in a joint press conference after the meeting of the countries of southern Europe said "It's time to have a solution for the issue of debt so there can be an exit from the crisis," stated the Prime Minister. "We discussed the need for Europe to overcome the economic crisis. And to overcome it Europe must overcome the inequalities. We have all agreed to observe the rules. Flexibility is needed but everyone must observe them. We must understand that the surpluses of some are the deficits of others. The deficits of the South are the surpluses of the European North. This contradiction must be resolved."
The Greek Government on Monday declared itself very satisfied with the Declaration adopted by the seven southern EU leaders meeting in Madrid. It noted the clear references to the continued commitment to European social and labour rights on the basis of the Communautare Aquis.
The Declaration also included positions on the refugee and migration crisis, especially in relation to revising the European asylum system on the basis of solidarity, that are in line with the Greek Government’s views. It was further agreed there should be new impetus to economic convergence between member-states, noting that this was a political priority in the fight against unemployment.
On Syria the Madrid Declaration stated that the solution to the conflict in Syria cannot be military and that only a credible political solution, as outlined by UNSCR 2254 [The United Nations Security Council Resolution 2254 was unanimously adopted on 18 December 2015, calling for a ceasefire and political settlement in Syria] when the roadmap to the Syria peace process was unanimously accepted.
The Declaration [Full Text]
1. We, the heads of State and Government of Cyprus, France, Greece, Italy, Malta, Portugal and Spain met in Madrid for the 3rd Summit of the countries of the South of the European Union on 10th April 2017.
Following the 1st Summit held on 9th September 2016 in Athens, and the 2nd Summit in Lisbon on 28th January 2017, we have met again, this time in Madrid, in order to confirm our commitment to work for a strong and united European Union. Together, we would like to reflect on our common project and contribute to the current debate about our common future. We declare our commitment to continue this process in a new meeting in Cyprus.
2. We welcome the outcome of the Rome Summit on 25th March. From the Declaration, signed in Rome, we underline the unswerving defence of the united action of the Union, its institutions, its shared values -freedom, democracy, human rights, solidarity and the rule of law and the support of our system for social protection and welfare. We fully support the agenda contained in the Rome Declaration, and its priorities: a safe and secure Europe, a prosperous and sustainable Europe, a social Europe and a stronger Europe on the world stage. As stated in the Declaration, we reaffirm our commitment to cooperation within the European Council and among our institutions for the implementation of this agenda.
3. In the context of the debate on the future of the Union, the Commission's White Paper is a valuable contribution. We await the Commission’s presentation of the discussion documents, as announced in the White Paper. These documents should contribute to the debate about alternative possibilities that lie ahead as we move forward together in the process of integration.
4. We reaffirm the statement made by the European Council on 29th March 2017, after the United Kingdom gave notice of its intention to withdraw from the Union. We regret the decision of the United Kingdom, but we respect its wish. In view of the imminent opening of negotiations, we stress the importance of the common principles on which the 27 agreed in accordance with the Declarations of 29th June and 15th December 2016. We reaffirm the importance of preserving the unity of the 27 and of safeguarding the interests of the European Union in the negotiations, which must be based on a gradual approach. We reiterate our support for and our confidence in the negotiator Mr Michel Barnier. In the future, we hope the United Kingdom will become a close partner of the EU.
5. In accordance with the Declarations of Athens and Lisbon, we reaffirm the importance of strengthening cooperation across the whole Mediterranean basin and the African countries. We affirm that migration requires a global approach. This includes:
-Strengthening dialogue and cooperation with countries of origin, transit and destination of migration, mainly with African and Mediterranean countries, in accordance with the principles of the joint action plan of Valletta, and also with the countries of Asia,
-Intensifying the fight against people traffickers and smugglers,
-Promoting of the return of irregular (illegal) migrants,
-Promoting a truly European return policy and the full operation of the European Border and Coast Guard Agency (FRONTEX),
-Strengthening controls at the external borders,
-Improving supervision and the utilization of new technological tools, such as the entry-exit system and the European information system and the licensing of travel to the EU and
-Ensuring international protection for individuals who fulfil the conditions for being granted asylum.
EU migration policy must be based on shared responsibility and solidarity towards countries affected by migratory pressures due to their location on the Union's external borders, in particular with regard to the ongoing reform of the Common European Asylum System. Currently, the Central Mediterranean route is receiving extreme migratory pressure, as described in the Declaration concerning the external aspects of migration, adopted at the Summit held in Malta in February. Migratory routes, such as those through the Eastern and Western Mediterranean also require our full attention. Indeed, the situation in the Eastern Mediterranean remains volatile and the continuous, complete, sustained and non-discriminatory implementation of the EU-Turkey Statement of 18th March 2016 is vital.
6. We agree on the need to promote sustainable growth and employment and for the maintenance and further development of our social welfare state models. Economic convergence between Member States deserves a new impetus. Combating unemployment and particularly long-term unemployment and unemployment among young people is a political priority for us. The internal market and the euro are powerful tools for economic development and social progress. We must ensure that they operate efficiently and that the benefits reach all citizens.
In the short term, in accordance with the agenda of Bratislava, we reaffirm our commitment to complete the single market, in particular in the energy and digital domain to promote growth and investment and enhance competitiveness. We reiterate our support for the investment plan for Europe and the expansion of European Fund Investment Strategies. We are also fully committed to a trade policy that is open and rules-based - free and fair trade is an essential factor for competitiveness, employment and prosperity.
The social dimension of the European Union requires that citizens remain at the heart of integration plans. To enable Europeans to make the most of the advantages of the single market, labour mobility must be enhanced in a context that ensures full respect for social and labour rights, as well as national responsibilities. To promote social convergence, options for strengthening the coordination of education and social security systems can be explored, as well as ways of improving the portability of social benefits and rights. A European pillar of social rights, on the basis of the European social and employment acquis can contribute towards this end. The proper functioning of national labour markets with adequate levels of social protection and the European policy of cohesion play a central role in reducing inequality and poverty and the promotion of social inclusion, in particular through the creation of jobs. In addition, investments in education and training is of vital importance for reducing the risk of unemployment and for preparing workers for the challenges ahead, in particular through the development of skills, especially computer skills.
Further, the decisive progress on the completion of Economic and Monetary Union in accordance with the Rome Declaration should be noted. We call for the speedy completion of the Banking Union, together with the creation of a European System of Insurance of Bank Deposits. Economic policy coordination should promote convergence in the long term, towards further integration, in particular financial integration, while ensuring full respect for national competences, something which is also vital for the effective development of the social dimension of the European Union.
7. The security of our citizens is our main priority and largely depends on peace and stability beyond our borders. Of crucial importance is the cooperation between law enforcement authorities of the countries of the European Union and, where appropriate, with third countries, particularly in our immediate neighbourhood. We welcome the prompt entry into force of a series of new European Union rules that contribute to achieving this objective, as the new directive for combating terrorism, the Directive on firearms, and the reform of the Schengen borders code, which extends the systematic checks also European citizens crossing external borders.
It is imperative to strengthen the measures for curbing terrorist financing and to stem the flow of revenue to terrorist groups. Our countries have called for the strengthening of the international framework for the fight against the illegal destruction of cultural heritage, religious sites and monuments, and the illegal trafficking of cultural goods from terrorist groups during armed conflicts. We welcome the recent adoption of resolution 2347 (2017) of the UN Security Council on this issue.
Efforts to prevent radicalisation must be strengthened. At the same time, more and urgent attention should be given to the issue of foreign terrorists/militants, especially those who are returning. EU measures to combat financing of terrorism and the prevention of radicalisation must be strengthened. Victims of terrorism deserve special attention from the EU. In this context, we strongly condemn the recent terrorist attacks in Russia, Sweden and Egypt and we express our solidarity with their peoples.
8. We want the EU to become a real security and defence provider, a reliable power for addressing security challenges. In this context, we express our commitment to implement fully the conclusions of the European Council of 15th December 2016 and the conclusions of the President of the European Council of 9th March 2017, - upgrading the EU's strategic autonomy and ability to take action, to participate more and more in the protection of Europe and its citizens, to share more responsibility with NATO, with full respect for the decision-making autonomy of both Organizations, and to strengthen cooperation in enhancing the effectiveness of the ESDP (Common Security and Defence Policy of the EU) and the development of defence capabilities of the Member States, supported by the creation of a European Defence Fund. In addition, economic stability, economic development and the convergence arising from the reform of the Economic & Monetary Union could also contribute to the strengthening of European defence capabilities. We are convinced that the increasing resilience of Europe and the transition towards real common security and defence cooperation will enable Europe to contribute to peace and stability in its neighbourhood and beyond, especially in the Mediterranean region and in Africa, including through the intensification of support in the area of capacity building for security and development.
9. We believe that the Union for the Mediterranean (UFM) plays a central role in the consolidation of Euro-Mediterranean regional cooperation as an expression of shared responsibility in managing the common regional agenda in order to address collectively and effectively our current problems. In addition, the review of the European neighbourhood policy stressed the EU's political will to proceed in the further strengthening of the Union for the Mediterranean. We express our satisfaction at the success of the second Regional Forum held in Barcelona in January, and we maintain our support for the Union for the Mediterranean and to the Secretary-General.
10. We are watching closely and we reiterate our support for the reunification process of Cyprus without guarantees, in accordance with the decisions of the UN Security Council and of the EU acquis. We recall that the Republic of Cyprus is and will remain a member of our Union, after the settlement, and that EU membership is the best guarantee for a reunified Cyprus.
11. The countries of the South of the European Union unequivocally condemn the air strikes with chemical weapons on 4th April in Idlib (Syria). The repeated use of chemical weapons in Syria, both by the Assad regime from 2013, and by Daesh constitute war crimes. All perpetrators must be held accountable for this violation of international law and should be punished under the auspices of the United Nations. The attack carried out by the United States military airbase on al-Shayrat in Syria had the understood intent to forestall and to prevent the spread and use of chemical weapons and was limited and focused on this goal. We will continue to support the efforts and the work of the OPCW (Organisation for the Prohibition of Chemical Weapons) and the UN regarding the investigation of the use of chemical weapons. The countries of the South of the European Union, reiterate that there can be no military solution to the conflict in Syria. Only a credible political solution, as defined in UN Security Council resolution 2254 and the Geneva communiqué of 2012, will ensure peace and stability in Syria and will allow a decisive fight against Daesh and others designated by the UN as terrorist groups in Syria. We reiterate our support for the United Nations talks in Geneva to find a political solution in Syria.
*****************
Alexis Tsipras in a joint press conference after the meeting of the countries of southern Europe said "It's time to have a solution for the issue of debt so there can be an exit from the crisis," stated the Prime Minister. "We discussed the need for Europe to overcome the economic crisis. And to overcome it Europe must overcome the inequalities. We have all agreed to observe the rules. Flexibility is needed but everyone must observe them. We must understand that the surpluses of some are the deficits of others. The deficits of the South are the surpluses of the European North. This contradiction must be resolved."
“The roots of the shadow economy and tax evasion have spread”
Commenting on the statistics of the 2016 tax returns ( relating to income in 2015) published by the Independent Public Revenue Authority (AADE), a Government spokesman said that it showed how deep the roots of the shadow economy and tax evasion have spread. 7€ out of the 10€ paid in income tax come from - employees and retirees, while out of a total of 6.1 million households who submitted a tax return, just 24,695 declared an income over 100,000€.
According to AADE, 26.3% pay no tax at all, 17.7% pay up to 15 euros, while overall 52.5% pay less than 150€ tax. Nine out of ten Greeks declared incomes below 20,000€ last year.
According to figures based on the 8,645,596 tax returns filed in 2016, one in seven taxpayers (1.263 million or 14.6%) declared zero income, while 32% (2.767 million) of taxpayers declared incomes below 5,000€.
Farmers showed significantly lower incomes in 2016 compared to 2015, as 435,908 taxpayers in rural areas declared annual incomes averaging 2,822€ compared to average income of 3,103€ in 2015.
Despite EU fines, Greece struggling to promote recycling
A steady stream of EU fines and two decades of trying have failed to get recycling off the ground in Greece, where eco-awareness is only half-heartedly promoted by authorities.
According the European environment agency, only 16% of household waste is recycled across the country, compared to a 50% target by 2020 under EU directives. In contrast, the European recycling average is 28%, with Slovenia leading at 49% and Latvia bringing up the rear at 3%.
In Athens, with nearly four million inhabitants out of the country's 11 million, only 13% of eligible waste is recycled, town hall figures show.
"We don't have a clear strategy and then we don't have the political will to materialise this strategy," notes Dimitris Ibrahim, a spokesman for the Greek branch of Greenpeace.
In June 2014, Greece was ordered to pay a fine of nearly 15€ million every six months over the continued operation of illegal landfills. The European Court of Justice has repeatedly condemned Greece on this score, levelling fines amounting to millions of euros with the latest ruling in September 2016.
"The mentality needs to change, and urgently," says Antigone Dalamaga, head of the Ecological Recycling Society association. It takes "incentives and counter incentives... you need to convince your citizens of the necessity and of the positive affect of recycling," she notes. "But even today, Greeks are only encouraged to sort out their household waste on a voluntary basis. No fines are involved. "
And Mary Krimnanioti, who runs the EU-funded "Zero Waste" programme in Greece, says the logic behind the municipal waste collection - which charges residents depending on property size - is flawed.
"It is not calculated according to the waste you throw away, it's according to the square metres of your house. Therefore, a small house with 10 people, which every day throws out 10 bags of rubbish, pays the same as one person living in an equivalent home."
Commission of Inquiry to investigate Health Scandals
On Wednesday evening the proposal of the SYRIZA-ANEL coalition to establish a 21 member Commission of Inquiry to investigate health scandals [including medicine price-fixing and fraud] during the years 1997-2014 achieved an absolute majority of those present in the plenary session of Parliament session, with 187 votes in favour and 71 against. It will begin its work after Easter and complete its work within three months. The political parties have until 21st April to submit the names of their members who will participate in the Commission.
New Democracy MPs voted against. Members of the Democratic (which includes PASOK) recorded “present” i.e. abstained.
Commenting on the statistics of the 2016 tax returns ( relating to income in 2015) published by the Independent Public Revenue Authority (AADE), a Government spokesman said that it showed how deep the roots of the shadow economy and tax evasion have spread. 7€ out of the 10€ paid in income tax come from - employees and retirees, while out of a total of 6.1 million households who submitted a tax return, just 24,695 declared an income over 100,000€.
According to AADE, 26.3% pay no tax at all, 17.7% pay up to 15 euros, while overall 52.5% pay less than 150€ tax. Nine out of ten Greeks declared incomes below 20,000€ last year.
According to figures based on the 8,645,596 tax returns filed in 2016, one in seven taxpayers (1.263 million or 14.6%) declared zero income, while 32% (2.767 million) of taxpayers declared incomes below 5,000€.
Farmers showed significantly lower incomes in 2016 compared to 2015, as 435,908 taxpayers in rural areas declared annual incomes averaging 2,822€ compared to average income of 3,103€ in 2015.
Despite EU fines, Greece struggling to promote recycling
A steady stream of EU fines and two decades of trying have failed to get recycling off the ground in Greece, where eco-awareness is only half-heartedly promoted by authorities.
According the European environment agency, only 16% of household waste is recycled across the country, compared to a 50% target by 2020 under EU directives. In contrast, the European recycling average is 28%, with Slovenia leading at 49% and Latvia bringing up the rear at 3%.
In Athens, with nearly four million inhabitants out of the country's 11 million, only 13% of eligible waste is recycled, town hall figures show.
"We don't have a clear strategy and then we don't have the political will to materialise this strategy," notes Dimitris Ibrahim, a spokesman for the Greek branch of Greenpeace.
In June 2014, Greece was ordered to pay a fine of nearly 15€ million every six months over the continued operation of illegal landfills. The European Court of Justice has repeatedly condemned Greece on this score, levelling fines amounting to millions of euros with the latest ruling in September 2016.
"The mentality needs to change, and urgently," says Antigone Dalamaga, head of the Ecological Recycling Society association. It takes "incentives and counter incentives... you need to convince your citizens of the necessity and of the positive affect of recycling," she notes. "But even today, Greeks are only encouraged to sort out their household waste on a voluntary basis. No fines are involved. "
And Mary Krimnanioti, who runs the EU-funded "Zero Waste" programme in Greece, says the logic behind the municipal waste collection - which charges residents depending on property size - is flawed.
"It is not calculated according to the waste you throw away, it's according to the square metres of your house. Therefore, a small house with 10 people, which every day throws out 10 bags of rubbish, pays the same as one person living in an equivalent home."
Commission of Inquiry to investigate Health Scandals
On Wednesday evening the proposal of the SYRIZA-ANEL coalition to establish a 21 member Commission of Inquiry to investigate health scandals [including medicine price-fixing and fraud] during the years 1997-2014 achieved an absolute majority of those present in the plenary session of Parliament session, with 187 votes in favour and 71 against. It will begin its work after Easter and complete its work within three months. The political parties have until 21st April to submit the names of their members who will participate in the Commission.
New Democracy MPs voted against. Members of the Democratic (which includes PASOK) recorded “present” i.e. abstained.
Second Assessment:
“Agreement in Principle”
8.4.2017
Yesterday, Friday, an agreement in principle was reached between Greece and its Creditors to conclude the Second Assessment.
The Government and its Creditors reached the compromise that includes difficult fiscal measures for the 2019-20 but also commitments to action to be taken directly on the primary surplus targets and debt sustainability
From September 2018 the European norms of collective bargaining and collective agreements will be restored. Further Budgetary measures are agreed - 1% of GDP in pension savings and 1% of GDP in adjustments to the tax system to broaden the tax base in 2019 and 2020. The Government has pledged equivalent financial and social compensation.
Finance Minister Euclid Tsakalotos after the end of the Eurogroup announced there will be simultaneous legislation on the measures and counter-measures in the next few weeks. He stated that the measures for the 2019-2020 period would only come into force if there are measures on debt relief. The countervailing-positive measures will be implemented provided Greece meets its fiscal targets.
He stated that “the unreasonable demands of the IMF on labour issues” – allowing employer lock-outs, making mass redundancies easier and preventing the restoration of the European norms of collective bargaining are off the table. There will be a return to collective bargaining and collective agreements by September 2018.
Euclid Tsakalotos reported that the agreement lays the foundations for a social State. He noted that the agreement in principle is the result of a compromise. “Like all compromises it includes elements that are not satisfactory and other elements which satisfy the Greek side and especially the Greek people.”
The Finance Minister referred to a package of positive measures, which in 2019 will be on the expenditure side, speaking about a 1.8€ billion package to address child poverty, the problem of housing, the problems of the younger generation regarding employment and measures for political development.
At the same time, he noted, there will be a reduction in pensioners’ prescription charges. In 2020 there will be changes to the Property Tax (ΕΝΦΙΑ) and Income Tax.
Reactions and Observations
The IMF is seeking assurances about a credible strategy to ensure the sustainability of the Greek debt.
In a written statement after the Eurogroup, the Fund's spokesman Jerry Rice said "There are good prospects for the successful conclusion of the negotiations on the outstanding issues of the Second Assessment” but he pointed out the need to manage the debt. "The agreement on reforms should be followed by a discussion with the eurozone countries to secure assurances for a credible strategy to ensure debt sustainability".
The overall agreement on the Greek programme will be presented to the Executive Board of the IMF for its final decision.
President of the Eurogroup, Jeroen Dijsselbloem after the conclusion of the meeting of eurozone finance ministers in Valletta of Malta announced: "The major issues have been resolved. Small details remain, so now we will move forward quickly."
He said that the heads of Mission will return to Athens "as soon as possible" in order to reach a "comprehensive technical agreement". He added "I couldn't speak in favour of the agreement, if it had not also been endorsed by the IMF".
“This agreement will allow the Eurogroup to proceed to a discussion on the budgetary targets after the end of the programme and the sustainability of the debt in order to achieve a "comprehensive political agreement", which was "very important" for Greece. He stressed that today's decision will enable him to "speed up" procedures in this direction.
Mr. Dijsselbloem stressed that the final assessment of the programme in the summer of 2018 is the "most important" because, depending on the performance of the economy and the extent to which the objectives have been met, that will eventually determine when and how the totality of the measures, including the positive counter-measures will be implemented.”
In conclusion, he said that the "ambition" is to have achieved the overall political agreement long before the summer, noting that any delays are negatively affecting the Greek economy, as the positive "momentum" of recent months "is being lost".
Pierre Moscovici, EU Finance Commissioner said: “Let that be an end to the uncertainty”
“I want to welcome the agreement in principle reached after several months of difficult negotiations. This agreement will enable the faster return of the Institutions to Athens to complete the agreement.” He described the agreement as "balanced" since, “as well as the additional fiscal effort that Greece is required to make in 2019 and 2020, there is the prospect of a package of compensatory measures that are important for the support of social groups that have been hit by the crisis.”
From September 2018 the European norms of collective bargaining and collective agreements will be restored. Further Budgetary measures are agreed - 1% of GDP in pension savings and 1% of GDP in adjustments to the tax system to broaden the tax base in 2019 and 2020. The Government has pledged equivalent financial and social compensation.
Finance Minister Euclid Tsakalotos after the end of the Eurogroup announced there will be simultaneous legislation on the measures and counter-measures in the next few weeks. He stated that the measures for the 2019-2020 period would only come into force if there are measures on debt relief. The countervailing-positive measures will be implemented provided Greece meets its fiscal targets.
He stated that “the unreasonable demands of the IMF on labour issues” – allowing employer lock-outs, making mass redundancies easier and preventing the restoration of the European norms of collective bargaining are off the table. There will be a return to collective bargaining and collective agreements by September 2018.
Euclid Tsakalotos reported that the agreement lays the foundations for a social State. He noted that the agreement in principle is the result of a compromise. “Like all compromises it includes elements that are not satisfactory and other elements which satisfy the Greek side and especially the Greek people.”
The Finance Minister referred to a package of positive measures, which in 2019 will be on the expenditure side, speaking about a 1.8€ billion package to address child poverty, the problem of housing, the problems of the younger generation regarding employment and measures for political development.
At the same time, he noted, there will be a reduction in pensioners’ prescription charges. In 2020 there will be changes to the Property Tax (ΕΝΦΙΑ) and Income Tax.
Reactions and Observations
The IMF is seeking assurances about a credible strategy to ensure the sustainability of the Greek debt.
In a written statement after the Eurogroup, the Fund's spokesman Jerry Rice said "There are good prospects for the successful conclusion of the negotiations on the outstanding issues of the Second Assessment” but he pointed out the need to manage the debt. "The agreement on reforms should be followed by a discussion with the eurozone countries to secure assurances for a credible strategy to ensure debt sustainability".
The overall agreement on the Greek programme will be presented to the Executive Board of the IMF for its final decision.
President of the Eurogroup, Jeroen Dijsselbloem after the conclusion of the meeting of eurozone finance ministers in Valletta of Malta announced: "The major issues have been resolved. Small details remain, so now we will move forward quickly."
He said that the heads of Mission will return to Athens "as soon as possible" in order to reach a "comprehensive technical agreement". He added "I couldn't speak in favour of the agreement, if it had not also been endorsed by the IMF".
“This agreement will allow the Eurogroup to proceed to a discussion on the budgetary targets after the end of the programme and the sustainability of the debt in order to achieve a "comprehensive political agreement", which was "very important" for Greece. He stressed that today's decision will enable him to "speed up" procedures in this direction.
Mr. Dijsselbloem stressed that the final assessment of the programme in the summer of 2018 is the "most important" because, depending on the performance of the economy and the extent to which the objectives have been met, that will eventually determine when and how the totality of the measures, including the positive counter-measures will be implemented.”
In conclusion, he said that the "ambition" is to have achieved the overall political agreement long before the summer, noting that any delays are negatively affecting the Greek economy, as the positive "momentum" of recent months "is being lost".
Pierre Moscovici, EU Finance Commissioner said: “Let that be an end to the uncertainty”
“I want to welcome the agreement in principle reached after several months of difficult negotiations. This agreement will enable the faster return of the Institutions to Athens to complete the agreement.” He described the agreement as "balanced" since, “as well as the additional fiscal effort that Greece is required to make in 2019 and 2020, there is the prospect of a package of compensatory measures that are important for the support of social groups that have been hit by the crisis.”
Alexis Tsipras on the Anniversary of the 1821 Revolution
1.4.2017
"With today’s peace efforts, the struggle to put the country back on its feet, with the broadening of democracy and social achievements, we are honouring the Greek Revolution of 1821," stressed the Prime Minister on the occasion of the celebration of 25th March.
"The Greek Revolution of 1821 is not simply the Modern Greek State’s date of birth. It encapsulates a lengthy journey, where national ideals combined with the ideas of freedom, equality and social justice, such as those expressed by the Enlightenment. It meant that now the world could become, through the struggles of human beings, a world of equality, fraternity and freedom and this message inspired the peoples."
"This is the birthday we are celebrating today. Celebration, of course, does not mean fine words about the glory of their ancestors, but real actions."
He talked about "scientific reflection, without ornamentation and blinkers - and on this we can be proud of the achievements of modern Greek historiography and of our universities. Secondly, it means that with today’s peace efforts, the struggle to put the country back on its feet, with the broadening of democracy and social achievements, we are honouring the Greek Revolution of 1821."
"The Greek people are in the front line and are waging the struggle for the defence of dignity, democracy, social solidarity, for support for the persecuted, as evidenced by the refugee effort. All of us feel proud about it."
"Despite the great difficulties, we are proceeding down the road of social solidarity, democracy, culture and national and social dignity - with the ideals of the Revolution of 1821 and the Enlightenment to inspire us, in the conditions of the 21st century, for Greece and for Europe."
"This is the birthday we are celebrating today. Celebration, of course, does not mean fine words about the glory of their ancestors, but real actions."
He talked about "scientific reflection, without ornamentation and blinkers - and on this we can be proud of the achievements of modern Greek historiography and of our universities. Secondly, it means that with today’s peace efforts, the struggle to put the country back on its feet, with the broadening of democracy and social achievements, we are honouring the Greek Revolution of 1821."
"The Greek people are in the front line and are waging the struggle for the defence of dignity, democracy, social solidarity, for support for the persecuted, as evidenced by the refugee effort. All of us feel proud about it."
"Despite the great difficulties, we are proceeding down the road of social solidarity, democracy, culture and national and social dignity - with the ideals of the Revolution of 1821 and the Enlightenment to inspire us, in the conditions of the 21st century, for Greece and for Europe."
The Second Assessment remains stalled despite “intensified talks”
Late on Thursday night negotiations to complete the Second Assessment remained stalled over key issues of further pension reductions, labour market “reforms” and the operation of the power supply sector (by reducing the market share of the publicly owned Public Power Corporation through the sale of some coal-fired plants).
Earlier in the week, agreement had seemed close until the IMF called for yet further cuts to pensions.
Then the IMF insisted that economic measures scheduled for implementation in 2020 be brought forward to 2019. Apparently the IMF is concerned that general elections scheduled to take place in Greece in 2019 could bring in a new government that may refuse to honour reforms agreed to by the current administration.
It is still being projected that the framework for an agreement could be presented at the next Eurogroup meeting on April 7th. This would allow officials to draft all the measures that Greek MPs must legislate by the next scheduled Eurogroup on May 22nd when the IMF is expected to indicate whether it will join Greece’s third international bailout programme.
On Thursday Finance Minister Euclid Tsakalotos confirmed in a meeting with MPs of Independent Greeks (ANEL) that so far the two sides have managed to agree to the reduction of the tax-free threshold to 5,900€ from the current 8,636€ and to reduce further the pensions of some 900,000 retirees.
“The IMF has made it clear that it will not participate in the programme without guarantees of debt relief measures. This will be an important signal for the markets, as it will give the green light for medium term debt relief measures and for Greece to enter the quantitative easing programme of the European Central Bank, which means a lot for the liquidity of Greek banks,” Finance Minister Euclid Tsakalotos said.
Furthermore, he said that the measures that the Greek negotiating team has agreed on will have zero fiscal impact because there will be counter measures to balance them. Regarding privatizations, he said that the sale of public assets will go as planned and that the new privatization “super fund” will be a vehicle that will increase public wealth.
Greek Government spokesman Dimitris Tzanakopoulos stated on Wednesday that “The aim of the Government is to have a comprehensive agreement. This means that if there is no agreement on all issues, nothing has been agreed”.
“First is the staff level agreement, followed by the negotiation on the medium-term measures on debt and the primary surpluses for 2019 and then the legislation of the main part of the agreed issues. Meanwhile, there is a possibility to legislate some secondary issues that have already been agreed with the Institutions.”
Late on Thursday night negotiations to complete the Second Assessment remained stalled over key issues of further pension reductions, labour market “reforms” and the operation of the power supply sector (by reducing the market share of the publicly owned Public Power Corporation through the sale of some coal-fired plants).
Earlier in the week, agreement had seemed close until the IMF called for yet further cuts to pensions.
Then the IMF insisted that economic measures scheduled for implementation in 2020 be brought forward to 2019. Apparently the IMF is concerned that general elections scheduled to take place in Greece in 2019 could bring in a new government that may refuse to honour reforms agreed to by the current administration.
It is still being projected that the framework for an agreement could be presented at the next Eurogroup meeting on April 7th. This would allow officials to draft all the measures that Greek MPs must legislate by the next scheduled Eurogroup on May 22nd when the IMF is expected to indicate whether it will join Greece’s third international bailout programme.
On Thursday Finance Minister Euclid Tsakalotos confirmed in a meeting with MPs of Independent Greeks (ANEL) that so far the two sides have managed to agree to the reduction of the tax-free threshold to 5,900€ from the current 8,636€ and to reduce further the pensions of some 900,000 retirees.
“The IMF has made it clear that it will not participate in the programme without guarantees of debt relief measures. This will be an important signal for the markets, as it will give the green light for medium term debt relief measures and for Greece to enter the quantitative easing programme of the European Central Bank, which means a lot for the liquidity of Greek banks,” Finance Minister Euclid Tsakalotos said.
Furthermore, he said that the measures that the Greek negotiating team has agreed on will have zero fiscal impact because there will be counter measures to balance them. Regarding privatizations, he said that the sale of public assets will go as planned and that the new privatization “super fund” will be a vehicle that will increase public wealth.
Greek Government spokesman Dimitris Tzanakopoulos stated on Wednesday that “The aim of the Government is to have a comprehensive agreement. This means that if there is no agreement on all issues, nothing has been agreed”.
“First is the staff level agreement, followed by the negotiation on the medium-term measures on debt and the primary surpluses for 2019 and then the legislation of the main part of the agreed issues. Meanwhile, there is a possibility to legislate some secondary issues that have already been agreed with the Institutions.”
The Future of the EU – PM Tsipras’s Letter – the Acquis Communautaire
European leaders remain committed to upholding the European Union’s social acquis throughout Europe, including Greece, European Council President Donald Tusk said on Saturday, in a press conference after the EU’s 60th anniversary summit.
Replying to questions, Tusk referred to a letter sent to him by Greek Prime Minister Alexis Tsipras on this issue and expressed confidence that “together with the social partners we will continue to uphold a very high level of social protection and the best practices in labour relations across all Europe, as embodied already in the EU social acquis.”
[The Acquis Communautaire is the accumulated body of European Union (EU) law and obligations from 1958 to the present day. It comprises all the EU's treaties and laws (directives, regulations, decisions), declarations and resolutions, international agreements and the judgments of the Court of Justice. Ed]
“This point is often discussed amongst leaders and it is a position that we all share – and, of course, that includes Greece,” he added."We should not to try to change Greek legislation with regard to strikes"
European leaders are one after the other lining up in favour of the protection of the European acquis, following the letter of Alexis Tsipras. In the Rome Declaration, after the intervention of Athens, the piece of the text about "Social Europe" has been kept in - despite objections from many countries - and there has even been added a reference to the fight against unemployment, which was absent from the first drafts.
European Commission President Jean Claude Juncker noted in a statement that "publicly, with Prime Minister Tsipras, since May 2015 I have already expressed my support for a fair and effective collective bargaining system" and maintained that there should be a "commitment from creditors to give Greece the desired and necessary room for manoeuvre to create its own future. All this while respecting the acquis communautaire, of which we are the custodians."
Mr. Juncker also referred to the negotiations about the agreement, stressing that "all the actors need to work responsibly to reach an agreement on a technical level as quickly as possible" and that "the next appointment should be at Eurogroup on 7th April". He added that "ideally, we should be in a position to present a technical level agreement by then and we'll continue to support you in this aim.
Meanwhile, Mr Juncker, speaking at a meeting of the social partners and European trade unions with the European institutions, reiterated that "the social acquis applies to all", and stressed that "Greece needs us, but we also need Greece."
Mr Juncker in his speech said that the Commission has started a process of reflection on the pillar of social rights. "I've always been in favour of this, I want to achieve this during my tenure." He added that this cannot be achieved without both parties, both the trade unions and the employers.
"Legislation concerning strikes is a national competence, not the IMF’s, not the EU’s. We should not try to change the Greek legislation concerning strikes."
PM Alexis Tsipras's proposal on the safeguarding of the European social acquis and in particular the safeguarding of labour rights was supported by the Italian Prime Minister Paulo Tzentiloni. " Let us protect the social acquis in all EU Member States without exception, as you rightly noted in his letter my dear Greek Prime Minister", said the Italian Prime Minister in his speech.
PM Tzentiloni said: "We know that the crisis has triggered equally serious social crises in many Member States. We know that the EU is a system of values and norms, including the social achievements, the so-called social acquis, one of the most important elements achieved in the 60 years of integration. And I believe that we must do everything in our power to protect the social acquis, in all Member States, without exception, as my dear friend the Greek Prime Minister rightly noted in his letter. I am absolutely convinced that the social dimension can be the start of a new impetus in the process of integration."
“There can be no doubt that this Europe is not the Europe we dreamed of, it is not the Europe we want. There is also no doubt, however, that no other path is open than to fight from within to change it,” Greece’s Prime Minister Alexis Tsipras said on Saturday, after the 27 European leaders concluded an anniversary summit by signing a declaration of unity.
PM Tsipras said that he had put at the centre of the discussion the crucial issue of the EU’s social acquis and whether this was to be equally accessible to all EU member-states. “Obviously, the answer I was given was positive but it remains to be seen whether rhetoric and the action continue to diverge. We will see this very soon,” he added.
“The reply given by the heads of European institutional bodies, saying that Greece is no exception to Europe’s social acquis encourages us to continue in a struggle that concerns the workers and people of Greece as much as the workers and all the peoples of Europe.”
Alexis Tsipras was also critical of the trade unions in Greece, which he said were “in the rear guard and not on the front lines, as in other countries in Europe.”
Brexit Repercussions Costly to Greece
Britain’s departure from the EU will have direct and indirect repercussions for Greece, the Hellenic Federation of Enterprises (SEV) said in a statement calling on the EU to negotiate a deal that would ensure effective access to the British market for Greek products.
Britain ranks 7th in Greece’s export destinations. Greek exports to the United Kingdom amount to over 1€ billion annually. According to SEV, Greece exports to Britain 350€ million in industrial products, 200€ million in chemical products, 350€ million in food products and about 100€ million in other products.
The Federation believes Greece should expect a decrease in British tourist arrivals as the depreciation of the sterling against the euro will reduce the purchasing power of the British and limit their travel options. It is estimated that currently over two million British tourists arrive in Greece each year.
At the same time, there are concerns about the 60,000 Greeks who live and work in Britain. Deputy Prime Minister Yiannis Dragasakis met with the British Ambassador to Athens, Kate Smith, on March 15th to discuss the issue, namely, the legal framework as regards the residential status of Greeks in Britain.
Greek employees in the UK may find themselves facing very strict bureaucratic procedures, limited access to welfare benefits and less favourable working conditions than their British colleagues. Greek students in British universities are likely to face increases of up to 40% in tuition fees.
European leaders remain committed to upholding the European Union’s social acquis throughout Europe, including Greece, European Council President Donald Tusk said on Saturday, in a press conference after the EU’s 60th anniversary summit.
Replying to questions, Tusk referred to a letter sent to him by Greek Prime Minister Alexis Tsipras on this issue and expressed confidence that “together with the social partners we will continue to uphold a very high level of social protection and the best practices in labour relations across all Europe, as embodied already in the EU social acquis.”
[The Acquis Communautaire is the accumulated body of European Union (EU) law and obligations from 1958 to the present day. It comprises all the EU's treaties and laws (directives, regulations, decisions), declarations and resolutions, international agreements and the judgments of the Court of Justice. Ed]
“This point is often discussed amongst leaders and it is a position that we all share – and, of course, that includes Greece,” he added."We should not to try to change Greek legislation with regard to strikes"
European leaders are one after the other lining up in favour of the protection of the European acquis, following the letter of Alexis Tsipras. In the Rome Declaration, after the intervention of Athens, the piece of the text about "Social Europe" has been kept in - despite objections from many countries - and there has even been added a reference to the fight against unemployment, which was absent from the first drafts.
European Commission President Jean Claude Juncker noted in a statement that "publicly, with Prime Minister Tsipras, since May 2015 I have already expressed my support for a fair and effective collective bargaining system" and maintained that there should be a "commitment from creditors to give Greece the desired and necessary room for manoeuvre to create its own future. All this while respecting the acquis communautaire, of which we are the custodians."
Mr. Juncker also referred to the negotiations about the agreement, stressing that "all the actors need to work responsibly to reach an agreement on a technical level as quickly as possible" and that "the next appointment should be at Eurogroup on 7th April". He added that "ideally, we should be in a position to present a technical level agreement by then and we'll continue to support you in this aim.
Meanwhile, Mr Juncker, speaking at a meeting of the social partners and European trade unions with the European institutions, reiterated that "the social acquis applies to all", and stressed that "Greece needs us, but we also need Greece."
Mr Juncker in his speech said that the Commission has started a process of reflection on the pillar of social rights. "I've always been in favour of this, I want to achieve this during my tenure." He added that this cannot be achieved without both parties, both the trade unions and the employers.
"Legislation concerning strikes is a national competence, not the IMF’s, not the EU’s. We should not try to change the Greek legislation concerning strikes."
PM Alexis Tsipras's proposal on the safeguarding of the European social acquis and in particular the safeguarding of labour rights was supported by the Italian Prime Minister Paulo Tzentiloni. " Let us protect the social acquis in all EU Member States without exception, as you rightly noted in his letter my dear Greek Prime Minister", said the Italian Prime Minister in his speech.
PM Tzentiloni said: "We know that the crisis has triggered equally serious social crises in many Member States. We know that the EU is a system of values and norms, including the social achievements, the so-called social acquis, one of the most important elements achieved in the 60 years of integration. And I believe that we must do everything in our power to protect the social acquis, in all Member States, without exception, as my dear friend the Greek Prime Minister rightly noted in his letter. I am absolutely convinced that the social dimension can be the start of a new impetus in the process of integration."
“There can be no doubt that this Europe is not the Europe we dreamed of, it is not the Europe we want. There is also no doubt, however, that no other path is open than to fight from within to change it,” Greece’s Prime Minister Alexis Tsipras said on Saturday, after the 27 European leaders concluded an anniversary summit by signing a declaration of unity.
PM Tsipras said that he had put at the centre of the discussion the crucial issue of the EU’s social acquis and whether this was to be equally accessible to all EU member-states. “Obviously, the answer I was given was positive but it remains to be seen whether rhetoric and the action continue to diverge. We will see this very soon,” he added.
“The reply given by the heads of European institutional bodies, saying that Greece is no exception to Europe’s social acquis encourages us to continue in a struggle that concerns the workers and people of Greece as much as the workers and all the peoples of Europe.”
Alexis Tsipras was also critical of the trade unions in Greece, which he said were “in the rear guard and not on the front lines, as in other countries in Europe.”
Brexit Repercussions Costly to Greece
Britain’s departure from the EU will have direct and indirect repercussions for Greece, the Hellenic Federation of Enterprises (SEV) said in a statement calling on the EU to negotiate a deal that would ensure effective access to the British market for Greek products.
Britain ranks 7th in Greece’s export destinations. Greek exports to the United Kingdom amount to over 1€ billion annually. According to SEV, Greece exports to Britain 350€ million in industrial products, 200€ million in chemical products, 350€ million in food products and about 100€ million in other products.
The Federation believes Greece should expect a decrease in British tourist arrivals as the depreciation of the sterling against the euro will reduce the purchasing power of the British and limit their travel options. It is estimated that currently over two million British tourists arrive in Greece each year.
At the same time, there are concerns about the 60,000 Greeks who live and work in Britain. Deputy Prime Minister Yiannis Dragasakis met with the British Ambassador to Athens, Kate Smith, on March 15th to discuss the issue, namely, the legal framework as regards the residential status of Greeks in Britain.
Greek employees in the UK may find themselves facing very strict bureaucratic procedures, limited access to welfare benefits and less favourable working conditions than their British colleagues. Greek students in British universities are likely to face increases of up to 40% in tuition fees.
Second Assessment:
Eurozone Finance Ministers agree to “intensify” talks
25.3.2017
Monday’s Eurogroup in Brussels made no progress on the Second Assessment. Finance Minister Euclid Tsakalotos, his Deputy, Giorgos Houliarakis, and Labour Minister Effie Achtsioglou remained in Brussels as Eurozone Finance Ministers did agree to “intensify” talks – which will also include International Monetary Fund monitors – over the following few days in a bid to bridge the gap dividing Greece and its creditors, namely over labour and pension reforms. A Government spokesman said “The two crucial issues are not technical questions, they are deeply political. And they must be resolved at a higher level.”
n his press statement after the meeting, Finance Minister Euclid Tsakalotos said “We have seen substantive progress. At the suggestion of the Institutions, the Greek Government and Mr Dijsselbloem it was decided to have an intensification of the process and so I will remain both myself, Mrs. Achtsioglou and Mr. Houliarakis to discuss the issues that remain, basically on labour issues and pensions. I think we can make progress on these issues, as the Chairman of the Eurogroup himself said."
"The idea is that many times you need to change the order, leave the technical level and find the key issues where there are differences, and then resolve the final details of the agreement.
So our strategy is to stay here and make substantive progress, leave aside the smallest problems and if possible get a deal on those afterwards when the Institutions return to Athens, a package of measures that we and the Institutions agree on before the Eurogroup on 7th April in Malta.
From there on, the process can accelerate much more and we can go to the IMF at its Spring meeting on April 22nd to add the finishing touches to the whole package."
Labour Issues
Collective bargaining is a European best practice and should be restored in Greece, Eurogroup President Jeroen Dijsselbloem said on Tuesday.
Speaking during a discussion with MEPs on the European Parliament’s Economic and Financial Affairs Committee, Mr. Dijsselbloem referred back to the agreement in the summer of 2015. He said that the advice of a group of experts was sought on the “best practices” that Greece’s labour market should follow in the future.
This group of experts had reached the conclusion that collective bargaining was a European best practice and must be restored in Greece, he said. At the same time, Mr. Dijsselbloem noted, in some countries there were criteria of representativeness in collective bargaining and these criteria were now under discussion between Greek authorities and the Institutions. “The opinion of the experts’ group was absolutely clear.”
Greece as a “paradigm”
Minister of Labour, Social Security, and Welfare, Effie Achtsioglou, said it was clear that neoliberal forces view the issue of labour relations in Greece as a “new paradigm that must be generalised”.
“In this sense, the end of labour deregulation and the restoration of labour regularity in Greece will be a victory for all European workers,” she emphasised.
On Thursday Prime Minister Alexis Tsipras sent a letter to Donald Tusk, the President of the European Council, to Jean-Claude Juncker the President of the European Commission and to the Chairpersons of Summit in Rome Joseph Muscat and Paolo Gentiloni, requesting a clear answer to whether the European social model, especially in terms of labour relations and collective bargaining, applies to all member states without exception, or does it apply to all with the exception of Greece.
The Prime Minister’s complete letter:
Dear President,
Dear Donald,
In a few days, in Rome, we will celebrate 60 years from the signing of the founding Treaties of today’s European Union.
In these 60 years, the EU consolidated – at an institutional level – the achievements of its peoples.
Achievements whose goal is to ensure progress, prosperity and peace.
Achievements that aim towards the protection of the fundamental rights of the peoples of Europe, including the freedom of expression and movement, as well as the right to employment and social protection.
Unfortunately, though, in the last few years, many of these achievements are threatened despite the fact that they have been consolidated at an institutional level. It is, nevertheless, a matter of democratic choice of the peoples of Europe and the will of their governments, to protect these achievements and broaden them.
In all cases? Unfortunately not in all cases. This right is restricted in my country. Greece has been in programmes of economic adjustment for the last 7 years, in the name of which a situation of exception from our common European acquis communautaire, [The Acquis Communautaire is the accumulated body of European Union (EU) law and obligations from 1958 to the present day. It comprises all the EU's treaties and laws (directives, regulations, decisions), declarations and resolutions, international agreements and the judgments of the Court of Justice. Ed]
has been implicitly imposed. Most notably this relates to the exception from the European acquis communautaire on social rights and specifically the exception from “best practices” on labour relations and collective bargaining.
The Greek government, for the last two years, has been trying to return Greece to the standards of the European social model and to overturn the status of exception in the case of labour relations.
We fully respect the commitments we undertook for the necessary budgetary adjustment and the restructuring of the economy and the labour market which we have followed strictly.
Nevertheless, we cannot understand demands that go beyond these commitments, like the prolongation of the exception of Greece from the European acquis communautaire.
This demand, after all, leads to an unjustified delay of the conclusion of the Second Assessment of the Greek economic programme, denying from the Greek economy its great potential for recovery, at a crucial moment.
It is evident that the responsibility for defining the policy framework and its institutional boundaries within the EU, does not belong to non-european supranational organizations, but exclusively to European institutions and the intergovernmental bodies of the European Union.
As we move towards the Rome Summit, I assure you that Greece would like to celebrate, together with its partners, this 60 year anniversary and more specifically the great common achievements of our peoples.
For this reason we intend to support the Rome Declaration, a document which moves in a positive direction.
Nevertheless, in order to be able to celebrate these achievements, it has to be made clear, on an official level, whether they apply also to Greece. Whether, in other words, the European acquis communautaire is valid for all member states without exception, or for all except Greece.
Therefore I ask for your support in order to protect, together, the right of Greece to return to the standards of the European social model.”
Dijsselbloem’s “stupid remarks”
Jeroen Dijsselbloem, President of the Eurogroup, referring to “crisis countries in southern Europe” in an interview early last week with the German newspaper Frankfurter Allgemeine Zeitung, said "I cannot spend all my money on liquour and women and then ask for support."
Speaking on Thursday, Alexis Tsipras said that the crisis had widened the gap between the European north and south, but also deepened the divisions in Europe through “aggressive and irrational stereotypes”. Referring to Mr. Dijsselbloem’s “stupid” remarks, he stressed, “Fortunately there are only a few who want to hide the economic inequality that neoliberalism has caused behind a nonexistent cultural distinction […] They do it by resorting to ridiculous stereotypes and a biased rhetoric of prudent north and irresponsible south”. “Instead of stupid statements about ‘drinks and women’, Mr. Dijsselbloem would do better to ask Germany to increase its public expenditure,” PM Tsipras said.
"The idea is that many times you need to change the order, leave the technical level and find the key issues where there are differences, and then resolve the final details of the agreement.
So our strategy is to stay here and make substantive progress, leave aside the smallest problems and if possible get a deal on those afterwards when the Institutions return to Athens, a package of measures that we and the Institutions agree on before the Eurogroup on 7th April in Malta.
From there on, the process can accelerate much more and we can go to the IMF at its Spring meeting on April 22nd to add the finishing touches to the whole package."
Labour Issues
Collective bargaining is a European best practice and should be restored in Greece, Eurogroup President Jeroen Dijsselbloem said on Tuesday.
Speaking during a discussion with MEPs on the European Parliament’s Economic and Financial Affairs Committee, Mr. Dijsselbloem referred back to the agreement in the summer of 2015. He said that the advice of a group of experts was sought on the “best practices” that Greece’s labour market should follow in the future.
This group of experts had reached the conclusion that collective bargaining was a European best practice and must be restored in Greece, he said. At the same time, Mr. Dijsselbloem noted, in some countries there were criteria of representativeness in collective bargaining and these criteria were now under discussion between Greek authorities and the Institutions. “The opinion of the experts’ group was absolutely clear.”
Greece as a “paradigm”
Minister of Labour, Social Security, and Welfare, Effie Achtsioglou, said it was clear that neoliberal forces view the issue of labour relations in Greece as a “new paradigm that must be generalised”.
“In this sense, the end of labour deregulation and the restoration of labour regularity in Greece will be a victory for all European workers,” she emphasised.
On Thursday Prime Minister Alexis Tsipras sent a letter to Donald Tusk, the President of the European Council, to Jean-Claude Juncker the President of the European Commission and to the Chairpersons of Summit in Rome Joseph Muscat and Paolo Gentiloni, requesting a clear answer to whether the European social model, especially in terms of labour relations and collective bargaining, applies to all member states without exception, or does it apply to all with the exception of Greece.
The Prime Minister’s complete letter:
Dear President,
Dear Donald,
In a few days, in Rome, we will celebrate 60 years from the signing of the founding Treaties of today’s European Union.
In these 60 years, the EU consolidated – at an institutional level – the achievements of its peoples.
Achievements whose goal is to ensure progress, prosperity and peace.
Achievements that aim towards the protection of the fundamental rights of the peoples of Europe, including the freedom of expression and movement, as well as the right to employment and social protection.
Unfortunately, though, in the last few years, many of these achievements are threatened despite the fact that they have been consolidated at an institutional level. It is, nevertheless, a matter of democratic choice of the peoples of Europe and the will of their governments, to protect these achievements and broaden them.
In all cases? Unfortunately not in all cases. This right is restricted in my country. Greece has been in programmes of economic adjustment for the last 7 years, in the name of which a situation of exception from our common European acquis communautaire, [The Acquis Communautaire is the accumulated body of European Union (EU) law and obligations from 1958 to the present day. It comprises all the EU's treaties and laws (directives, regulations, decisions), declarations and resolutions, international agreements and the judgments of the Court of Justice. Ed]
has been implicitly imposed. Most notably this relates to the exception from the European acquis communautaire on social rights and specifically the exception from “best practices” on labour relations and collective bargaining.
The Greek government, for the last two years, has been trying to return Greece to the standards of the European social model and to overturn the status of exception in the case of labour relations.
We fully respect the commitments we undertook for the necessary budgetary adjustment and the restructuring of the economy and the labour market which we have followed strictly.
Nevertheless, we cannot understand demands that go beyond these commitments, like the prolongation of the exception of Greece from the European acquis communautaire.
This demand, after all, leads to an unjustified delay of the conclusion of the Second Assessment of the Greek economic programme, denying from the Greek economy its great potential for recovery, at a crucial moment.
It is evident that the responsibility for defining the policy framework and its institutional boundaries within the EU, does not belong to non-european supranational organizations, but exclusively to European institutions and the intergovernmental bodies of the European Union.
As we move towards the Rome Summit, I assure you that Greece would like to celebrate, together with its partners, this 60 year anniversary and more specifically the great common achievements of our peoples.
For this reason we intend to support the Rome Declaration, a document which moves in a positive direction.
Nevertheless, in order to be able to celebrate these achievements, it has to be made clear, on an official level, whether they apply also to Greece. Whether, in other words, the European acquis communautaire is valid for all member states without exception, or for all except Greece.
Therefore I ask for your support in order to protect, together, the right of Greece to return to the standards of the European social model.”
Dijsselbloem’s “stupid remarks”
Jeroen Dijsselbloem, President of the Eurogroup, referring to “crisis countries in southern Europe” in an interview early last week with the German newspaper Frankfurter Allgemeine Zeitung, said "I cannot spend all my money on liquour and women and then ask for support."
Speaking on Thursday, Alexis Tsipras said that the crisis had widened the gap between the European north and south, but also deepened the divisions in Europe through “aggressive and irrational stereotypes”. Referring to Mr. Dijsselbloem’s “stupid” remarks, he stressed, “Fortunately there are only a few who want to hide the economic inequality that neoliberalism has caused behind a nonexistent cultural distinction […] They do it by resorting to ridiculous stereotypes and a biased rhetoric of prudent north and irresponsible south”. “Instead of stupid statements about ‘drinks and women’, Mr. Dijsselbloem would do better to ask Germany to increase its public expenditure,” PM Tsipras said.
The Future of the EU
Nikos Voutsis, the President of the Greek Parliament, characterised as "full of generalisations and inconsistencies" the White Paper put forward by the EU Commission leadership. He pointed out that "the Eurozone needs great clarity: for strengthened unity, the turn towards development, social and regional cohesion, the reducing of inequalities, the equal allocation of resources between the strong European Centre and weak periphery, the boosting of democratic accountability and social justice.
He warned that "extreme neoliberal conservative circles in the EU envision a Europe that is à la carte". "It is a development that is lending its ear to the increased social pressure for substantive changes to the economic and social policy of the EU that have as their horizon also the corresponding radical changes to the norms we have had up until now."
"The EU should:
* follow policies which will not neglect its founding principles that recognize the equality and equal rights of Member States.
* prevent the process that leads to making permanent and institutionalising existing differences in levels of development.
* take on the risk on a pro rata basis for the shaping of mechanisms to tackle the problem of over-indebtedness, the financing of investment in infrastructure and the guaranteeing of deposits, on the basis of a logic that is different from the architecture and functioning of the EU that is today extending the existing inequalities.
* recognise that a common security policy can exist only on the basis of a common policy for a social Europe.
* strengthen the Community budget and the structural funds.
* deepen democratic institutions and for legislative and control procedures in the design and workings of a progressive social agenda."
Nikos Voutsis, the President of the Greek Parliament, characterised as "full of generalisations and inconsistencies" the White Paper put forward by the EU Commission leadership. He pointed out that "the Eurozone needs great clarity: for strengthened unity, the turn towards development, social and regional cohesion, the reducing of inequalities, the equal allocation of resources between the strong European Centre and weak periphery, the boosting of democratic accountability and social justice.
He warned that "extreme neoliberal conservative circles in the EU envision a Europe that is à la carte". "It is a development that is lending its ear to the increased social pressure for substantive changes to the economic and social policy of the EU that have as their horizon also the corresponding radical changes to the norms we have had up until now."
"The EU should:
* follow policies which will not neglect its founding principles that recognize the equality and equal rights of Member States.
* prevent the process that leads to making permanent and institutionalising existing differences in levels of development.
* take on the risk on a pro rata basis for the shaping of mechanisms to tackle the problem of over-indebtedness, the financing of investment in infrastructure and the guaranteeing of deposits, on the basis of a logic that is different from the architecture and functioning of the EU that is today extending the existing inequalities.
* recognise that a common security policy can exist only on the basis of a common policy for a social Europe.
* strengthen the Community budget and the structural funds.
* deepen democratic institutions and for legislative and control procedures in the design and workings of a progressive social agenda."
Second Assessment : Still Delayed
18.3.2017
On Friday, an EU official in Brussels appeared to insist that current negotiations over the Second Assessment will not be concluded without changes to labour laws. He also confirmed that there is not enough time in April to reach a comprehensive settlement that will include the participation of the International Monetary Fund and a deal on the midterm debt relief measures. The Easter holidays and the IMF’s spring meeting in Washington on April 21-23 were cited as the main reasons for the delay, as well as differences on various issues including the measures the Government needs to implement to achieve a 3.5% primary surplus in 2019.
Nevertheless Finance Minister Euclid Tsakalotos maintained also on Friday that an agreement could be reached by the April 7th Eurogroup.
Nevertheless Finance Minister Euclid Tsakalotos maintained also on Friday that an agreement could be reached by the April 7th Eurogroup.
On Wednesday Finance Minister Euclid Tsakalotos and Labour Minister Efi Achtsioglou briefed SYRIZA MPs on the party’s committees for monitoring the government’s work on economic and labour issues. The briefing was held ahead of the Eurogroup on March 20th. They reiterated the Government’s position that there will be simultaneous legislation of the reforms and the positive measures to offset them and that both will be implemented at the same time.
Measures and Counter Measures
Dimitris Tzanakopoylos, the Government’s spokesman, responded to a document tabled in the Dutch Parliament by the President of the Eurogroup Jeroen Dijsselbloem in which it was suggested that the counter measures would only be made law if there was “fiscal space”.
Dimitris Tzanakopoylos stated “The countermeasures will be legislated on simultaneously with the measures of burden and will be implemented in the certain event that in 2018 we will have achieved the goal of a Primary Surplus of 3.5% of GDP.”
Mr. Tzanakopoylos stated that both the Prime Minister and the Finance Minister and Mr. Dijsselbloem himself have pointed out that “the financial space” involves predictions and not actual results. Specifically, in December 2018 – with the tabling of the budget for 2019 there must be a mechanism that certifies that at the end of that year the Primary Surplus target of 3.5% will have been achieved. This mechanism is a matter for negotiation with the partners, given that the official certification of the 2018 fiscal outcome is made by Eurostat in April 2019.
Collective labour agreements and collective bargaining
One key outstanding issue – collective labour agreements and collective bargaining – was raised by European Parliament Vice President Dimitris Papadimoulis during a debate in the European Parliament on Wednesday. He asked the European Commissioner for Economic and Financial Affairs Pierre Moscovici to state the position of the European Commission on the matter and make it clear whether he supports the restoration of the EU norm in Greece as regards labour relations. He underlined that the group of experts, formed by ESM, IMF, EU, ECB and the Greek government’s unanimous decision, tabled its report in December. The report requested the restoration of the collective negotiations in Greece.
Commissioner Moscovici answered that the European Commission defends the European social model and foresees collective contracts and believes that Greece should be included in this model, adding that “The group of experts’ report is clear. The way we should move is according to the principles of the International Labour Organisation and the European framework.”
The Future of the EU
On Sunday, President of the Hellenic Republic, Prokopis Pavlopoulos voiced his disagreement with the idea of a “multiple-speed Europe,” stressing that Europe needs to protect its unity and that this “does not have speeds.”
President Pavlopoulos noted that Greece’s history had repeatedly shown that “the great and important things we achieved united, while all disunity has resulted in painful injury, striking right to our national core.”
“So now we have an obligation, always with respect for the ideological and political individuality of each of the democratic political forces, to proceed united to deal with the deep crisis for our country and our people,” President Pavlopoulos added.
“Greece’s progress has been defined by an unswerving dedication to the country’s European path, given that this path leads to the defence of both the country and of the entire European edifice, thus by extension to the European ideal “whose roots are by general admission Greek,” he said.
“In this framework I should like to conclude by stressing the following: the best way to honour the 60th year since the start of the European Union, especially with the opportunity of the emblematic summit meeting in Rome on March 25th, is to protect its unity. And sticking to proclamations is not enough,” he said.
At this critical time, the President added, the EU needed real will and bold decisions for the defence of its future. “On this path and in this direction Greece can and must play a leading role — and it will,” he added.
As part of the debate on the future of the European Union, the Prime Minister Alexis Tsipras stressed that “progressive Europe, the trade unions and the social forces, the political terrain of the Left, of Social Democracy and Ecology must seek a new hegemonic role in developments. Let us prevent the weakening of the European policies of cohesion and convergence.”
“In any event, this debate must have at its heart the re-orientation of the European strategy towards development and solidarity. Otherwise, the rift between the European Institutions and European societies will continuously grow, not just in the least, but also in the more economically strong countries.”
Measures and Counter Measures
Dimitris Tzanakopoylos, the Government’s spokesman, responded to a document tabled in the Dutch Parliament by the President of the Eurogroup Jeroen Dijsselbloem in which it was suggested that the counter measures would only be made law if there was “fiscal space”.
Dimitris Tzanakopoylos stated “The countermeasures will be legislated on simultaneously with the measures of burden and will be implemented in the certain event that in 2018 we will have achieved the goal of a Primary Surplus of 3.5% of GDP.”
Mr. Tzanakopoylos stated that both the Prime Minister and the Finance Minister and Mr. Dijsselbloem himself have pointed out that “the financial space” involves predictions and not actual results. Specifically, in December 2018 – with the tabling of the budget for 2019 there must be a mechanism that certifies that at the end of that year the Primary Surplus target of 3.5% will have been achieved. This mechanism is a matter for negotiation with the partners, given that the official certification of the 2018 fiscal outcome is made by Eurostat in April 2019.
Collective labour agreements and collective bargaining
One key outstanding issue – collective labour agreements and collective bargaining – was raised by European Parliament Vice President Dimitris Papadimoulis during a debate in the European Parliament on Wednesday. He asked the European Commissioner for Economic and Financial Affairs Pierre Moscovici to state the position of the European Commission on the matter and make it clear whether he supports the restoration of the EU norm in Greece as regards labour relations. He underlined that the group of experts, formed by ESM, IMF, EU, ECB and the Greek government’s unanimous decision, tabled its report in December. The report requested the restoration of the collective negotiations in Greece.
Commissioner Moscovici answered that the European Commission defends the European social model and foresees collective contracts and believes that Greece should be included in this model, adding that “The group of experts’ report is clear. The way we should move is according to the principles of the International Labour Organisation and the European framework.”
The Future of the EU
On Sunday, President of the Hellenic Republic, Prokopis Pavlopoulos voiced his disagreement with the idea of a “multiple-speed Europe,” stressing that Europe needs to protect its unity and that this “does not have speeds.”
President Pavlopoulos noted that Greece’s history had repeatedly shown that “the great and important things we achieved united, while all disunity has resulted in painful injury, striking right to our national core.”
“So now we have an obligation, always with respect for the ideological and political individuality of each of the democratic political forces, to proceed united to deal with the deep crisis for our country and our people,” President Pavlopoulos added.
“Greece’s progress has been defined by an unswerving dedication to the country’s European path, given that this path leads to the defence of both the country and of the entire European edifice, thus by extension to the European ideal “whose roots are by general admission Greek,” he said.
“In this framework I should like to conclude by stressing the following: the best way to honour the 60th year since the start of the European Union, especially with the opportunity of the emblematic summit meeting in Rome on March 25th, is to protect its unity. And sticking to proclamations is not enough,” he said.
At this critical time, the President added, the EU needed real will and bold decisions for the defence of its future. “On this path and in this direction Greece can and must play a leading role — and it will,” he added.
As part of the debate on the future of the European Union, the Prime Minister Alexis Tsipras stressed that “progressive Europe, the trade unions and the social forces, the political terrain of the Left, of Social Democracy and Ecology must seek a new hegemonic role in developments. Let us prevent the weakening of the European policies of cohesion and convergence.”
“In any event, this debate must have at its heart the re-orientation of the European strategy towards development and solidarity. Otherwise, the rift between the European Institutions and European societies will continuously grow, not just in the least, but also in the more economically strong countries.”
Nikos Kotzias offers an Overview
On a visit to Washington, DC last week Nikos Kotzias, the Greek Foreign Minister gave a wide-ranging interview. These are some excerpts.
“In the EU, we have a deficit of leadership. There is not enough democratic discussion on what type of Europe we want for the twenty-first century. The EU has some useful tools, but not all of them are useful for the future. There are many young people going to school and hearing that the EU can sanction nations, then they hear it can impose an embargo on nations, then they hear that Greece is facing austerity. When you see the whole picture, the EU is not so attractive, if it is reduced to only these instruments. This is why we need to discuss the vision of the EU, to focus on our values and democracy. The populist movements are on the rise because this discussion has never taken place.
“A second issue pertains to the multiple crises in the union: Brexit, the eurozone crisis, refugee problems. I believe that these are individual crises, but they all stem from a leadership crisis in the EU. If we tried to create a system based on rules and European values, things would be much better.
Third, the European leadership needs to realize that there are losers in the globalization process. The political forces need to focus more on the problems of the workers, on the concerns of the middle class. The members of the middle class are scared they will lose their jobs and need reassurance and answers. The problem is that politicians are not answering the people’s questions. The longer we delay the answers to the people, the more they will turn to populists or far right groups. We also underestimated the future. We thought the U.S. would decline and that the twenty-first century would be a European century. America is not in decline. Southeast Asia is also rising. Europe is not as important as the Europeans thought it would be, and its leadership is not happy. There is also too much bureaucracy and not enough investment in people, in the Second Machine Age and in the future.”
In response to a question about relations with Russia, specifically his stance on the future of sanctions against Russia, the Minister said “We are taking a decision on sanctions, but that is the easy game. The hard game is to take one essential decision: Does Russia belong within the European security architecture, or is the European security architecture shaped against Russia? Also, is Russia like the Soviet Union? If not, then we need to look at the Helsinki Treaty and rethink things. We need to look in the long term about how to engage with Russia and ask them to decide if they want to be part of the European security architecture. If so, they need to respect the rule of law. I hope America will ask Russia this as well, but at the end of the day, the Russians need to answer that question. My view is that there can be compromise if there is discussion.
On Turkey, he said “Since I became Minister of Foreign Affairs of Greece, I’ve been dealing constantly with issues related to Turkey. There are many political and social contradictions in Turkey, many different religions and many economic contradictions. One side in the Turkish Government seems to be insecure. The other side in the Government is arrogant. This combination of fear and arrogance is making the regime even more nervous. They need though to respect other nations. With regard to the Nazi comments, I must say that the killings that Nazis organized were beyond genocide. It was like an industrial process. That is unique in human history. When you start dealing with every problem with this mentality—that is, calling everyone you don’t like “Nazi”—then you are underestimating what the Nazis did and downgrading their crimes. Very frankly, you are normalizing what they did.
He was asked what he considered to be Germany’s role in the EU at the moment. Did he think Berlin is still too bent on austerity and that its policies are crippling the economies of the south?
He responded: “We have been arguing in the negotiations about the future of the EU since the 1990s about the need to upgrade democracy in the EU and to enhance the role of the European Parliament. After the euro crisis, the parliament lost power to the informal institutions of the EU that are not democratic: the eurozone and the eurogroup. The parliament is not participating in the decision making in these fields, so in reality there is a formal structure that is democratic, and an informal system where the parliament has no power. The structure of power is based on economic, not political or democratic power. Thus, the Germans are the strongest; they have a leadership role and they call for more and more austerity in Greece. They believe that Greece must be punished because of the behaviour of its elites.
The big question is: what do the Germans themselves think? Germans had accumulated a massive debt after both World Wars. After the London Conference in the 1950s, the Americans realized that the creditors and Germans needed to find a compromise. They realized that Germany could only pay back her debt if there was growth. That was a win-win situation. If Germany grows, then creditors can get their money back. Now people talk about how good the German economy is, but forget that they had debt relief by the Americans because of Washington’s good will. Although the Germans committed many crimes during the war, the Americans were generous to them afterwards so that there could be growth.
But the Germans have not been so kind to us and haven’t treated us the way the Americans treated them. Germany does not want growth; they just want to suck Greece dry. Germans are not paying high interest rates for their own loans; there are companies that are getting very low rates in the country. Making it easier only for Germans. Germany is part of the problem since they have interests in the EU, but they fail to think constructively about the common interest of the EU member states.
On a visit to Washington, DC last week Nikos Kotzias, the Greek Foreign Minister gave a wide-ranging interview. These are some excerpts.
“In the EU, we have a deficit of leadership. There is not enough democratic discussion on what type of Europe we want for the twenty-first century. The EU has some useful tools, but not all of them are useful for the future. There are many young people going to school and hearing that the EU can sanction nations, then they hear it can impose an embargo on nations, then they hear that Greece is facing austerity. When you see the whole picture, the EU is not so attractive, if it is reduced to only these instruments. This is why we need to discuss the vision of the EU, to focus on our values and democracy. The populist movements are on the rise because this discussion has never taken place.
“A second issue pertains to the multiple crises in the union: Brexit, the eurozone crisis, refugee problems. I believe that these are individual crises, but they all stem from a leadership crisis in the EU. If we tried to create a system based on rules and European values, things would be much better.
Third, the European leadership needs to realize that there are losers in the globalization process. The political forces need to focus more on the problems of the workers, on the concerns of the middle class. The members of the middle class are scared they will lose their jobs and need reassurance and answers. The problem is that politicians are not answering the people’s questions. The longer we delay the answers to the people, the more they will turn to populists or far right groups. We also underestimated the future. We thought the U.S. would decline and that the twenty-first century would be a European century. America is not in decline. Southeast Asia is also rising. Europe is not as important as the Europeans thought it would be, and its leadership is not happy. There is also too much bureaucracy and not enough investment in people, in the Second Machine Age and in the future.”
In response to a question about relations with Russia, specifically his stance on the future of sanctions against Russia, the Minister said “We are taking a decision on sanctions, but that is the easy game. The hard game is to take one essential decision: Does Russia belong within the European security architecture, or is the European security architecture shaped against Russia? Also, is Russia like the Soviet Union? If not, then we need to look at the Helsinki Treaty and rethink things. We need to look in the long term about how to engage with Russia and ask them to decide if they want to be part of the European security architecture. If so, they need to respect the rule of law. I hope America will ask Russia this as well, but at the end of the day, the Russians need to answer that question. My view is that there can be compromise if there is discussion.
On Turkey, he said “Since I became Minister of Foreign Affairs of Greece, I’ve been dealing constantly with issues related to Turkey. There are many political and social contradictions in Turkey, many different religions and many economic contradictions. One side in the Turkish Government seems to be insecure. The other side in the Government is arrogant. This combination of fear and arrogance is making the regime even more nervous. They need though to respect other nations. With regard to the Nazi comments, I must say that the killings that Nazis organized were beyond genocide. It was like an industrial process. That is unique in human history. When you start dealing with every problem with this mentality—that is, calling everyone you don’t like “Nazi”—then you are underestimating what the Nazis did and downgrading their crimes. Very frankly, you are normalizing what they did.
He was asked what he considered to be Germany’s role in the EU at the moment. Did he think Berlin is still too bent on austerity and that its policies are crippling the economies of the south?
He responded: “We have been arguing in the negotiations about the future of the EU since the 1990s about the need to upgrade democracy in the EU and to enhance the role of the European Parliament. After the euro crisis, the parliament lost power to the informal institutions of the EU that are not democratic: the eurozone and the eurogroup. The parliament is not participating in the decision making in these fields, so in reality there is a formal structure that is democratic, and an informal system where the parliament has no power. The structure of power is based on economic, not political or democratic power. Thus, the Germans are the strongest; they have a leadership role and they call for more and more austerity in Greece. They believe that Greece must be punished because of the behaviour of its elites.
The big question is: what do the Germans themselves think? Germans had accumulated a massive debt after both World Wars. After the London Conference in the 1950s, the Americans realized that the creditors and Germans needed to find a compromise. They realized that Germany could only pay back her debt if there was growth. That was a win-win situation. If Germany grows, then creditors can get their money back. Now people talk about how good the German economy is, but forget that they had debt relief by the Americans because of Washington’s good will. Although the Germans committed many crimes during the war, the Americans were generous to them afterwards so that there could be growth.
But the Germans have not been so kind to us and haven’t treated us the way the Americans treated them. Germany does not want growth; they just want to suck Greece dry. Germans are not paying high interest rates for their own loans; there are companies that are getting very low rates in the country. Making it easier only for Germans. Germany is part of the problem since they have interests in the EU, but they fail to think constructively about the common interest of the EU member states.
Constitutional Review: Citizens invited to complete questionnaire
8.03.2017
In July 2016, Alexis Tsipras, taking the podium in front of three slogans — “A New Constitution” “A New Post-Junta Environment” and “A New Greece,” unveiled his vision for “Greece 2021.” He called for “a wide, open and fruitful dialogue on the Constitution of a new Greece”
On Tuesday Prime Minister Alexis Tsipras addressed the special parliamentary committee, the Committee on the Constitutional Review, which is overseeing the government initiative for a review of the Greek Constitution. The meeting signalled the beginning of the key phase to encourage the participation of citizens in the process including through the Commission’s website http://www.syntagma-dialogos.gov.gr
Participation in the online consultation is through the website of TAXIS NET.
Citizens need to log on through the Taxis Net system to complete the questionnaire, which takes an estimated 20 minutes and covers topics such as institutional reform, transparency and oversight, relations between church and state, collective freedoms and rights, and issues like environment, culture, etc. All information regarding gender, age and place of resident will be used by the committee for statistical purposes and will remain confidential.
Once the public consultation process has been completed, the Committee will be turning to scientific and social representatives from around the country in order to hear their views on the issues.
The Committee is expected to present its recommendations in September.
Constitutional Review: 53 Questions for Citizens
The total estimated time to complete the questionnaire (six modules) is 20 minutes.
“With the online consultation, the Committee on the Constitutional Review looks forward to the participation of society, so breaking the "embargo" that wants the process, namely the revision of the Constitution, to be a subject just for experts and MPs.
After the online consultation, the Commission has planned a consultation with scientific and social institutions nationwide, and in the headquarters of the 13 Regions of the country. Phase 2 of consultation is to be completed in September.
The six thematic sections of the consultation
The public consultation relates to the following thematic areas:
* An Institutional reconstruction of the State and the system’s architecture
* Institutions of transparency, accountability and direct democracy
* The State-Church Relationship
* The rule of law and individual freedoms
* Collective freedoms and social rights
* Matters of public interest, the environment, public spaces, culture
The Questionnaire
The public consultation questionnaire includes fifty-three questions in six thematic sections.
First, the role of the President of the Republic.
For example, whether their election should be by an increased majority of Parliament (as the Constitution has it) or directly by the people without Parliament’s dissolution if the increased majority in it is not achieved. Should scrutiny of the President of the Republic be exercised by Parliament or by the people or by both? Again, what of these powers should be available to the President of the Republic? (there are multiple choice answers) To dissolve Parliament prematurely? To convene the Cabinet? To convene the Council of political leaders? To call a referendum on critical national issues according to his own judgement? To issue proclamations to the people?
Next there are the questions about the role of Parliament. First, about the maximum number of MPs: To stay as stipulated by the current Constitution (300) or to restrict it to 250 or to restrict it to 200? Should Members of the State Council stay as defined by the current Constitution (maximum 15) or should they be increased or should they be removed as an institution? Should expatriate Greeks vote from abroad in national elections and should they be represented by distinct parliamentary seats or should they vote from abroad in national elections without specific representation or should they not vote from abroad? Another theme is the MP's term of Office: Should the Constitution provide for unlimited parliamentary terms (as applies now) or should the parliamentary term be broken up (so an MP may not be elected for more than 2 consecutive terms or should there be an absolute limit to parliamentary terms of office?
In the consultation there is also a matter of incompatibility, as there is a question about whether the Constitution should provide for existing incompatibilities with parliamentary status or the extension of incompatibilities with the parliamentary status or incompatibility with parliamentary and ministerial status.
On the question of parliamentary immunity, the question is put as follows: Should MPs only be prosecuted with the permission of Parliament for any criminal offence or only for political offences or should they be prosecuted without the permission of Parliament for all their criminal acts? Next question is the electoral system: Should the Constitution not provide for any particular form of electoral system or should it provide for the system of proportional representation?
There follows the set of questions about the Government. Should the Prime Minister be: in every case an MP or either an MP or an extra-Parliamentary figure? Also, should it be possible for Parliament in any event to withdraw its confidence from the Government or should it only be able to withdraw its confidence in the Government if it has ensured the selection of a new Prime Minister? Should those competent to hear offences committed by members of the Government be the plenary of the Areopagus or a Special Court (as is currently the case)? Should the criminal prosecution and the normal questioning of members of the Government be exercised in each case by the Supreme Court (without the permission of Parliament) or by the Supreme Court with the permission of Parliament in any case or with the permission of Parliament only for the offences directly related to the exercise of their functions?
In terms of Local and Regional Government, the citizen is asked whether the way the system of elected single representatives and collective bodies of local government at the first and second levels ' 2nd degree should be enshrined in the Constitution or should it be left as the responsibility of the public legislature. May powers that belong to the central State be delegated to the local authorities with their consent or regardless of their consent or with their consent and always with the granting of the corresponding financial resources?
The next set of questions concerns the "Institutions of transparency, accountability and participation of citizens". For example, which types of referenda should be enshrined in the constitution? (There are multiple choice answers)
On the issue of the state funding of political parties, the question is Yes or No. In the event of an affirmative answer, the citizen is invited to clarify whether the financing must cover the total expenditure or only electoral expenditure or a particular programme of social, political, and research activities. Also whether the funding should be proportional to electoral strength or inversely proportional, or equal. Again, whether the funding of political parties is allowed only from named and transparent contributions without financial limit or only from named and transparent contributions with a financial limit or from any private individual or body anonymously and without financial limit. Finally, should the ensuring of transparency and pluralism in the broadcasting media be subject to the exclusive control of the Independent Authorities or is it a matter of concern for all state institutions (Parliament, the Government, Independent Authorities).
Then the questionnaire lists the questions about the relationship of Church and State. Should the Constitution specify the prevailing religion, without producing any adverse consequence to the detriment of other religions or should it not specify the prevailing religion. Should the teaching and the language of texts with religious content lie exclusively within the competence of the organs of the State or should it belong exclusively to the competence of the institutions of the State with the consent of the Greek Orthodox Church and other official religious doctrines. Should the financial auditing and the financial obligations of all the recognized religious denominations be exercised by the organs of the State as well as other legal persons or should it be regulated as defined by the relevant law?
In the chapter on "Individual Freedoms", the question is as follows: should citizens and the institutions of the State be required to swear a political oath (on their honour and reputation) or swear either a political or religious oath or swear a political oath and then afterwards a religious oath according to their religious beliefs? In the organisation and functioning of the Judiciary, should senior judges be chosen by the Council of Ministers as provided for in the current Constitution or should they be elected by the Court itself from among its members or should they be chosen by the Council of Ministers after specific proposals by the Supreme Courts or should they be selected by the President of the Republic after specific proposals by the Supreme Courts?
In the chapter, "Collective Freedoms and Social Rights", these questions are raised: given the legal provision for the safety of the individual, do you believe certain categories of workers should be excluded from the right to strike? Yes or No. If Yes, which men and women from which of the following categories should be forbidden this right? a. conscripts in the armed forces b. those serving in the security forces? c. the Judiciary. Should the right to strike be guaranteed for workers solely for the safeguarding of the immediate economic and labour interests or should it be guaranteed for the preservation of all kinds of their interests? Should the Constitution explicitly prohibit the right to lock-out or should it allow the right to lock-out? Should collective bargaining, collective agreements, their content and, in particular, wages, be explicitly enshrined in the Constitution? Yes or No. Should the political commandeering of services as a measure of dealing with the consequences of the strike be expressly prohibited by the Constitution? Yes or No. Should there be a constitutional provision for the recognition, safeguarding and promotion of social cooperatives and other social economy structures? Yes or No. In addition, which of the following basic social goods and social services do you believe the Constitution should guarantee the universal right of access: (multiple choice answers) a. Water b. Energy c. Shelter d. Education e.Health f. None of the above.
Should Higher Education be provided exclusively by Public Entities or should it be provided by non-profit organisations under the supervision of the State under the same conditions as the public university or should it be provided by any entity without restrictions as to its purpose? Should access to higher education should be free for all fields of study or just for undergraduate studies or for any course of study?
In the last module, the citizen is asked whether they believe the privatisation and management of networks for providing electricity and water should be constitutionally forbidden. Yes or No. Do they believe that the Constitution should include a provision that will bind the State to take measures to protect against the effects of climate change? Yes or No. Do they believe that the absolute claim of the Greek State for the return of antiquities that were removed illegally from the country should be enshrined in the Constitution? Yes or No. To all questions the opportunity is given to reply, "I Don’t Know / I choose not to answer".
Participation in the online consultation is through the website of TAXIS NET.
Citizens need to log on through the Taxis Net system to complete the questionnaire, which takes an estimated 20 minutes and covers topics such as institutional reform, transparency and oversight, relations between church and state, collective freedoms and rights, and issues like environment, culture, etc. All information regarding gender, age and place of resident will be used by the committee for statistical purposes and will remain confidential.
Once the public consultation process has been completed, the Committee will be turning to scientific and social representatives from around the country in order to hear their views on the issues.
The Committee is expected to present its recommendations in September.
Constitutional Review: 53 Questions for Citizens
The total estimated time to complete the questionnaire (six modules) is 20 minutes.
“With the online consultation, the Committee on the Constitutional Review looks forward to the participation of society, so breaking the "embargo" that wants the process, namely the revision of the Constitution, to be a subject just for experts and MPs.
After the online consultation, the Commission has planned a consultation with scientific and social institutions nationwide, and in the headquarters of the 13 Regions of the country. Phase 2 of consultation is to be completed in September.
The six thematic sections of the consultation
The public consultation relates to the following thematic areas:
* An Institutional reconstruction of the State and the system’s architecture
* Institutions of transparency, accountability and direct democracy
* The State-Church Relationship
* The rule of law and individual freedoms
* Collective freedoms and social rights
* Matters of public interest, the environment, public spaces, culture
The Questionnaire
The public consultation questionnaire includes fifty-three questions in six thematic sections.
First, the role of the President of the Republic.
For example, whether their election should be by an increased majority of Parliament (as the Constitution has it) or directly by the people without Parliament’s dissolution if the increased majority in it is not achieved. Should scrutiny of the President of the Republic be exercised by Parliament or by the people or by both? Again, what of these powers should be available to the President of the Republic? (there are multiple choice answers) To dissolve Parliament prematurely? To convene the Cabinet? To convene the Council of political leaders? To call a referendum on critical national issues according to his own judgement? To issue proclamations to the people?
Next there are the questions about the role of Parliament. First, about the maximum number of MPs: To stay as stipulated by the current Constitution (300) or to restrict it to 250 or to restrict it to 200? Should Members of the State Council stay as defined by the current Constitution (maximum 15) or should they be increased or should they be removed as an institution? Should expatriate Greeks vote from abroad in national elections and should they be represented by distinct parliamentary seats or should they vote from abroad in national elections without specific representation or should they not vote from abroad? Another theme is the MP's term of Office: Should the Constitution provide for unlimited parliamentary terms (as applies now) or should the parliamentary term be broken up (so an MP may not be elected for more than 2 consecutive terms or should there be an absolute limit to parliamentary terms of office?
In the consultation there is also a matter of incompatibility, as there is a question about whether the Constitution should provide for existing incompatibilities with parliamentary status or the extension of incompatibilities with the parliamentary status or incompatibility with parliamentary and ministerial status.
On the question of parliamentary immunity, the question is put as follows: Should MPs only be prosecuted with the permission of Parliament for any criminal offence or only for political offences or should they be prosecuted without the permission of Parliament for all their criminal acts? Next question is the electoral system: Should the Constitution not provide for any particular form of electoral system or should it provide for the system of proportional representation?
There follows the set of questions about the Government. Should the Prime Minister be: in every case an MP or either an MP or an extra-Parliamentary figure? Also, should it be possible for Parliament in any event to withdraw its confidence from the Government or should it only be able to withdraw its confidence in the Government if it has ensured the selection of a new Prime Minister? Should those competent to hear offences committed by members of the Government be the plenary of the Areopagus or a Special Court (as is currently the case)? Should the criminal prosecution and the normal questioning of members of the Government be exercised in each case by the Supreme Court (without the permission of Parliament) or by the Supreme Court with the permission of Parliament in any case or with the permission of Parliament only for the offences directly related to the exercise of their functions?
In terms of Local and Regional Government, the citizen is asked whether the way the system of elected single representatives and collective bodies of local government at the first and second levels ' 2nd degree should be enshrined in the Constitution or should it be left as the responsibility of the public legislature. May powers that belong to the central State be delegated to the local authorities with their consent or regardless of their consent or with their consent and always with the granting of the corresponding financial resources?
The next set of questions concerns the "Institutions of transparency, accountability and participation of citizens". For example, which types of referenda should be enshrined in the constitution? (There are multiple choice answers)
On the issue of the state funding of political parties, the question is Yes or No. In the event of an affirmative answer, the citizen is invited to clarify whether the financing must cover the total expenditure or only electoral expenditure or a particular programme of social, political, and research activities. Also whether the funding should be proportional to electoral strength or inversely proportional, or equal. Again, whether the funding of political parties is allowed only from named and transparent contributions without financial limit or only from named and transparent contributions with a financial limit or from any private individual or body anonymously and without financial limit. Finally, should the ensuring of transparency and pluralism in the broadcasting media be subject to the exclusive control of the Independent Authorities or is it a matter of concern for all state institutions (Parliament, the Government, Independent Authorities).
Then the questionnaire lists the questions about the relationship of Church and State. Should the Constitution specify the prevailing religion, without producing any adverse consequence to the detriment of other religions or should it not specify the prevailing religion. Should the teaching and the language of texts with religious content lie exclusively within the competence of the organs of the State or should it belong exclusively to the competence of the institutions of the State with the consent of the Greek Orthodox Church and other official religious doctrines. Should the financial auditing and the financial obligations of all the recognized religious denominations be exercised by the organs of the State as well as other legal persons or should it be regulated as defined by the relevant law?
In the chapter on "Individual Freedoms", the question is as follows: should citizens and the institutions of the State be required to swear a political oath (on their honour and reputation) or swear either a political or religious oath or swear a political oath and then afterwards a religious oath according to their religious beliefs? In the organisation and functioning of the Judiciary, should senior judges be chosen by the Council of Ministers as provided for in the current Constitution or should they be elected by the Court itself from among its members or should they be chosen by the Council of Ministers after specific proposals by the Supreme Courts or should they be selected by the President of the Republic after specific proposals by the Supreme Courts?
In the chapter, "Collective Freedoms and Social Rights", these questions are raised: given the legal provision for the safety of the individual, do you believe certain categories of workers should be excluded from the right to strike? Yes or No. If Yes, which men and women from which of the following categories should be forbidden this right? a. conscripts in the armed forces b. those serving in the security forces? c. the Judiciary. Should the right to strike be guaranteed for workers solely for the safeguarding of the immediate economic and labour interests or should it be guaranteed for the preservation of all kinds of their interests? Should the Constitution explicitly prohibit the right to lock-out or should it allow the right to lock-out? Should collective bargaining, collective agreements, their content and, in particular, wages, be explicitly enshrined in the Constitution? Yes or No. Should the political commandeering of services as a measure of dealing with the consequences of the strike be expressly prohibited by the Constitution? Yes or No. Should there be a constitutional provision for the recognition, safeguarding and promotion of social cooperatives and other social economy structures? Yes or No. In addition, which of the following basic social goods and social services do you believe the Constitution should guarantee the universal right of access: (multiple choice answers) a. Water b. Energy c. Shelter d. Education e.Health f. None of the above.
Should Higher Education be provided exclusively by Public Entities or should it be provided by non-profit organisations under the supervision of the State under the same conditions as the public university or should it be provided by any entity without restrictions as to its purpose? Should access to higher education should be free for all fields of study or just for undergraduate studies or for any course of study?
In the last module, the citizen is asked whether they believe the privatisation and management of networks for providing electricity and water should be constitutionally forbidden. Yes or No. Do they believe that the Constitution should include a provision that will bind the State to take measures to protect against the effects of climate change? Yes or No. Do they believe that the absolute claim of the Greek State for the return of antiquities that were removed illegally from the country should be enshrined in the Constitution? Yes or No. To all questions the opportunity is given to reply, "I Don’t Know / I choose not to answer".
“In a year from now, everyone will be able to discern which parties and which Governments put the country on the adventure of the Memoranda and which Government is the one that has managed to pull it out.”
“We are not just negotiating the completion of the Second Assessment but also how we will reach a comprehensive agreement that will mark the prospect of Greece’s definitive exit from the programmes of Trusteeship and the removal of its sovereignty”
“We are closer than ever" to the prospect of Greece's discharge from the regime of Trusteeship, stressed the Prime Minister Alexis Tsipras, in a newspaper interview.
“We are not simply negotiating the completion of the Second Assessment but also how we can reach a comprehensive agreement that includes the necessary debt relief measures that will make the debt viable and will pave the way for the inclusion of Greece in the ECB's quantitative easing programme.
“The great issue of the age is the bypassing of the will of the people through the mechanism of the economic Trusteeship of the country. And this mechanism in its basic concept is very simple: Borrowing in exchange for reforms, otherwise bankruptcy. Even when this rhetoric is downplayed on the part of the Lenders, the threat is always real even though it is dormant. Therefore our big objective cannot be other than deliverance from this regime of Trusteeship. And we are now closer than ever before to such a prospect.”
“Our job is to do everything in our power to conclude the Second Assessment as soon as possible and in the best possible way for the Greek economy and Greek society. However in my opinion a political association has been formed which understandably makes us feel that, especially after the agreement in principle of 20th February, things have gone in a positive direction. Everyone understands that the progress of the Greek economy must not be halted by further delays. At this moment nobody wants a hitch in the negotiations, neither by the Institutions nor by the Member States of the Eurozone ".
Making reference to the balance of measures and countermeasures, he noted that "the compromise that we have accepted is socially sustainable. And this means that for each euro of burden there will be corresponding relief, always provided that in 2018 we will have managed to achieve the agreed objectives, which today seems certain given the course of the Greek economy and the positive projections of everyone. Our goal is for the positive measures agreed upon to be targeted just at those social groups that are bearing the burdens. It is of course a difficult exercise but I think we have the technical ability to get very close to that goal. '
Prime Minister Alexis Tsipras underlined the great goal of this Government, which is none other than the reduction of unemployment. After referring to the policies which “were favoured by the previous Governments of PASOK and New Democracy which have led to today’s salaries of 200€ and 300€ but which also have led to a rapid increase in part-time employment,” the Prime Minister focused on the policy of this Government: “In these negotiations but also in the future, we will continue to fight to reverse this course. Because we know very well that an incentive for new investment and a reduction in unemployment - which is the great goal – cannot be the reduction of labour costs, the unaccountability of employers, the lack of an institutional framework for the protection of labour, the abolition of trade union rights of workers, the eventual conversion of the country into a “Special Economic Zone”.
In the interview PM Tsipras also takes stock of the Government project. So, although "at some point we need to discuss that what this means for democracy in a country within a Programme is that it is a form of suspension of popular sovereignty", nevertheless: "This does not mean that there that there are no possibilities for the exercise of policy and given the budget constraints, nor that we are not making tremendous efforts which are certainly getting results. I am talking about health, education, the fight against corruption, the protection of the weak, combating extreme poverty, the enhancement of individual rights. I remind you about the Government initiatives to give access to the national health service to 2.5 million uninsured people, the recruitment of medical and nursing staff, the support of schools and the recruitment of teachers, combating major fraud and the disclosure of major scandals that have taken the road to Justice (KEELPNO, Novartis), the 13th pension, the programmes for combating the humanitarian crisis, the upgraded programmes for tackling unemployment, the cohabitation for same-sex couples, the law on nationality for second-generation immigrants. And there are many smaller and bigger problems that we are trying every day to solve given the chronic pathologies of the Greek administrative machine,”
The Prime Minister's belief is that "the restoration of normality, the end of trusteeship, will gradually restore the traditional base-line of political confrontation: Right versus Left”.
However, I think, it is very superficial the approach of those who believe that because we too were forced to implement a Memorandum, we are the same. No we're not the same. We did not take bribes from weapon sales. We were not on the "black" payrolls of Siemens. We did not participate in the party of squandering public money in KELPNO or in the case of Novartis, at the time when wages and pensions fell by half. You know we're not from the aristocracy. Nor do we think the people are agents or our servants. We are part of the people and not part of the elite. And this difference everyone understands. Even those who disagree with us, recognize our honesty and our intentions. For this, and despite the daily and unprecedented propaganda of the media system, the world is not taking the bait.
“In a year from now, everyone will be able to discern which parties and which Governments put the country on the adventure of the Memoranda and which Government is one that has managed to pull it out.”
“We are not just negotiating the completion of the Second Assessment but also how we will reach a comprehensive agreement that will mark the prospect of Greece’s definitive exit from the programmes of Trusteeship and the removal of its sovereignty”
“We are closer than ever" to the prospect of Greece's discharge from the regime of Trusteeship, stressed the Prime Minister Alexis Tsipras, in a newspaper interview.
“We are not simply negotiating the completion of the Second Assessment but also how we can reach a comprehensive agreement that includes the necessary debt relief measures that will make the debt viable and will pave the way for the inclusion of Greece in the ECB's quantitative easing programme.
“The great issue of the age is the bypassing of the will of the people through the mechanism of the economic Trusteeship of the country. And this mechanism in its basic concept is very simple: Borrowing in exchange for reforms, otherwise bankruptcy. Even when this rhetoric is downplayed on the part of the Lenders, the threat is always real even though it is dormant. Therefore our big objective cannot be other than deliverance from this regime of Trusteeship. And we are now closer than ever before to such a prospect.”
“Our job is to do everything in our power to conclude the Second Assessment as soon as possible and in the best possible way for the Greek economy and Greek society. However in my opinion a political association has been formed which understandably makes us feel that, especially after the agreement in principle of 20th February, things have gone in a positive direction. Everyone understands that the progress of the Greek economy must not be halted by further delays. At this moment nobody wants a hitch in the negotiations, neither by the Institutions nor by the Member States of the Eurozone ".
Making reference to the balance of measures and countermeasures, he noted that "the compromise that we have accepted is socially sustainable. And this means that for each euro of burden there will be corresponding relief, always provided that in 2018 we will have managed to achieve the agreed objectives, which today seems certain given the course of the Greek economy and the positive projections of everyone. Our goal is for the positive measures agreed upon to be targeted just at those social groups that are bearing the burdens. It is of course a difficult exercise but I think we have the technical ability to get very close to that goal. '
Prime Minister Alexis Tsipras underlined the great goal of this Government, which is none other than the reduction of unemployment. After referring to the policies which “were favoured by the previous Governments of PASOK and New Democracy which have led to today’s salaries of 200€ and 300€ but which also have led to a rapid increase in part-time employment,” the Prime Minister focused on the policy of this Government: “In these negotiations but also in the future, we will continue to fight to reverse this course. Because we know very well that an incentive for new investment and a reduction in unemployment - which is the great goal – cannot be the reduction of labour costs, the unaccountability of employers, the lack of an institutional framework for the protection of labour, the abolition of trade union rights of workers, the eventual conversion of the country into a “Special Economic Zone”.
In the interview PM Tsipras also takes stock of the Government project. So, although "at some point we need to discuss that what this means for democracy in a country within a Programme is that it is a form of suspension of popular sovereignty", nevertheless: "This does not mean that there that there are no possibilities for the exercise of policy and given the budget constraints, nor that we are not making tremendous efforts which are certainly getting results. I am talking about health, education, the fight against corruption, the protection of the weak, combating extreme poverty, the enhancement of individual rights. I remind you about the Government initiatives to give access to the national health service to 2.5 million uninsured people, the recruitment of medical and nursing staff, the support of schools and the recruitment of teachers, combating major fraud and the disclosure of major scandals that have taken the road to Justice (KEELPNO, Novartis), the 13th pension, the programmes for combating the humanitarian crisis, the upgraded programmes for tackling unemployment, the cohabitation for same-sex couples, the law on nationality for second-generation immigrants. And there are many smaller and bigger problems that we are trying every day to solve given the chronic pathologies of the Greek administrative machine,”
The Prime Minister's belief is that "the restoration of normality, the end of trusteeship, will gradually restore the traditional base-line of political confrontation: Right versus Left”.
However, I think, it is very superficial the approach of those who believe that because we too were forced to implement a Memorandum, we are the same. No we're not the same. We did not take bribes from weapon sales. We were not on the "black" payrolls of Siemens. We did not participate in the party of squandering public money in KELPNO or in the case of Novartis, at the time when wages and pensions fell by half. You know we're not from the aristocracy. Nor do we think the people are agents or our servants. We are part of the people and not part of the elite. And this difference everyone understands. Even those who disagree with us, recognize our honesty and our intentions. For this, and despite the daily and unprecedented propaganda of the media system, the world is not taking the bait.
“In a year from now, everyone will be able to discern which parties and which Governments put the country on the adventure of the Memoranda and which Government is one that has managed to pull it out.”
Future of the EU
On Wednesday March 1st, the European Commission published a White Paper on the future of Europe that is the Commission's contribution to the Summit of Rome of 25th March 2017. Introducing the White Paper to the plenary of the European Parliament, in Brussels, Chairman Jean-Claude Juncker presented five scenarios for the way in which the EU could be developed between now and 2025, depending on the choices made.
On Monday the leaders of France, Germany, Spain and Italy, after the mini Summit at Versailles, were arguing in favour of a multi-speed Europe.
"Unity does not mean uniformity," stressed French President Francois Hollande before the meeting attended by German Chancellor Angela Merkel, Marian Rajoy PM Spain and Paolo Gentiloni PM Italy at Versailles. The French President went on "certain countries could proceed faster and stronger"
"That is why I am in favour of the existence of new forms of cooperation, in favour of new projects, in favour of what we call “differentiated cooperation”, explained the French President.
"That way," he continued, "some countries could move faster and farther in areas such as defence, the Eurozone through the deepening of economic and monetary union, such as fiscal and social harmonisation, such as the culture."
Some countries could "go faster and stronger without the others being excluded and without them being able to object," explained President Hollande.
According to Angela Merkel, Europeans should "have the courage to accept that some countries are progressing faster than others." She added that does this does not close the road “for those which have been delayed.” “But it must be possible for us to move forward,” she noted.
“We need a social Europe, which is aimed at investment and development, which offers answers to anyone who is left behind. We haven't yet reached that level,” added Paulo Gentiloni, at the end of the meeting.
“Progress is needed on common defence,” he continued, “to protect our security,” adding that "France, Italy, Germany and Spain agree".
The Italian Prime Minister has advocated "an EU with greater integration and different levels of integration" with the rationale that "Member States may have different aspirations and the Union has to offer, to those different aspirations, different answers. Keeping, of course, the single project.”
He said that at the session on the anniversary of the Treaties of Rome, on 25th March, the Union will start again - from the European people ". Finally, he called on all 27 Member States to make their own choices, within the framework of the Commission's White Paper, without those choices we risk endangering the very future of the European project ".
Spanish PM, Mariano Rajoy, said simply that “Spain is prepared to proceed to integration with all those who will want to pursue it.”
*****
This link will take you to an article by Paul Mason in which he puts forward some ideas for a sixth option https://www.socialeurope.eu/2017/03/option-six-a-europe-of-democracy-and-social-justice/
On Wednesday March 1st, the European Commission published a White Paper on the future of Europe that is the Commission's contribution to the Summit of Rome of 25th March 2017. Introducing the White Paper to the plenary of the European Parliament, in Brussels, Chairman Jean-Claude Juncker presented five scenarios for the way in which the EU could be developed between now and 2025, depending on the choices made.
On Monday the leaders of France, Germany, Spain and Italy, after the mini Summit at Versailles, were arguing in favour of a multi-speed Europe.
"Unity does not mean uniformity," stressed French President Francois Hollande before the meeting attended by German Chancellor Angela Merkel, Marian Rajoy PM Spain and Paolo Gentiloni PM Italy at Versailles. The French President went on "certain countries could proceed faster and stronger"
"That is why I am in favour of the existence of new forms of cooperation, in favour of new projects, in favour of what we call “differentiated cooperation”, explained the French President.
"That way," he continued, "some countries could move faster and farther in areas such as defence, the Eurozone through the deepening of economic and monetary union, such as fiscal and social harmonisation, such as the culture."
Some countries could "go faster and stronger without the others being excluded and without them being able to object," explained President Hollande.
According to Angela Merkel, Europeans should "have the courage to accept that some countries are progressing faster than others." She added that does this does not close the road “for those which have been delayed.” “But it must be possible for us to move forward,” she noted.
“We need a social Europe, which is aimed at investment and development, which offers answers to anyone who is left behind. We haven't yet reached that level,” added Paulo Gentiloni, at the end of the meeting.
“Progress is needed on common defence,” he continued, “to protect our security,” adding that "France, Italy, Germany and Spain agree".
The Italian Prime Minister has advocated "an EU with greater integration and different levels of integration" with the rationale that "Member States may have different aspirations and the Union has to offer, to those different aspirations, different answers. Keeping, of course, the single project.”
He said that at the session on the anniversary of the Treaties of Rome, on 25th March, the Union will start again - from the European people ". Finally, he called on all 27 Member States to make their own choices, within the framework of the Commission's White Paper, without those choices we risk endangering the very future of the European project ".
Spanish PM, Mariano Rajoy, said simply that “Spain is prepared to proceed to integration with all those who will want to pursue it.”
*****
This link will take you to an article by Paul Mason in which he puts forward some ideas for a sixth option https://www.socialeurope.eu/2017/03/option-six-a-europe-of-democracy-and-social-justice/
Institutions
return to Athens
4.3.2017
On Tuesday, at the first day of negotiations on the Second Assessment, the Greek side was represented by Minister of Finance Euclid Tsakalotos and Deputy Minister Giorgos Chouliarakis, Labour Minister Efi Achtsioglou, Environment and Energy Minister Giorgos Stathakis and Economy and Development Minister Dimitris Papadimitriou. The meetings ended at 10 pm. The Ministers left without making any comments to the press.
Creditors are reported to have asked for new austerity measures of as much as 2% of gross domestic product to come into force in 2019 if Greece misses its budget targets. The Greek Government believes that this number could fall to between 1.7% and 1.8% because of an improved budget performance in 2016 and its carry-over effect for the coming years.
The IMF is reported to be demanding the legislation of 3.6€ billion worth of austerity measures. It is reported that pension cuts were demanded by IMF envoy Delia Velculescu, further reducing the national pension. The 3.6€ billion are expected to be raised by pension cuts (1.8€ bln) and by reducing the tax-free threshold (1.8€ bln). All these measures need to be pre-legislated. Parliament will vote on them now and they will come into effect from January 1st, 2019.
Greek Prime Minister Alexis Tsipras’ Government last Monday agreed to legislate on the structural reforms demanded by the IMF that will lower the threshold of tax-free income and amend the pension system by 2019. The Government says the deal won’t increase austerity since the new legislation will include stimulus measures in addition to the “reforms”.
"Some may lose, of course, but some will gain. That is to say, some who we are not currently helping, who need our help, we will help. Some may lose, we will do everything we can in the negotiations to limit what they lose and get something in compensation" Minister Tsakalotos said, emphasising that the package had not been finalized. "We never said that the tax system over the last 40 years was the best possible. We never said that through the system of patronage we had reached a social system, nor that its restructuring was the best outcome and so we are always open to discussion, now that there will be zero financial impact [on citizens. Ed.], but we will have restructuring."
Regarding the Public Holding Company (EDIS), creditors pointed to a delay in the appointment of the Board and the evaluation of the assets of the 11 public utility companies that EDIS will be managing.
Furthermore, the Finance Minister was criticized for the delay in the establishment and operation of the Privatisation Fund, since there is still no board appointed or rules and procedures set, while there is still no discussion of the properties and relations of the four companies (HRADF, FSF, ETAS, EDIS) the super fund will be managing.
Also, the Lenders are seeking the immediate sale of 17% of the Public Power Corporation (DEH) and the acceleration by the end of March of the sale of another part of the power grid (ADMIE) until 24% of it is privatised.
At a press briefing on Thursday government spokesman Dimitris Tzanakopoulos stated “At this particular phase of the negotiation at a technical level, it is necessary for all sides to be cautious regarding the information they leak to the press. The negotiation should take place in the “battlefield” and not through leaks that cause confusion to the Greek citizens.” Moreover, he said that reforms of 2% of GDP are being examined. Regarding the measures to be implemented as of 2019, he said that there will be no fiscal impact. The aim of the Government is to take the country out of the Memoranda.”
On Friday it was reported that Greece has requested a loan from the World Bank.
“The Government of Greece has asked the World Bank to provide technical and financial assistance to address pressing challenges including: long-term unemployment, economic competitiveness and growth and social protection,” a spokesperson from the World Bank reported.
“In accordance with World Bank procedures, any final decision on providing loans would be subject to approval by the bank’s board of executive directors.” The World Bank declined to specify how much money Greece is purported to have requested.
The World Bank (WB) is a component of the World Bank Group, which is part of the United Nations. It provides loans to developing countries for capital programmes. It comprises two institutions: the International Bank for Reconstruction and Development (IBRD), and the International Development Association (IDA).
The World Bank’s stated official goal is the reduction of poverty. According to its Articles of Agreement, all its decisions must be guided by a commitment to the promotion of foreign investment and international trade and to the facilitation of capital investment.
The IMF is reported to be demanding the legislation of 3.6€ billion worth of austerity measures. It is reported that pension cuts were demanded by IMF envoy Delia Velculescu, further reducing the national pension. The 3.6€ billion are expected to be raised by pension cuts (1.8€ bln) and by reducing the tax-free threshold (1.8€ bln). All these measures need to be pre-legislated. Parliament will vote on them now and they will come into effect from January 1st, 2019.
Greek Prime Minister Alexis Tsipras’ Government last Monday agreed to legislate on the structural reforms demanded by the IMF that will lower the threshold of tax-free income and amend the pension system by 2019. The Government says the deal won’t increase austerity since the new legislation will include stimulus measures in addition to the “reforms”.
"Some may lose, of course, but some will gain. That is to say, some who we are not currently helping, who need our help, we will help. Some may lose, we will do everything we can in the negotiations to limit what they lose and get something in compensation" Minister Tsakalotos said, emphasising that the package had not been finalized. "We never said that the tax system over the last 40 years was the best possible. We never said that through the system of patronage we had reached a social system, nor that its restructuring was the best outcome and so we are always open to discussion, now that there will be zero financial impact [on citizens. Ed.], but we will have restructuring."
Regarding the Public Holding Company (EDIS), creditors pointed to a delay in the appointment of the Board and the evaluation of the assets of the 11 public utility companies that EDIS will be managing.
Furthermore, the Finance Minister was criticized for the delay in the establishment and operation of the Privatisation Fund, since there is still no board appointed or rules and procedures set, while there is still no discussion of the properties and relations of the four companies (HRADF, FSF, ETAS, EDIS) the super fund will be managing.
Also, the Lenders are seeking the immediate sale of 17% of the Public Power Corporation (DEH) and the acceleration by the end of March of the sale of another part of the power grid (ADMIE) until 24% of it is privatised.
At a press briefing on Thursday government spokesman Dimitris Tzanakopoulos stated “At this particular phase of the negotiation at a technical level, it is necessary for all sides to be cautious regarding the information they leak to the press. The negotiation should take place in the “battlefield” and not through leaks that cause confusion to the Greek citizens.” Moreover, he said that reforms of 2% of GDP are being examined. Regarding the measures to be implemented as of 2019, he said that there will be no fiscal impact. The aim of the Government is to take the country out of the Memoranda.”
On Friday it was reported that Greece has requested a loan from the World Bank.
“The Government of Greece has asked the World Bank to provide technical and financial assistance to address pressing challenges including: long-term unemployment, economic competitiveness and growth and social protection,” a spokesperson from the World Bank reported.
“In accordance with World Bank procedures, any final decision on providing loans would be subject to approval by the bank’s board of executive directors.” The World Bank declined to specify how much money Greece is purported to have requested.
The World Bank (WB) is a component of the World Bank Group, which is part of the United Nations. It provides loans to developing countries for capital programmes. It comprises two institutions: the International Bank for Reconstruction and Development (IBRD), and the International Development Association (IDA).
The World Bank’s stated official goal is the reduction of poverty. According to its Articles of Agreement, all its decisions must be guided by a commitment to the promotion of foreign investment and international trade and to the facilitation of capital investment.
Commission presents White Paper on the future of Europe: Avenues for unity for the EU of 27
On Wednesday March 1st, the European Commission published a White Paper on the future of Europe that is the Commission's contribution to the Summit of Rome of 25th March 2017.
The EU Press Statement states “The White Paper looks at how Europe will change in the next decade, from the impact of new technologies on society and jobs, to doubts about globalisation, security concerns and the rise of populism. It spells out the choice we face: being swept along by those trends, or embracing them and seizing the new opportunities they bring. Europe's population and economic weight is falling as other parts of the world grow. By 2060, none of our Member States will account for even 1% of the world's population – a compelling reason for sticking together to achieve more. A positive global force, Europe's prosperity will continue to depend on its openness and strong links with its partners” and goes on to set the background:
“Sixty years ago, inspired by a dream of a peaceful, common future, the EU's founding members embarked on an ambitious journey of European integration, with the signing of the Treaties of Rome. They agreed to settle their conflicts around a table rather than in battlefields. As a result, the painful experience of Europe's troubled past has given way to a peace spanning seven decades and to a Union of 500 million citizens living in freedom and opportunity in one of the world's most prosperous economies.
The 60th anniversary of the Treaties of Rome on 25 March 2017 will be an important occasion for EU27 leaders to reflect on the state of play of our European project, to consider its achievements and strengths as well as areas for further improvement, and to show common resolve to shape a stronger future together at 27.”
Introducing the White Paper to the plenary of the European Parliament, in Brussels, Chairman Jean-Claude Juncker presented five scenarios for the way in which the EU could be developed between now and 2025, depending on the choices made.
The scenarios cover a range of possibilities and are indicative. "They are neither mutually exclusive nor are they the only ones possible."
These scenarios presented are the following:
* Scenario 1: "we continue as usual"- the EU 27 to focus its attention on the successful completion of the programme of positive reforms in the spirit of the guidelines of the Commission and of the Declaration which was signed by all 27 States in 2016 in Bratislava.
* Scenario 2: "Nothing beyond the single market"- the EU of 27 to concentrate once more step by step on the single market, as the 27 Member States are not successful in finding common ground on more and more policy areas.
* Scenario 3: "those who want more to do more"- the EU of 27 proceeds like today, but allows those Member States who wish to develop more action in specific areas, such as defence, internal security or social issues to do so. One or more "alliances of willing States" could be formed."
* Scenario 4: "Doing less more efficiently"- the European Union focuses on achieving better and faster results in selected policy areas, doing less in areas where it is considered that there is no added value. The interest and the limited resources to be focused on selected policy areas.
* Scenario 5: "Do a lot more together"- Member States decide to share more responsibilities, resources and decision-making in all policy areas. Decisions are to be adopted more rapidly at the European level and also to be implemented more quickly.
Finally the President of the European Commission in a written statement said:
"60 years ago, the founding fathers of Europe chose to unite the continent using the force of law in place of the force of arms. We can be proud of what we have accomplished since then. Even our bleakest day in 2017 will continue to be much brighter than any day our ancestors had on the battlefield. As we celebrate the 60th anniversary of the Treaties of Rome, it is time for the united Europe of 27 to shape a vision for its future. It is time for leadership, unity and a common resolve. The Commission’s White Paper presents a series of different routes which this united European Union of 27 could choose to follow. It is the beginning of the process, not the end, and I hope that we will now conduct an honest and wide-ranging dialogue. The form of the dialogue must correspond to the work. We hold the future of Europe in our hands."
President Juncker's State of the Union speech in September 2017 will take these ideas forward before first conclusions could be drawn at the December 2017 European Council. This will help to decide on a course of action to be rolled out in time for the European Parliament elections in June 2019.
Prime Minister Tsipras said “The 60th anniversary of the Rome Treaty finds Europe facing serious dangers, such as euroscepticism, which is largely in due to the fact that the EU has stopped being attractive to its citizens because of the austerity policies. On the other hand there is a democratic deficit and citizens don’t feel they are participating in political developments.
“If these concerns are not taken into account, Europe will be left watching developments and the powers of euroscepticism will take the lead.
“The anniversary must not be commemorative, but one of reflection and redefinition of the direction that will make the European project attractive to its citizens again.”
On Wednesday March 1st, the European Commission published a White Paper on the future of Europe that is the Commission's contribution to the Summit of Rome of 25th March 2017.
The EU Press Statement states “The White Paper looks at how Europe will change in the next decade, from the impact of new technologies on society and jobs, to doubts about globalisation, security concerns and the rise of populism. It spells out the choice we face: being swept along by those trends, or embracing them and seizing the new opportunities they bring. Europe's population and economic weight is falling as other parts of the world grow. By 2060, none of our Member States will account for even 1% of the world's population – a compelling reason for sticking together to achieve more. A positive global force, Europe's prosperity will continue to depend on its openness and strong links with its partners” and goes on to set the background:
“Sixty years ago, inspired by a dream of a peaceful, common future, the EU's founding members embarked on an ambitious journey of European integration, with the signing of the Treaties of Rome. They agreed to settle their conflicts around a table rather than in battlefields. As a result, the painful experience of Europe's troubled past has given way to a peace spanning seven decades and to a Union of 500 million citizens living in freedom and opportunity in one of the world's most prosperous economies.
The 60th anniversary of the Treaties of Rome on 25 March 2017 will be an important occasion for EU27 leaders to reflect on the state of play of our European project, to consider its achievements and strengths as well as areas for further improvement, and to show common resolve to shape a stronger future together at 27.”
Introducing the White Paper to the plenary of the European Parliament, in Brussels, Chairman Jean-Claude Juncker presented five scenarios for the way in which the EU could be developed between now and 2025, depending on the choices made.
The scenarios cover a range of possibilities and are indicative. "They are neither mutually exclusive nor are they the only ones possible."
These scenarios presented are the following:
* Scenario 1: "we continue as usual"- the EU 27 to focus its attention on the successful completion of the programme of positive reforms in the spirit of the guidelines of the Commission and of the Declaration which was signed by all 27 States in 2016 in Bratislava.
* Scenario 2: "Nothing beyond the single market"- the EU of 27 to concentrate once more step by step on the single market, as the 27 Member States are not successful in finding common ground on more and more policy areas.
* Scenario 3: "those who want more to do more"- the EU of 27 proceeds like today, but allows those Member States who wish to develop more action in specific areas, such as defence, internal security or social issues to do so. One or more "alliances of willing States" could be formed."
* Scenario 4: "Doing less more efficiently"- the European Union focuses on achieving better and faster results in selected policy areas, doing less in areas where it is considered that there is no added value. The interest and the limited resources to be focused on selected policy areas.
* Scenario 5: "Do a lot more together"- Member States decide to share more responsibilities, resources and decision-making in all policy areas. Decisions are to be adopted more rapidly at the European level and also to be implemented more quickly.
Finally the President of the European Commission in a written statement said:
"60 years ago, the founding fathers of Europe chose to unite the continent using the force of law in place of the force of arms. We can be proud of what we have accomplished since then. Even our bleakest day in 2017 will continue to be much brighter than any day our ancestors had on the battlefield. As we celebrate the 60th anniversary of the Treaties of Rome, it is time for the united Europe of 27 to shape a vision for its future. It is time for leadership, unity and a common resolve. The Commission’s White Paper presents a series of different routes which this united European Union of 27 could choose to follow. It is the beginning of the process, not the end, and I hope that we will now conduct an honest and wide-ranging dialogue. The form of the dialogue must correspond to the work. We hold the future of Europe in our hands."
President Juncker's State of the Union speech in September 2017 will take these ideas forward before first conclusions could be drawn at the December 2017 European Council. This will help to decide on a course of action to be rolled out in time for the European Parliament elections in June 2019.
Prime Minister Tsipras said “The 60th anniversary of the Rome Treaty finds Europe facing serious dangers, such as euroscepticism, which is largely in due to the fact that the EU has stopped being attractive to its citizens because of the austerity policies. On the other hand there is a democratic deficit and citizens don’t feel they are participating in political developments.
“If these concerns are not taken into account, Europe will be left watching developments and the powers of euroscepticism will take the lead.
“The anniversary must not be commemorative, but one of reflection and redefinition of the direction that will make the European project attractive to its citizens again.”
The Agreement -
“an honourable compromise”
25.02.2017
At Monday’s Eurogroup meeting in Brussels, there was no “political agreement” to conclude the Second Assessment. Instead, the agreement focussed on the pre-conditions for the Institutions’ Technical Team to return to Athens early next week. By agreeing on a set of additional reforms to improve the country’s economic performance, without increasing taxes or requiring further budget cuts, the lenders and Greece agreed on a way forward in the negotiation.
President of the Eurogroup, Jeroen Dijsselbloem announced the return of the Technical Team to Athens in the coming days with a view to reaching an agreement on a technical level (Staff Level Agreement) for a new package of reforms covering the tax, pensions and the labour market. He confirmed that the agreement was reached on the basis of shifting the emphasis from the economic policies of austerity in the direction of deep structural reforms.
In April 2019, Eurostat will announce its report on the Greek economy for 2018. If the primary surplus posted is below the 3.5% target the “fiscal cutter” will kick in, bringing in the new measures.
He explained that Greece has made considerable progress in consolidating public finances and no longer has need of “substantive policies of austerity but now required structural reforms that would ensure their sustainability and support the recovery and satisfy the demands of the IMF.”
Economic Affairs Commissioner Pierre Moscovici reiterated after the Eurogroup meeting that Greece “significantly over performed” its fiscal targets.
If the fiscal surplus of at least 2% of GDP registered in 2016 is confirmed by Eurostat in April, the country will have not only reached its target for 2016 (0.5% of GDP) but also for 2017 (1.75% of GDP), the Commissioner explained.
“If there is a will there is a way, and today we have seen clearly that the will is there,” Commissioner Moscovici said.
Government spokesman Dimitris Tzanakopoulos on Tuesday said no specifics could be provided as the reforms were subject to negotiation and agreement with the country's creditors. "Yesterday’s Eurogroup agreement is the most crucial step for the completion of the Second Assessment." He underlined the basic message that of "restoring stability, the final end to scenarios of emergencies and doom and the consolidation of confidence in the Greek economy". He accused New Democracy of trying to keep up "a doomsday frenzy". He pointed out that Monday’s agreement was reached because all sides had made steps to reconcile differences concerning the financial projections for after the end of the programme period. He stressed that now we are entering an equally critical phase of negotiation, for medium-term actions for debt alleviation and for the determination of primary surpluses. In this context he noted that following Monday's advances, with concessions from all sides, "now is the time, for Germany also to embark on the road of realism". "We expect the German Finance Ministry also to take a step back from the absurd requirement for a decade of primary surpluses amounting to 3.5% of GDP and to adopt a constructive attitude in order to make possible an agreement on medium-term debt relief."
He pointed out that this is the way for the definitive consolidation of stability and confidence in the Greek economy and would open the way for the country's accession to the ECB's quantitative easing programme.
"The Government's goal remains an overall agreement that will give the necessary impetus to the economy so that Greece can get out of the cycle of fiscal adjustment programmes, to return gradually to the money markets and to acquire the ability at the end of the programme in August 2018 to refinance its debt without borrowing from the official sector."
If agreement can be reached at the technical level and medium-term measures for the debt identified, the European Central Bank will be able to include Greece in its quantitative easing programme (QE). This would mean, said Panagiotis Liargovas, the head of the Budget Office of Parliament, the cheapest and most convenient way to finance the Greek economy, phasing out capital controls, the possibility of entry into the Bond Markets and the strengthening of confidence in Greece and its economic policy.
Finance Minister Euclid Tsakalotos, said in a statement on Thursday: "Now it requires work to finalise the Second Assessment, with the best possible conditions, in order for the Greek economy to definitively turn the page. The agreement is better than expected a month ago." He told Parliament that he would brief the House’s economic affairs committee on the progress of negotiations next Tuesday.
In April 2019, Eurostat will announce its report on the Greek economy for 2018. If the primary surplus posted is below the 3.5% target the “fiscal cutter” will kick in, bringing in the new measures.
He explained that Greece has made considerable progress in consolidating public finances and no longer has need of “substantive policies of austerity but now required structural reforms that would ensure their sustainability and support the recovery and satisfy the demands of the IMF.”
Economic Affairs Commissioner Pierre Moscovici reiterated after the Eurogroup meeting that Greece “significantly over performed” its fiscal targets.
If the fiscal surplus of at least 2% of GDP registered in 2016 is confirmed by Eurostat in April, the country will have not only reached its target for 2016 (0.5% of GDP) but also for 2017 (1.75% of GDP), the Commissioner explained.
“If there is a will there is a way, and today we have seen clearly that the will is there,” Commissioner Moscovici said.
Government spokesman Dimitris Tzanakopoulos on Tuesday said no specifics could be provided as the reforms were subject to negotiation and agreement with the country's creditors. "Yesterday’s Eurogroup agreement is the most crucial step for the completion of the Second Assessment." He underlined the basic message that of "restoring stability, the final end to scenarios of emergencies and doom and the consolidation of confidence in the Greek economy". He accused New Democracy of trying to keep up "a doomsday frenzy". He pointed out that Monday’s agreement was reached because all sides had made steps to reconcile differences concerning the financial projections for after the end of the programme period. He stressed that now we are entering an equally critical phase of negotiation, for medium-term actions for debt alleviation and for the determination of primary surpluses. In this context he noted that following Monday's advances, with concessions from all sides, "now is the time, for Germany also to embark on the road of realism". "We expect the German Finance Ministry also to take a step back from the absurd requirement for a decade of primary surpluses amounting to 3.5% of GDP and to adopt a constructive attitude in order to make possible an agreement on medium-term debt relief."
He pointed out that this is the way for the definitive consolidation of stability and confidence in the Greek economy and would open the way for the country's accession to the ECB's quantitative easing programme.
"The Government's goal remains an overall agreement that will give the necessary impetus to the economy so that Greece can get out of the cycle of fiscal adjustment programmes, to return gradually to the money markets and to acquire the ability at the end of the programme in August 2018 to refinance its debt without borrowing from the official sector."
If agreement can be reached at the technical level and medium-term measures for the debt identified, the European Central Bank will be able to include Greece in its quantitative easing programme (QE). This would mean, said Panagiotis Liargovas, the head of the Budget Office of Parliament, the cheapest and most convenient way to finance the Greek economy, phasing out capital controls, the possibility of entry into the Bond Markets and the strengthening of confidence in Greece and its economic policy.
Finance Minister Euclid Tsakalotos, said in a statement on Thursday: "Now it requires work to finalise the Second Assessment, with the best possible conditions, in order for the Greek economy to definitively turn the page. The agreement is better than expected a month ago." He told Parliament that he would brief the House’s economic affairs committee on the progress of negotiations next Tuesday.
The Agreement - “an honourable compromise”
In the Greek equivalent of Prime Minister’s Question Time in Parliament on Friday PM Alexis Tsipras made a statement on the “agreement in principle” reached at the Eurogroup on Monday.
PM Tsipras explained the content of the agreement in the Eurogroup, with emphasis on how the measures and countermeasures will work.
At the Eurogroup, he stressed "basic principles were agreed" and "we agreed to leave behind the principle of permanent austerity". "What we have in our hands is this. First, the technical teams are returning to close the Assessment. Secondly, from the beginning the Government insisted that the progress of the economy makes further measures unnecessary because they would be a barrier to development."
"This stance - that we will not accept a single euro more of austerity - was respected by all. There was a shift of all the Institutions away from the direction of austerity and to change the mix of fiscal policy that should be followed by Greece ".
He congratulated the negotiating team but was adamant that not everything is rosy. "If you ask me if I agree with the proposals for the measures, I will tell you "no". But if you go into a negotiation, you must also make concessions. From 2010 onwards, the result of the negotiations was to lose continuously and today for the first time we have an honourable compromise."
"One important fact is that now there is no longer the absurd requirement for additional austerity measures to the tune of 2% of GDP, i.e. 3.6€ billion. On the contrary any reforms implemented will come into force from 1st January 2019. For every euro burden of the reforms suggested by our lenders and insisted upon by the IMF – about which we are not satisfied – there will be a euro of relief in the reforms that we are proposing."
"The finalisation of the Second Assessment is to speed up the impressive progress the economy. We are not overjoyed, but nor are we hiding our satisfaction at the fact that for the first time we are hearing from the heads of the Institutions the need to stop the policy of austerity in Greece."
In the Greek equivalent of Prime Minister’s Question Time in Parliament on Friday PM Alexis Tsipras made a statement on the “agreement in principle” reached at the Eurogroup on Monday.
PM Tsipras explained the content of the agreement in the Eurogroup, with emphasis on how the measures and countermeasures will work.
At the Eurogroup, he stressed "basic principles were agreed" and "we agreed to leave behind the principle of permanent austerity". "What we have in our hands is this. First, the technical teams are returning to close the Assessment. Secondly, from the beginning the Government insisted that the progress of the economy makes further measures unnecessary because they would be a barrier to development."
"This stance - that we will not accept a single euro more of austerity - was respected by all. There was a shift of all the Institutions away from the direction of austerity and to change the mix of fiscal policy that should be followed by Greece ".
He congratulated the negotiating team but was adamant that not everything is rosy. "If you ask me if I agree with the proposals for the measures, I will tell you "no". But if you go into a negotiation, you must also make concessions. From 2010 onwards, the result of the negotiations was to lose continuously and today for the first time we have an honourable compromise."
"One important fact is that now there is no longer the absurd requirement for additional austerity measures to the tune of 2% of GDP, i.e. 3.6€ billion. On the contrary any reforms implemented will come into force from 1st January 2019. For every euro burden of the reforms suggested by our lenders and insisted upon by the IMF – about which we are not satisfied – there will be a euro of relief in the reforms that we are proposing."
"The finalisation of the Second Assessment is to speed up the impressive progress the economy. We are not overjoyed, but nor are we hiding our satisfaction at the fact that for the first time we are hearing from the heads of the Institutions the need to stop the policy of austerity in Greece."
SYRIZA agrees approach to negotiations
18.2.2017
“The final decisions concerning the negotiations will be taken after discussion in the Central Committee respecting the collective democratic processes as defined by the Statute of our party.”
Excerpt from the SYRIZA Central Committee Policy Statement
11th -12th February 2017
The Negotiations
“Now it is commonly accepted that the debt must be reduced despite some circles in Central Europe refusing to discuss it because of their forthcoming national elections. Greece, however, is no longer alone; it has allies on the basis of the past. SYRIZA from 2012, appealing to the Greek people, asked to be given the responsibility of governance, proclaiming the need to change Europe, for Europe to continue to exist. The need to defeat the neoliberal policies that currently dominate in Europe and the changing balance of forces, shaped the negotiating tactics of SYRIZA. Today the Greek economy shows signs of recovery despite the problems that middle and low income groups continue to suffer. The recession is over and unemployment has fallen by 4 percentage points.
The political forces that ruled the country until the end of 2014 identified their political choices with the dominant neo-liberal norms, even if these were and are devastating. They continue even today to give "land and water", behaving subserviently, criminally indifferent to the destruction that they have brought to the country. Mr. Mitsotakis is calling for elections because he is in a hurry to restore the failed political system which is linked to the partisanship of the State, the scandals and the favouritism. Every day that passes, with the Left in power, this system loses ground in the State apparatus.
The rise of the left to power was not the result of chance circumstances, but rather it emerged as a historical necessity, expressed the collective expression of society for change in the government model, for a progressive response to the issue of an exit from the crisis. We must maintain the possibility of alternative response, of a left-wing exit as opposed to the anti-social right-wing policies. The unreasonable demands of the creditors and the IMF for pre-emptive legislation can not be accepted by our Government. The society cannot sustain further measures, even if they come into force three years down the road and on the understanding that the surpluses have not been achieved.
Instead, a total political project is judged to be necessary, aimed at strengthening the grassroots social strata, with the defence of the world of work in the forefront, restoring collective bargaining agreements and obviously our unequivocal stance against demands for massive layoffs. In any case the final decisions concerning the negotiations will be taken after discussion in the Central Committee respecting the collective democratic processes as defined by the Statute of our party.
The Government and the SYRIZA must repeat in every possible way and in all the EU institutions, that European solidarity is not provided on a pick-and-choose basis and they are required to implement the decision taken concerning the medium-term measures for debt relief and to declare their commitment to the smooth completion of the Greek programme without absurd claims for primary surpluses after 2018 and the legislating of preventive measures. Many in society understand the fight we are putting up and from a position of criticism are supporting us, despite the unethical attacks made on the Government from opposition parties and the mass media.”
11th -12th February 2017
The Negotiations
“Now it is commonly accepted that the debt must be reduced despite some circles in Central Europe refusing to discuss it because of their forthcoming national elections. Greece, however, is no longer alone; it has allies on the basis of the past. SYRIZA from 2012, appealing to the Greek people, asked to be given the responsibility of governance, proclaiming the need to change Europe, for Europe to continue to exist. The need to defeat the neoliberal policies that currently dominate in Europe and the changing balance of forces, shaped the negotiating tactics of SYRIZA. Today the Greek economy shows signs of recovery despite the problems that middle and low income groups continue to suffer. The recession is over and unemployment has fallen by 4 percentage points.
The political forces that ruled the country until the end of 2014 identified their political choices with the dominant neo-liberal norms, even if these were and are devastating. They continue even today to give "land and water", behaving subserviently, criminally indifferent to the destruction that they have brought to the country. Mr. Mitsotakis is calling for elections because he is in a hurry to restore the failed political system which is linked to the partisanship of the State, the scandals and the favouritism. Every day that passes, with the Left in power, this system loses ground in the State apparatus.
The rise of the left to power was not the result of chance circumstances, but rather it emerged as a historical necessity, expressed the collective expression of society for change in the government model, for a progressive response to the issue of an exit from the crisis. We must maintain the possibility of alternative response, of a left-wing exit as opposed to the anti-social right-wing policies. The unreasonable demands of the creditors and the IMF for pre-emptive legislation can not be accepted by our Government. The society cannot sustain further measures, even if they come into force three years down the road and on the understanding that the surpluses have not been achieved.
Instead, a total political project is judged to be necessary, aimed at strengthening the grassroots social strata, with the defence of the world of work in the forefront, restoring collective bargaining agreements and obviously our unequivocal stance against demands for massive layoffs. In any case the final decisions concerning the negotiations will be taken after discussion in the Central Committee respecting the collective democratic processes as defined by the Statute of our party.
The Government and the SYRIZA must repeat in every possible way and in all the EU institutions, that European solidarity is not provided on a pick-and-choose basis and they are required to implement the decision taken concerning the medium-term measures for debt relief and to declare their commitment to the smooth completion of the Greek programme without absurd claims for primary surpluses after 2018 and the legislating of preventive measures. Many in society understand the fight we are putting up and from a position of criticism are supporting us, despite the unethical attacks made on the Government from opposition parties and the mass media.”
Finance Minister Euclid Tsakalotos on Sunday said that IMF is not interested in the size of the primary surplus in 2019 but is using it to push Greece to make “reforms” on the tax-free ceiling and pensions. Last summer Greece completed two very important reforms in the pension system and with taxation” he said to reporters after his address to SYRIZA Central Committee. He also said that the IMF is using very questionable reports to strengthen its position.
He referred to IMF claims that 40% to 50% of the Greek population does not pay taxes adding that if the IMF used the same methodology in all European countries it would know that this percentage is 12%.
“The idea that Paul Tomsen keeps repeating that German pensioners are as well-off as Greeks is laughable and I have invited him to come to Greece and afterwards we will go to Germany and make the comparison.” [See below: Being Economical with the Truth Ed]
He attacked New Democracy saying the accusation that the Government is responsible for the delays in the negotiations is not a view shared by anyone, "neither by the Member States of the European Union, nor by the Institutions."
“The IMF should decide quickly what it wants to do”. “If it wants to participate in the programme it must respect the efforts of the Greek people in the last years as well as Europe’s institutional framework for labour. If it wants to apply pressure, it can put pressure on the countries that do not accept more reasonable primary surpluses for Greece”.
Referring to the course of the negotiation he was optimistic because “Everyone understands that due to the imminent elections in many European countries and to other problems such as the refugee problem the number of issues and the constraints are great.” “The time is difficult for a Grexit” he said and underlined that “all sides are trying to find a solution. With some goodwill from all sides we may reach an agreement very soon. We are negotiating very hard” he said, adding that “the negotiating group has not been given a blank cheque and the context of the negotiation always derives from collective decisions.”
He referred to IMF claims that 40% to 50% of the Greek population does not pay taxes adding that if the IMF used the same methodology in all European countries it would know that this percentage is 12%.
“The idea that Paul Tomsen keeps repeating that German pensioners are as well-off as Greeks is laughable and I have invited him to come to Greece and afterwards we will go to Germany and make the comparison.” [See below: Being Economical with the Truth Ed]
He attacked New Democracy saying the accusation that the Government is responsible for the delays in the negotiations is not a view shared by anyone, "neither by the Member States of the European Union, nor by the Institutions."
“The IMF should decide quickly what it wants to do”. “If it wants to participate in the programme it must respect the efforts of the Greek people in the last years as well as Europe’s institutional framework for labour. If it wants to apply pressure, it can put pressure on the countries that do not accept more reasonable primary surpluses for Greece”.
Referring to the course of the negotiation he was optimistic because “Everyone understands that due to the imminent elections in many European countries and to other problems such as the refugee problem the number of issues and the constraints are great.” “The time is difficult for a Grexit” he said and underlined that “all sides are trying to find a solution. With some goodwill from all sides we may reach an agreement very soon. We are negotiating very hard” he said, adding that “the negotiating group has not been given a blank cheque and the context of the negotiation always derives from collective decisions.”
Speaking to the SYRIZA Central Committee on Saturday, Prime Minister Alexis Tsipras said he believed the Second Assessment will be successfully completed but that the Government would not succumb to “illogical” demands. He said “We will not make concessions on matters of principle”.
P.M. Tsipras accused the IMF of being “cowardly,” and of coming up with “new demands for Greece; absurd, imaginary, unreal, it doesn’t matter, as long as it is made to look like Greece is to blame for the already agreed decision of the Fund not to finance the third Greek bailout.” He further said that the Fund has lost its credibility by “constantly making erroneous predictions and is unable to support a programme without a generous debt cut.”
Referring to the IMF and German Finance Minister Wolfgang Schaeuble, he said: “I don’t know if the Second Assessment will be completed with the IMF having a central funding role, or a different role, but the Second Assessment will be completed because Europe cannot afford to play games. Those who play games and speak of a euro zone of two speeds, of splits and divisions, must know that they are playing with fire.”
PM Tsipras sent an indirect message to German Chancellor Angela Merkel saying, “I want to beseech the Chancellor to discourage the Finance Minister from continuing his aggression against Greece and issuing press reports that Greeks are living beyond their means.”
“Europe, on the other side, are refusing to make a decision before their critical elections, fearing the rise of the extreme Right.”
Footnote
In an article entitled "The IMF buys time for Merkel in the matter of Greece" the German newspaper Die Welt reports that a few days ago the head of the IMF, Christine Lagarde promised German Chancellor Angela Merkel during their telephone communication that the International Monetary Fund will participate in the Greek programme.
Being Economical with the Truth
The Economist (February 16th 2017), commenting on the Greek situation, stated
“Essential spending has been cut even as pensions remain generous. A newly retired Greek receives 81% of average wages, compared with 43% for a German.”
Editor comments:This is supposed to sound profligate until we consider that 81% of the monthly Greek Average Wage which at 2016 Q2 was 947€ net of taxes (1127€ gross) amounts to 767€ while 43% of the monthly German average wage which at 2016 Q3 was 2275€ net (3716€ gross) is 978€.
Source https://en.wikipedia.org/wiki/List_of_European_countries_by_average_wage]
[We set aside issues relating to “averages” of anything and the validity of comparing different societies with different social provision for people in retirement for example Ed]
P.M. Tsipras accused the IMF of being “cowardly,” and of coming up with “new demands for Greece; absurd, imaginary, unreal, it doesn’t matter, as long as it is made to look like Greece is to blame for the already agreed decision of the Fund not to finance the third Greek bailout.” He further said that the Fund has lost its credibility by “constantly making erroneous predictions and is unable to support a programme without a generous debt cut.”
Referring to the IMF and German Finance Minister Wolfgang Schaeuble, he said: “I don’t know if the Second Assessment will be completed with the IMF having a central funding role, or a different role, but the Second Assessment will be completed because Europe cannot afford to play games. Those who play games and speak of a euro zone of two speeds, of splits and divisions, must know that they are playing with fire.”
PM Tsipras sent an indirect message to German Chancellor Angela Merkel saying, “I want to beseech the Chancellor to discourage the Finance Minister from continuing his aggression against Greece and issuing press reports that Greeks are living beyond their means.”
“Europe, on the other side, are refusing to make a decision before their critical elections, fearing the rise of the extreme Right.”
Footnote
In an article entitled "The IMF buys time for Merkel in the matter of Greece" the German newspaper Die Welt reports that a few days ago the head of the IMF, Christine Lagarde promised German Chancellor Angela Merkel during their telephone communication that the International Monetary Fund will participate in the Greek programme.
Being Economical with the Truth
The Economist (February 16th 2017), commenting on the Greek situation, stated
“Essential spending has been cut even as pensions remain generous. A newly retired Greek receives 81% of average wages, compared with 43% for a German.”
Editor comments:This is supposed to sound profligate until we consider that 81% of the monthly Greek Average Wage which at 2016 Q2 was 947€ net of taxes (1127€ gross) amounts to 767€ while 43% of the monthly German average wage which at 2016 Q3 was 2275€ net (3716€ gross) is 978€.
Source https://en.wikipedia.org/wiki/List_of_European_countries_by_average_wage]
[We set aside issues relating to “averages” of anything and the validity of comparing different societies with different social provision for people in retirement for example Ed]
Greece, the EU and the IMF deadlocked
11.2.2017
Prime Minister Alexis Tsipras is expected to set out his vision for a potential compromise with Greece’s international creditors during a meeting of SYRIZA’s Central Committee this weekend.
On Wednesday German Finance Minister Wolfgang Schaeuble revived the Grexit issue by saying that unless Greece implements further reforms it cannot stay in the Eurozone.
“The pressure on Greece to undertake reforms must be maintained so that it becomes competitive, otherwise they can’t remain in the currency area,” Minister Schaeuble said, referring to fiscal measures needed such as further pension and wage cuts and the widening of the tax base.
He reiterated his position that Greece’s problem is not the amount of the sovereign debt but the lack of competitiveness in Greek economy and the need for structural reforms. So a debt cut will not solve the country’s problems. He maintained that a debt haircut is not allowed within the euro zone.
“We can’t undertake a debt haircut for a member of the European single currency, it is ruled out by the Lisbon Treaty. For that, Greece would have to exit the currency area.”
George Katrougalos, Greece’s Europe Minister, voiced confidence that a deal was within reach: “I am optimistic that we can have such an agreement before the Eurogroup of 20 February.”
He told journalists in Brussels that Europe was not the problem. “If we had just to deal with the Europeans we would have already completed this review in December. All the delay is due to the ambivalence of the IMF to participate or not to participate.”
Katrougalos brushed aside the comments from Minister Schäuble, who has previously called for Greece to quit the eurozone. “Mr Schäuble is now an isolated voice in Europe, one of the last defenders of austerity,” he said, arguing that the German Minister was not supported even in his own country.
Eurogroup President Jeroen Dijsselbloem accused the IMF of being surprisingly pessimistic over the health of the Greek economy. "It's surprising because Greece is already doing better than that report describes," Dijsselbloem, who chairs meetings of eurozone finance ministers, told Dutch television.
He said Greece's creditors, which include both the IMF and eurozone states, would be prepared to ease the terms of debt repayments further if Athens continued to cooperate on reforms. But he ruled out any relief on principal debt.
Greek government spokesman Dimitris Tzannakopoulos said the country is opposed to IMF demands for a contingency austerity programme to the sum of 4.5€ billion after the current bailout programme ends next year.
IMF Report
Also on Wednesday, IMF Managing Director Christine Lagarde claimed the IMF were "ruthless truth tellers" in its assessment that Greece needs to pursue further “reforms” to its pension and tax systems.
Mrs. Lagarde said that the Fund would not back down from its views on Greece's economic prospects despite protests from the Greek Government that they were too pessimistic.
The IMF audit of Greece's economy concluded that Greece's debt was still unsustainable even after years of grinding austerity. It recommended that Greece's pension system be refocused on supporting the poor, the tax base be broadened and tax rates lowered to help jumpstart economic growth.
A Government spokesman said the Greek Government would not yield to "illogical demands" by the IMF for "precautionary" austerity measures in a European bailout programme that no longer includes IMF money. Greece's Central Bank also disputed the IMF's prescription that an additional $10 billion in bank capital reserves was needed.
Greece needs to reduce the proportion of its budget spent on "unaffordably high" pensions which are paid for by high tax rates in order to stimulate economic growth, the International Monetary Fund said on Tuesday.
The Greek Response
Responding to the IMF Report, Finance Minister Euclid Tsakalotos refuted the IMF's predictions about the course of the Greek economy. He considers that the forecasts do not reflect the real picture of the Greek economy and the improvements in performance that Greece has made in public expenditure and in development. "Despite the evidence and the analysis which has been presented, we note that the Report is not fair in a number of areas, while many of its findings are not consistent with the recent and well documented empirical evidence." "First, the Report presents an overview of the reform effort (in Greece) that is not representative of the actual effort expended by the Greek Government during the ESM (European Stability Mechanism). The implementation of structural reforms has been significantly accelerated, particularly in-depth reforms, such as the consolidation of insurance funds into a single fund, the overall pension reform, the creation of an independent fiscal authority, many product market reforms (including the significant progress in the introduction of OECD recommendations) and a broad programme of reforms. Instead, the report says there is a slowing momentum of reforms, which is not apparent from everything that has already been done in terms of fiscal policy, the financial sector and structural reforms in many areas ".
The Finance Minister noted that a consequence of the "misrepresentation of the reform effort" is that it doesn't take into account the results of relevant structural reforms in the section “Analysis of the Viability of the Debt”. “The increased effort should, in principle, lead to the increase of the rate of growth in the future.” On the contrary, he adds, the long-term rate of economic growth is reduced by the IMF in its debt analysis to 1% from the 1.25% in May 2016 and there is the second consecutive decrease in its forecasts for growth.
"The Budgetary outcome of 2015 and Budget results of 2016 are significantly better than the original estimates." The IMF had initially predicted a primary deficit of -0.5% of GDP in 2016 that would be converted into a surplus of 1.5% of GDP in 2018 with current legislated measures. "Initial indications suggest that, instead, the budget surplus for 2016 will be in the region of 2% of GDP." "Despite considerable financial over-performance, the analysis (of the IMF) does not put forward a significant revision of projected budget surpluses for 2018, and then, maintains it at the predicted level of 1.5%, despite overwhelming evidence to the contrary."
The Eurogroup Meeting on 20th February is being suggested as the deadline for an agreement. Greece must repay nearly 7€ billion euros in July 2017. Apart from BREXIT, the Dutch go to the polls in March; French presidential elections follow in April-May and German elections are in the autumn.
“The pressure on Greece to undertake reforms must be maintained so that it becomes competitive, otherwise they can’t remain in the currency area,” Minister Schaeuble said, referring to fiscal measures needed such as further pension and wage cuts and the widening of the tax base.
He reiterated his position that Greece’s problem is not the amount of the sovereign debt but the lack of competitiveness in Greek economy and the need for structural reforms. So a debt cut will not solve the country’s problems. He maintained that a debt haircut is not allowed within the euro zone.
“We can’t undertake a debt haircut for a member of the European single currency, it is ruled out by the Lisbon Treaty. For that, Greece would have to exit the currency area.”
George Katrougalos, Greece’s Europe Minister, voiced confidence that a deal was within reach: “I am optimistic that we can have such an agreement before the Eurogroup of 20 February.”
He told journalists in Brussels that Europe was not the problem. “If we had just to deal with the Europeans we would have already completed this review in December. All the delay is due to the ambivalence of the IMF to participate or not to participate.”
Katrougalos brushed aside the comments from Minister Schäuble, who has previously called for Greece to quit the eurozone. “Mr Schäuble is now an isolated voice in Europe, one of the last defenders of austerity,” he said, arguing that the German Minister was not supported even in his own country.
Eurogroup President Jeroen Dijsselbloem accused the IMF of being surprisingly pessimistic over the health of the Greek economy. "It's surprising because Greece is already doing better than that report describes," Dijsselbloem, who chairs meetings of eurozone finance ministers, told Dutch television.
He said Greece's creditors, which include both the IMF and eurozone states, would be prepared to ease the terms of debt repayments further if Athens continued to cooperate on reforms. But he ruled out any relief on principal debt.
Greek government spokesman Dimitris Tzannakopoulos said the country is opposed to IMF demands for a contingency austerity programme to the sum of 4.5€ billion after the current bailout programme ends next year.
IMF Report
Also on Wednesday, IMF Managing Director Christine Lagarde claimed the IMF were "ruthless truth tellers" in its assessment that Greece needs to pursue further “reforms” to its pension and tax systems.
Mrs. Lagarde said that the Fund would not back down from its views on Greece's economic prospects despite protests from the Greek Government that they were too pessimistic.
The IMF audit of Greece's economy concluded that Greece's debt was still unsustainable even after years of grinding austerity. It recommended that Greece's pension system be refocused on supporting the poor, the tax base be broadened and tax rates lowered to help jumpstart economic growth.
A Government spokesman said the Greek Government would not yield to "illogical demands" by the IMF for "precautionary" austerity measures in a European bailout programme that no longer includes IMF money. Greece's Central Bank also disputed the IMF's prescription that an additional $10 billion in bank capital reserves was needed.
Greece needs to reduce the proportion of its budget spent on "unaffordably high" pensions which are paid for by high tax rates in order to stimulate economic growth, the International Monetary Fund said on Tuesday.
The Greek Response
Responding to the IMF Report, Finance Minister Euclid Tsakalotos refuted the IMF's predictions about the course of the Greek economy. He considers that the forecasts do not reflect the real picture of the Greek economy and the improvements in performance that Greece has made in public expenditure and in development. "Despite the evidence and the analysis which has been presented, we note that the Report is not fair in a number of areas, while many of its findings are not consistent with the recent and well documented empirical evidence." "First, the Report presents an overview of the reform effort (in Greece) that is not representative of the actual effort expended by the Greek Government during the ESM (European Stability Mechanism). The implementation of structural reforms has been significantly accelerated, particularly in-depth reforms, such as the consolidation of insurance funds into a single fund, the overall pension reform, the creation of an independent fiscal authority, many product market reforms (including the significant progress in the introduction of OECD recommendations) and a broad programme of reforms. Instead, the report says there is a slowing momentum of reforms, which is not apparent from everything that has already been done in terms of fiscal policy, the financial sector and structural reforms in many areas ".
The Finance Minister noted that a consequence of the "misrepresentation of the reform effort" is that it doesn't take into account the results of relevant structural reforms in the section “Analysis of the Viability of the Debt”. “The increased effort should, in principle, lead to the increase of the rate of growth in the future.” On the contrary, he adds, the long-term rate of economic growth is reduced by the IMF in its debt analysis to 1% from the 1.25% in May 2016 and there is the second consecutive decrease in its forecasts for growth.
"The Budgetary outcome of 2015 and Budget results of 2016 are significantly better than the original estimates." The IMF had initially predicted a primary deficit of -0.5% of GDP in 2016 that would be converted into a surplus of 1.5% of GDP in 2018 with current legislated measures. "Initial indications suggest that, instead, the budget surplus for 2016 will be in the region of 2% of GDP." "Despite considerable financial over-performance, the analysis (of the IMF) does not put forward a significant revision of projected budget surpluses for 2018, and then, maintains it at the predicted level of 1.5%, despite overwhelming evidence to the contrary."
The Eurogroup Meeting on 20th February is being suggested as the deadline for an agreement. Greece must repay nearly 7€ billion euros in July 2017. Apart from BREXIT, the Dutch go to the polls in March; French presidential elections follow in April-May and German elections are in the autumn.
Two Years of a SYRIZA-led Government
02.02.2017
Two years after the elections that led to the first Left Government in Greece, SYRIZA has published a detailed account of the measures and decisions it has taken aimed at leading the country in a different direction, charting "the road to the country’s definitive exit from Trusteeship and the Memoranda in 2018".
“The Coalition Government of Samaras and Venizelos will go down in history as a social disaster and a period of political adventurism. Unemployment, during its days in power, touched 28%, in total, while for young people it leapt to 60%! The “flexible forms of employment” reached a 60% share of total employment. Cuts in health and education were continuous; pensions and wages collapsed. All this was the result of political choices, amazing adventurism, as well as the incompetence of the previous Government. We must not forget that Samaras and Venizelos rushed, after the panic that dominated the disintegrated political system as a result of the sharp increase in SYRIZA’s impact on the two elections of 2012, to set landmines along the country's path for the following years.
The New Democracy-PASOK Government agreed, at the end of 2012, to a Medium-Term Programme running until 2018 that anticipated hard-to-imagine surpluses, which only with blood could be made feasible. At the same time, seeking to earn political capital, they proceeded to the destructive solution of PSI [Private Sector Involvement], to make the plundering of the reserves of the insurance funds and holders of bank bonds look like the writing-off of the debt.
[Public debt prior to the PSI was 355€ billion in 2011. As a result of the “haircut” of 100€ billion in 2012 the debt only went down to €304 billion in that year before rising to €322 billion in 2013 because the Banks had to be recapitalised with 50€ billion - funds that the Government borrowed from the ESM - to compensate them for their PSI losses of 38€ billion. The PSI reduced debt in 2012 by 13.4% only to boost it again in 2013 by 19.3%! Ed.]
It was a move tantamount to setting a bomb under the foundations of the pension system for which even today all Greeks - pensioners and the insured – are still paying. On the destruction of the society they erected the extravagant notion of the “success story”, which, even now, has been enshrined as a phrase that evokes one of the most destructive and dangerous Governments that there has ever been in this country.
Their dangerous political opportunism intensified, even more, when they saw that their collapse was imminent. In view of the European elections and the Local Government elections in 2014, but also in view of the political developments that the election of the President of the Republic would inevitably bring, at the end of the year, they took the political decision to stop implementing the programme, leaving the Fifth Assessment in abeyance. Their goal was to present SYRIZA with a fait accompli: an economy that was derailed, fiscally and, of course, with an empty treasury. They even refused the proposal for a six-month extension of the then programme, betting on the much lauded "left hiccup".
The New Democracy-PASOK Government agreed, at the end of 2012, to a Medium-Term Programme running until 2018 that anticipated hard-to-imagine surpluses, which only with blood could be made feasible. At the same time, seeking to earn political capital, they proceeded to the destructive solution of PSI [Private Sector Involvement], to make the plundering of the reserves of the insurance funds and holders of bank bonds look like the writing-off of the debt.
[Public debt prior to the PSI was 355€ billion in 2011. As a result of the “haircut” of 100€ billion in 2012 the debt only went down to €304 billion in that year before rising to €322 billion in 2013 because the Banks had to be recapitalised with 50€ billion - funds that the Government borrowed from the ESM - to compensate them for their PSI losses of 38€ billion. The PSI reduced debt in 2012 by 13.4% only to boost it again in 2013 by 19.3%! Ed.]
It was a move tantamount to setting a bomb under the foundations of the pension system for which even today all Greeks - pensioners and the insured – are still paying. On the destruction of the society they erected the extravagant notion of the “success story”, which, even now, has been enshrined as a phrase that evokes one of the most destructive and dangerous Governments that there has ever been in this country.
Their dangerous political opportunism intensified, even more, when they saw that their collapse was imminent. In view of the European elections and the Local Government elections in 2014, but also in view of the political developments that the election of the President of the Republic would inevitably bring, at the end of the year, they took the political decision to stop implementing the programme, leaving the Fifth Assessment in abeyance. Their goal was to present SYRIZA with a fait accompli: an economy that was derailed, fiscally and, of course, with an empty treasury. They even refused the proposal for a six-month extension of the then programme, betting on the much lauded "left hiccup".
In these unprecedented circumstances of economic suffocation and political pressure, our Government was elected. From the first day we gave battle on two fronts. Inside the country, against the chaotic situation handed to us by New Democracy - PASOK, and abroad, against those who insisted on aggressive austerity. For the first time, however, since the beginning of the crisis, Greece had at last got a Government which began to negotiate seriously. It clashed at the negotiating table, putting on the agenda the rights of Greek society, and also the great potential of the economy, which for years had been languishing. The Opposition, over and above its dogmatic adherence to austerity, authoritarianism and the disintegration of the social fabric, wielded as a key argument the commitments of Samaras-Venizelos, which were, unfortunately, the country’s commitments.
After a fierce battle, taking to the limit the conflict with the followers of blind and vengeful austerity, our Government managed to reach an agreement. An agreement that doesn't reflect the political objectives of the present Government or of SYRIZA but which, at that moment, prevented catastrophe, while it gave a vision and opened up the path to the country’s definitive exit from the Trusteeship and the Memoranda in 2018.
A central point of the negotiations was the reduction of Primary Surpluses, which would ensure the necessary fiscal space for the Greek economy. Samaras-Venizelos’ previous agreement stipulated as Primary Surplus targets 3% for 2015, 4.5% for 2016, 4.5% for 2017 and 4.2% for 2018. Additionally, the notorious “success story” had left behind it yet another budget gap amounting to about 2€ billion. To cover that, new measures were needed, as the New Democracy-PASOK Government had not met the Primary Surplus target of 1.5% for 2014.
Instead, the agreement of July 2015 defines the targets -0.25% in 2015, 0.5% for 2016, 1.75% for 2017 and 3.5% for 2018. This means that 20€ billion will stay in the real economy, in the society, over this four-year period, rather than go to fuel the irrational measures that would be required to meet the objectives of the previous agreement of New Democracy-PASOK.
This was the basis on which we managed to tear down the commitments of the previous Government, and also to obtain the necessary fiscal space to implement necessary social interventions.
– We stopped the shrinking of all pensions, which the application of the clause of the zero deficit would have brought about, as well as the total collapse of the social security system.
– The 13th pension was granted, at Christmas in 2016, an amount totalling 630€ million, for 1.577.421 pensioners with incomes below 850€.
– We stopped the planned cuts to health and education, described in the budget for 2014.
– We stopped the definitive abolition of EKAS, which Samaras and Venizelos had agreed to begin implementing from the second quarter of 2015.
– We stopped the lifting of the protection of primary residences from being auctioned off, which after 1/1/2015 would have led to social chaos.
– We stopped the doubling of the tax on electricity and water, which was the Samaras-Venizelos Government’s commitment.
– We stopped the planned sell-off of public assets to finance the debt. We managed to find a solution that combines the use of public property and the securing of resources for the State coffers and for the debt as well.
At the same time, a significant breathing space has been given to citizens through a series of interventions in favour of the social fabric:
– We legislated for the arrangement of 100 instalments for debts to the State.
– We put an end once and for all to the continuous court sittings and to detention for millions of people owing money to the state. The level for prosecution that was once 5,000€, was first fixed at 50,000€ and now with a new decision lies at 100,000€, thus protecting the vast majority of debtors from the risk of imprisonment.
– The first phase of the programme to address the humanitarian crisis has been implemented and is now being extended.
After a fierce battle, taking to the limit the conflict with the followers of blind and vengeful austerity, our Government managed to reach an agreement. An agreement that doesn't reflect the political objectives of the present Government or of SYRIZA but which, at that moment, prevented catastrophe, while it gave a vision and opened up the path to the country’s definitive exit from the Trusteeship and the Memoranda in 2018.
A central point of the negotiations was the reduction of Primary Surpluses, which would ensure the necessary fiscal space for the Greek economy. Samaras-Venizelos’ previous agreement stipulated as Primary Surplus targets 3% for 2015, 4.5% for 2016, 4.5% for 2017 and 4.2% for 2018. Additionally, the notorious “success story” had left behind it yet another budget gap amounting to about 2€ billion. To cover that, new measures were needed, as the New Democracy-PASOK Government had not met the Primary Surplus target of 1.5% for 2014.
Instead, the agreement of July 2015 defines the targets -0.25% in 2015, 0.5% for 2016, 1.75% for 2017 and 3.5% for 2018. This means that 20€ billion will stay in the real economy, in the society, over this four-year period, rather than go to fuel the irrational measures that would be required to meet the objectives of the previous agreement of New Democracy-PASOK.
This was the basis on which we managed to tear down the commitments of the previous Government, and also to obtain the necessary fiscal space to implement necessary social interventions.
– We stopped the shrinking of all pensions, which the application of the clause of the zero deficit would have brought about, as well as the total collapse of the social security system.
– The 13th pension was granted, at Christmas in 2016, an amount totalling 630€ million, for 1.577.421 pensioners with incomes below 850€.
– We stopped the planned cuts to health and education, described in the budget for 2014.
– We stopped the definitive abolition of EKAS, which Samaras and Venizelos had agreed to begin implementing from the second quarter of 2015.
– We stopped the lifting of the protection of primary residences from being auctioned off, which after 1/1/2015 would have led to social chaos.
– We stopped the doubling of the tax on electricity and water, which was the Samaras-Venizelos Government’s commitment.
– We stopped the planned sell-off of public assets to finance the debt. We managed to find a solution that combines the use of public property and the securing of resources for the State coffers and for the debt as well.
At the same time, a significant breathing space has been given to citizens through a series of interventions in favour of the social fabric:
– We legislated for the arrangement of 100 instalments for debts to the State.
– We put an end once and for all to the continuous court sittings and to detention for millions of people owing money to the state. The level for prosecution that was once 5,000€, was first fixed at 50,000€ and now with a new decision lies at 100,000€, thus protecting the vast majority of debtors from the risk of imprisonment.
– The first phase of the programme to address the humanitarian crisis has been implemented and is now being extended.
These, among other things, were reference points of the battle that we waged in the first period of our governance - a battle waged in conditions of an adverse balance of forces within the European Union which is dominated by dogmatic neoliberalism. That Europe, however, is not staying the same. The core of these policies, which led Greece onto the rocks in the five year period 2010-14, are now in dispute in the light of events. Greece was and continues to constitute an organic piece of that side which is proposing the end of austerity and the shift to development policies with respect to social and labour rights. Now the voices calling for a change of course are multiplying. Voices are not drawn just from the Left, but are also heard from broader political forces, as well as leaders of countries that have experienced painfully the dead-end policies of austerity.
For this reason, just like our decision to take the conflict with blind austerity to the limit so with our commitment to European cooperation and inclusion, we are convinced that it is paying off. The case for the change of course of Europe is enduring, protracted and remains open.
This decision, however, is directly connected with the wishes and aspirations of the Greek people. Exactly on that basis, we chose after July-August 2015 to have recourse to our only master, the citizens of this country. We set out what we had done as well as the plan to get the country out of the maelstrom of the crisis. The people entrusted us again, as the only political force that has the ability to accomplish this Herculean task. The society reaffirmed the bankruptcy of the political system of the vested interests which, despite all its impertinence, is solely responsible for the collapse of the country in previous years.
So, having, a fresh mandate from the Greek people, we have implemented a programme which on the one hand respects the budgetary commitments (and the limitations arising from them), but on the other has as pivotal the rebuilding of the Welfare State, the protection of the lower strata and, of course, the planning of the growth of production in the country.
As regards the first, the financial commitments, we have managed, given the more lenient fiscal adjustment which is described in the programme, to get the Greek economy back on stable tracks.
The 2015 Primary Surplus goal was exceeded. 0.7% compared to the -0.25% that was the goal. And in 2016, the intended Primary Surplus goal was exceeded for the second consecutive year. According to the provisional figures on the implementation of the State budget, it shaped up at 4,437€ billion against a target of 1.983€ billion.
As regards the second, the pivotal issues concerning social policy, great efforts were made, particularly in health and education, to reverse the situation the Samaras-Venizelos Government left behind.
For this reason, just like our decision to take the conflict with blind austerity to the limit so with our commitment to European cooperation and inclusion, we are convinced that it is paying off. The case for the change of course of Europe is enduring, protracted and remains open.
This decision, however, is directly connected with the wishes and aspirations of the Greek people. Exactly on that basis, we chose after July-August 2015 to have recourse to our only master, the citizens of this country. We set out what we had done as well as the plan to get the country out of the maelstrom of the crisis. The people entrusted us again, as the only political force that has the ability to accomplish this Herculean task. The society reaffirmed the bankruptcy of the political system of the vested interests which, despite all its impertinence, is solely responsible for the collapse of the country in previous years.
So, having, a fresh mandate from the Greek people, we have implemented a programme which on the one hand respects the budgetary commitments (and the limitations arising from them), but on the other has as pivotal the rebuilding of the Welfare State, the protection of the lower strata and, of course, the planning of the growth of production in the country.
As regards the first, the financial commitments, we have managed, given the more lenient fiscal adjustment which is described in the programme, to get the Greek economy back on stable tracks.
The 2015 Primary Surplus goal was exceeded. 0.7% compared to the -0.25% that was the goal. And in 2016, the intended Primary Surplus goal was exceeded for the second consecutive year. According to the provisional figures on the implementation of the State budget, it shaped up at 4,437€ billion against a target of 1.983€ billion.
As regards the second, the pivotal issues concerning social policy, great efforts were made, particularly in health and education, to reverse the situation the Samaras-Venizelos Government left behind.
In Health
– The unacceptable of 5€ "ticket" in hospitals was removed.
– Access to health facilities for 2.5 million uninsured citizens was secured.
– The most important intervention, however, was and continues to be made in the area of staffing. In contrast to the disastrous five year period 2010-2014 and the 8,000 sackings, since October 2015 3,551 workers have entered the Health Service. At the same time, procedures for increasing staffing in the coming months by an extra 3,380 workers (doctors, nurses, other auxiliary staff, etc.) have already been initiated. In addition to these, there are still guaranteed appropriations in the budget to fund the staffing of an additional 8,200 employees in the health sector.
– Also 140€ million has been secured from ESPA for staffing 270 primary health care centres in 65 cities in the country.
– Through the July 2015 negotiations and agreement, the Government managed to lift restrictions on health spending, restrictions that had been agreed for the Medium-Term by the New Democracy- PASOK Coalition. Specifically, an increase in the spending limit was secured, cumulatively, for the period 2015-2018, to the tune of 1€ billion while the 150€ million to support primary health care was retained.
In Education
For the first time in many years, all primary and secondary schools opened on time with the necessary staff and their respective learning materials.
– For the first time in the years of the crisis, the budget for education rose to 2.85% of GDP. That was how the unacceptable commitment of New Democracy-PASOK, who on the basis of the previous agreement would have reduced the education budget by nearly 1€ billion, reducing it to 1.9% of GDP in 2018 was overturned.
– In Secondary Education, this year 23,000 assistant teachers were hired (23% more than last year), while in the sensitive area of Special Education there were more assistant teachers than ever before (50% more compared to last year).
– After 6 years, appointments were made at Universities and TEIs (500 faculty members in 2016, and there will be more in 2017).
– We moved to institutionalize the new all-day kindergarten and elementary school.
– We changed the anti-educational testing centre system in the High School and we are working on changing the means of access to higher education.
Development
The development of the Greek economy is a fact, it is not a prediction. The data itself throws into doubt the ugly picture that New Democracy is trying to cultivate in its petty politicking. The figures are revealing:
– 1.8% increase in the real GDP in the third quarter of 2016.
– 12.6% increase in the volume of gross fixed capital formation (private investment).
– 10.2% increase in exports of goods and services, generating a surplus in the Current Account for the first time since 1948.
– 5.1% increase in private consumption on an annual basis in real economic terms over the same period.
– 228% increase in direct foreign investment between January-October: from 703€ million in 2015 to 2.303€ billion in 2016.
– Employment growth to the tune of 232,000 people from 1st quarter of 2015 to the 3rd quarter of 2016, while the unemployment rate decreased correspondingly by 4 percentage points from 26.6% to 22.6%.
– A 2.3% rise on an annual basis in the General Industrial Production Index in the 11 month of 2016 as against 0.5% for the same period in 2015.
– A rise to 94.6 points on the economic climate index of the Foundation of Economic & Industrial Research from 92.4 points in November
The privatization programme is expected to bring additional investment of approximately 1.6€ billion in 2017, while in 2016 we had a record of arrivals in tourism. Also, investment interest in Greek hotels reached a peak with 140 investments.
With the new financial instruments and through the EU, the European Investment Bank, ESPA, the European Investment Fund, there are a large number of enterprises that want to invest in sectors such as tourism, manufacturing, products supporting agricultural production, start-ups.
– The unacceptable of 5€ "ticket" in hospitals was removed.
– Access to health facilities for 2.5 million uninsured citizens was secured.
– The most important intervention, however, was and continues to be made in the area of staffing. In contrast to the disastrous five year period 2010-2014 and the 8,000 sackings, since October 2015 3,551 workers have entered the Health Service. At the same time, procedures for increasing staffing in the coming months by an extra 3,380 workers (doctors, nurses, other auxiliary staff, etc.) have already been initiated. In addition to these, there are still guaranteed appropriations in the budget to fund the staffing of an additional 8,200 employees in the health sector.
– Also 140€ million has been secured from ESPA for staffing 270 primary health care centres in 65 cities in the country.
– Through the July 2015 negotiations and agreement, the Government managed to lift restrictions on health spending, restrictions that had been agreed for the Medium-Term by the New Democracy- PASOK Coalition. Specifically, an increase in the spending limit was secured, cumulatively, for the period 2015-2018, to the tune of 1€ billion while the 150€ million to support primary health care was retained.
In Education
For the first time in many years, all primary and secondary schools opened on time with the necessary staff and their respective learning materials.
– For the first time in the years of the crisis, the budget for education rose to 2.85% of GDP. That was how the unacceptable commitment of New Democracy-PASOK, who on the basis of the previous agreement would have reduced the education budget by nearly 1€ billion, reducing it to 1.9% of GDP in 2018 was overturned.
– In Secondary Education, this year 23,000 assistant teachers were hired (23% more than last year), while in the sensitive area of Special Education there were more assistant teachers than ever before (50% more compared to last year).
– After 6 years, appointments were made at Universities and TEIs (500 faculty members in 2016, and there will be more in 2017).
– We moved to institutionalize the new all-day kindergarten and elementary school.
– We changed the anti-educational testing centre system in the High School and we are working on changing the means of access to higher education.
Development
The development of the Greek economy is a fact, it is not a prediction. The data itself throws into doubt the ugly picture that New Democracy is trying to cultivate in its petty politicking. The figures are revealing:
– 1.8% increase in the real GDP in the third quarter of 2016.
– 12.6% increase in the volume of gross fixed capital formation (private investment).
– 10.2% increase in exports of goods and services, generating a surplus in the Current Account for the first time since 1948.
– 5.1% increase in private consumption on an annual basis in real economic terms over the same period.
– 228% increase in direct foreign investment between January-October: from 703€ million in 2015 to 2.303€ billion in 2016.
– Employment growth to the tune of 232,000 people from 1st quarter of 2015 to the 3rd quarter of 2016, while the unemployment rate decreased correspondingly by 4 percentage points from 26.6% to 22.6%.
– A 2.3% rise on an annual basis in the General Industrial Production Index in the 11 month of 2016 as against 0.5% for the same period in 2015.
– A rise to 94.6 points on the economic climate index of the Foundation of Economic & Industrial Research from 92.4 points in November
The privatization programme is expected to bring additional investment of approximately 1.6€ billion in 2017, while in 2016 we had a record of arrivals in tourism. Also, investment interest in Greek hotels reached a peak with 140 investments.
With the new financial instruments and through the EU, the European Investment Bank, ESPA, the European Investment Fund, there are a large number of enterprises that want to invest in sectors such as tourism, manufacturing, products supporting agricultural production, start-ups.
Simple Proportional Representation and interventions in the operation of the State
Simple Proportional Representation became the law of the State. It is a historic moment since it implemented the fixed and long-standing demand, not only of the Left, but also of wider progressive and democratic forces over decades in this country. The electoral system, which is based on the logic of parity of each vote, justifies the decades of struggles for real equality and democracy.
For the first time a single framework of reforms has been designed and implemented, with a view to creating a modern and efficient public administration. We have proceeded with the democratization and reconstruction of the public administration, put an end to the party patronage over jobs, while at the same time effectively combating bureaucracy with the introduction of Electronic Document Handling for the fastest service to the citizen and a reduction of costs in the order of 400€ million a year.
Everything into the Light
The Government made a pre-election commitment to root out the triangle of vested interests that bankrupted the country. Despite the rabid reactions, the Government is not backing off because it did not participate in the jamboree of armaments, kickbacks and the sea of debt, and it had no connections with Siemens.
– We proceeded to the establishment of a Committee of Inquiry about the loans to the mass media and the political parties. The conclusions its work confirm, by the admissions and confessions of the protagonists themselves, the existence and gigantic dimensions of the triangle of vested interests with the grave political responsibilities of New Democracy and PASOK for loans of 1.3€ billion to the mass media and 420€ million alone to the two political parties of the former government coalition. However, the battle against the vested interests does not stop here, as the Government initiative paved the way to Justice, which is indeed the outcome we are getting, for a full investigation into any criminal responsibilities of loan issuers, bankers, politicians and also possibly individuals whose activities fall within ambit of the law concerning the responsibility of Ministers.
– We opened the way for the investigation of the scandal of the Agricultural Bank, one of the biggest scandals of the period of the Restoration of the Republic. The illegal lending from 2000 to 2012, the money lent and not paid back, reached 5€ billion.
– All the data on The Disease Control & Prevention Centre (ΚΕΕΛΠΝΟ), the incubator of corruption, has been filed with the Prosecutor. According to the audits by the competent bodies it is still not possible to determine where sums of up to 10€ million have been spent when A. Loverdos was the Minister.
– The case of Novartis is a leading financial and, in all likelihood, political scandal. This is currently an open case in progress at the preliminary stage of proceedings.
– The Lists of tax evaders is now being put to the best possible use. While the tax assessments from the lists from 2013 until 2014 amounted to just 26.6€ million, under the SYRIZA Government within a half year they have touched on 900€ million.
– The new list from the authorities of Rhine-Westphalia, from the Ministry of Mr Borgians is being made use of, with 475 major depositors in the European Central Bank, and this is the list about which the Samaras Government had shown a defiant lack of interest.
Addressing the Refugee Crisis
Greece saved the honour and dignity of the whole of Europe. From the inhumane policy of persecution and the violation of the rights of migrants and refugees which had been put into practice by the Samaras-Venizelos Government and brought such condemnation to our country, from that we moved to a new policy that puts humanity and solidarity first. Despite the conditions of deep crisis that plague our country, the Greek State and society embraced hundreds of thousands of human beings. The Greek people showed its reserves of hospitality and solidarity – and this of course could not have happened if the policy of the previous Government, the policy of xenophobia and hatred, had continued.
Other Progressive Institutional Interventions
– A Law on citizenship. This was voted into law, putting an end to the holding hostage of the children of second-generation immigrants. It is a step in line with the principles of equal rights, of equality before the law and of an open society, consistent with the country’s European outlook. It was a step that the Samaras Government stubbornly refused to take, caught as it was on the hooks of its extreme right wing. It is a law that ensures the inclusion of thousands of children, who will constitute a unique enrichment of Greek society.
– Voted into law was the wide acceptance of cohabitation for heterosexual and same-sex couples. It was something that not only was an obligation of the country (and its non-institutionalisation had been condemned by the European Court of Justice), but also a brave step towards an open and tolerant society for all.
– A start was made to bring order to the television scene, to bring an end to the situation of the unlicenced activity of all the previous years. That is why we had their rabid reaction, while New Democracy blatantly took their side.
– The living conditions in prisons have been significantly improved, with measures to relieve overcrowding, but also to improve care for the daily life of prisoners. These are measures that have benefitted the lives of thousands of our fellow citizens (prisoners, pre-trial detainees, their families, prison staff).
– The rights of citizens are respected once more after a black period with a pile of condemnations from international courts and bodies.”
*****************
Simple Proportional Representation became the law of the State. It is a historic moment since it implemented the fixed and long-standing demand, not only of the Left, but also of wider progressive and democratic forces over decades in this country. The electoral system, which is based on the logic of parity of each vote, justifies the decades of struggles for real equality and democracy.
For the first time a single framework of reforms has been designed and implemented, with a view to creating a modern and efficient public administration. We have proceeded with the democratization and reconstruction of the public administration, put an end to the party patronage over jobs, while at the same time effectively combating bureaucracy with the introduction of Electronic Document Handling for the fastest service to the citizen and a reduction of costs in the order of 400€ million a year.
Everything into the Light
The Government made a pre-election commitment to root out the triangle of vested interests that bankrupted the country. Despite the rabid reactions, the Government is not backing off because it did not participate in the jamboree of armaments, kickbacks and the sea of debt, and it had no connections with Siemens.
– We proceeded to the establishment of a Committee of Inquiry about the loans to the mass media and the political parties. The conclusions its work confirm, by the admissions and confessions of the protagonists themselves, the existence and gigantic dimensions of the triangle of vested interests with the grave political responsibilities of New Democracy and PASOK for loans of 1.3€ billion to the mass media and 420€ million alone to the two political parties of the former government coalition. However, the battle against the vested interests does not stop here, as the Government initiative paved the way to Justice, which is indeed the outcome we are getting, for a full investigation into any criminal responsibilities of loan issuers, bankers, politicians and also possibly individuals whose activities fall within ambit of the law concerning the responsibility of Ministers.
– We opened the way for the investigation of the scandal of the Agricultural Bank, one of the biggest scandals of the period of the Restoration of the Republic. The illegal lending from 2000 to 2012, the money lent and not paid back, reached 5€ billion.
– All the data on The Disease Control & Prevention Centre (ΚΕΕΛΠΝΟ), the incubator of corruption, has been filed with the Prosecutor. According to the audits by the competent bodies it is still not possible to determine where sums of up to 10€ million have been spent when A. Loverdos was the Minister.
– The case of Novartis is a leading financial and, in all likelihood, political scandal. This is currently an open case in progress at the preliminary stage of proceedings.
– The Lists of tax evaders is now being put to the best possible use. While the tax assessments from the lists from 2013 until 2014 amounted to just 26.6€ million, under the SYRIZA Government within a half year they have touched on 900€ million.
– The new list from the authorities of Rhine-Westphalia, from the Ministry of Mr Borgians is being made use of, with 475 major depositors in the European Central Bank, and this is the list about which the Samaras Government had shown a defiant lack of interest.
Addressing the Refugee Crisis
Greece saved the honour and dignity of the whole of Europe. From the inhumane policy of persecution and the violation of the rights of migrants and refugees which had been put into practice by the Samaras-Venizelos Government and brought such condemnation to our country, from that we moved to a new policy that puts humanity and solidarity first. Despite the conditions of deep crisis that plague our country, the Greek State and society embraced hundreds of thousands of human beings. The Greek people showed its reserves of hospitality and solidarity – and this of course could not have happened if the policy of the previous Government, the policy of xenophobia and hatred, had continued.
Other Progressive Institutional Interventions
– A Law on citizenship. This was voted into law, putting an end to the holding hostage of the children of second-generation immigrants. It is a step in line with the principles of equal rights, of equality before the law and of an open society, consistent with the country’s European outlook. It was a step that the Samaras Government stubbornly refused to take, caught as it was on the hooks of its extreme right wing. It is a law that ensures the inclusion of thousands of children, who will constitute a unique enrichment of Greek society.
– Voted into law was the wide acceptance of cohabitation for heterosexual and same-sex couples. It was something that not only was an obligation of the country (and its non-institutionalisation had been condemned by the European Court of Justice), but also a brave step towards an open and tolerant society for all.
– A start was made to bring order to the television scene, to bring an end to the situation of the unlicenced activity of all the previous years. That is why we had their rabid reaction, while New Democracy blatantly took their side.
– The living conditions in prisons have been significantly improved, with measures to relieve overcrowding, but also to improve care for the daily life of prisoners. These are measures that have benefitted the lives of thousands of our fellow citizens (prisoners, pre-trial detainees, their families, prison staff).
– The rights of citizens are respected once more after a black period with a pile of condemnations from international courts and bodies.”
*****************
Note on Loans to the Mass Media
On Saturday 28th January 2016 the Lambrakis Press Group issued a statement: “To Vima weekly and Ta Nea daily are forced to cease their publication within days due to financial reasons. The Lambrakis Press Group (DOL) “is lacking any available resources and as a result it can’t support the printing of its newspapers and, of course, can’t guarantee the unhampered operation of the other media outlets it owns.”
The group has debts of 99€ million. DOL accused the creditor banks of putting the press group under a special management regime without providing for the continuation of its publications. DOL says the creditor banks are withholding all its earnings.
Besides the two newspapers, DOL owns numerous magazines, news sites and the Vima FM radio.
On Wednesday Antonis Karakoussis, director of the Vima newspaper and Vima FM radio, said that in December 2016, DOL had been unable to meet its debt re-payment obligations. Mr. Karakoussis said this situation was the result of the economic crisis in Greece.
Lambrakis Press Group, one of the shareholders of the Mega Channel TV station that is also heavily indebted, has also faced legal turmoil over the past months. Its President, Stavros Psycharis, is currently being prosecuted for tax evasion and money laundering.
On Saturday 28th January 2016 the Lambrakis Press Group issued a statement: “To Vima weekly and Ta Nea daily are forced to cease their publication within days due to financial reasons. The Lambrakis Press Group (DOL) “is lacking any available resources and as a result it can’t support the printing of its newspapers and, of course, can’t guarantee the unhampered operation of the other media outlets it owns.”
The group has debts of 99€ million. DOL accused the creditor banks of putting the press group under a special management regime without providing for the continuation of its publications. DOL says the creditor banks are withholding all its earnings.
Besides the two newspapers, DOL owns numerous magazines, news sites and the Vima FM radio.
On Wednesday Antonis Karakoussis, director of the Vima newspaper and Vima FM radio, said that in December 2016, DOL had been unable to meet its debt re-payment obligations. Mr. Karakoussis said this situation was the result of the economic crisis in Greece.
Lambrakis Press Group, one of the shareholders of the Mega Channel TV station that is also heavily indebted, has also faced legal turmoil over the past months. Its President, Stavros Psycharis, is currently being prosecuted for tax evasion and money laundering.
Second Assessment : more delays
28.01.2017
Eurogroup Meeting last Thursday
Despite agreeing that Greece has exceeded its 2016 fiscal targets, is likely to meet its targets this year, and is on track to hit the 2018 Primary Surplus target, the Eurogroup meeting in Brussels on Thursday evening ended without reaching an agreement on the crucial bailout programme Second Assessment and with no agreed schedule for the return of creditors’ negotiators to Athens.
Despite agreeing that Greece has exceeded its 2016 fiscal targets, is likely to meet its targets this year, and is on track to hit the 2018 Primary Surplus target, the Eurogroup meeting in Brussels on Thursday evening ended without reaching an agreement on the crucial bailout programme Second Assessment and with no agreed schedule for the return of creditors’ negotiators to Athens.
The official Eurogroup statement read: “The Eurogroup urged the Greek authorities and the Institutions to swiftly resume negotiations to agree on a policy reform package shared by all stakeholders. Such an agreement is a condition for the successful conclusion of the Second Assessment […] the reforms concern Greece’s labour and product markets, its energy sector and other areas. An agreement on Greece’s medium-term fiscal strategy, i.e. in 2018 and beyond, is also expected”.
A letter by Greek Finance Minister Euclid Tsakalotos had not been enough to convince his counterparts to sign off on the Second Assessment. Creditors seem adamant that Greece’s Primary Surplus targets should be kept at 3.8% beyond 2018.
Finance Minister, Euclid Tsakalotos asked for a "re-think" on the IMF's demand for legislating on pre-emptive measures for after 2018, saying that "after we have achieved such a performance, the new measures are not necessary." "We must reach a solution very quickly," he added.
Speaking at the conclusion of the Eurogroup meeting on Thursday, he expressed his opposition to the demands of the IMF, to legislating on additional measures for the Greek economy after the end of the programme, noting that this would be binding on the future Governments of a European country - something which is not consistent with European and democratic values.
Furthermore, he added that everyone was agreed that the over performance on public finances was impressive, since the [Primary Surplus] target had been 0.5% and it was now expected figure of 2% would be reached.
The Finance Minister said that all the participants in the meeting acknowledged that Greece had made "outstanding achievements" and that the Greek economy "can enter the stage of development. In all the meetings we found common ground. Greek development is going much better than many expected." In this context, he called for "a re-think" on the IMF's demand for legislating pre-emptive measures which relate to the period after 2018, saying that "after we have had such a performance, the new measures are not necessary."
Eurogroup President, Jeroen Dijsselbloem, said he had received assurances from the International Monetary Fund that it still wants to take part in the Greek bailout programme, calling its participation “non-negotiable”. The IMF says Greece will not achieve a Primary Surplus Target of 3.5% of GDP in the medium-term - a period which has yet to be defined - unless it adopts more austerity measures and is granted more debt relief.
German Finance Minister Wolfgang Schaeuble insisted that Greece must meet its obligations while EU Commissioner Pierre Moscovici appeared reassuring, referring to a “good discussion” in the Eurogroup that allowed for future steps with “optimism”, while merely adding that a decision on when negotiators will return to Athens will come soon.
Greece’s debt will be discussed in an IMF Executive Committee meeting on February 6th. The IMF’s political disagreement with Germany continues. A debt sustainability report will be presented at that meeting which says that the Greek debt can’t be considered sustainable even if Greece adopts the fiscal path proposed by German Finance Minister Wolfgang Schaeuble, namely Primary Surpluses of 3.5% of GDP for a 10-year period. IMF rules require that a country’s debt must be considered sustainable by the fund in order for a loan to be made.
The IMF’s insistence on this position, on the one hand, and on the German Finance Ministry’s adamant position, on the other hand, is the core of the political disagreement between the IMF and Germany for the period after the conclusion of the Greek programme in 2018. The Greek government has repeatedly maintained that it is this disagreement that it is responsible for delays in concluding the Second Assessment.
Footnote:
On Friday Standard & Poor re-affirmed Greece’s ‘B-/B’ ratings in its scheduled rating review. In its view, the outlook remains “stable”. It also said it expects economic growth over 2017-2020 to be supported by tourism and a gradually improving jobs market, but warned the economy remains fragile. A press release from S&P included a statement that the outlook for investment remains difficult, given challenges to Greece’s banks. [This is a reference to the importance of Greece gaining access to the EU’s Quantitative Easing Programme. Ed]
A letter by Greek Finance Minister Euclid Tsakalotos had not been enough to convince his counterparts to sign off on the Second Assessment. Creditors seem adamant that Greece’s Primary Surplus targets should be kept at 3.8% beyond 2018.
Finance Minister, Euclid Tsakalotos asked for a "re-think" on the IMF's demand for legislating on pre-emptive measures for after 2018, saying that "after we have achieved such a performance, the new measures are not necessary." "We must reach a solution very quickly," he added.
Speaking at the conclusion of the Eurogroup meeting on Thursday, he expressed his opposition to the demands of the IMF, to legislating on additional measures for the Greek economy after the end of the programme, noting that this would be binding on the future Governments of a European country - something which is not consistent with European and democratic values.
Furthermore, he added that everyone was agreed that the over performance on public finances was impressive, since the [Primary Surplus] target had been 0.5% and it was now expected figure of 2% would be reached.
The Finance Minister said that all the participants in the meeting acknowledged that Greece had made "outstanding achievements" and that the Greek economy "can enter the stage of development. In all the meetings we found common ground. Greek development is going much better than many expected." In this context, he called for "a re-think" on the IMF's demand for legislating pre-emptive measures which relate to the period after 2018, saying that "after we have had such a performance, the new measures are not necessary."
Eurogroup President, Jeroen Dijsselbloem, said he had received assurances from the International Monetary Fund that it still wants to take part in the Greek bailout programme, calling its participation “non-negotiable”. The IMF says Greece will not achieve a Primary Surplus Target of 3.5% of GDP in the medium-term - a period which has yet to be defined - unless it adopts more austerity measures and is granted more debt relief.
German Finance Minister Wolfgang Schaeuble insisted that Greece must meet its obligations while EU Commissioner Pierre Moscovici appeared reassuring, referring to a “good discussion” in the Eurogroup that allowed for future steps with “optimism”, while merely adding that a decision on when negotiators will return to Athens will come soon.
Greece’s debt will be discussed in an IMF Executive Committee meeting on February 6th. The IMF’s political disagreement with Germany continues. A debt sustainability report will be presented at that meeting which says that the Greek debt can’t be considered sustainable even if Greece adopts the fiscal path proposed by German Finance Minister Wolfgang Schaeuble, namely Primary Surpluses of 3.5% of GDP for a 10-year period. IMF rules require that a country’s debt must be considered sustainable by the fund in order for a loan to be made.
The IMF’s insistence on this position, on the one hand, and on the German Finance Ministry’s adamant position, on the other hand, is the core of the political disagreement between the IMF and Germany for the period after the conclusion of the Greek programme in 2018. The Greek government has repeatedly maintained that it is this disagreement that it is responsible for delays in concluding the Second Assessment.
Footnote:
On Friday Standard & Poor re-affirmed Greece’s ‘B-/B’ ratings in its scheduled rating review. In its view, the outlook remains “stable”. It also said it expects economic growth over 2017-2020 to be supported by tourism and a gradually improving jobs market, but warned the economy remains fragile. A press release from S&P included a statement that the outlook for investment remains difficult, given challenges to Greece’s banks. [This is a reference to the importance of Greece gaining access to the EU’s Quantitative Easing Programme. Ed]
Prospects for a successful
Second Assessment
21.1.2017
Greek Finance Minister, Euclid Tsakalotos, expressed optimism on Wednesday that Athens is on track to conclude the review of its bailout programme, despite negotiations currently being on hold due to the differences of opinion between the International Monetary Fund and European creditors over the goals of the programme. “If we continue to exceed targets as we have been and the IMF continues to make erroneous projections, the only thing left to us is to offer them technical assistance” was Minister Tsakalotos’ comment on data showing Greece exceeding its 2.4€ million Primary Surplus target.
Provisional end-of-year figures released by the Finance Ministry showed a Primary Surplus of approximately 4.4€ billion in 2016. The Institutions’ target was set at 1.8€ billion. In December revenues reached 6.026€ billion, exceeding that target by 114€ million.
Also on Wednesday, Prime Minister Alexis Tsipras told MPs that “the exit from the program in mid-2018 is in sight” adding that he expected the Second Assessment to be concluded without the need to legislate new austerity measures beyond 2018.
The Government hopes that the swift conclusion of the Second Assessment will allow it to be considered for inclusion in the European Central Bank’s Quantitative Easing (QE) programme, which would in turn put Greece in a position to test the Bond markets in 2017.
Clarity over the IMF’s role in the Greek bailout programme is not expected before February. The IMF remains adamant that the Greek Primary Surplus goal should be reduced from 3.5% to 1.5% of GDP. Greece’s European creditors strongly object. The alternative, according to the IMF, is for the Greek Government to adopt additional “measures” worth approximately 4.5€ billion. The Government opposes such measures and has reportedly suggested an extension of the so called “fiscal cutter” – the Automatic Fiscal Adjustment Mechanism of the Budget in the event that targets are in danger of being missed.
Divisions over labour reforms, fiscal targets and debt relief are preventing Greece and its foreign lenders from concluding a compliance review - the Second Assessment - of its current bailout programme.
Also on Wednesday a German Finance Ministry spokesman said “we still expect IMF participation. For us, this participation has been promised and is necessary.” Earlier a report by German newspaper, Bild, suggested that Finance Minister Wolfgang Schaeuble was making preparations in the event of the IMF exiting the Greek programme. The IMF says it will only join in if this rescue is the country's last and it includes significant debt relief.
Minister Schaeuble believes that debt relief would take the pressure off Greece to reform its economy. He has said he favours shifting some of the European Commission's task of enforcing euro zone budget rules to the non-political body the European Stability Mechanism (ESM).
An ESM spokesman told Reuters: "We continue to work hard so that the IMF remains engaged in Greece and pursues the work there with the European institutions."
Following the continuing position of the International Monetary Fund (IMF) saying that it will only consider being involved in the bailout programme for Greece if the agreement includes debt relief, the German Finance Minister, Wolfgang Schaeuble has started preparing to go ahead with presenting a modified programme on his own, Reuters has reported.
According to Germany’s Bild newspaper, the German Government is preparing to present a modified programme which would be voted on in the Bundestag lower house of parliament if the IMF refuses to take part. The vote would take place by September, before the elections, sources have said.
Unnamed sources in the report published by Bild said that since the IMF has repeatedly stated that it will only participate in the bailout if significant debt relief is granted to Greece and Berlin refuses to consider that, Minister, Schaeuble has come to the conclusion that the European Stability Mechanism (ESM) should step in to fill the gap left by the IMF.
In a Wall Street Journal interview published on Monday, German Finance Minister Schaeuble repeated a statement he made last week that the withdrawal of the IMF could mean that the Greek bailout programme would need to be renegotiated. More specifically he had said that any new programme would have to get German Parliament approval, a procedure that would take a long time. “Should the Second Assessment not come to a successful conclusion and should the IMF withdraw, then the current programme would be obsolete. The programme was agreed to only on the expectation that the IMF would participate,” he said.
“If it became obsolete, then we would have a situation in which one would need to come up with something new. I wouldn’t recommend this to the Greek Government,” Schaeuble added. “But I would be completely relaxed. The German Bundestag would first need to discuss and agree on whether or not it approves negotiating a new programme.”
The Greek bailout programme can proceed without the IMF’s participation, stated Interior Minister Panos Skourletis on Monday adding that a political intermediary is better than an inflexible technocrat that wants to implement recipes that did not have positive results in most of the countries where they have been applied.
Asked if the Fund is Greece’s ally on the debt issue, Minister Skourletis said “I don’t know if it is really our ally. If it was our real ally it wouldn’t ask for measures that make the [debt re- Ed] payment difficult. There is a contradiction here that leads us to the conclusion that we do not know what the IMF really wants.
Finance Ministry's Report : Economic Data for 2016
The development of the Greek economy is a fact, not a prediction, stated the Minister of the Economy and Development, Dimitris Papadimitriou citing in detail the magnitudes and data on the leaps forward of the year just passed.
“The Greek economy has returned to trends of growth, everyone says so, the numbers confirm it.”
* a 1.8% increase in real GDP in the third quarter of 2016
* a 12.6% increase in the volume of gross investment in fixed capital assets (private investment)
* a 10.2% increase in exports of goods and services, generating a surplus in the current account for the first time since 1948
* a 5.1% increase in private consumption on an annual basis in real economic terms over the same period
* a 228% increase in direct foreign investment between January-October from 703€ million in 2015 to 2.303€ billion in 2016.
* employment growth to the tune of 232,000 jobs from the first quarter of 2015 to the third quarter of 2016, while the unemployment rate was reduced by a corresponding 4 percentage points from 26.6% in 22.6%.
* a rise of 2.3% on an annual basis of the general index of industrial production in the eleven months of 2016 in comparison to 0.5% in the corresponding period in 2015.
Economic development both in 2017 and 2018 will further reduce unemployment, as predicted, while he reiterated that opposition claims about companies “putting up the shutters” or companies moving operations to countries such as neighbouring Bulgaria were unfounded.
Minister Papadimitriou emphasised that most of the cases that had happened related to tax instruments, in order for some to "write down" vehicles, buildings etc. As regards the “putting up the shutters”, most of these enterprises had been inactive for 2-3 years and again they closed their books for tax reasons. There is no new “putting up the shutters” in the market, he argued.
The Economy Minister estimated that this moment constituted a very friendly environment for investment, for both foreign and Greek investors. High taxation is being highlighted, but the more important issue is funding," he said. With the new financial instruments and through the EU, the European Investment Bank, the NSRF (The National Stronger Regions Fund), the European Investment Fund, there are a large number of enterprises that want to invest in tourism, in manufacturing, in products that support the agricultural sector, in start-ups, he added.
The return to growth of the Greek economy is confirmed by the Institutions, the IMF, the EU, the studies of many banks. "We're not the only ones who maintain this."
"I think we are in a good position to start negotiating again and conclude the Second Assessment either by the end of January, or by mid-February."
Footnote to the week!
Institutions’ Fresh Objections
Greece’s creditors – and particularly the International Monetary Fund – are raising fresh objections to the Government’s plans for financing its Social Solidarity Income.
Creditor representatives are demanding fresh cuts to welfare benefits if the Government wants to finance the measure for supporting vulnerable social groups in 2018, adding one more obstacle in the process for completing the second bailout review.
The Greek negotiating team regarded this issue as closed following the Government’s commitment to proceed with two severe “reforms” to benefits given to households and to the disabled, as well as to tax exemptions, to make a saving of between 200€ and 210€ million in 2018. The aim is for some 700,000 people to benefit from the Social Solidarity Income. The Government’s plan is for the measure to be financed in 2017 and in the coming years from the state budget.
Provisional end-of-year figures released by the Finance Ministry showed a Primary Surplus of approximately 4.4€ billion in 2016. The Institutions’ target was set at 1.8€ billion. In December revenues reached 6.026€ billion, exceeding that target by 114€ million.
Also on Wednesday, Prime Minister Alexis Tsipras told MPs that “the exit from the program in mid-2018 is in sight” adding that he expected the Second Assessment to be concluded without the need to legislate new austerity measures beyond 2018.
The Government hopes that the swift conclusion of the Second Assessment will allow it to be considered for inclusion in the European Central Bank’s Quantitative Easing (QE) programme, which would in turn put Greece in a position to test the Bond markets in 2017.
Clarity over the IMF’s role in the Greek bailout programme is not expected before February. The IMF remains adamant that the Greek Primary Surplus goal should be reduced from 3.5% to 1.5% of GDP. Greece’s European creditors strongly object. The alternative, according to the IMF, is for the Greek Government to adopt additional “measures” worth approximately 4.5€ billion. The Government opposes such measures and has reportedly suggested an extension of the so called “fiscal cutter” – the Automatic Fiscal Adjustment Mechanism of the Budget in the event that targets are in danger of being missed.
Divisions over labour reforms, fiscal targets and debt relief are preventing Greece and its foreign lenders from concluding a compliance review - the Second Assessment - of its current bailout programme.
Also on Wednesday a German Finance Ministry spokesman said “we still expect IMF participation. For us, this participation has been promised and is necessary.” Earlier a report by German newspaper, Bild, suggested that Finance Minister Wolfgang Schaeuble was making preparations in the event of the IMF exiting the Greek programme. The IMF says it will only join in if this rescue is the country's last and it includes significant debt relief.
Minister Schaeuble believes that debt relief would take the pressure off Greece to reform its economy. He has said he favours shifting some of the European Commission's task of enforcing euro zone budget rules to the non-political body the European Stability Mechanism (ESM).
An ESM spokesman told Reuters: "We continue to work hard so that the IMF remains engaged in Greece and pursues the work there with the European institutions."
Following the continuing position of the International Monetary Fund (IMF) saying that it will only consider being involved in the bailout programme for Greece if the agreement includes debt relief, the German Finance Minister, Wolfgang Schaeuble has started preparing to go ahead with presenting a modified programme on his own, Reuters has reported.
According to Germany’s Bild newspaper, the German Government is preparing to present a modified programme which would be voted on in the Bundestag lower house of parliament if the IMF refuses to take part. The vote would take place by September, before the elections, sources have said.
Unnamed sources in the report published by Bild said that since the IMF has repeatedly stated that it will only participate in the bailout if significant debt relief is granted to Greece and Berlin refuses to consider that, Minister, Schaeuble has come to the conclusion that the European Stability Mechanism (ESM) should step in to fill the gap left by the IMF.
In a Wall Street Journal interview published on Monday, German Finance Minister Schaeuble repeated a statement he made last week that the withdrawal of the IMF could mean that the Greek bailout programme would need to be renegotiated. More specifically he had said that any new programme would have to get German Parliament approval, a procedure that would take a long time. “Should the Second Assessment not come to a successful conclusion and should the IMF withdraw, then the current programme would be obsolete. The programme was agreed to only on the expectation that the IMF would participate,” he said.
“If it became obsolete, then we would have a situation in which one would need to come up with something new. I wouldn’t recommend this to the Greek Government,” Schaeuble added. “But I would be completely relaxed. The German Bundestag would first need to discuss and agree on whether or not it approves negotiating a new programme.”
The Greek bailout programme can proceed without the IMF’s participation, stated Interior Minister Panos Skourletis on Monday adding that a political intermediary is better than an inflexible technocrat that wants to implement recipes that did not have positive results in most of the countries where they have been applied.
Asked if the Fund is Greece’s ally on the debt issue, Minister Skourletis said “I don’t know if it is really our ally. If it was our real ally it wouldn’t ask for measures that make the [debt re- Ed] payment difficult. There is a contradiction here that leads us to the conclusion that we do not know what the IMF really wants.
Finance Ministry's Report : Economic Data for 2016
The development of the Greek economy is a fact, not a prediction, stated the Minister of the Economy and Development, Dimitris Papadimitriou citing in detail the magnitudes and data on the leaps forward of the year just passed.
“The Greek economy has returned to trends of growth, everyone says so, the numbers confirm it.”
* a 1.8% increase in real GDP in the third quarter of 2016
* a 12.6% increase in the volume of gross investment in fixed capital assets (private investment)
* a 10.2% increase in exports of goods and services, generating a surplus in the current account for the first time since 1948
* a 5.1% increase in private consumption on an annual basis in real economic terms over the same period
* a 228% increase in direct foreign investment between January-October from 703€ million in 2015 to 2.303€ billion in 2016.
* employment growth to the tune of 232,000 jobs from the first quarter of 2015 to the third quarter of 2016, while the unemployment rate was reduced by a corresponding 4 percentage points from 26.6% in 22.6%.
* a rise of 2.3% on an annual basis of the general index of industrial production in the eleven months of 2016 in comparison to 0.5% in the corresponding period in 2015.
Economic development both in 2017 and 2018 will further reduce unemployment, as predicted, while he reiterated that opposition claims about companies “putting up the shutters” or companies moving operations to countries such as neighbouring Bulgaria were unfounded.
Minister Papadimitriou emphasised that most of the cases that had happened related to tax instruments, in order for some to "write down" vehicles, buildings etc. As regards the “putting up the shutters”, most of these enterprises had been inactive for 2-3 years and again they closed their books for tax reasons. There is no new “putting up the shutters” in the market, he argued.
The Economy Minister estimated that this moment constituted a very friendly environment for investment, for both foreign and Greek investors. High taxation is being highlighted, but the more important issue is funding," he said. With the new financial instruments and through the EU, the European Investment Bank, the NSRF (The National Stronger Regions Fund), the European Investment Fund, there are a large number of enterprises that want to invest in tourism, in manufacturing, in products that support the agricultural sector, in start-ups, he added.
The return to growth of the Greek economy is confirmed by the Institutions, the IMF, the EU, the studies of many banks. "We're not the only ones who maintain this."
"I think we are in a good position to start negotiating again and conclude the Second Assessment either by the end of January, or by mid-February."
Footnote to the week!
Institutions’ Fresh Objections
Greece’s creditors – and particularly the International Monetary Fund – are raising fresh objections to the Government’s plans for financing its Social Solidarity Income.
Creditor representatives are demanding fresh cuts to welfare benefits if the Government wants to finance the measure for supporting vulnerable social groups in 2018, adding one more obstacle in the process for completing the second bailout review.
The Greek negotiating team regarded this issue as closed following the Government’s commitment to proceed with two severe “reforms” to benefits given to households and to the disabled, as well as to tax exemptions, to make a saving of between 200€ and 210€ million in 2018. The aim is for some 700,000 people to benefit from the Social Solidarity Income. The Government’s plan is for the measure to be financed in 2017 and in the coming years from the state budget.
Conclusion of Second Assessment further delayed
14.01.2017
On Tuesday Labour Minister Efi Achtsioglou accused the International Monetary Fund of taking a “negative stance” in the talks with the international creditors over labour relations.Besides reportedly pushing for further “reform” of the Greek pension system, the IMF is also demanding a lifting of restrictions on mass layoffs and is opposing the restoration of mandatory collective bargaining negotiations between trade unions and employers.
Greek government sources say the stalling is not down to “technical reasons” but a political solution must be sought. To this end, on Thursday, Greek Finance Minister Euclid Tsakalotos met with the European Commissioner for Economic and Financial Affairs, Pierre Moscovici.
At the press conference following that meeting, Commissioner Moscovici told reporters that the International Monetary Fund’s (IMF) participation in the Greek programme is regarded as reassuring for a number of EU member-states. He stated that several issues remain unresolved in the negotiations to conclude the Second Assessment of the Greek bailout programme. These include energy reforms, collective bargaining and labour reforms and arriving at an assessment of the fiscal gap. “We are moving in the right direction towards concluding the Second Assessment.”
Greek Finance Minister Euclid Tsakalotos said during the joint press conference that the IMF must make up its mind about the level of its participation in the Greek programme. He added that there are many issues to be resolved but this is natural when so many players are involved.
Gerry Rice, a spokesman for the IMF, told reporters later on Thursday that the IMF is still open to being part of the Greek bailout programme. Mr. Rice added that there is no clear timetable for the resumption of talks between Greece and its creditors.
The spokesman reiterated the long-standing IMF position that a 1.5% Primary Surplus target is a more realistic target for the Greek economy. According to the IMF, reducing the target will mean Greece will not require new fiscal measures. In order to achieve European creditors’ current demand for Primary Surplus targets of 3.5% of GDP after the current bailout programme ends, the IMF’s insists that additional measures worth four billion euros will be required after 2018.
Greek government spokesman Dimitris Tzanakopoulos said during his regular press briefing that the Second Assessment can only be successfully concluded if there is a political agreement. He stressed that the conclusion of the Assessment was being delayed due to “disagreements” between the IMF and the Eurozone about the prospects of the Greek economy. He added that currently there is no technical problem. He repeated that “irrational demands” – such as sharply reducing the tax-free threshold – will not be accepted by the Greek Government.
“It is not possible for Greece to be excluded from basic EU rights with regard to the regulation of labour relations,” noted SYRIZA spokeswoman Ranai Svingou, adding that “there is no room for the pre-election tactics of a Eurozone Member State” in the negotiations to conclude the Second Assessment. "The persistent demands from a certain section of the creditors, namely the IMF and Berlin, are behind the delay."
"There are currently no technical or economic reasons to merit any delay. Initiatives are being taken at all levels to complete the Assessment.”
“We have made it clear that measures after the expiry of the programme cannot be accepted and that, in fact, the will undermine the Greek economy itself and the need to turn the page.”
“It is the clear position of the IMF's attitude and we all know who insisted on the involvement of the IMF in the Greek programme and who continue to want it to stay in it. The Assessment and its completion is not only positive news for the country, but is positive news for Europe itself, because I cannot accept that currently it is in Europe’s interest for there to be an additional outbreak of uncertainty.”
"For this to happen there is no room at this moment for either obsessions or for new errors in their projections as we have grown accustomed with the IMF, nor indeed for the personal pre-election tactics of one Eurozone Member State to the detriment of another Member State, that is to say, to Greece's detriment especially when its consequences affect itself and the whole of Europe.”
“Relationships within the framework of the agreement have changed compared to a year ago. We are not in the same position. We are in a phase where the Greek economy has exceeded its targets in relation to the programme and at the same time we are trying to create a way out of the crisis without putting new burdens and new strains on Greek society. It will be to the detriment of the economy itself if there are new unbearable measures and precisely for this reason we cannot accept voting on preventive measures for after 2018, after the end of the programme.”
“The turning of the page and the optimism about a new phase on which the Greek economy must embark, turns on the completion of the Assessment. And this, as I said earlier, will be positive news and a positive signal for the whole of Europe.”
“Yet there is indeed a part of the European elite that has not understood anything at all about what has happened, not only in Greece and on the failed programmes which were designed and implemented. But they have not understood anything from what is happening in Europe.
At the moment Europe is suffocating from the politics of austerity and it cannot continue to have Greece and other countries as guinea pigs, for the implementation of the most destructive policies.”
At the press conference following that meeting, Commissioner Moscovici told reporters that the International Monetary Fund’s (IMF) participation in the Greek programme is regarded as reassuring for a number of EU member-states. He stated that several issues remain unresolved in the negotiations to conclude the Second Assessment of the Greek bailout programme. These include energy reforms, collective bargaining and labour reforms and arriving at an assessment of the fiscal gap. “We are moving in the right direction towards concluding the Second Assessment.”
Greek Finance Minister Euclid Tsakalotos said during the joint press conference that the IMF must make up its mind about the level of its participation in the Greek programme. He added that there are many issues to be resolved but this is natural when so many players are involved.
Gerry Rice, a spokesman for the IMF, told reporters later on Thursday that the IMF is still open to being part of the Greek bailout programme. Mr. Rice added that there is no clear timetable for the resumption of talks between Greece and its creditors.
The spokesman reiterated the long-standing IMF position that a 1.5% Primary Surplus target is a more realistic target for the Greek economy. According to the IMF, reducing the target will mean Greece will not require new fiscal measures. In order to achieve European creditors’ current demand for Primary Surplus targets of 3.5% of GDP after the current bailout programme ends, the IMF’s insists that additional measures worth four billion euros will be required after 2018.
Greek government spokesman Dimitris Tzanakopoulos said during his regular press briefing that the Second Assessment can only be successfully concluded if there is a political agreement. He stressed that the conclusion of the Assessment was being delayed due to “disagreements” between the IMF and the Eurozone about the prospects of the Greek economy. He added that currently there is no technical problem. He repeated that “irrational demands” – such as sharply reducing the tax-free threshold – will not be accepted by the Greek Government.
“It is not possible for Greece to be excluded from basic EU rights with regard to the regulation of labour relations,” noted SYRIZA spokeswoman Ranai Svingou, adding that “there is no room for the pre-election tactics of a Eurozone Member State” in the negotiations to conclude the Second Assessment. "The persistent demands from a certain section of the creditors, namely the IMF and Berlin, are behind the delay."
"There are currently no technical or economic reasons to merit any delay. Initiatives are being taken at all levels to complete the Assessment.”
“We have made it clear that measures after the expiry of the programme cannot be accepted and that, in fact, the will undermine the Greek economy itself and the need to turn the page.”
“It is the clear position of the IMF's attitude and we all know who insisted on the involvement of the IMF in the Greek programme and who continue to want it to stay in it. The Assessment and its completion is not only positive news for the country, but is positive news for Europe itself, because I cannot accept that currently it is in Europe’s interest for there to be an additional outbreak of uncertainty.”
"For this to happen there is no room at this moment for either obsessions or for new errors in their projections as we have grown accustomed with the IMF, nor indeed for the personal pre-election tactics of one Eurozone Member State to the detriment of another Member State, that is to say, to Greece's detriment especially when its consequences affect itself and the whole of Europe.”
“Relationships within the framework of the agreement have changed compared to a year ago. We are not in the same position. We are in a phase where the Greek economy has exceeded its targets in relation to the programme and at the same time we are trying to create a way out of the crisis without putting new burdens and new strains on Greek society. It will be to the detriment of the economy itself if there are new unbearable measures and precisely for this reason we cannot accept voting on preventive measures for after 2018, after the end of the programme.”
“The turning of the page and the optimism about a new phase on which the Greek economy must embark, turns on the completion of the Assessment. And this, as I said earlier, will be positive news and a positive signal for the whole of Europe.”
“Yet there is indeed a part of the European elite that has not understood anything at all about what has happened, not only in Greece and on the failed programmes which were designed and implemented. But they have not understood anything from what is happening in Europe.
At the moment Europe is suffocating from the politics of austerity and it cannot continue to have Greece and other countries as guinea pigs, for the implementation of the most destructive policies.”
TV Licences
In October, the Council of State ruled that the auction process which allotted four TV licences was unconstitutional. Now the Association of National Broadcasting Television Station Owners (EITHSEE) have asked the Supreme Court - the Council of State - to make a ruling to exempt its top executives from filing wealth statements [showing the origins of their money and by implication whether appropriate taxes have been paid Ed.].
Nikos Pappas, the Greek Minister of Digital Policy, Media and Telecommunications, expressed his surprise at the request and wondered “what the TV channel owners want to hide”.
“They have exceeded any reasonable boundary,” he said, calling the demand “a provocative action against the Greek people”. “It makes no sense to implement controls on the wealth (and its origins) of individual journalists while rich channel owners and well-paid executives are exempt.”
The Channel Owners Association is raising concerns about privacy and the sensitivity of commercial data to support its demand, citing fears that sensitive private data could be leaked. The EITHSEE also claims the legislative provision for such wealth declarations is illegal and unconstitutional.
In October 2015, the Greek Parliament approved a new media bill, delivering on promises made under the bailout agreement with its international creditor last July. According to the Government the law aimed to open up the media market to competition from new players.
In January Minister of State Nikos Pappas repeated that the Greek Government was determined to bring order and legality into the broadcasting business. “For 25 years Greece has been the only EU country that has never undertaken any licencing process for private TV channels, maintaining the lawless regime of temporary licences.”
In October, the Council of State ruled that the auction process which allotted four TV licences was unconstitutional. Now the Association of National Broadcasting Television Station Owners (EITHSEE) have asked the Supreme Court - the Council of State - to make a ruling to exempt its top executives from filing wealth statements [showing the origins of their money and by implication whether appropriate taxes have been paid Ed.].
Nikos Pappas, the Greek Minister of Digital Policy, Media and Telecommunications, expressed his surprise at the request and wondered “what the TV channel owners want to hide”.
“They have exceeded any reasonable boundary,” he said, calling the demand “a provocative action against the Greek people”. “It makes no sense to implement controls on the wealth (and its origins) of individual journalists while rich channel owners and well-paid executives are exempt.”
The Channel Owners Association is raising concerns about privacy and the sensitivity of commercial data to support its demand, citing fears that sensitive private data could be leaked. The EITHSEE also claims the legislative provision for such wealth declarations is illegal and unconstitutional.
In October 2015, the Greek Parliament approved a new media bill, delivering on promises made under the bailout agreement with its international creditor last July. According to the Government the law aimed to open up the media market to competition from new players.
In January Minister of State Nikos Pappas repeated that the Greek Government was determined to bring order and legality into the broadcasting business. “For 25 years Greece has been the only EU country that has never undertaken any licencing process for private TV channels, maintaining the lawless regime of temporary licences.”
China in Greece
Chinese enterprises are showing an increased interest in Greece, as not only does the country offer them an entry gate to the Eurozone and the rest of Europe, but it’s also a relatively new market for them.
Just weeks after the signing of a cooperation agreement between Greece’s Public Power Corporation and China’s Machinery Engineering Corporation (CMEC) on the development of joint infrastructure projects, and days after the acquisition of 24% in the Independent Power Transmission Operator (ADMIE) by China’s State Grid Corporation, the head of the Chinese Shenhua Group arrived in Athens with his staff.
According to press reports, the chief of one of the world’s biggest corporations in coal and energy trading “expressed his desire to understand in depth the Greek energy market and to promote cooperation with Greek enterprises on such projects as lignite-powered electricity units.”
After investments in infrastructure (e.g. COSCO in the Port of Piraeus) and energy, Chinese enterprises are now looking at the sectors of food, services, tourism (and its infrastructure), scientific innovation, culture, property market and healthcare. The next few weeks will see the arrival of Chinese business missions to Greece to that end. China will also be the country of honour at the 2017 Thessaloniki International Fair.
Chinese enterprises are showing an increased interest in Greece, as not only does the country offer them an entry gate to the Eurozone and the rest of Europe, but it’s also a relatively new market for them.
Just weeks after the signing of a cooperation agreement between Greece’s Public Power Corporation and China’s Machinery Engineering Corporation (CMEC) on the development of joint infrastructure projects, and days after the acquisition of 24% in the Independent Power Transmission Operator (ADMIE) by China’s State Grid Corporation, the head of the Chinese Shenhua Group arrived in Athens with his staff.
According to press reports, the chief of one of the world’s biggest corporations in coal and energy trading “expressed his desire to understand in depth the Greek energy market and to promote cooperation with Greek enterprises on such projects as lignite-powered electricity units.”
After investments in infrastructure (e.g. COSCO in the Port of Piraeus) and energy, Chinese enterprises are now looking at the sectors of food, services, tourism (and its infrastructure), scientific innovation, culture, property market and healthcare. The next few weeks will see the arrival of Chinese business missions to Greece to that end. China will also be the country of honour at the 2017 Thessaloniki International Fair.
"2017, as well as being a year of recovery, will also be the year of major institutional interventions and changes the country needs"
7.1.2017
Prime Minister Alexis Tsipras' New Year message delivered on 31st December 2016.
"I want to wish everyone a happy New Year and may the New Year find you with the people you love."
2017, as well as being a year of recovery, will also be the year of major institutional interventions and changes the country needs.
But I know that today many of our fellow citizens are not able to celebrate like the rest. It is to them that our thoughts go. To the people that the economic crisis led to the cliff edge. To the unemployed, to the low wage earners, to the poorest pensioners. The people who every day struggle for survival.
First of all about those giving battle to extricate our country from the stranglehold of the Memoranda and of Supervision.
In the year that is closing we achieved many things. Not everything we wanted, but many things. We have stabilised the Greek economy. We have finally moved on to positive economic growth. We have reduced unemployment by a further 3%. 2.5 million of our fellow citizens have gained access to the public health system. The programme for the humanitarian crisis widened. Greece from last position became the top country in the 28 EU states in absorbing resources from the structural funds.
With hard work we managed not only to achieve but also to go beyond the targets of the Programme. And this for the first time in six whole years. And this was the success that enabled us to do what we consider our minimum duty. For us to support the poorest pensioners giving for this year the 13th pension payment to 1.6 million beneficiaries.
Giving them the right to enjoy the festivities with dignity and optimism.
At the same time it also gave us the ability to keep fixed the VAT in our islands. Where they are taking on the burden of the refugee flows. So in order to support our Islanders who carry on their backs the whole of Europe’s burden. Our islanders, who teach humanism and solidarity, even to the rich nations of the North as well.
And we're proud of that. We are proud that small Greece is showing Europe the road of values, in contrast to the road of racism, intolerance and closed borders.
We know that this road, the only road to a United Europe, is difficult. It has obstacles. It has sworn opponents. The forces that feed the extreme right and isolationism. The forces of extended austerity. Precisely those forces that have led Europe to today's deadlock.
But at the same time we know from history, that if the people are united and determined, they can overcome even the greatest difficulties. That they can overcome even the most powerful opponents. The very history of our people is the most resounding example.
So we aspire, for 2017 to be the year that will confirm our history. The year that our country will make the great leap forward. On the economy, in society, but also on our national issues. Because Greece is succeeding, in a difficult period of uncertainty and insecurity, in being a pillar of stability and security in the wider region.
And to maintain this role, we will work hard: Both with our firm commitment to a just and viable solution to the Cyprus problem, and with the unwavering stance of solidarity to address the refugee crisis.
We aspire for 2017 to be the year that will confirm the irreplaceable role of Greece in the international and European firmament.
But also the year in which confidence and stability in the Greek economy will be consolidated. And this, for the first time after seven years of crisis, is not simply a mundane new year wish. But a realistic expectation. Because 2017 will be a year of high growth rates.
With the completion of the Second Assessment opens the road to quantitative easing and our recovery of access to the markets. It will be the first step towards regaining our economic independence.
2017 will also be the year of investment. The year that our economy will reap the fruits of the hard work of absorbing European funds. With the emphasis on small and medium-sized enterprises, research and innovation. Because this is the competitive advantage of the Greek economy. Knowledge and human capital.
2017 is also the year of the completion of major infrastructure projects that for years languished as accumulated burdens on state funds to the advantage of the vested interests.
So that is why this year, the word “development” is not just a pipedream.
However, I would like to point out that development is not enough. To be effective and to heal the wounds of the crisis, we need the development that is coming to be fair as well. And it is all of us who together will carve out the path of development, in terms of dignity, justice and social protection.
2017, however, over and above being the year of recovery, will also be the year of major institutional interventions and changes that the country needs.
In the 2017 we will conclude the dialogue and will bring forward proposals to Parliament concerning the great review of the Constitution. With a view to the broadening and deepening of democracy. But also the strengthening of democratic participation.
But the institutional interventions will not end with the Constitutional revision. In 2017, up until September, we will move towards a major intervention in our education system. To escape at last from the school as a testing centre. And to implement the frozen demand for free access to higher education.
In 2017, we will also proceed with the great reform in health. Apart from the substantial support, for the first time, in human resources, we will proceed to the establishment of a reliable System of Primary Health Care. Universal, public and free to all: workers and the unemployed, the Insured and the Uninsured.
But 2017 will also be a year of significant changes in local government. With the strengthening of its role, the Kallikrates reform, proportional representation of citizens at all its levels.
Finally 2017 we are fighting to make it a landmark year for workers in our country, with the reintroduction of collective bargaining agreements.
So that Greece stops being a sad exception in Europe.
I know well that the challenges are great. I also know that for many, the road is still uphill. But for the first time there is light at the end of the tunnel. We can now see a clearing. A clearing in the economy, in society and on the major national issues.
And I am certain that, together, we can succeed.
Let us bring our country to the position it deserves.
Happy New Year
I wish you happiness, peace and creativity for the year to come.
2017, as well as being a year of recovery, will also be the year of major institutional interventions and changes the country needs.
But I know that today many of our fellow citizens are not able to celebrate like the rest. It is to them that our thoughts go. To the people that the economic crisis led to the cliff edge. To the unemployed, to the low wage earners, to the poorest pensioners. The people who every day struggle for survival.
First of all about those giving battle to extricate our country from the stranglehold of the Memoranda and of Supervision.
In the year that is closing we achieved many things. Not everything we wanted, but many things. We have stabilised the Greek economy. We have finally moved on to positive economic growth. We have reduced unemployment by a further 3%. 2.5 million of our fellow citizens have gained access to the public health system. The programme for the humanitarian crisis widened. Greece from last position became the top country in the 28 EU states in absorbing resources from the structural funds.
With hard work we managed not only to achieve but also to go beyond the targets of the Programme. And this for the first time in six whole years. And this was the success that enabled us to do what we consider our minimum duty. For us to support the poorest pensioners giving for this year the 13th pension payment to 1.6 million beneficiaries.
Giving them the right to enjoy the festivities with dignity and optimism.
At the same time it also gave us the ability to keep fixed the VAT in our islands. Where they are taking on the burden of the refugee flows. So in order to support our Islanders who carry on their backs the whole of Europe’s burden. Our islanders, who teach humanism and solidarity, even to the rich nations of the North as well.
And we're proud of that. We are proud that small Greece is showing Europe the road of values, in contrast to the road of racism, intolerance and closed borders.
We know that this road, the only road to a United Europe, is difficult. It has obstacles. It has sworn opponents. The forces that feed the extreme right and isolationism. The forces of extended austerity. Precisely those forces that have led Europe to today's deadlock.
But at the same time we know from history, that if the people are united and determined, they can overcome even the greatest difficulties. That they can overcome even the most powerful opponents. The very history of our people is the most resounding example.
So we aspire, for 2017 to be the year that will confirm our history. The year that our country will make the great leap forward. On the economy, in society, but also on our national issues. Because Greece is succeeding, in a difficult period of uncertainty and insecurity, in being a pillar of stability and security in the wider region.
And to maintain this role, we will work hard: Both with our firm commitment to a just and viable solution to the Cyprus problem, and with the unwavering stance of solidarity to address the refugee crisis.
We aspire for 2017 to be the year that will confirm the irreplaceable role of Greece in the international and European firmament.
But also the year in which confidence and stability in the Greek economy will be consolidated. And this, for the first time after seven years of crisis, is not simply a mundane new year wish. But a realistic expectation. Because 2017 will be a year of high growth rates.
With the completion of the Second Assessment opens the road to quantitative easing and our recovery of access to the markets. It will be the first step towards regaining our economic independence.
2017 will also be the year of investment. The year that our economy will reap the fruits of the hard work of absorbing European funds. With the emphasis on small and medium-sized enterprises, research and innovation. Because this is the competitive advantage of the Greek economy. Knowledge and human capital.
2017 is also the year of the completion of major infrastructure projects that for years languished as accumulated burdens on state funds to the advantage of the vested interests.
So that is why this year, the word “development” is not just a pipedream.
However, I would like to point out that development is not enough. To be effective and to heal the wounds of the crisis, we need the development that is coming to be fair as well. And it is all of us who together will carve out the path of development, in terms of dignity, justice and social protection.
2017, however, over and above being the year of recovery, will also be the year of major institutional interventions and changes that the country needs.
In the 2017 we will conclude the dialogue and will bring forward proposals to Parliament concerning the great review of the Constitution. With a view to the broadening and deepening of democracy. But also the strengthening of democratic participation.
But the institutional interventions will not end with the Constitutional revision. In 2017, up until September, we will move towards a major intervention in our education system. To escape at last from the school as a testing centre. And to implement the frozen demand for free access to higher education.
In 2017, we will also proceed with the great reform in health. Apart from the substantial support, for the first time, in human resources, we will proceed to the establishment of a reliable System of Primary Health Care. Universal, public and free to all: workers and the unemployed, the Insured and the Uninsured.
But 2017 will also be a year of significant changes in local government. With the strengthening of its role, the Kallikrates reform, proportional representation of citizens at all its levels.
Finally 2017 we are fighting to make it a landmark year for workers in our country, with the reintroduction of collective bargaining agreements.
So that Greece stops being a sad exception in Europe.
I know well that the challenges are great. I also know that for many, the road is still uphill. But for the first time there is light at the end of the tunnel. We can now see a clearing. A clearing in the economy, in society and on the major national issues.
And I am certain that, together, we can succeed.
Let us bring our country to the position it deserves.
Happy New Year
I wish you happiness, peace and creativity for the year to come.
In a newspaper interview published last Sunday, Finance Minister Euclid Tsakalotos spoke about the Government’s pre-Christmas measures:
"The surplus is not only to pay off arrears and provide a cushion for the Treasury, but it is also for reducing taxes and for strengthening social protection," said Finance Minister, Euclid Tsakalotos in a newspaper interview, in which he also added that there is not a single thought about early elections, only "how to secure the conditions to build on the improvement of the economy over the last two quarters."
Asked "how left is the choice" for a share of the surplus to be granted on the sole criterion of pension income, Euclid Tsakalotos answered that " administratively it is easier to give the money to pensioners and, at the same time, for it to be expended within December in order to register the expenditure in the 2016 budget, so it does not create any problem as regards the budgetary targets of the Programme".
Referring to the contents of his letter to the Institutions, the Finance Minister stressed that it is "extremely unlikely" that we will not reach the target of + 0.5% [Primary Surplus].
Asked if he believed that the IMF will pull out the Greek Programme, or if the Fund could participate as a technical adviser, Mr. Tsakalotos answered: "I really don't know what the IMF wants. Even the IMF itself does not know what it wants. There are many solutions for the completion of the current phase of the negotiations, one of which has the IMF primarily as a technical advisor. The markets know how to judge the credibility of the Programme. Will investors have a clean and safe route to invest? Will we get access to the QE? Will there be the objective conditions for us to go to the markets and hence also out from the Programme? These are the important questions. "
Asked what were the chances there would be a solution after 2018 about the establishment of a new mechanism of predefined measures in order to ensure the achievement of the budgetary targets, Minister Tsakalotos stressed: "We have made it crystal clear that we are not now legislating for such measures for after 2018. I have not understood that any such thing applies even for New Democracy. In the extremely unlikely event that the IMF breaks its impressive streak and one of its predictions comes to pass, we have said that we have described the measures necessary in that event. In this context we have also discussed a mechanism of commitment like the extension of the Automatic Fiscal Adjustment Mechanism of the Budget.
Tax debts to Greek state more than 94€ billion
More than half of the country’s taxpayers owe money to the Greek state, according to the Finance Ministry’s General Secretariat of Public Revenues. 4.3 million Taxpayers have debts in excess of 94€ billion, prompting authorities to take collection measures, including seizures of deposits and assets, against 826,211 taxpayers.
Debts accrued prior to 2016 come to 81.6€ billion, according to the figures published. Of this, more than 8€ billion is owed by state-owned businesses and municipal authorities, while some 12€ billion is unredeemable as it is owed by private businesses that have declared bankruptcy.
Individuals and legal entities owe another 61.8€ billion, according to the Finance Ministry, while some 157€ million is the result of debts resulting from companies issuing false receipts and invoices.
New debts accrued in the January-November 2016 period come to 12.6€ billion euros. The actual figure could be much higher as this does not include debts from indirect taxes, fines, customs fees, etc.
In October alone, taxpayers failed to pay 890€ million in taxes, while collection measures are expected to be taken against another 1.7 million taxpayers with debts to the state, the Ministry said.
"The surplus is not only to pay off arrears and provide a cushion for the Treasury, but it is also for reducing taxes and for strengthening social protection," said Finance Minister, Euclid Tsakalotos in a newspaper interview, in which he also added that there is not a single thought about early elections, only "how to secure the conditions to build on the improvement of the economy over the last two quarters."
Asked "how left is the choice" for a share of the surplus to be granted on the sole criterion of pension income, Euclid Tsakalotos answered that " administratively it is easier to give the money to pensioners and, at the same time, for it to be expended within December in order to register the expenditure in the 2016 budget, so it does not create any problem as regards the budgetary targets of the Programme".
Referring to the contents of his letter to the Institutions, the Finance Minister stressed that it is "extremely unlikely" that we will not reach the target of + 0.5% [Primary Surplus].
Asked if he believed that the IMF will pull out the Greek Programme, or if the Fund could participate as a technical adviser, Mr. Tsakalotos answered: "I really don't know what the IMF wants. Even the IMF itself does not know what it wants. There are many solutions for the completion of the current phase of the negotiations, one of which has the IMF primarily as a technical advisor. The markets know how to judge the credibility of the Programme. Will investors have a clean and safe route to invest? Will we get access to the QE? Will there be the objective conditions for us to go to the markets and hence also out from the Programme? These are the important questions. "
Asked what were the chances there would be a solution after 2018 about the establishment of a new mechanism of predefined measures in order to ensure the achievement of the budgetary targets, Minister Tsakalotos stressed: "We have made it crystal clear that we are not now legislating for such measures for after 2018. I have not understood that any such thing applies even for New Democracy. In the extremely unlikely event that the IMF breaks its impressive streak and one of its predictions comes to pass, we have said that we have described the measures necessary in that event. In this context we have also discussed a mechanism of commitment like the extension of the Automatic Fiscal Adjustment Mechanism of the Budget.
Tax debts to Greek state more than 94€ billion
More than half of the country’s taxpayers owe money to the Greek state, according to the Finance Ministry’s General Secretariat of Public Revenues. 4.3 million Taxpayers have debts in excess of 94€ billion, prompting authorities to take collection measures, including seizures of deposits and assets, against 826,211 taxpayers.
Debts accrued prior to 2016 come to 81.6€ billion, according to the figures published. Of this, more than 8€ billion is owed by state-owned businesses and municipal authorities, while some 12€ billion is unredeemable as it is owed by private businesses that have declared bankruptcy.
Individuals and legal entities owe another 61.8€ billion, according to the Finance Ministry, while some 157€ million is the result of debts resulting from companies issuing false receipts and invoices.
New debts accrued in the January-November 2016 period come to 12.6€ billion euros. The actual figure could be much higher as this does not include debts from indirect taxes, fines, customs fees, etc.
In October alone, taxpayers failed to pay 890€ million in taxes, while collection measures are expected to be taken against another 1.7 million taxpayers with debts to the state, the Ministry said.
Prime Minister Alexis Tsipras in Heraklion
Tuesday 20th December 2016
31.12.2016
PM Tsipras gave this speech in Heraklion during his two day visit to Crete before Christmas
Dear friends,
Thank you warmly for this reception and I must admit that I have been away from you, it is some time since I came our island of Crete, to Iraklion, to meet up with you. It is a great pleasure for me today that I had the opportunity to be with you, to meet and talk with people of toil, producers, working people about the problems, the concerns, the anxieties, the hopes, the expectations.
However, allow me to begin my speech with a reference to what happened last night. Because yesterday was a difficult night. A difficult night for the whole of Europe. Ankara, Berlin, Moscow and the whole of Europe was shocked by the heinous acts of terror. Acts which demonstrate that unfortunately we live in a dark age. And that we cannot for a single moment consider anything other than priceless the commodity of security and stability that we enjoy here in Greece. Because Greece, at the centre of a wider area of instability with destabilizing shocks all around, constitutes an area of stability and security in Europe.
The minimum that we must express at this moment is our solidarity and sympathy with the victims of the terrorist acts. With the families and their loved ones. But also our undivided support for the German, Russian and Turkish peoples. But also for all the peoples of Europe and of the world who are suffering from war and terrorism.
I think, however, that statements of support are not enough. Needed simultaneously is self-reflection and also political action. Because whether the world will move forward depends on our own decisions. Or, if the world is to retreat back to a regime of generalised violence and intolerance.
Starting in this beautiful gathering in Iraklion, I want to repeat once again: The future of this world can only be guaranteed by democracy, tolerance and dedication to peace and social cohesion. This is the only way to establish security and peace in modern societies. And on this road, exploiting the dynamics, but also the values of our people, we have moved forward and work as a Government for nearly two years ago, having built bridges of friendship and cooperation, but also having shown Greece as a pioneering force by its energetic and multifaceted foreign policy for peace and stability in our region.
Dear friends,
Closing this parenthesis, I want to thank you warmly for today you have given me the opportunity, through this tour, to come once again close to people who are conducting the daily struggle of life.
Not only for their own survival and well-being. But for the life of the whole country. We know very well - and all citizens know it - that the situation our country is going through is difficult. The productive forces of the country have been hemmed in by a disastrous recession, mainly - and peaking – over five years, the catastrophic five-year period 2010 – 2014, where almost 1/4 of our national wealth was destroyed, where the country's GDP shrank by 25%. The Welfare State was virtually levelled. Unemployment reached nightmarish levels.
And we must not forget that this, precisely this, was the situation that we inherited in January 2015. And today we need to remember this even more. Today, when we are bringing to fruition a policy of working through and exiting the crisis.
Especially at the time when the destroyers of our society and economy, those who implemented measures of destruction and plundering of the society over the disastrous five year period 2010-2014 and who signed white papers, are coming now and wagging their finger. And they say to us: Why you haven’t you tidied up everything we dismantled with great skill over more than 40 years? Why haven’t you managed that? And they wag their finger at us and say: Why haven’t you got out of the vicious circle of austerity, into which we drove the country? Why haven’t you managed to extricate the country we bankrupted from the cul de sac of bankruptcy? That is what they are saying to us.
And so I would like to clarify the following: you all know that we fought tooth and nail in the first six months, defying risks, asymmetric threats and blackmail with the sole aim of defending the rights of the Greek people.
We have opened cracks, we opened roads, we see them everywhere in Europe. We have secured an agreement which despite the constraints is leading to a visible solution. A difficult agreement but one that was feasible. One which we are implementing. And the end of this agreement, stipulating that the end of the agreement is mid-2018 at the latest.
Beyond that, and I want to be perfectly clear, there are no other commitments and no other measures. And this is a message that must be passed on, both inside and outside the country.
The sovereignty of our country will be restored by following this difficult roadmap we have agreed beforehand, the completion of the Second Assessment. The implementation of measures about the debt, short-term and medium-term measures, is the obligation of our partners – and indeed an obligation which has existed on the basis of the deal after the end of the First Assessment, let's not forget. Access of Greece to the ECB's quantitative easing programme and participation in the financial markets in the course of 2017. This is the roadmap and beyond the sovereignty of our country is restored. The guardianship and the memoranda are coming to an end.
Dear Friends,
Throughout this whole period of being in Government, we have kept to a firm commitment: the defence of the weakest. In solidarity with those who have no other desire than to live with dignity from their labour.
It was a difficult time but it seems that we are managing it. The economy has worked. And has yielded far more than expected. Despite the fact that the prophets of doom were writing all summer that we are not doing well on revenues – they have been saying this for say 1.5 – 2 years, that the economy is being destroyed– that we cannot reach the targets, that 2016 would be a year of deep recession – that is what they were saying - 2016 closes and it is almost certain that it is closing with positive signs of growth, despite the prophesies of the prophets of doom.
Unemployment, which we inherited at 27%, is today 23.2%. The reduction is nearly 4 percentage points. A reduction, which is certainly not negligible, but without our celebrating, because even today this figure is extremely high for a country, an EU Member State. But it is neither a disaster nor an insignificant fact that we have succeeded within a year and a half in reducing unemployment by something more than 4 percentage points.
In 2016 alone we had approximately 220,000 new jobs. I repeat that the problem persists. However, for the first time, and having the forecasts for 2017 for high growth and falling unemployment, we can say with greater certainty that it is feasible for us to implement, to approach, a great national goal that we have set: In 2021 when we celebrate the 200 year anniversary of the Greek Revolution, the regenerated Hellenic Republic , our homeland to be a normal European country. And being a normal European country means, above all, unemployment rates that are comparable to the eurozone average.
We are continuing down the same road, charting a steady course for the exit from the crisis, for stability and for development. And at the same time we continue the negotiation for the completion of the Programme. Holding firm positions, which ensure social cohesion and the interests of the Greek people. And precisely within the framework of exceeding the targets that I described to you earlier, instead of the "cutter",[the fiscal contingency mechanism, which is to be activated in the event of Eurostat figures showing that the agreed budgetary targets have not been achieved Ed] as some prayed and predicted, with the surpassing of our targets which is leading us to a surplus of nearly 1.1% (instead of 0.5% of GDP that is the target), the "donor" is being activated and not the "cutter".
And we are in a position to make a substantial commitment to those on low pensions, those who have borne on their shoulders the largest part of the burden for the exit from the crisis: the provision of a 13th pension payment.
And so here, I have to tell you some good news and some bad news. The good news is that the 13th pension payment to all those receiving less than 850€ will be paid normally, on the day after tomorrow on Thursday 22 December. And 1,600,000 pensioners will have the possibility of real support in difficult times. The bad news, dear friends, is that your fellow Cretan, Kyriakos Mitsotakis disagrees. He doesn't want to give the 13th pension payment. He is worried that our Creditors will be annoyed. I don't know, what do you say, shall we or shall we not indulge his whim?
But you know what the paradox is? The paradox is not that he is worried. He is almost always worried when he sees there is a prospect of recovery, of exit from the crisis, of strengthening the society that is suffering. The paradox is that his concern is expressed in retrospect, and only when the reaction from one section of our lenders is made public. Until recently he criticised us on the grounds that it amounted to nothing, that we were the world and that of course he would vote for it. And as soon as the most extreme of the Creditors looked like sneezing, Kyriakos Mitsotakis caught a cold and so did New Democracy.
But I'm not telling you anything new. We all know and we all understand, even our harshest critics - and I say that criticism is well received - and we should treat them with decency and humility, every citizen who criticizes us. This is the fate of democratically elected Governments: To hear the complaints of citizens both about the things they are to blame for and for those which they are not to blame for.
However, I don't think there's even one citizen in this country who doesn't understand where our country would be today if there had not been a political change in 2015, with surpluses of the order of 4.5%. And not the 0.5% and with a political leadership, which does not have the courage of its convictions and the standing to defend the rights of the Greek people and raise their standing both inside and outside the country.
I, therefore tell you, friends, that we will proceed on this difficult road. We will proceed, however, defending the weakest of Greek society. And to the extent that the economy is over performing and we are going well, so we can move on to other measures of redistribution. And, of course, it was our obligation to proceed also with the suspension of the removal of the special VAT scheme in the Aegean Islands, particularly those that have borne the heavy burdens of the refugee crisis on behalf of the whole of Europe.
But let me say a few words about the position of this cruel wing, not large, but important in terms of the relative weight of the countries represented by the Creditors’ side. I think we all need to understand that nobody is doing us a favour, nor have we ask anyone for a favour. That money that came from the labours, from the toil of the Greek people, but also from the tireless efforts of the Greek Government which has managed, not by magic, is a surplus we have achieved above the targets. They jeered at us and did not believe that we would succeed, we succeeded in achieving a surplus by cracking down on tax evasion, on the lists of the big shots people to stop their continued tax evasion – and they are still possibly continuing - but we have a Government with the determination to examine these lists and they are starting to pay up, by cracking down on smuggling - through such actions this surplus has been generated.
So no one gave us this money. This is the money of the Greek people, it is the fruit of their labours, it is a surplus above the Programme's targets. We are implementing the Agreement to the letter. No one has the right to try to tell us how we should administer our surpluses that are the fruits of the efforts of the Greek people. They are the fruits of the efforts of the Greek people and so we are returning them to the weakest of the Greek people.
I, of course, want to point out that I have a full understanding of the political difficulties in a number of EU countries at this time. But I would like to say that is not possible, moreover, for the European far right, and its rise and populism, to dictate the policy to be followed by Greece. Greece may be in a Programme, but at the same time it is an independent country. And as long as it abides by its commitments and the rules it does not take instructions from anyone.
On the contrary, what we are asking for is: As we are implementing the Agreement, so should it be implemented by our partners. But we have seen something else in this Europe, and we are not being negative or over exaggerating, because Europe is not just the rise of the extreme right and the fear of the rise of populist right-wing forces. Europe is not just the Conservative Governments who in fear of the extreme right are giving ground for it to rise even more. Europe is also the forces that have openly supported the efforts of our Government throughout this period, progressive and non-progressive forces – not necessarily progressives. Countries which realize that we are all sitting on the same branch, we are in the same boat and if anyone starts to make holes in the boat, we will all be sunk. I am thinking of all those countries whose leaders in early September came to our country to hold the Summit of the countries of the South, to define a common direction for a better Europe, a more social Europe. And for us to put up a real obstacle to the rise of the extreme right.
I refer to the forces that have in these days come out openly. Both Finance Ministers and Heads of State, but also institutional elements that have openly come out and taken a position and have supported our initiative. They have defended our right to take measures of social cohesion, to the benefit of a people that has been suffering in recent years. And we understand that Europe is no longer the monolithic force that we had against us until that difficult summer of 2015.
The voices for change are growing. And are growing stronger thanks both to our own approach and our own initiatives. And so I think that the bargaining position of Greece is also growing stronger. Indicating, at the same time, that is the time for all of us together to open up the way for a big change in Europe. For the historic shift to a Europe of democracy, solidarity and social cohesion. Because the answer to the rise of the extreme right, which is the real number one risk for the break up of Europe, is not to be hard right. But it is the travelling together, it is the coexistence, it is the alliance of the progressive forces of Europe, of those forces which can, together with the people, turn the wheel of history forward.
Dear friends,
We will continue these negotiations with stability, care and determination. Activating all the alliances and taking every initiative.
I want to express my conviction: the Second Assessment will be completed. It will be completed positively; it will be completed in a timely fashion. And most importantly: it will be completed without new measures after the expiry of the Programme, without the excessive demands, which some are bringing to the table, being adopted. It will be completed, confirming that Greece is not a country outside the European framework, is inside the European framework, so it is a country that is entitled to restore collective bargaining in respect of labour relations.
I also want to tell you that we are not afraid of this negotiation process, just as we have never feared it so far. And if I want to get out a message from my speech today to our partners, this message is: Come let us exchange views. We look forward to exchanging views. But, at the same time, do not also ask for things that you know are not going to happen, in an economy which bears the damage caused by your own mistakes and of course from the willing compliance of previous Governments.
But I repeat: we are close to a solution, we are close to the implementation of the roadmap that I mentioned initially, namely of the inclusion of Greece in the programme of quantitative easing, of stabilisation and recovery with the very important and fast pace of the Greek economy, which of course will pave the way for the definitive exit from the crisis. I say that we are close, not just because I know and converse simultaneously with many in Europe, but also for another reason: Because I know that stability, at this critical time, a time when Europe really is at a critical crossroads, a time when unfolding events in a broader destabilised region are troubling. Stability is the common interest and the outcome sought by all the forces in Europe. And they must all understand the sooner, the better. Let some not artificially rekindle the Greek crisis. Especially today.
And I believe that the Greek people, who have paved the way for humanity and solidarity, particularly in the period of tension of the refugee crisis, against the voices of the extreme right-wing populism, of isolationism and of the walls that are dissolving the common European borders, the Greek people are entitled to have a positive outcome – and will have it, I believe, as soon as possible.
However, I would like, dear friends, to dwell on another aspect of the situation that at the moment our Government is called upon to manage. Because the situation we inherited was not problematic just because of the devastating consequences of austerity. Allow me to say it bluntly: it was also completely corroded by what for years we have named the vested interests and corruption and of which today we have a fuller picture of exactly what it is. At all levels. From the public administration to public contracts, by the bad loans by the banks to the management all kinds of funds and subsidies. A gigantic customer State established in every corner of the administrative machine, worked for years on the basis of the favours, to serve economic and political interests. And today we all understand what was supposedly the reason why this Government has been hit with so much rage and hatred in an unprecedented way, since the period of the restoration [of democracy 1974 Ed], from the mass media each in turn. Because for some who found themselves hanging by a thread because they had become accustomed to borrow money with "air" [as security Ed], as they themselves admitted, this Government refused to do them a favour and continue granting them loans.
Today we see that their businesses were a bubble. And unfortunately this bubble bursts and drives hundreds of workers into a terrifying experience. And we are standing by those workers. But, today every man and every woman, throughout the country, realizes what hatred and internecine strife leads to. Just as every man and every woman realized what was really at stake at that critical time, where an even contest, for the first time one with payment, the restoration from a state of lawlessness in the broadcasting area, was challenged by an ambiguous decision-which of course we respect, we do not have another option-but every man and every woman drew their own conclusions.
So, to those who dream - and people are giving battle and we have to give them credit for the battle that they have been waging all this time – about the restoration of the para-State, of corruption and the vested interests, it is the third time that they are dreaming about this being a brief blip, I would like to say openly: this regime, because of which we were in a dire financial position of bankruptcy is now definitively a thing of the past in this country. And day by day it is further in the past, to the extent that we here give battle with the Greek people to put this country back on its feet.
We are determined to establish full transparency in every aspect of the economic and social life of this country. We are not going to take a step back. Of course, we have obligations - it is not a straight line, there are ups and downs, there are also zig-zags, but backwards we will not do. Only forwards will we go and bring order to this country. This regime of opacity and corruption will not continue.
Dear friends
The objective of this Government cannot be other than the reconstruction of the productive capacity of the country. Because okay, the negotiations, the great effort we are making to get the country out of this tremendous difficulty, keeping society on its feet, but our perspective, our visionary goal, if you like, is not just to get away from the stormy waters. Our visionary goal is to establish the bases for the country to progress. The country cannot go ahead as long as we talk constantly about public spending, about what the Eurogroup is imposing on us, and how much the surplus will be and we are don’t talk about what is essential and we don’t have a plan and we don’t take action on the most essential thing which is the production of wealth. And of course the fair sharing of it.
The reconstruction of productive capacity, in our view, is of crucial significance for the future of the country and an essential role in the reconstruction of productive capacity can be played by the primary sector of production.
And let me just say two words, not only because today I had the opportunity to visit the Messara valley and to speak with farmers, but because I believe that our country's capabilities in this sector are really huge.
And in such a reconstruction, a decisive role can and must be played by the primary sector. Our country's capabilities in this sector are enormous. And Crete is not simply average. Crete could be the locomotive, champion, in the primary sector. Our ambition is for the capabilities of the country to transform the well-being and prosperity for the people and the local community. And this can only be done with systematic planning and with support for agricultural production.
That is why, our first concern, from the moment we took over the governance of the country, was to put in order the issue of payment of the support. And those concerned either with local government or with primary production, those who have at least an elementary picture, they will know better than us the current situation. I will tell you just one thing. The fines and bills we were faced with, when we took over, exceeded the amount of annual support; it amounted to more than 3€ million. And we have worked hard under difficult circumstances, to bring order to this area.
First of all to avoid new fines, to negotiate the reduction of those already imposed and - above all - to avoid the possibility of having to pay compensation with new aid. And I must say that despite the difficulties we have not done badly. The last year went very well on the level of payments. This year's, go for a record payment of aid having already paid off arrears from 2008. Throughout the Greek countryside more than 3.5 billion euros altogether will be given for 2016, and also credited to farmers ' accounts will be aid and arrears since 2008, and those relating to last year.
In 2016, direct aid of 250€ million was paid to Crete. 35€ was paid in compensatory allowances. 10€ million was spent on agro-environmental programmes while 3.5€ million was given to young farmers and linked aid. Up until the end of the year (2016), a further 245€ million at least will be paid in compensatory allowances.
This is however just one aspect of our policy. Because the big question is an overall strategic plan for the reconstruction of the country and the rural areas. We are moving this plan forward utilizing every tool available, with the most basic of all, the Rural Development Programme 2014-2020. This Programme has community participation amounting to 4.7€ billion and, together with national and private participation, it will mobilise up to 2020 total resources of about 6€ billion. Indeed, on the initiative of the Ministry of Rural Development, 37% of these resources will be administered by the Regions, thereby actively demonstrating our policy for strengthening the role, value, importance of Local Government and in particular the Regions. Something that constitutes an intervention in the area of Regional Local Government. In the Region of Crete, a total of 74.6€ million has been allocated while from the 135 projects of the Rural Development Programme 2007-13, from a budget of 270€ million, 125€ million has been paid. The payment of the rest is continuing with the aim of completing it in 2017.
At this moment, announcements of measures totalling 1.5€ billion are being progressed. Some of these measures are:
Firstly, the call for the registration of young farmers with the aim of integrating 12,000 new young farmers. The total funding is 241€ million, while the amount of support per beneficiary varies from 17,000€ up to 22,000€. The amount attributable to the region of Crete is 23.5€ million.
Secondly, the support of local development through the LEADER programme, which includes 49 programmes with a total budget of 307€ million. The region of Crete will be allocated 35€ million. And further, there is organic farming, with a budget of over 500€ million, processing and other measures of significant interest to Crete.
At the same time, dozens of studies and technical projects involving the use of irrigation water, dams, small reservoirs and irrigation networks are being put forward for funding through the Rural Development Programme. I repeat, therefore, the best possible preparation and implementation of this Programme up until 2020, is a huge objective, which will give real impetus to a really desolate, we must admit, sector of production, the primary sector, which is the main pillar for the prospect of the reconstruction of production.
I would like at this point to refer to something more specific to Crete. Because I think that a big advantage of Crete, (apart, of course, from the natural beauty of this place such that I do not believe there is a person in the world who wouldn't want to visit it), is a big advantage that we must seize. It is that, because of the climate and fertile land here, we can produce agricultural products of excellent quality, unique I would say.
Hence an especially great advantage is the Cretan diet. Products that is to say that are manufactured only here, thanks to the special soil and climatic conditions and the diversity of the natural environment. These advantages make the Cretan products differ qualitatively and render the Cretan diet a powerful competitive advantage. So our vision is to consolidate a new model of production. To promote Cretan diet means the promotion of local varieties and traditional crops, which are closely tied to the Cretan culture and local tradition. It means support for small and medium-sized family enterprises, an effort to keep people in rural areas, support for the production of healthy and safe products. And of course, turning ourselves outwards, stimulating exports, better cooperative organization, connecting with other productive activities, such as tourism.
And a parenthesis here. Crete could only from a serious exploitation of its tourism capabilities, if these large units but also the smaller ones instead of using imported products, and instead of many times offering tourists meals prepared with imported products from other countries, if they advertised as an ingredient of luxury holidays in Crete, local agricultural products. And if we managed to links these units to local producers, it would not even be necessary to export the products outside Crete.
Exactly in this context, we have already promoted and implemented in Crete programmes to promote the Cretan diet and agricultural products, with a total budget of 9.5€ million.
Also aid programmes have been implemented to support the Olive-producing enterprises of Crete with a total budget of amounts of over 17€ million. So there is the potential, there are the people, there is the plan, resources are not endless, but there are some resources. I believe that we can move forward, ensuring that farmers will have the support they need and deserve and at the same time in due course create the conditions for investors in the primary sector to really get involved. Our main goal is to put the Greek rural areas back on their feet. And to keep Crete in a leading position in the country’s agro-food chain.
I further want to refer at this point to the literally huge productive activity of Crete, which is tourism. We realize tourism is an extremely important factor in the economic life of the country. And I must tell you that this year we broke another record, and the Crete played a decisive role in this new record. We had over 27 million tourists in our country, in Crete we had a 105% increase in arrivals, which is a major success. The millions of tourists who come every summer to enjoy the natural beauty of our country, constitute a strong driving force for our economy. This of course also applies to Crete.
In our concept, tourism cannot be a closed activity, detached from the broader social environment. The intention is that the benefits of tourism be spread as far as possible into the local economy and generate decent work positions. To work together in combination with the other productive activities rather than displacing them. We want tourism to take advantage of the beauty of the natural environment without adversely affecting it and without altering and destroying it. That's why we are interested in the sustainability of the tourism product, the preservation of jobs and of course the creation of new jobs. What we are trying to ensure through the Entrepreneurship Competitiveness and Innovation Programmes like the one for the establishment, operation and support small and medium-sized tourism enterprises, with a budget of 120€ million.
Again, we are looking at programmes through which Local Authorities Organisations can improve and take advantage of the natural and cultural stock of their place and the promotion of historic public buildings. And speaking of buildings let me also touch on infrastructure. The issue for a place is not just production. It is also all those conditions that ensure the transportation of people and products, as well as the modernisation of the existing services. And I think that indeed the time has come, after many years of barren proclamations, for a great task, a big central task of development for Crete to get onto the real track of implementation. And I am referring to the Northern Axial Road [B.O.A.K.].
I said this morning to the Regional Governor that one of the main objectives of our Government is for project to have begun, that is to say that the tendering process to have been completed at latest by 2017, early 2018. For the work to have been started in 2018 and of course before the end of our four-year term of office and the elections in 2019, and if we do well to be inaugurated as the next Government for the following four years. We made a commitment that the project will proceed and will be completed properly. A working project to modern European motorway standards, having solved the huge issue of road safety. You know very well how the Cretan people and tourists have been plagued with accidents which happen unfortunately every year. A project fit to address the issue of transport of people and goods from the eastern to the western end of the island. On this subject, I must inform you that there was a special meeting of the Inter-ministerial Committee for development and investment.
We are moving at a fast pace. I must tell you that already a verbal agreement has been reached with the European Investment Bank for financing the project, while, at the same time, relevant departments of the Infrastructure General Secretariat are pushing forward the strategic study rapidly. So I say explicitly that a political commitment this government is for this project to go forward which possibly constitutes the main infrastructure investment for Crete.
At the same time we are progressing studies and projects to upgrade the existing road network on the island.
At the same time, our second major project, the second big piece of the puzzle that is our vision for Crete, because we want the Government of the Left to leave Crete, the island one other infrastructure project, particularly important, not only for Crete, but also for the whole of Greece. It is the international airport at Kastelli, which will be one of the largest in the Mediterranean and the construction and operation of which will multiply the number of arrivals and will give a strong development momentum to the island. It is a project that has occupied the local society for a long time, with postponements, delays and an implied distrust about whether ultimately it will happen. So I have to tell you that the project is progressing, the tendering of the project has taken place normally, the first stage of the tendering process has taken place, there are two further stages between now and the end of March. So in a few months we will be ready for the next fast steps.
At the same time, the Ministry of Infrastructure, Transport and Networks, in cooperation with the Civil Aviation Authority and relevant bodies, is examining the potential for upgrading the existing airport "Nikos Katzantzakis" in Heraklion for as long as (we estimate 4-5 years), for as long as it operates until it can be replaced by the new airport.
And talking about infrastructure, let me also say something that I said today to the Mayor when he raised the issue of the replacement of Heraklion’s water supply network, an equally extremely important infrastructure project for the city of Heraklion. A case concerning the everyday life of the citizens of Heraklion, their quality of life, but also concerning respect for our natural resources, to restrict water leaks. This project, the greater part of which ripe for implementation, has already been evaluated so as to advance its inclusion in ESPA, while the Ministry of Development processes the overall financial scheme, which apart from ESPA will also include resources from the Public Investment Programme and leverage from other financial sources. And of course I unwittingly stopped the announcement of this project, because on the day George Stathakis as Development Minister was about to announce it, I re-shuffled the Cabinet. This project will proceed, the leadership of the Ministry of Economy and Development has set the procedures in motion.
And finally, as regards infrastructure, a more important project concerning the public, quality of life, the public space in the city of Heraklion. The project, therefore, is an absolute priority. It is underway because it's great importance to the residents of Heraklion is perfectly understood: that is the granting of the land area of the harbour to the Municipality, in order to immediately progress its redevelopment and its contribution to local society. And for this project with the Heraklion Port Authority the necessary actions have been taken and very soon there will be the relevant announcements.
I would like, friends, residents of Heraklion, to conclude my speech on what are two very key fronts for us. The front of Health and the front of Education. And let me say a few words about what work is being done there, what big problems we face, you of course know them very well, but also how important is the effort that is being made because I'm afraid that if I don't talk about them you will only the difficulties. You will see, though, and you see them and the Greek people sees them. Because unlike the parrots of the vested interests, there are some things that can’t be hidden.
Because every Greek family has children in schools, and of course every Greek family has the need for public hospitals, except for the very wealthy families who go to private.
Let me say a few words about the health sector. For the two Heraklion hospitals, the University Hospital and the Venizelio, an operational plan has been drafted. The Regional Health Authority of Crete is proceeding to draw up a Health Map, aiming for the scientific recording of health data for Crete, so that each time programming can be done from the perspective of scientific data. At the same time, we are moving rapidly on the functioning of Primary Health Care. As previously announced by the Minister of Health, twenty-five local health units will operate throughout Crete in order to fully and effectively provide services at primary care level throughout the island, blunting the inequalities of access to public health. The aim is the much needed structure to contribute to the welfare of citizens but also to the decongestion of hospitals.
As far as the hospitals are concerned, a first and important step, which of course was jeered at by many, but it was important because it saved resources and restored the framework of working for hundreds of people was the move from contracting out work to individual work contracts. The two Heraklion hospitals, the University and the Venizelio, have concluded as from 1/8/16 individual work contracts for cleaning and from 1/9/2016, individual contracts for providing meals. In a short space of time, the concluding of individual contracts will be completed for hospital security. These contracts guarantee a total of 209 employees until the end of 2017.
And in spite of the high priests of contracting out, I must tell you, that our policy saves 18% compared with the previous contracts with contractors. A sum of money which will be channelled into further upgrading health services.
At the same time, important steps have been taken in 2016 for coverage of major gaps in all categories of staff. After 18 years, appointments of administrative staff have started again and the completion of all 35 permanent staff appointments is awaited. This we are implementing now. The notifications of 23 permanent posts for doctors in branches of the National Health Service are being completed. Already 16 nursing staff have been appointed. Overall and within the last year, both hospitals have strengthened with a total of 422 workers. Emphasis has been given to reducing waiting times for citizens at hospital reception, and the queues for administration have been reduced. The certification of services in the Office of the Movement of Patients, the Regular Outpatient Clinics and the Emergency Department is progressing.
And I want to tell you that apart from the other individual activities, our main goal is to streamline hospital procurement, with the adoption of internal safeguards. With the application of procedures using electronic systems. Where in previous years, one person called “a health party” and indeed without anyone turning a hair, that is now permanently finished. And, of course, because certain people are tainted by this, certain people who this party suited and certain people who were the favorites of those who put on the music at the party, the Disc Jockeys, the Ministers, with the Centre for Disease Control & Prevention [ΚΕΕΛΠΝΟ] and various other schemes which they had for financing the mass media, these people are starting to get upset. Now that this Government, despite the horrendous financial difficulties has managed first of all to establish that each of our fellow citizens, whether insured or uninsured will be able to go to public hospitals and get free health care. And this relates to 2.5 million of our fellow citizens. At the moment that this Government is proceeding for the first time on appointments, and especially at the moment when we are proceeding, using whatever capability we have, to the official creation of 5,000 posts, 4,000 posts relating to nursing staff and 1,000 to doctors, over and above the appointments that the framework agreement allows us to do in the field of Health. So five thousand posts, their notification immediately before the end of the year, and until February will be made in the public hospitals of our country. To this Government certain people, the party goers, the party workers are coming to wag their finger.
I will tell you one thing. It is necessary, as Cretans, for you to be proud that two sons of Crete are at the helm of Health and are working ceaselessly. Despite threats, despite terrorism, under difficult circumstances we will succeed in putting an important stamp on the field of Health. This is a project visible to every Greek woman and every Greek man.
And to conclude with a few words about the area of Education. This year for the first time, just as in the whole country, schools on Crete as far as the most remote point which is Gavdos, opened as normal on the first day of the school year. And will you tell me why this is something important? Note that this is an example of a return to normality. And for these examples hundreds of people had to work for months. And at bottom, let me tell me differently. Since it is such a simple and self-evident matter, why haven’t previous Governments managed it up to now? So this year, something happened which has not happened in the country, not for five and or seven years, the years of the Memoranda, but which had not happened for 30 whole years. For even the most remote school to open with books and teachers, and lecturers.
Also this year, every primary schools, from 4th grade and above, are operating with the new type of whole school day. With a full programme and educational specialties, which for many schools has not happened for many years. Still, the Ministry in cooperation with the Educational Policy Institute and the Heraklion Chamber of Commerce, is starting a pilot learning programme for graduates of the Vocational Lyceum [EPAL], which has all the prerequisites for complete success. And which, we believe, will radically change technical training.
And finally let me tell you, that our great vision, our extensive reform in the area of Education is now being planned by the Minister with his staff, a reform aimed at radically changing the access route to Higher and Technical Education. With the aim of the school becoming the basic cell and not just a examination centre. Aiming for the centre of gravity to return to the public school and not to be in the cramming schools. The dialogue which is set to conclude next summer when the reform plan is ready to come before Parliament and the young people who will be going next year to High School will have a picture of a new system of access to the third level of education.
Dear friends
We know that despite the important steps which I have described to you, and which of course you do not hear about from the doom mongering mass media, are steps that are being made often in extremely harsh conditions and in a sense with conflicts and battles and so they are steps that could be portrayed as heroic. But we are fully aware that problems remain and are great. And we are dealing with these problems in cooperation, I like to believe, close and meaningful co-operation with the bodies of Local Government, the Municipalities, the Region and especially with the workers and the ordinary citizens who are concerned.
We will not stop until it is more commonly accepted, that social services such as health and education, have achieved a stable and permanent level of quality, as befits the region of a normal European country.
Dear friends
So I want, in closing, to tell you that we are aware of how difficult is the situation we face. We understand the problems and are working daily with the sole objective of overcoming and dealing with the problems. Greece, unfortunately for many decades, has been afflicted by policies that led to the brink. And an outcome of these policies was the bankruptcy and the Memoranda which have led to the plundering of the society. The disastrous five year period 2010-2014. But think a bit before we got to the Memorandums, in bankruptcy, there were political responsibilities that led us there. Mismanagement, corruption, vested interests, the tortuous model of production and poor mentality of a large part of the Greek people who did not oppose them. We had the opportunity to have a sincere discussion today with productive bodies and farmers about the period in which the basic motto was all the kilos, all the money where the apportionment in Crete reached the same level as Mainland Greece, about the period where no one turned a hair at the decoupling of subsidies from production. Production was of no importance, it was sufficient to get the subsidies.
All this and the tolerance to a clientalist state, the tolerance in the triangle of vested interests interweaving between the political system, banks and the Mass Media, all this led to the bankruptcy, to the conditions of bankruptcy. And of course the same deadly and spineless Governments, the deadly and spineless political system that created all this that has led us to a form of development without its product being enjoyed at even a minimal level by the vast majority of the Greek people. Those who got us into this, led us to the brink and to bankruptcy also took fatal decisions and accepted everything in the name of the salvation of the country from bankruptcy. And those who in the name of salvation from bankruptcy took the debt from 120% to 187% of GDP and for 5 years were saying no debt problem as long as Mrs Merkel gives us a sustainability certificate.
These were the people. This was the political leadership. This political leadership which is now coalescing and wagging its finger at us. You haven’t managed to clear up the 40 years of mess we left you. That is what they are saying to us.
So I want to tell you one thing. Into this struggle, into this battle we have entered with great optimism, greater than we should have done. Indeed, let us measure it. But we have embarked on it with honesty, with determination, with faith in our forces to work hard to succeed. And as we see that a large majority of the Greek people recognize that our eyes and our hands are clean and that we are working to get our Greece, our homeland, out of the crisis, we will move forward, we will not back down. We will move forward until we extricate the country from the crisis with the society standing on its own two feet.
So I want to promise you, not only because I am obliged to but because it fills me with optimism, with faith and self-confidence, that I will come back soon to your place here in Crete. You will see me more often because we have to work, all together, and we will work for the vast potential that the island has. For the people of this place. For the position of front-runner in a productive Greece, a Greece of growth, social cohesion and prosperity.
We will succeed. Thank you.
All power to you, have fine struggles and I wish you happy holidays, good luck to you.
Thank you warmly for this reception and I must admit that I have been away from you, it is some time since I came our island of Crete, to Iraklion, to meet up with you. It is a great pleasure for me today that I had the opportunity to be with you, to meet and talk with people of toil, producers, working people about the problems, the concerns, the anxieties, the hopes, the expectations.
However, allow me to begin my speech with a reference to what happened last night. Because yesterday was a difficult night. A difficult night for the whole of Europe. Ankara, Berlin, Moscow and the whole of Europe was shocked by the heinous acts of terror. Acts which demonstrate that unfortunately we live in a dark age. And that we cannot for a single moment consider anything other than priceless the commodity of security and stability that we enjoy here in Greece. Because Greece, at the centre of a wider area of instability with destabilizing shocks all around, constitutes an area of stability and security in Europe.
The minimum that we must express at this moment is our solidarity and sympathy with the victims of the terrorist acts. With the families and their loved ones. But also our undivided support for the German, Russian and Turkish peoples. But also for all the peoples of Europe and of the world who are suffering from war and terrorism.
I think, however, that statements of support are not enough. Needed simultaneously is self-reflection and also political action. Because whether the world will move forward depends on our own decisions. Or, if the world is to retreat back to a regime of generalised violence and intolerance.
Starting in this beautiful gathering in Iraklion, I want to repeat once again: The future of this world can only be guaranteed by democracy, tolerance and dedication to peace and social cohesion. This is the only way to establish security and peace in modern societies. And on this road, exploiting the dynamics, but also the values of our people, we have moved forward and work as a Government for nearly two years ago, having built bridges of friendship and cooperation, but also having shown Greece as a pioneering force by its energetic and multifaceted foreign policy for peace and stability in our region.
Dear friends,
Closing this parenthesis, I want to thank you warmly for today you have given me the opportunity, through this tour, to come once again close to people who are conducting the daily struggle of life.
Not only for their own survival and well-being. But for the life of the whole country. We know very well - and all citizens know it - that the situation our country is going through is difficult. The productive forces of the country have been hemmed in by a disastrous recession, mainly - and peaking – over five years, the catastrophic five-year period 2010 – 2014, where almost 1/4 of our national wealth was destroyed, where the country's GDP shrank by 25%. The Welfare State was virtually levelled. Unemployment reached nightmarish levels.
And we must not forget that this, precisely this, was the situation that we inherited in January 2015. And today we need to remember this even more. Today, when we are bringing to fruition a policy of working through and exiting the crisis.
Especially at the time when the destroyers of our society and economy, those who implemented measures of destruction and plundering of the society over the disastrous five year period 2010-2014 and who signed white papers, are coming now and wagging their finger. And they say to us: Why you haven’t you tidied up everything we dismantled with great skill over more than 40 years? Why haven’t you managed that? And they wag their finger at us and say: Why haven’t you got out of the vicious circle of austerity, into which we drove the country? Why haven’t you managed to extricate the country we bankrupted from the cul de sac of bankruptcy? That is what they are saying to us.
And so I would like to clarify the following: you all know that we fought tooth and nail in the first six months, defying risks, asymmetric threats and blackmail with the sole aim of defending the rights of the Greek people.
We have opened cracks, we opened roads, we see them everywhere in Europe. We have secured an agreement which despite the constraints is leading to a visible solution. A difficult agreement but one that was feasible. One which we are implementing. And the end of this agreement, stipulating that the end of the agreement is mid-2018 at the latest.
Beyond that, and I want to be perfectly clear, there are no other commitments and no other measures. And this is a message that must be passed on, both inside and outside the country.
The sovereignty of our country will be restored by following this difficult roadmap we have agreed beforehand, the completion of the Second Assessment. The implementation of measures about the debt, short-term and medium-term measures, is the obligation of our partners – and indeed an obligation which has existed on the basis of the deal after the end of the First Assessment, let's not forget. Access of Greece to the ECB's quantitative easing programme and participation in the financial markets in the course of 2017. This is the roadmap and beyond the sovereignty of our country is restored. The guardianship and the memoranda are coming to an end.
Dear Friends,
Throughout this whole period of being in Government, we have kept to a firm commitment: the defence of the weakest. In solidarity with those who have no other desire than to live with dignity from their labour.
It was a difficult time but it seems that we are managing it. The economy has worked. And has yielded far more than expected. Despite the fact that the prophets of doom were writing all summer that we are not doing well on revenues – they have been saying this for say 1.5 – 2 years, that the economy is being destroyed– that we cannot reach the targets, that 2016 would be a year of deep recession – that is what they were saying - 2016 closes and it is almost certain that it is closing with positive signs of growth, despite the prophesies of the prophets of doom.
Unemployment, which we inherited at 27%, is today 23.2%. The reduction is nearly 4 percentage points. A reduction, which is certainly not negligible, but without our celebrating, because even today this figure is extremely high for a country, an EU Member State. But it is neither a disaster nor an insignificant fact that we have succeeded within a year and a half in reducing unemployment by something more than 4 percentage points.
In 2016 alone we had approximately 220,000 new jobs. I repeat that the problem persists. However, for the first time, and having the forecasts for 2017 for high growth and falling unemployment, we can say with greater certainty that it is feasible for us to implement, to approach, a great national goal that we have set: In 2021 when we celebrate the 200 year anniversary of the Greek Revolution, the regenerated Hellenic Republic , our homeland to be a normal European country. And being a normal European country means, above all, unemployment rates that are comparable to the eurozone average.
We are continuing down the same road, charting a steady course for the exit from the crisis, for stability and for development. And at the same time we continue the negotiation for the completion of the Programme. Holding firm positions, which ensure social cohesion and the interests of the Greek people. And precisely within the framework of exceeding the targets that I described to you earlier, instead of the "cutter",[the fiscal contingency mechanism, which is to be activated in the event of Eurostat figures showing that the agreed budgetary targets have not been achieved Ed] as some prayed and predicted, with the surpassing of our targets which is leading us to a surplus of nearly 1.1% (instead of 0.5% of GDP that is the target), the "donor" is being activated and not the "cutter".
And we are in a position to make a substantial commitment to those on low pensions, those who have borne on their shoulders the largest part of the burden for the exit from the crisis: the provision of a 13th pension payment.
And so here, I have to tell you some good news and some bad news. The good news is that the 13th pension payment to all those receiving less than 850€ will be paid normally, on the day after tomorrow on Thursday 22 December. And 1,600,000 pensioners will have the possibility of real support in difficult times. The bad news, dear friends, is that your fellow Cretan, Kyriakos Mitsotakis disagrees. He doesn't want to give the 13th pension payment. He is worried that our Creditors will be annoyed. I don't know, what do you say, shall we or shall we not indulge his whim?
But you know what the paradox is? The paradox is not that he is worried. He is almost always worried when he sees there is a prospect of recovery, of exit from the crisis, of strengthening the society that is suffering. The paradox is that his concern is expressed in retrospect, and only when the reaction from one section of our lenders is made public. Until recently he criticised us on the grounds that it amounted to nothing, that we were the world and that of course he would vote for it. And as soon as the most extreme of the Creditors looked like sneezing, Kyriakos Mitsotakis caught a cold and so did New Democracy.
But I'm not telling you anything new. We all know and we all understand, even our harshest critics - and I say that criticism is well received - and we should treat them with decency and humility, every citizen who criticizes us. This is the fate of democratically elected Governments: To hear the complaints of citizens both about the things they are to blame for and for those which they are not to blame for.
However, I don't think there's even one citizen in this country who doesn't understand where our country would be today if there had not been a political change in 2015, with surpluses of the order of 4.5%. And not the 0.5% and with a political leadership, which does not have the courage of its convictions and the standing to defend the rights of the Greek people and raise their standing both inside and outside the country.
I, therefore tell you, friends, that we will proceed on this difficult road. We will proceed, however, defending the weakest of Greek society. And to the extent that the economy is over performing and we are going well, so we can move on to other measures of redistribution. And, of course, it was our obligation to proceed also with the suspension of the removal of the special VAT scheme in the Aegean Islands, particularly those that have borne the heavy burdens of the refugee crisis on behalf of the whole of Europe.
But let me say a few words about the position of this cruel wing, not large, but important in terms of the relative weight of the countries represented by the Creditors’ side. I think we all need to understand that nobody is doing us a favour, nor have we ask anyone for a favour. That money that came from the labours, from the toil of the Greek people, but also from the tireless efforts of the Greek Government which has managed, not by magic, is a surplus we have achieved above the targets. They jeered at us and did not believe that we would succeed, we succeeded in achieving a surplus by cracking down on tax evasion, on the lists of the big shots people to stop their continued tax evasion – and they are still possibly continuing - but we have a Government with the determination to examine these lists and they are starting to pay up, by cracking down on smuggling - through such actions this surplus has been generated.
So no one gave us this money. This is the money of the Greek people, it is the fruit of their labours, it is a surplus above the Programme's targets. We are implementing the Agreement to the letter. No one has the right to try to tell us how we should administer our surpluses that are the fruits of the efforts of the Greek people. They are the fruits of the efforts of the Greek people and so we are returning them to the weakest of the Greek people.
I, of course, want to point out that I have a full understanding of the political difficulties in a number of EU countries at this time. But I would like to say that is not possible, moreover, for the European far right, and its rise and populism, to dictate the policy to be followed by Greece. Greece may be in a Programme, but at the same time it is an independent country. And as long as it abides by its commitments and the rules it does not take instructions from anyone.
On the contrary, what we are asking for is: As we are implementing the Agreement, so should it be implemented by our partners. But we have seen something else in this Europe, and we are not being negative or over exaggerating, because Europe is not just the rise of the extreme right and the fear of the rise of populist right-wing forces. Europe is not just the Conservative Governments who in fear of the extreme right are giving ground for it to rise even more. Europe is also the forces that have openly supported the efforts of our Government throughout this period, progressive and non-progressive forces – not necessarily progressives. Countries which realize that we are all sitting on the same branch, we are in the same boat and if anyone starts to make holes in the boat, we will all be sunk. I am thinking of all those countries whose leaders in early September came to our country to hold the Summit of the countries of the South, to define a common direction for a better Europe, a more social Europe. And for us to put up a real obstacle to the rise of the extreme right.
I refer to the forces that have in these days come out openly. Both Finance Ministers and Heads of State, but also institutional elements that have openly come out and taken a position and have supported our initiative. They have defended our right to take measures of social cohesion, to the benefit of a people that has been suffering in recent years. And we understand that Europe is no longer the monolithic force that we had against us until that difficult summer of 2015.
The voices for change are growing. And are growing stronger thanks both to our own approach and our own initiatives. And so I think that the bargaining position of Greece is also growing stronger. Indicating, at the same time, that is the time for all of us together to open up the way for a big change in Europe. For the historic shift to a Europe of democracy, solidarity and social cohesion. Because the answer to the rise of the extreme right, which is the real number one risk for the break up of Europe, is not to be hard right. But it is the travelling together, it is the coexistence, it is the alliance of the progressive forces of Europe, of those forces which can, together with the people, turn the wheel of history forward.
Dear friends,
We will continue these negotiations with stability, care and determination. Activating all the alliances and taking every initiative.
I want to express my conviction: the Second Assessment will be completed. It will be completed positively; it will be completed in a timely fashion. And most importantly: it will be completed without new measures after the expiry of the Programme, without the excessive demands, which some are bringing to the table, being adopted. It will be completed, confirming that Greece is not a country outside the European framework, is inside the European framework, so it is a country that is entitled to restore collective bargaining in respect of labour relations.
I also want to tell you that we are not afraid of this negotiation process, just as we have never feared it so far. And if I want to get out a message from my speech today to our partners, this message is: Come let us exchange views. We look forward to exchanging views. But, at the same time, do not also ask for things that you know are not going to happen, in an economy which bears the damage caused by your own mistakes and of course from the willing compliance of previous Governments.
But I repeat: we are close to a solution, we are close to the implementation of the roadmap that I mentioned initially, namely of the inclusion of Greece in the programme of quantitative easing, of stabilisation and recovery with the very important and fast pace of the Greek economy, which of course will pave the way for the definitive exit from the crisis. I say that we are close, not just because I know and converse simultaneously with many in Europe, but also for another reason: Because I know that stability, at this critical time, a time when Europe really is at a critical crossroads, a time when unfolding events in a broader destabilised region are troubling. Stability is the common interest and the outcome sought by all the forces in Europe. And they must all understand the sooner, the better. Let some not artificially rekindle the Greek crisis. Especially today.
And I believe that the Greek people, who have paved the way for humanity and solidarity, particularly in the period of tension of the refugee crisis, against the voices of the extreme right-wing populism, of isolationism and of the walls that are dissolving the common European borders, the Greek people are entitled to have a positive outcome – and will have it, I believe, as soon as possible.
However, I would like, dear friends, to dwell on another aspect of the situation that at the moment our Government is called upon to manage. Because the situation we inherited was not problematic just because of the devastating consequences of austerity. Allow me to say it bluntly: it was also completely corroded by what for years we have named the vested interests and corruption and of which today we have a fuller picture of exactly what it is. At all levels. From the public administration to public contracts, by the bad loans by the banks to the management all kinds of funds and subsidies. A gigantic customer State established in every corner of the administrative machine, worked for years on the basis of the favours, to serve economic and political interests. And today we all understand what was supposedly the reason why this Government has been hit with so much rage and hatred in an unprecedented way, since the period of the restoration [of democracy 1974 Ed], from the mass media each in turn. Because for some who found themselves hanging by a thread because they had become accustomed to borrow money with "air" [as security Ed], as they themselves admitted, this Government refused to do them a favour and continue granting them loans.
Today we see that their businesses were a bubble. And unfortunately this bubble bursts and drives hundreds of workers into a terrifying experience. And we are standing by those workers. But, today every man and every woman, throughout the country, realizes what hatred and internecine strife leads to. Just as every man and every woman realized what was really at stake at that critical time, where an even contest, for the first time one with payment, the restoration from a state of lawlessness in the broadcasting area, was challenged by an ambiguous decision-which of course we respect, we do not have another option-but every man and every woman drew their own conclusions.
So, to those who dream - and people are giving battle and we have to give them credit for the battle that they have been waging all this time – about the restoration of the para-State, of corruption and the vested interests, it is the third time that they are dreaming about this being a brief blip, I would like to say openly: this regime, because of which we were in a dire financial position of bankruptcy is now definitively a thing of the past in this country. And day by day it is further in the past, to the extent that we here give battle with the Greek people to put this country back on its feet.
We are determined to establish full transparency in every aspect of the economic and social life of this country. We are not going to take a step back. Of course, we have obligations - it is not a straight line, there are ups and downs, there are also zig-zags, but backwards we will not do. Only forwards will we go and bring order to this country. This regime of opacity and corruption will not continue.
Dear friends
The objective of this Government cannot be other than the reconstruction of the productive capacity of the country. Because okay, the negotiations, the great effort we are making to get the country out of this tremendous difficulty, keeping society on its feet, but our perspective, our visionary goal, if you like, is not just to get away from the stormy waters. Our visionary goal is to establish the bases for the country to progress. The country cannot go ahead as long as we talk constantly about public spending, about what the Eurogroup is imposing on us, and how much the surplus will be and we are don’t talk about what is essential and we don’t have a plan and we don’t take action on the most essential thing which is the production of wealth. And of course the fair sharing of it.
The reconstruction of productive capacity, in our view, is of crucial significance for the future of the country and an essential role in the reconstruction of productive capacity can be played by the primary sector of production.
And let me just say two words, not only because today I had the opportunity to visit the Messara valley and to speak with farmers, but because I believe that our country's capabilities in this sector are really huge.
And in such a reconstruction, a decisive role can and must be played by the primary sector. Our country's capabilities in this sector are enormous. And Crete is not simply average. Crete could be the locomotive, champion, in the primary sector. Our ambition is for the capabilities of the country to transform the well-being and prosperity for the people and the local community. And this can only be done with systematic planning and with support for agricultural production.
That is why, our first concern, from the moment we took over the governance of the country, was to put in order the issue of payment of the support. And those concerned either with local government or with primary production, those who have at least an elementary picture, they will know better than us the current situation. I will tell you just one thing. The fines and bills we were faced with, when we took over, exceeded the amount of annual support; it amounted to more than 3€ million. And we have worked hard under difficult circumstances, to bring order to this area.
First of all to avoid new fines, to negotiate the reduction of those already imposed and - above all - to avoid the possibility of having to pay compensation with new aid. And I must say that despite the difficulties we have not done badly. The last year went very well on the level of payments. This year's, go for a record payment of aid having already paid off arrears from 2008. Throughout the Greek countryside more than 3.5 billion euros altogether will be given for 2016, and also credited to farmers ' accounts will be aid and arrears since 2008, and those relating to last year.
In 2016, direct aid of 250€ million was paid to Crete. 35€ was paid in compensatory allowances. 10€ million was spent on agro-environmental programmes while 3.5€ million was given to young farmers and linked aid. Up until the end of the year (2016), a further 245€ million at least will be paid in compensatory allowances.
This is however just one aspect of our policy. Because the big question is an overall strategic plan for the reconstruction of the country and the rural areas. We are moving this plan forward utilizing every tool available, with the most basic of all, the Rural Development Programme 2014-2020. This Programme has community participation amounting to 4.7€ billion and, together with national and private participation, it will mobilise up to 2020 total resources of about 6€ billion. Indeed, on the initiative of the Ministry of Rural Development, 37% of these resources will be administered by the Regions, thereby actively demonstrating our policy for strengthening the role, value, importance of Local Government and in particular the Regions. Something that constitutes an intervention in the area of Regional Local Government. In the Region of Crete, a total of 74.6€ million has been allocated while from the 135 projects of the Rural Development Programme 2007-13, from a budget of 270€ million, 125€ million has been paid. The payment of the rest is continuing with the aim of completing it in 2017.
At this moment, announcements of measures totalling 1.5€ billion are being progressed. Some of these measures are:
Firstly, the call for the registration of young farmers with the aim of integrating 12,000 new young farmers. The total funding is 241€ million, while the amount of support per beneficiary varies from 17,000€ up to 22,000€. The amount attributable to the region of Crete is 23.5€ million.
Secondly, the support of local development through the LEADER programme, which includes 49 programmes with a total budget of 307€ million. The region of Crete will be allocated 35€ million. And further, there is organic farming, with a budget of over 500€ million, processing and other measures of significant interest to Crete.
At the same time, dozens of studies and technical projects involving the use of irrigation water, dams, small reservoirs and irrigation networks are being put forward for funding through the Rural Development Programme. I repeat, therefore, the best possible preparation and implementation of this Programme up until 2020, is a huge objective, which will give real impetus to a really desolate, we must admit, sector of production, the primary sector, which is the main pillar for the prospect of the reconstruction of production.
I would like at this point to refer to something more specific to Crete. Because I think that a big advantage of Crete, (apart, of course, from the natural beauty of this place such that I do not believe there is a person in the world who wouldn't want to visit it), is a big advantage that we must seize. It is that, because of the climate and fertile land here, we can produce agricultural products of excellent quality, unique I would say.
Hence an especially great advantage is the Cretan diet. Products that is to say that are manufactured only here, thanks to the special soil and climatic conditions and the diversity of the natural environment. These advantages make the Cretan products differ qualitatively and render the Cretan diet a powerful competitive advantage. So our vision is to consolidate a new model of production. To promote Cretan diet means the promotion of local varieties and traditional crops, which are closely tied to the Cretan culture and local tradition. It means support for small and medium-sized family enterprises, an effort to keep people in rural areas, support for the production of healthy and safe products. And of course, turning ourselves outwards, stimulating exports, better cooperative organization, connecting with other productive activities, such as tourism.
And a parenthesis here. Crete could only from a serious exploitation of its tourism capabilities, if these large units but also the smaller ones instead of using imported products, and instead of many times offering tourists meals prepared with imported products from other countries, if they advertised as an ingredient of luxury holidays in Crete, local agricultural products. And if we managed to links these units to local producers, it would not even be necessary to export the products outside Crete.
Exactly in this context, we have already promoted and implemented in Crete programmes to promote the Cretan diet and agricultural products, with a total budget of 9.5€ million.
Also aid programmes have been implemented to support the Olive-producing enterprises of Crete with a total budget of amounts of over 17€ million. So there is the potential, there are the people, there is the plan, resources are not endless, but there are some resources. I believe that we can move forward, ensuring that farmers will have the support they need and deserve and at the same time in due course create the conditions for investors in the primary sector to really get involved. Our main goal is to put the Greek rural areas back on their feet. And to keep Crete in a leading position in the country’s agro-food chain.
I further want to refer at this point to the literally huge productive activity of Crete, which is tourism. We realize tourism is an extremely important factor in the economic life of the country. And I must tell you that this year we broke another record, and the Crete played a decisive role in this new record. We had over 27 million tourists in our country, in Crete we had a 105% increase in arrivals, which is a major success. The millions of tourists who come every summer to enjoy the natural beauty of our country, constitute a strong driving force for our economy. This of course also applies to Crete.
In our concept, tourism cannot be a closed activity, detached from the broader social environment. The intention is that the benefits of tourism be spread as far as possible into the local economy and generate decent work positions. To work together in combination with the other productive activities rather than displacing them. We want tourism to take advantage of the beauty of the natural environment without adversely affecting it and without altering and destroying it. That's why we are interested in the sustainability of the tourism product, the preservation of jobs and of course the creation of new jobs. What we are trying to ensure through the Entrepreneurship Competitiveness and Innovation Programmes like the one for the establishment, operation and support small and medium-sized tourism enterprises, with a budget of 120€ million.
Again, we are looking at programmes through which Local Authorities Organisations can improve and take advantage of the natural and cultural stock of their place and the promotion of historic public buildings. And speaking of buildings let me also touch on infrastructure. The issue for a place is not just production. It is also all those conditions that ensure the transportation of people and products, as well as the modernisation of the existing services. And I think that indeed the time has come, after many years of barren proclamations, for a great task, a big central task of development for Crete to get onto the real track of implementation. And I am referring to the Northern Axial Road [B.O.A.K.].
I said this morning to the Regional Governor that one of the main objectives of our Government is for project to have begun, that is to say that the tendering process to have been completed at latest by 2017, early 2018. For the work to have been started in 2018 and of course before the end of our four-year term of office and the elections in 2019, and if we do well to be inaugurated as the next Government for the following four years. We made a commitment that the project will proceed and will be completed properly. A working project to modern European motorway standards, having solved the huge issue of road safety. You know very well how the Cretan people and tourists have been plagued with accidents which happen unfortunately every year. A project fit to address the issue of transport of people and goods from the eastern to the western end of the island. On this subject, I must inform you that there was a special meeting of the Inter-ministerial Committee for development and investment.
We are moving at a fast pace. I must tell you that already a verbal agreement has been reached with the European Investment Bank for financing the project, while, at the same time, relevant departments of the Infrastructure General Secretariat are pushing forward the strategic study rapidly. So I say explicitly that a political commitment this government is for this project to go forward which possibly constitutes the main infrastructure investment for Crete.
At the same time we are progressing studies and projects to upgrade the existing road network on the island.
At the same time, our second major project, the second big piece of the puzzle that is our vision for Crete, because we want the Government of the Left to leave Crete, the island one other infrastructure project, particularly important, not only for Crete, but also for the whole of Greece. It is the international airport at Kastelli, which will be one of the largest in the Mediterranean and the construction and operation of which will multiply the number of arrivals and will give a strong development momentum to the island. It is a project that has occupied the local society for a long time, with postponements, delays and an implied distrust about whether ultimately it will happen. So I have to tell you that the project is progressing, the tendering of the project has taken place normally, the first stage of the tendering process has taken place, there are two further stages between now and the end of March. So in a few months we will be ready for the next fast steps.
At the same time, the Ministry of Infrastructure, Transport and Networks, in cooperation with the Civil Aviation Authority and relevant bodies, is examining the potential for upgrading the existing airport "Nikos Katzantzakis" in Heraklion for as long as (we estimate 4-5 years), for as long as it operates until it can be replaced by the new airport.
And talking about infrastructure, let me also say something that I said today to the Mayor when he raised the issue of the replacement of Heraklion’s water supply network, an equally extremely important infrastructure project for the city of Heraklion. A case concerning the everyday life of the citizens of Heraklion, their quality of life, but also concerning respect for our natural resources, to restrict water leaks. This project, the greater part of which ripe for implementation, has already been evaluated so as to advance its inclusion in ESPA, while the Ministry of Development processes the overall financial scheme, which apart from ESPA will also include resources from the Public Investment Programme and leverage from other financial sources. And of course I unwittingly stopped the announcement of this project, because on the day George Stathakis as Development Minister was about to announce it, I re-shuffled the Cabinet. This project will proceed, the leadership of the Ministry of Economy and Development has set the procedures in motion.
And finally, as regards infrastructure, a more important project concerning the public, quality of life, the public space in the city of Heraklion. The project, therefore, is an absolute priority. It is underway because it's great importance to the residents of Heraklion is perfectly understood: that is the granting of the land area of the harbour to the Municipality, in order to immediately progress its redevelopment and its contribution to local society. And for this project with the Heraklion Port Authority the necessary actions have been taken and very soon there will be the relevant announcements.
I would like, friends, residents of Heraklion, to conclude my speech on what are two very key fronts for us. The front of Health and the front of Education. And let me say a few words about what work is being done there, what big problems we face, you of course know them very well, but also how important is the effort that is being made because I'm afraid that if I don't talk about them you will only the difficulties. You will see, though, and you see them and the Greek people sees them. Because unlike the parrots of the vested interests, there are some things that can’t be hidden.
Because every Greek family has children in schools, and of course every Greek family has the need for public hospitals, except for the very wealthy families who go to private.
Let me say a few words about the health sector. For the two Heraklion hospitals, the University Hospital and the Venizelio, an operational plan has been drafted. The Regional Health Authority of Crete is proceeding to draw up a Health Map, aiming for the scientific recording of health data for Crete, so that each time programming can be done from the perspective of scientific data. At the same time, we are moving rapidly on the functioning of Primary Health Care. As previously announced by the Minister of Health, twenty-five local health units will operate throughout Crete in order to fully and effectively provide services at primary care level throughout the island, blunting the inequalities of access to public health. The aim is the much needed structure to contribute to the welfare of citizens but also to the decongestion of hospitals.
As far as the hospitals are concerned, a first and important step, which of course was jeered at by many, but it was important because it saved resources and restored the framework of working for hundreds of people was the move from contracting out work to individual work contracts. The two Heraklion hospitals, the University and the Venizelio, have concluded as from 1/8/16 individual work contracts for cleaning and from 1/9/2016, individual contracts for providing meals. In a short space of time, the concluding of individual contracts will be completed for hospital security. These contracts guarantee a total of 209 employees until the end of 2017.
And in spite of the high priests of contracting out, I must tell you, that our policy saves 18% compared with the previous contracts with contractors. A sum of money which will be channelled into further upgrading health services.
At the same time, important steps have been taken in 2016 for coverage of major gaps in all categories of staff. After 18 years, appointments of administrative staff have started again and the completion of all 35 permanent staff appointments is awaited. This we are implementing now. The notifications of 23 permanent posts for doctors in branches of the National Health Service are being completed. Already 16 nursing staff have been appointed. Overall and within the last year, both hospitals have strengthened with a total of 422 workers. Emphasis has been given to reducing waiting times for citizens at hospital reception, and the queues for administration have been reduced. The certification of services in the Office of the Movement of Patients, the Regular Outpatient Clinics and the Emergency Department is progressing.
And I want to tell you that apart from the other individual activities, our main goal is to streamline hospital procurement, with the adoption of internal safeguards. With the application of procedures using electronic systems. Where in previous years, one person called “a health party” and indeed without anyone turning a hair, that is now permanently finished. And, of course, because certain people are tainted by this, certain people who this party suited and certain people who were the favorites of those who put on the music at the party, the Disc Jockeys, the Ministers, with the Centre for Disease Control & Prevention [ΚΕΕΛΠΝΟ] and various other schemes which they had for financing the mass media, these people are starting to get upset. Now that this Government, despite the horrendous financial difficulties has managed first of all to establish that each of our fellow citizens, whether insured or uninsured will be able to go to public hospitals and get free health care. And this relates to 2.5 million of our fellow citizens. At the moment that this Government is proceeding for the first time on appointments, and especially at the moment when we are proceeding, using whatever capability we have, to the official creation of 5,000 posts, 4,000 posts relating to nursing staff and 1,000 to doctors, over and above the appointments that the framework agreement allows us to do in the field of Health. So five thousand posts, their notification immediately before the end of the year, and until February will be made in the public hospitals of our country. To this Government certain people, the party goers, the party workers are coming to wag their finger.
I will tell you one thing. It is necessary, as Cretans, for you to be proud that two sons of Crete are at the helm of Health and are working ceaselessly. Despite threats, despite terrorism, under difficult circumstances we will succeed in putting an important stamp on the field of Health. This is a project visible to every Greek woman and every Greek man.
And to conclude with a few words about the area of Education. This year for the first time, just as in the whole country, schools on Crete as far as the most remote point which is Gavdos, opened as normal on the first day of the school year. And will you tell me why this is something important? Note that this is an example of a return to normality. And for these examples hundreds of people had to work for months. And at bottom, let me tell me differently. Since it is such a simple and self-evident matter, why haven’t previous Governments managed it up to now? So this year, something happened which has not happened in the country, not for five and or seven years, the years of the Memoranda, but which had not happened for 30 whole years. For even the most remote school to open with books and teachers, and lecturers.
Also this year, every primary schools, from 4th grade and above, are operating with the new type of whole school day. With a full programme and educational specialties, which for many schools has not happened for many years. Still, the Ministry in cooperation with the Educational Policy Institute and the Heraklion Chamber of Commerce, is starting a pilot learning programme for graduates of the Vocational Lyceum [EPAL], which has all the prerequisites for complete success. And which, we believe, will radically change technical training.
And finally let me tell you, that our great vision, our extensive reform in the area of Education is now being planned by the Minister with his staff, a reform aimed at radically changing the access route to Higher and Technical Education. With the aim of the school becoming the basic cell and not just a examination centre. Aiming for the centre of gravity to return to the public school and not to be in the cramming schools. The dialogue which is set to conclude next summer when the reform plan is ready to come before Parliament and the young people who will be going next year to High School will have a picture of a new system of access to the third level of education.
Dear friends
We know that despite the important steps which I have described to you, and which of course you do not hear about from the doom mongering mass media, are steps that are being made often in extremely harsh conditions and in a sense with conflicts and battles and so they are steps that could be portrayed as heroic. But we are fully aware that problems remain and are great. And we are dealing with these problems in cooperation, I like to believe, close and meaningful co-operation with the bodies of Local Government, the Municipalities, the Region and especially with the workers and the ordinary citizens who are concerned.
We will not stop until it is more commonly accepted, that social services such as health and education, have achieved a stable and permanent level of quality, as befits the region of a normal European country.
Dear friends
So I want, in closing, to tell you that we are aware of how difficult is the situation we face. We understand the problems and are working daily with the sole objective of overcoming and dealing with the problems. Greece, unfortunately for many decades, has been afflicted by policies that led to the brink. And an outcome of these policies was the bankruptcy and the Memoranda which have led to the plundering of the society. The disastrous five year period 2010-2014. But think a bit before we got to the Memorandums, in bankruptcy, there were political responsibilities that led us there. Mismanagement, corruption, vested interests, the tortuous model of production and poor mentality of a large part of the Greek people who did not oppose them. We had the opportunity to have a sincere discussion today with productive bodies and farmers about the period in which the basic motto was all the kilos, all the money where the apportionment in Crete reached the same level as Mainland Greece, about the period where no one turned a hair at the decoupling of subsidies from production. Production was of no importance, it was sufficient to get the subsidies.
All this and the tolerance to a clientalist state, the tolerance in the triangle of vested interests interweaving between the political system, banks and the Mass Media, all this led to the bankruptcy, to the conditions of bankruptcy. And of course the same deadly and spineless Governments, the deadly and spineless political system that created all this that has led us to a form of development without its product being enjoyed at even a minimal level by the vast majority of the Greek people. Those who got us into this, led us to the brink and to bankruptcy also took fatal decisions and accepted everything in the name of the salvation of the country from bankruptcy. And those who in the name of salvation from bankruptcy took the debt from 120% to 187% of GDP and for 5 years were saying no debt problem as long as Mrs Merkel gives us a sustainability certificate.
These were the people. This was the political leadership. This political leadership which is now coalescing and wagging its finger at us. You haven’t managed to clear up the 40 years of mess we left you. That is what they are saying to us.
So I want to tell you one thing. Into this struggle, into this battle we have entered with great optimism, greater than we should have done. Indeed, let us measure it. But we have embarked on it with honesty, with determination, with faith in our forces to work hard to succeed. And as we see that a large majority of the Greek people recognize that our eyes and our hands are clean and that we are working to get our Greece, our homeland, out of the crisis, we will move forward, we will not back down. We will move forward until we extricate the country from the crisis with the society standing on its own two feet.
So I want to promise you, not only because I am obliged to but because it fills me with optimism, with faith and self-confidence, that I will come back soon to your place here in Crete. You will see me more often because we have to work, all together, and we will work for the vast potential that the island has. For the people of this place. For the position of front-runner in a productive Greece, a Greece of growth, social cohesion and prosperity.
We will succeed. Thank you.
All power to you, have fine struggles and I wish you happy holidays, good luck to you.
“Our country’s sovereignty will be restored.
Supervision and the memorandums are coming to an end.”
24.12.2016
“Those who are not at peace with their souls cannot cope with the problems of their country, nor those of Europe nor of the world,” Greek Prime Minister Alexis Tsipras said on Thursday.
The Prime Minister was apparently referring to the German Finance Minister Wolfgang Schaeuble who said that he can’t show any understanding to the Greek PM for accusing the German Government of hurting Greek pensioners.
The Prime Minister was apparently referring to the German Finance Minister Wolfgang Schaeuble who said that he can’t show any understanding to the Greek PM for accusing the German Government of hurting Greek pensioners.
PM Tsipras was speaking in Parliament at an event dedicated to unescorted refugee children.
“Those who shake the finger at us in the name of the Agreements, and address the Greek people in a condescending way, they must honour their commitments first before they turn to criticize us,” he said.
The Greek Prime Minister said during his speech that the compassion and solidarity Greece has shown during the refugee crisis is more important than state budgets and fiscal targets.
“We now open our arms — and I believe this reflects the feelings of the vast majority of the Greek people — to these weak people. Despite our difficulties we keep our dignity and this is a much greater wealth and a much larger surplus than all budget surpluses. No matter how big fiscal surpluses some countries manage, they will never reach the surplus of soul that Greek people have,” he said.
Creditors Decide to Delay Greek Debt Relief Measures
On Wednesday Greece’s creditors decided to delay debt relief measures until they receive a letter of commitment from the Greek Government guaranteeing that the social aid measures in support of the poorest pensioners it has taken are for one time only.
Greek MPs approved the one-off payment, which is for the lowest-earning pensioners – despite opposition from some of Greece’s European creditors.
An amendment suspending an increase in VAT for the islands of the northeast Aegean in the frontline of dealing with the refugee crisis was passed with unanimous support from Greek MPs in Parliament on Wednesday, with 259 votes in favour. The amendment was passed with the support of all political parties.
Finance Minister Euclid Tsakalotos was due to send a letter to Lenders confirming that these are one-off measures and that the Greek government remains committed to meeting its fiscal targets.
However, Government sources said that the Greek Government has decided against sending this letter of commitment, instead it is asking for more information and for clarification regarding the kind of pledges the Institutions are looking for. This is in order to avoid further misunderstandings.
According to reports, the International Monetary Fund is asking for very specific commitments from the Greek Government. On the other hand, European creditors reportedly believe that there is progress in discussions and it is thought unlikely that another Euro Working Group is needed to discuss the issue.
French Prime Minister Bernard Cazeneuve said on Wednesday that the benefits given out by the Greek Government do not threaten its fiscal goals.
Greece’s Prime Minister Alexis Tsipras insisted that the pensioners’ payment does not breach the terms of the bailout. The Greek position is that the funds allocated are from the Primary Surplus achieved in 2016 and do not affect the bailout programme.
On Thursday, Deputy Minister of Labour, with responsibility for social security matters, Tasos Petropoulos stated: "The allowance has been distributed everywhere and is exactly the amount announced by the Prime Minister that it would be." The lump-sum benefit has been credited to pensioners’ accounts.
Greek government sources were optimistic that short term debt relief measures will kick in early in January and will not be linked to the conclusion of the ongoing Second Assessment. PM Tsipras called on the country’s creditors to look at themselves before they criticise.
“We are waiting for you to reach an understanding,” he said, addressing the creditors. “But at the same time, don’t ask for things you know cannot be done in an economy carrying the wounds created by your own mistakes.”
“Those who shake the finger at us in the name of the Agreements, and address the Greek people in a condescending way, they must honour their commitments first before they turn to criticize us,” he said.
The Greek Prime Minister said during his speech that the compassion and solidarity Greece has shown during the refugee crisis is more important than state budgets and fiscal targets.
“We now open our arms — and I believe this reflects the feelings of the vast majority of the Greek people — to these weak people. Despite our difficulties we keep our dignity and this is a much greater wealth and a much larger surplus than all budget surpluses. No matter how big fiscal surpluses some countries manage, they will never reach the surplus of soul that Greek people have,” he said.
Creditors Decide to Delay Greek Debt Relief Measures
On Wednesday Greece’s creditors decided to delay debt relief measures until they receive a letter of commitment from the Greek Government guaranteeing that the social aid measures in support of the poorest pensioners it has taken are for one time only.
Greek MPs approved the one-off payment, which is for the lowest-earning pensioners – despite opposition from some of Greece’s European creditors.
An amendment suspending an increase in VAT for the islands of the northeast Aegean in the frontline of dealing with the refugee crisis was passed with unanimous support from Greek MPs in Parliament on Wednesday, with 259 votes in favour. The amendment was passed with the support of all political parties.
Finance Minister Euclid Tsakalotos was due to send a letter to Lenders confirming that these are one-off measures and that the Greek government remains committed to meeting its fiscal targets.
However, Government sources said that the Greek Government has decided against sending this letter of commitment, instead it is asking for more information and for clarification regarding the kind of pledges the Institutions are looking for. This is in order to avoid further misunderstandings.
According to reports, the International Monetary Fund is asking for very specific commitments from the Greek Government. On the other hand, European creditors reportedly believe that there is progress in discussions and it is thought unlikely that another Euro Working Group is needed to discuss the issue.
French Prime Minister Bernard Cazeneuve said on Wednesday that the benefits given out by the Greek Government do not threaten its fiscal goals.
Greece’s Prime Minister Alexis Tsipras insisted that the pensioners’ payment does not breach the terms of the bailout. The Greek position is that the funds allocated are from the Primary Surplus achieved in 2016 and do not affect the bailout programme.
On Thursday, Deputy Minister of Labour, with responsibility for social security matters, Tasos Petropoulos stated: "The allowance has been distributed everywhere and is exactly the amount announced by the Prime Minister that it would be." The lump-sum benefit has been credited to pensioners’ accounts.
Greek government sources were optimistic that short term debt relief measures will kick in early in January and will not be linked to the conclusion of the ongoing Second Assessment. PM Tsipras called on the country’s creditors to look at themselves before they criticise.
“We are waiting for you to reach an understanding,” he said, addressing the creditors. “But at the same time, don’t ask for things you know cannot be done in an economy carrying the wounds created by your own mistakes.”
Alexis Tsipras in Crete
Addressing a public rally in Crete on Tuesday, Alexis Tsipras again dismissed talk that Greece will agree to additional measures to be implemented in the post-programme period.
The Prime Minister said this “is a message that must be understood inside and outside the country. Our country’s sovereignty will be restored. Supervision and the memorandums are coming to an end.”
"I'm convinced (the Assessment) will be concluded positively, it will be concluded promptly and, most importantly, it will be concluded without new measures after the programme expires (and) without the excessive demands some are putting on the table," PM Tsipras said in a speech in Heraklion.
Greece's lenders should "not ask for things you know cannot be done in an economy carrying the wounds created by your own mistakes," he said, referring to austerity measures imposed on the country over the past few years.
Tsipras reiterated that the pension bonus would be paid to pensioners on Thursday.
Tax Evasion: The struggle continues
The Finance Ministry is offering those who have concealed incomes from the state – evading the payment of taxes, levies and/or charges – one last chance to come clean regarding taxable revenues or assets from previous years. If they do so voluntarily, the process will entail lower taxes and fines compared to those dictated by legislation if the tax authorities uncover a violation during inspections.
The ministry’s draft law concerns the declaration of hidden taxable income or assets from previous financial years that resulted in evasion of income tax, value-added tax, property transfer tax, property taxes and/or the solidarity levy.
Taxpayers or enterprises that declare what they have concealed must pay the resulting tax within 30 days or enter a program whereby payments are made in 12 or 24 installments. They must also be aware that the tax authorities reserve the right to inspect not only the assets and revenues being declared, but their property and income in any given financial year.
Addressing a public rally in Crete on Tuesday, Alexis Tsipras again dismissed talk that Greece will agree to additional measures to be implemented in the post-programme period.
The Prime Minister said this “is a message that must be understood inside and outside the country. Our country’s sovereignty will be restored. Supervision and the memorandums are coming to an end.”
"I'm convinced (the Assessment) will be concluded positively, it will be concluded promptly and, most importantly, it will be concluded without new measures after the programme expires (and) without the excessive demands some are putting on the table," PM Tsipras said in a speech in Heraklion.
Greece's lenders should "not ask for things you know cannot be done in an economy carrying the wounds created by your own mistakes," he said, referring to austerity measures imposed on the country over the past few years.
Tsipras reiterated that the pension bonus would be paid to pensioners on Thursday.
Tax Evasion: The struggle continues
The Finance Ministry is offering those who have concealed incomes from the state – evading the payment of taxes, levies and/or charges – one last chance to come clean regarding taxable revenues or assets from previous years. If they do so voluntarily, the process will entail lower taxes and fines compared to those dictated by legislation if the tax authorities uncover a violation during inspections.
The ministry’s draft law concerns the declaration of hidden taxable income or assets from previous financial years that resulted in evasion of income tax, value-added tax, property transfer tax, property taxes and/or the solidarity levy.
Taxpayers or enterprises that declare what they have concealed must pay the resulting tax within 30 days or enter a program whereby payments are made in 12 or 24 installments. They must also be aware that the tax authorities reserve the right to inspect not only the assets and revenues being declared, but their property and income in any given financial year.
Alexis Tsipras speaks to the European Left
Last Saturday Prime Minister Alexis Tsipras, speaking at the Fifth Conference of the Party of the European Left in Berlin, said “The Greek Government is determined to defend the rights of its people and not bow to measures that perpetuate austerity. We are determined to promote the rights of the Greek people. We’re determined not to abandon our people to ‘yes-men’ who support continuing austerity for many years to come.”
He defended his Government’s decision to give Christmas bonuses to low-income pensioners and to suspend VAT increases for those islands affected by the refugee crisis.
“We took the political decision to counter the sacrifices of the pensioners. We have strengthened poor neighbourhoods with schools and reduced VAT on the islands which are bearing the brunt of migration without jeopardising our European commitments.”
“Our creditors must keep in mind that the Greek people have made many sacrifices and now it is their turn to fulfill their obligations. They should implement the short-term measures for the debt and open talks about lower surpluses,” he continued, saying that the Creditors and the International Monetary Fund cannot exclude Greece from the labour laws applied in the EU.
He then urged the European Left to take action and propose an alternative to nationalism and the extreme-right. “European social democracy must see and assume the historical responsibility to put an end to the neoliberal consensus. We need the cooperation of democratic and progressive forces. Greece is struggling to put an end to austerity and the injustice of memorandums and recession. We have to cooperate to block the emergence of populist xenophobic forces. First step is to establish a forum. Europe is not only at a fundamental crossroads, but is ready to cross the Rubicon. The old forces of the past are claiming the present and are doing so on a terrain that has been prepared by the neoliberalism’s failure to tackle the crisis. The absence of solidarity leads to a narrow nationalistic logic and this strengthens nationalism and euroscepticism.”
Last Saturday Prime Minister Alexis Tsipras, speaking at the Fifth Conference of the Party of the European Left in Berlin, said “The Greek Government is determined to defend the rights of its people and not bow to measures that perpetuate austerity. We are determined to promote the rights of the Greek people. We’re determined not to abandon our people to ‘yes-men’ who support continuing austerity for many years to come.”
He defended his Government’s decision to give Christmas bonuses to low-income pensioners and to suspend VAT increases for those islands affected by the refugee crisis.
“We took the political decision to counter the sacrifices of the pensioners. We have strengthened poor neighbourhoods with schools and reduced VAT on the islands which are bearing the brunt of migration without jeopardising our European commitments.”
“Our creditors must keep in mind that the Greek people have made many sacrifices and now it is their turn to fulfill their obligations. They should implement the short-term measures for the debt and open talks about lower surpluses,” he continued, saying that the Creditors and the International Monetary Fund cannot exclude Greece from the labour laws applied in the EU.
He then urged the European Left to take action and propose an alternative to nationalism and the extreme-right. “European social democracy must see and assume the historical responsibility to put an end to the neoliberal consensus. We need the cooperation of democratic and progressive forces. Greece is struggling to put an end to austerity and the injustice of memorandums and recession. We have to cooperate to block the emergence of populist xenophobic forces. First step is to establish a forum. Europe is not only at a fundamental crossroads, but is ready to cross the Rubicon. The old forces of the past are claiming the present and are doing so on a terrain that has been prepared by the neoliberalism’s failure to tackle the crisis. The absence of solidarity leads to a narrow nationalistic logic and this strengthens nationalism and euroscepticism.”
Support for Pensioners and Islands opposed by Lenders
17.12.2016
On Thursday the Greek Parliament approved government proposals to pay the poorest pensioners a one-off Christmas benefit and to postpone VAT increases for the islands in the frontline of the refugee crisis. This was despite the announcement on Wednesday by the Eurozone that it was suspending the recently announced debt relief scheme for Greece in retaliation for not being briefed on these Greek proposals.
The Greek Government announced its bonus for pensioners receiving below €800 a month and the postponement of VAT increases for residents of Aegean islands dealing with the refugee crisis.
Plans for the €617m pre-Christmas handout were opposed by the Institutions.
"According to a preliminary assessment by the Institutions [the European Commission, the European Central Bank, the European Stability Mechanism (ESM) and the IMF], the proposed measures by the Greek Government raise significant concerns on both process and substance as regards Memoranda commitments, especially regarding pensions," an ESM spokesman said.
Prime Minister Alexis Tsipras said Greece would not be blackmailed. He said the pension payment would come out of a 1€ bn tax surplus. He said the situation had to be resolved "without blackmail" on the part of Greece's creditors.
France has defended Greece against a hardening stance by Germany and the Eurogroup of EU finance Ministers, headed Jeroen Dijsselbloem.
On Wednesday, a spokesman for Mr Dijsselbloem announced that the Eurozone was suspending the recently announced debt relief scheme for Athens in retaliation for not being fully briefed on the Greek proposals.
“Following recent proposals by the Greek government to spend additional fiscal resources for pensions and VAT, our governing bodies have put their decisions temporarily on hold,” a spokesman for the ESM said. “The Institutions are currently assessing the impact of Greek government decisions vis-a-vis the ESM programme commitments and targets. We will then analyse the Institutions’ assessment and subsequently decide how to proceed,” the ESM spokesman noted.
But France's Finance Minister, Michel Sapin, and EU Financial Affairs Commissioner Pierre Moscovici have publicly distanced themselves from the Eurogroup decision. Pierre Moscovici said that from his perspective, the terms of the bailout agreement “had not been breached by the measures decided upon by the Tsipras government.” Mr. Sapin said "Individual statements are not the collective statements of the Eurogroup."
Prime Minister Tsipras was defiant in a speech the following day. “When we exceed targets and revenue by sticking to the programme, we will not seek anyone’s permission to give this money to those who need it most,” he said. PM Tsipras described IMF staff as “irrational technocrats” and said that the islands that had borne the brunt of the refugee crisis would be exempt from VAT increases demanded by creditors.
“Citizens on these islands must feel sure that the state is looking after them,” he announced during a flying visit to the tiny isle of Nisyros. “They are shouldering the burden of reception and hospitality and, ultimately, the entire burden of Europe … We will keep to the programme, but we are not going to ask anyone for permission to give surplus money to those most in need.”
Finance Minister Euclid Tsakalotos said that once Greece was given the chance to explain its case it would become clear that the measures are indeed within the bailout framework.
The Government put the proposals to a parliamentary vote and a majority voted in favour of them with 196 “Yes” votes and 61 MPs recording “Present” [ie abstaining].
All the SYRIZA-ANEL coalition MPs voted in favour. Golden Dawn, the Greek Communist Party and Democratic Coalition (PASOK-DIMAR) also voted “Yes.”
New Democracy MPs recorded as “present,” on the grounds that the measures were simply a tactical move with no real value, and that the action was being taken without the consent of creditors and the measures might be against the bailout agreement. To Potami also abstained as did the Centre Union MPs.
The vote was done by roll call.
"The Official Opposition has been fatally exposed and has committed a huge political mistake, outdoing even the German reaction," a Government spokesman commented. "New Democracy’s position on the vote on the adoption of the social measures in Parliament is judged to have been a political blunder and a huge gaffe."
Plans for the €617m pre-Christmas handout were opposed by the Institutions.
"According to a preliminary assessment by the Institutions [the European Commission, the European Central Bank, the European Stability Mechanism (ESM) and the IMF], the proposed measures by the Greek Government raise significant concerns on both process and substance as regards Memoranda commitments, especially regarding pensions," an ESM spokesman said.
Prime Minister Alexis Tsipras said Greece would not be blackmailed. He said the pension payment would come out of a 1€ bn tax surplus. He said the situation had to be resolved "without blackmail" on the part of Greece's creditors.
France has defended Greece against a hardening stance by Germany and the Eurogroup of EU finance Ministers, headed Jeroen Dijsselbloem.
On Wednesday, a spokesman for Mr Dijsselbloem announced that the Eurozone was suspending the recently announced debt relief scheme for Athens in retaliation for not being fully briefed on the Greek proposals.
“Following recent proposals by the Greek government to spend additional fiscal resources for pensions and VAT, our governing bodies have put their decisions temporarily on hold,” a spokesman for the ESM said. “The Institutions are currently assessing the impact of Greek government decisions vis-a-vis the ESM programme commitments and targets. We will then analyse the Institutions’ assessment and subsequently decide how to proceed,” the ESM spokesman noted.
But France's Finance Minister, Michel Sapin, and EU Financial Affairs Commissioner Pierre Moscovici have publicly distanced themselves from the Eurogroup decision. Pierre Moscovici said that from his perspective, the terms of the bailout agreement “had not been breached by the measures decided upon by the Tsipras government.” Mr. Sapin said "Individual statements are not the collective statements of the Eurogroup."
Prime Minister Tsipras was defiant in a speech the following day. “When we exceed targets and revenue by sticking to the programme, we will not seek anyone’s permission to give this money to those who need it most,” he said. PM Tsipras described IMF staff as “irrational technocrats” and said that the islands that had borne the brunt of the refugee crisis would be exempt from VAT increases demanded by creditors.
“Citizens on these islands must feel sure that the state is looking after them,” he announced during a flying visit to the tiny isle of Nisyros. “They are shouldering the burden of reception and hospitality and, ultimately, the entire burden of Europe … We will keep to the programme, but we are not going to ask anyone for permission to give surplus money to those most in need.”
Finance Minister Euclid Tsakalotos said that once Greece was given the chance to explain its case it would become clear that the measures are indeed within the bailout framework.
The Government put the proposals to a parliamentary vote and a majority voted in favour of them with 196 “Yes” votes and 61 MPs recording “Present” [ie abstaining].
All the SYRIZA-ANEL coalition MPs voted in favour. Golden Dawn, the Greek Communist Party and Democratic Coalition (PASOK-DIMAR) also voted “Yes.”
New Democracy MPs recorded as “present,” on the grounds that the measures were simply a tactical move with no real value, and that the action was being taken without the consent of creditors and the measures might be against the bailout agreement. To Potami also abstained as did the Centre Union MPs.
The vote was done by roll call.
"The Official Opposition has been fatally exposed and has committed a huge political mistake, outdoing even the German reaction," a Government spokesman commented. "New Democracy’s position on the vote on the adoption of the social measures in Parliament is judged to have been a political blunder and a huge gaffe."
EU and IMF – disagreement grows
On Tuesday, the European Union rejected charges by the International Monetary Fund (IMF) that its current rescue programme is “not credible.”
The extent of the differences between Greece’s creditors has been laid bare.
The war of words intensified after the IMF issued a 1,300-word statement distancing itself from the economic policies underpinning Greece’s latest bailout programme. Poul Thomsen, Director of the IMF’s European department, and Maurice Obstfeld, its chief economist wrote that the adjustment programme agreed last summer in exchange for 86€ bn worth of rescue loans – a plan the IMF has so far refused to support – was based on measures that were “unfriendly to growth.”
The European Commission responded, insisting that the economic fundamentals were not only sound, but working. “The European Institutions consider that the policies of the ESM programme are sound and if fully implemented can return Greece to sustainable growth and can allow Greece to regain market access,” said Commission spokeswoman Annika Breidthardt.
There is now real concern that the row could be the precursor to the IMF pulling out of the programme altogether. Germany, the biggest provider of the rescue monies poured into the three bailouts Greece has received since 2010, says IMF participation is a condition of further disbursement of funds. But it disagrees over the need to restructure the country’s 330€ bn debt.
“The IMF is being economical with the truth when it says it is not asking for more austerity,” said Minister Tsakalotos. He accused the IMF of advocating policies that were bound to increase inequality and social exclusion – contradicting its own self-avowed goal of inclusive growth.
“Greece is being boxed into a corner,” said Euclid Tsakalotos, claiming that the country was under intense pressure to specify new austerity measures that made “no economic or political sense”.
“In effect it is arguing for Greek pensioners and poorer wage earners to make further economies,” he continued. Greece had proposed a Primary Surplus target of 2.5% which neither the EU nor IMF seem prepared to consider. “Greek expenditure on both pensions and other subsidies is about 70% of the EU average and 52% of that of Germany,” the Finance Minister said.
He argued that 45% of Greek pensioners receive less than 665€ and four million Greek people receive 665€ per month, at the edge of the poverty line. Thereby, he argued, there cannot be further cuts.
Moreover, Minister Tsakalotos denied that the Greek Government had agreed to meet a European creditors’ demand for high Primary Surpluses (3.5% of GDP) after the bailout programme ends in August 2018.
“I laid out the position of the Greek Government that high Primary Surpluses for an economy like Greece and what it has gone through during the crisis make no economic or political sense,” he said.
Combatting Tax Evasion
On Monday the Finance Ministry tabled a multi-bill aimed at combating VAT evasion – which amounts to 6.5€ billion a year – through tax-related incentives for electronic transactions, and forcing taxpayers to reveal any hidden incomes.
Salary workers, farmers and pensioners will have to reach a target of between 10% and 20% of their annual income in payments by credit or debit card, or e-banking, to avoid paying a fine and to be able to claim their tax-free allowance, depending on their family situation. There will be exceptions for older pensioners and Greeks living in remote parts of the country.
The bill reduces the maximum amount allowed for cash transactions from 1,500€ to 500€.
The Finance Ministry is targeting taxpayers whose names are on some of the lists of Greeks with undeclared deposits in bank accounts abroad with its clause for the voluntary revelation of hidden incomes. However, the tax they will have to pay starts from 42-43% of the income to be declared and reaches up to 60%, depending on the case and on the length of time the income was hidden.
and Corruption
An anti-corruption magistrate is to begin questioning suspects accused of defrauding Greek taxpayers out of millions of euros by selling overpriced medical equipment to two state hospitals.
An investigation by prosecutors has led to charges being issued in connection to the transactions which took place between 2005 and 2009. The two companies in question are alleged to have bought the equipment, mostly pacemakers, via shell companies in Cyprus rather than directly from the foreign suppliers to justify driving up the price of the goods, which was sometimes twice or three times what it should have been.
The prosecutors’ report says that one of the firms overcharged the state hospitals by some 20€ million during the period in question. The other company is accused of engaging in fraud of a similar value.
On Tuesday, the European Union rejected charges by the International Monetary Fund (IMF) that its current rescue programme is “not credible.”
The extent of the differences between Greece’s creditors has been laid bare.
The war of words intensified after the IMF issued a 1,300-word statement distancing itself from the economic policies underpinning Greece’s latest bailout programme. Poul Thomsen, Director of the IMF’s European department, and Maurice Obstfeld, its chief economist wrote that the adjustment programme agreed last summer in exchange for 86€ bn worth of rescue loans – a plan the IMF has so far refused to support – was based on measures that were “unfriendly to growth.”
The European Commission responded, insisting that the economic fundamentals were not only sound, but working. “The European Institutions consider that the policies of the ESM programme are sound and if fully implemented can return Greece to sustainable growth and can allow Greece to regain market access,” said Commission spokeswoman Annika Breidthardt.
There is now real concern that the row could be the precursor to the IMF pulling out of the programme altogether. Germany, the biggest provider of the rescue monies poured into the three bailouts Greece has received since 2010, says IMF participation is a condition of further disbursement of funds. But it disagrees over the need to restructure the country’s 330€ bn debt.
“The IMF is being economical with the truth when it says it is not asking for more austerity,” said Minister Tsakalotos. He accused the IMF of advocating policies that were bound to increase inequality and social exclusion – contradicting its own self-avowed goal of inclusive growth.
“Greece is being boxed into a corner,” said Euclid Tsakalotos, claiming that the country was under intense pressure to specify new austerity measures that made “no economic or political sense”.
“In effect it is arguing for Greek pensioners and poorer wage earners to make further economies,” he continued. Greece had proposed a Primary Surplus target of 2.5% which neither the EU nor IMF seem prepared to consider. “Greek expenditure on both pensions and other subsidies is about 70% of the EU average and 52% of that of Germany,” the Finance Minister said.
He argued that 45% of Greek pensioners receive less than 665€ and four million Greek people receive 665€ per month, at the edge of the poverty line. Thereby, he argued, there cannot be further cuts.
Moreover, Minister Tsakalotos denied that the Greek Government had agreed to meet a European creditors’ demand for high Primary Surpluses (3.5% of GDP) after the bailout programme ends in August 2018.
“I laid out the position of the Greek Government that high Primary Surpluses for an economy like Greece and what it has gone through during the crisis make no economic or political sense,” he said.
Combatting Tax Evasion
On Monday the Finance Ministry tabled a multi-bill aimed at combating VAT evasion – which amounts to 6.5€ billion a year – through tax-related incentives for electronic transactions, and forcing taxpayers to reveal any hidden incomes.
Salary workers, farmers and pensioners will have to reach a target of between 10% and 20% of their annual income in payments by credit or debit card, or e-banking, to avoid paying a fine and to be able to claim their tax-free allowance, depending on their family situation. There will be exceptions for older pensioners and Greeks living in remote parts of the country.
The bill reduces the maximum amount allowed for cash transactions from 1,500€ to 500€.
The Finance Ministry is targeting taxpayers whose names are on some of the lists of Greeks with undeclared deposits in bank accounts abroad with its clause for the voluntary revelation of hidden incomes. However, the tax they will have to pay starts from 42-43% of the income to be declared and reaches up to 60%, depending on the case and on the length of time the income was hidden.
and Corruption
An anti-corruption magistrate is to begin questioning suspects accused of defrauding Greek taxpayers out of millions of euros by selling overpriced medical equipment to two state hospitals.
An investigation by prosecutors has led to charges being issued in connection to the transactions which took place between 2005 and 2009. The two companies in question are alleged to have bought the equipment, mostly pacemakers, via shell companies in Cyprus rather than directly from the foreign suppliers to justify driving up the price of the goods, which was sometimes twice or three times what it should have been.
The prosecutors’ report says that one of the firms overcharged the state hospitals by some 20€ million during the period in question. The other company is accused of engaging in fraud of a similar value.
Greece granted short term debt relief;
Second Assessment still incomplete
10.12.2016
On Monday night the meeting of Eurozone Finance Ministers ended without an agreement being reached on Greece’s Second Assessment. Short term debt relief measures were, however, decided. Still, there was no decision yet on the further participation of the IMF in the Greek bailout programme.
European Stability Mechanism President, Klaus Regling said after the meeting that a short term programme for restructuring the Greek debt will be implemented immediately. However, he said, full implementation of Greek debt relief will take a while. The long term measures will reduce debt by 20% of GDP by 2060.
Eurogroup President Jeroen Dijsselbloem said that the short term debt relief measures are not conditional on the finalisation of the Second Assessment but its successful completion requires Greece to take measures in order to reach a 3.5% Primary Surplus for 2018.
One of the prerequisites to complete the review is the appointment of the Board of Directors of the Hellenic Corporation of Assets and Participations (HCAP), which is to be implemented before the end of January 2017 to make the fund fully operational.
Also there are several pending issues regarding labour relations that need to be settled before an agreement at the technical level can be reached.
The short term debt relief measures were welcomed by Athens. However, they were not enough to persuade the International Monetary Fund (IMF) to remain in the Greek bailout programme as a lender. Eurogroup President Jeroen Dijsselbloem admitted the IMF will not join the programme this year. The talks “will take us into the new year” he said.
Europe and the IMF remain as far apart as ever on the level of need for debt relief measures and the economic targets being required of Greece, which the IMF says are unsustainable.
This is crucial as the IMF has remained adamant that it will not support the programme unless the elements, including debt sustainability and the fiscal reforms needed to achieve the surplus target, are credible.
The “short-term” measures announced by the Ministers crucially do not include reduction of the face value of the debt, an idea that is firmly opposed by the Eurozone Governments.
Instead, the highly technical measures include extending maturities on certain loans and locking in the interest rate on some debt that risks future interest-rate increases.
Already huge, Greece’s debt is on path to grow to €315 billion or around 180% of output (GDP) this year, according to the latest EU data. The issue turns on a key figure: the 3.5% primary balance, or the surplus on the public finances before debt repayments, that Greece is supposed to reach. The target is very high – and most countries do not even come close – but Germany believes it is the only way to solve the Greek issue once and for all and wants Greece to maintain this level for 10 years after the end of the current bailout in 2018.
“Some have argued for three years, some for five and some for 10,” Eurogroup head Jeroen Dijsselbloem told reporters after the talks.
The IMF, however, says that option is unrealistic – an economy with an already unsustainable debt burden cannot be expected to tighten the screws further.
A senior IMF official, who attended the talks, said they are far from agreement with the parties.
The official repeatedly stressed that a 1.5% primary surplus is attainable and the preferred option. The fund is willing to go along with the higher target for a limited number of years but only if there are tax and pension reforms sufficient to offset the fiscal hit.
The hardline stance on debt relief by the Eurogroup Ministers, led by Germany’s Wolfgang Schäuble, derives from concern about voter reaction as key elections approach next year in Germany and the Netherlands.
Greek Government spokesman Dimitris Tzankopoulos said "The key issue at this moment has nothing to do with the details of the Second Assessment, but with the attitude of the IMF, and also the attitude of Germany. It is not exactly the substance of the Second Assessment, but the course of the programme, the closing the programme in 2018 and medium-term programme 2019-2020."
On Thursday, IMF spokesman, Mr. Gerry Rice, said that contrary to perception the IMF is not demanding additional austerity. Instead, Mr. Rice said, the Fund has proposed that a 1.5% Primary Surplus target – instead of the current proposal of 3.5% – is more realistic for Greece and should be coupled with significant debt relief.
According to the IMF, additional measures and structural reforms will have to be implemented if Primary Surplus targets are kept at 3.5% of GDP, a standing demand of German Finance Minister Wolfgang Schaeuble.
An IMF debt sustainability analysis is expected to be key in the Fund’s decision on whether or not it will continue to participate in the Greek bailout programme. Primary Surplus goals are crucial to the findings of the IMF analysis.
Commenting on the course of negotiations, Greek Finance Minister Euclid Tsakalotos told Greek M.P.s debating the 2017 State Budget on Thursday that “nothing has been decided until everything is decided”.
The representatives of Greece’s international creditors, he said, were expected to return to Athens next week, with a deal possible by the end of the month. “We’ve been at this stage before. Everyone has to stay calm. It’s very important for all sides, including the IMF, to not jeopardize this progress with increased uncertainty.”
Eurogroup President Jeroen Dijsselbloem said that the short term debt relief measures are not conditional on the finalisation of the Second Assessment but its successful completion requires Greece to take measures in order to reach a 3.5% Primary Surplus for 2018.
One of the prerequisites to complete the review is the appointment of the Board of Directors of the Hellenic Corporation of Assets and Participations (HCAP), which is to be implemented before the end of January 2017 to make the fund fully operational.
Also there are several pending issues regarding labour relations that need to be settled before an agreement at the technical level can be reached.
The short term debt relief measures were welcomed by Athens. However, they were not enough to persuade the International Monetary Fund (IMF) to remain in the Greek bailout programme as a lender. Eurogroup President Jeroen Dijsselbloem admitted the IMF will not join the programme this year. The talks “will take us into the new year” he said.
Europe and the IMF remain as far apart as ever on the level of need for debt relief measures and the economic targets being required of Greece, which the IMF says are unsustainable.
This is crucial as the IMF has remained adamant that it will not support the programme unless the elements, including debt sustainability and the fiscal reforms needed to achieve the surplus target, are credible.
The “short-term” measures announced by the Ministers crucially do not include reduction of the face value of the debt, an idea that is firmly opposed by the Eurozone Governments.
Instead, the highly technical measures include extending maturities on certain loans and locking in the interest rate on some debt that risks future interest-rate increases.
Already huge, Greece’s debt is on path to grow to €315 billion or around 180% of output (GDP) this year, according to the latest EU data. The issue turns on a key figure: the 3.5% primary balance, or the surplus on the public finances before debt repayments, that Greece is supposed to reach. The target is very high – and most countries do not even come close – but Germany believes it is the only way to solve the Greek issue once and for all and wants Greece to maintain this level for 10 years after the end of the current bailout in 2018.
“Some have argued for three years, some for five and some for 10,” Eurogroup head Jeroen Dijsselbloem told reporters after the talks.
The IMF, however, says that option is unrealistic – an economy with an already unsustainable debt burden cannot be expected to tighten the screws further.
A senior IMF official, who attended the talks, said they are far from agreement with the parties.
The official repeatedly stressed that a 1.5% primary surplus is attainable and the preferred option. The fund is willing to go along with the higher target for a limited number of years but only if there are tax and pension reforms sufficient to offset the fiscal hit.
The hardline stance on debt relief by the Eurogroup Ministers, led by Germany’s Wolfgang Schäuble, derives from concern about voter reaction as key elections approach next year in Germany and the Netherlands.
Greek Government spokesman Dimitris Tzankopoulos said "The key issue at this moment has nothing to do with the details of the Second Assessment, but with the attitude of the IMF, and also the attitude of Germany. It is not exactly the substance of the Second Assessment, but the course of the programme, the closing the programme in 2018 and medium-term programme 2019-2020."
On Thursday, IMF spokesman, Mr. Gerry Rice, said that contrary to perception the IMF is not demanding additional austerity. Instead, Mr. Rice said, the Fund has proposed that a 1.5% Primary Surplus target – instead of the current proposal of 3.5% – is more realistic for Greece and should be coupled with significant debt relief.
According to the IMF, additional measures and structural reforms will have to be implemented if Primary Surplus targets are kept at 3.5% of GDP, a standing demand of German Finance Minister Wolfgang Schaeuble.
An IMF debt sustainability analysis is expected to be key in the Fund’s decision on whether or not it will continue to participate in the Greek bailout programme. Primary Surplus goals are crucial to the findings of the IMF analysis.
Commenting on the course of negotiations, Greek Finance Minister Euclid Tsakalotos told Greek M.P.s debating the 2017 State Budget on Thursday that “nothing has been decided until everything is decided”.
The representatives of Greece’s international creditors, he said, were expected to return to Athens next week, with a deal possible by the end of the month. “We’ve been at this stage before. Everyone has to stay calm. It’s very important for all sides, including the IMF, to not jeopardize this progress with increased uncertainty.”
Social Redistribution of 2016 Revenue Surplus
On Thursday, Prime Minister Alexis Tsipras announced the redistribution to those receiving the lowest pensions of most of the surplus generated by 2016 state revenues - immediately, before the end of the year. At the same time he signalled the suspension for as long as the refugee crisis continues of measures to equalise VAT in the islands of the northern and eastern Aegean.
During Thursday night’s televised statement, Alexis Tsipras said: "While remaining steadfast in our commitment to support the weakest sections, today, we have decided on the immediate redistribution of most of the surplus generated by 2016 state revenues to those receiving the lowest pensions. This social redistribution of the revenue surplus is the least we can do for those men and women who since 2010 have suffered successive reductions in their pensions and the corresponding deterioration in the conditions of their lives.
"We have the opportunity today to put into practice our previous commitment on the 13th pension payment to those pensioners in the greatest need. And this we will do. We are giving directly, with the festivities in mind, 617€ million to approximately 1.6 million pensioners who receive pensions of less than 850€. Indeed, for several thousand pensioners this will be many times their monthly pension".
Government sources explained that of the 2.7 million Greek pensioners, 1.6 million. (60.32%) will benefit by between 300€ and 830€.
About 10% of pensioners (approximately 270,000) will receive between 500€ and 830€. Approximately 20% of pensioners (around 570,000) will get between 300€ and 500€ and about 30% of pensioners (around 750,000) will receive 300€. The money will be credited to the beneficiaries on December 22nd along with January pensions.
On the suspension-"for as long as the refugee crisis rages on"- of the increase of VAT in the islands of the northern and eastern Aegean, the Prime Minister said that "the equalisation of VAT is a measure that we are committed to implement and will apply, but not at the time when our citizens there are bearing on their backs the whole of Europe’s burden to deal with the refugee crisis. The Greek State owes them a special interest and support. And we are determined to show that by our actions."
[Instead of the three rates of VAT 24%, 13% and 6% applicable in the rest of Greece, the rates will stay at 17%, 9% and 4%.]
"As the elbow room in the economy's margins widens and the more the country recovers, the wider and more substantial will be the social redistribution of the support to those in real need. We will stick to our agreement in full with our partners, but at the same time we will defend the social cohesion of our country in any way we can."
The Prime Minister stressed that the country "is facing critical challenges, but is dealing with them with composure and determination." He noted that the Eurogroup decision on Monday was extremely important for the stabilization of the Greek economy. "It is a first but crucial step for the country's return to the markets and for our leaving the Oversight. We are continuing the effort to achieve the objective of the fastest possible completion of the Second Assessment, without conceding to unreasonable demands".
Government sources stated that the social redistribution of the revenue surplus is a sovereign right of the country, which does not conflict with what is foreseen in the agreement. In response to concerns from the Institutions about the Greek Government’s redistribution measures, Dimitris Tzanakopoylos said: “We are not a colony, public spending is a matter for the Greek Government. If the course of the Greek economy is such, we will be able to consolidate the support to pensioners. The data from the General Accounting Office is showing a revenue surplus. This is an expenditure that does not pose any danger to the targets for 2016."
On Thursday, Prime Minister Alexis Tsipras announced the redistribution to those receiving the lowest pensions of most of the surplus generated by 2016 state revenues - immediately, before the end of the year. At the same time he signalled the suspension for as long as the refugee crisis continues of measures to equalise VAT in the islands of the northern and eastern Aegean.
During Thursday night’s televised statement, Alexis Tsipras said: "While remaining steadfast in our commitment to support the weakest sections, today, we have decided on the immediate redistribution of most of the surplus generated by 2016 state revenues to those receiving the lowest pensions. This social redistribution of the revenue surplus is the least we can do for those men and women who since 2010 have suffered successive reductions in their pensions and the corresponding deterioration in the conditions of their lives.
"We have the opportunity today to put into practice our previous commitment on the 13th pension payment to those pensioners in the greatest need. And this we will do. We are giving directly, with the festivities in mind, 617€ million to approximately 1.6 million pensioners who receive pensions of less than 850€. Indeed, for several thousand pensioners this will be many times their monthly pension".
Government sources explained that of the 2.7 million Greek pensioners, 1.6 million. (60.32%) will benefit by between 300€ and 830€.
About 10% of pensioners (approximately 270,000) will receive between 500€ and 830€. Approximately 20% of pensioners (around 570,000) will get between 300€ and 500€ and about 30% of pensioners (around 750,000) will receive 300€. The money will be credited to the beneficiaries on December 22nd along with January pensions.
On the suspension-"for as long as the refugee crisis rages on"- of the increase of VAT in the islands of the northern and eastern Aegean, the Prime Minister said that "the equalisation of VAT is a measure that we are committed to implement and will apply, but not at the time when our citizens there are bearing on their backs the whole of Europe’s burden to deal with the refugee crisis. The Greek State owes them a special interest and support. And we are determined to show that by our actions."
[Instead of the three rates of VAT 24%, 13% and 6% applicable in the rest of Greece, the rates will stay at 17%, 9% and 4%.]
"As the elbow room in the economy's margins widens and the more the country recovers, the wider and more substantial will be the social redistribution of the support to those in real need. We will stick to our agreement in full with our partners, but at the same time we will defend the social cohesion of our country in any way we can."
The Prime Minister stressed that the country "is facing critical challenges, but is dealing with them with composure and determination." He noted that the Eurogroup decision on Monday was extremely important for the stabilization of the Greek economy. "It is a first but crucial step for the country's return to the markets and for our leaving the Oversight. We are continuing the effort to achieve the objective of the fastest possible completion of the Second Assessment, without conceding to unreasonable demands".
Government sources stated that the social redistribution of the revenue surplus is a sovereign right of the country, which does not conflict with what is foreseen in the agreement. In response to concerns from the Institutions about the Greek Government’s redistribution measures, Dimitris Tzanakopoylos said: “We are not a colony, public spending is a matter for the Greek Government. If the course of the Greek economy is such, we will be able to consolidate the support to pensioners. The data from the General Accounting Office is showing a revenue surplus. This is an expenditure that does not pose any danger to the targets for 2016."
Prospects for Eurogroup Meeting on Monday December 5th
3.12.2016
The Greek Government expects to reach an initial agreement with its creditors at the meeting of Eurozone Finance Ministers on Monday about the fiscal targets and the “reforms” it needs to adopt to conclude its latest bailout review, a government official said on Thursday.
Minister of State and Government spokesman Dimitris Tzanakopoulos said:
"On Monday the conditions and a good climate exist for us to agree on the basic principles of this agreement. Discussions are continuing at a technical level."
He categorically ruled out any discussion by the Government of further measures after the expiry of the programme. "We have achieved on 90% of the issues," he stressed, adding that "the snags are labour issues, a small bridgeable gap on the 2018 fiscal deficit, and energy".
Mr. Tzanakopoylos made it clear that "the Greek Government is not discussing further “measures” after the end of the Greek programme" i.e. from 2018 onwards. As regards the fiscal deficit of 0.1-0.2% of GDP, we are trying to find ways to close it we have categorically ruled out the possibility for a further 2% measures."
The Greek Government will not accept measures additional to those agreed upon in 2015… Everyone is working until the last minute to get an agreement both on the Second Assessment and on the debt."
Greece and its European Union and International Monetary Fund lenders disagree over labour and energy reforms and over the measures needed to close a projected fiscal deficit in 2018.
The EU and the IMF disagree on Greece's fiscal targets beyond 2018.
The IMF, which has yet to decide whether it will participate in Greece's bailout programme financially, says Greece cannot achieve its medium-term target for a Primary Surplus of 3.5% of GDP unless it is granted significant debt relief and adopts extra austerity measures.
To approve the target after 2018, the IMF wants further cuts in pension spending and the reduction of the tax-free threshold from 2018. Government spokesman Dimitris Tzanakopoulos said this week that Greece cannot accept more austerity measures after 2018.
The “serious disagreement between the IMF and European Institutions” is putting the chances of Greece’s economic recovery at risk, said Governor of the Bank of Greece Yiannis Sturnaras on Monday. “A possible failure to reach an agreement could halt the upward trend of the economy, resulting in the return to uncertainty and would undermine confidence.” He said that the disagreement between euro zone partners and the IMF on debt relief measures is delaying investment decisions.
He urged Greece’s European partners to make decisions on the measures that will ensure the long-term sustainability of the state debt and reduce the target for the Primary Surplus to 2% of GDP from 3.5% to enhance the prospects of growth.
Governor Stournaras said that “Despite the mistakes and setbacks, despite the significant economic and social costs of the crisis, Greece has made significant progress over the last six years in terms of budget adjustments and external imbalances.”
However, he said, the harsh measures implemented and the burden Greek people have shouldered are at serious risk. “Despite positive forecasts for the second half of 2016 and 2017, serious risks for the Greek economy still lurk. The main danger is a possible failure to reach an agreement for the Second Assessment of the programme and delays or setbacks in the implementation. The postponement of the decisions by the European partners on the measures that will ensure long-term sustainability of the state debt, would be a constraint to investment prospects in the country. This would hinder the access of the Greek government and Greek companies to international capital money, and thus perpetuate the economic crisis.”
In a series of meetings with European officials in Brussels on Thursday, Minister of Labour Effie Achtsioglou said the Greek government was determined to secure a “political agreement in principle” at Monday’s summit of Eurozone Finance Ministers, due to review the Second Assessment.
Ms. Achtsioglou said labour relations would be pivotal in talks as it remains “a deeply political issue” that cannot be solved at the level of the technical teams representing Greece’s creditors.
The Minister said she conveyed to European officials the Greek government’s commitment to restoring collective wage bargaining and ensuring Greek workers enjoy the labour rights enshrined in European legislation.
First easing of the Greek debt by the Eurozone?
According to a plan drafted by the European Stability Mechanism and Greece’s Public Debt Management Agency, Greek debt relief could start to take effect from 2030 onward and peak in 2060.
The plan has reportedly been well received by potential investors who believe it will pave the way for the European Central Bank to include Greece in its quantitative easing programme.
Head of the ESM, Klaus Regklingk will present the measures to ease the Greek debt to Finance Ministers of the Eurozone on Monday. "The document contains three different measures. The repayment period of loans from the old Financial Stabilisation Mechanism (EFSF) to be extended by four years on average. In addition, some fees for Greece could be waived – a move that could save the country 220€ million next year. But the central issue is to protect Greece from rising interest rates. To achieve this, the ESM could issue loans with a repayment period of 30 years or utilize the so-called interest rate swaps.
These measures could, according to the calculations of the ESM, reduce the debt by 21.8% between now and 2060.
On Tuesday, speaking in Parliament during a debate on the 2017 budget, Greek Finance Minister Euclid Tsakalotos said “December is the most crucial month since the summer of 2015. The stakes are high in December for progress in the Greek economy and our ability to achieve the road map we announced in the summer of 2015.”
Minister Tsakalotos said December 5th was a landmark date for the Greek economy and hoped that the three parts of the negotiation will be brought together (reforms, fiscal targets and debt relief) at the Eurogroup meeting scheduled for that day.
As regards the debt, the Minister said "I think by January we will have the details. There might be another Eurogroup, but very soon we will have a picture of whether we can enter the QE programme and when we will move to the abolition of capital controls, since a gradual lifting is currently underway.”
Referring to the 2017 budget, he said that essentially it was “mirroring the government policy on taxes and spending. It has positive messages and difficulties, as all budgets do, particularly in the period of crisis.”
The Finance Minister also noted that there were “people who the Government has tried to support and others that were treated unfairly” and stated that the government’s strategy was to lighten the burden from the most vulnerable classes as well as dealing with the issues of tax evasion and smuggling.
On Wednesday, Jeroen Dijsselbloem, the President of the Eurogroup and Dutch Finance Minister, said he was highly optimistic about reaching an overall agreement with Greece when he appeared before the European Parliament, a few days before Monday’s crucial meeting of Eurozone Finance Ministers.
Referring to the Greek Programme, the potential involvement of the IMF, and also the issue of the Greek debt, he said "We need to find a pragmatic way forward."
As regards the medium-term objective for a Primary Surplus of 3.5% of GDP, Mr. Dijsselbloem admitted for the first time that the IMF was to some extent correct to say that this is excessive. “On the one hand the IMF considers that it is difficult for Greece to maintain a Primary Surplus of 3.5% of GDP over a long period of time while on the other hand, some people consider it essential, given that Greece must comply with the Stability and Growth Pact.”
In a series of meetings with European officials in Brussels on Thursday, Minister of Labour Effie Achtsioglou said the Greek government was determined to secure a “political agreement in principle” at Monday’s summit of Eurozone Finance Ministers, due to review the Second Assessment.
Ms. Achtsioglou said labour relations would be pivotal in talks as it remains “a deeply political issue” that cannot be solved at the level of the technical teams representing Greece’s creditors.
The Minister said she conveyed to European officials the Greek government’s commitment to restoring collective wage bargaining and ensuring Greek workers enjoy the labour rights enshrined in European legislation.
Parliament Passes Same-Sex Couples and Equal Rights Law
On Friday the Greek parliament passed a bill expanding the rights of same-sex couples as well as ensuring equality in the workplace regardless of gender, religion or sexual orientation.
The bill was approved by 201 deputies and rejected by only 21. There were 73 MPs absent from the roll call.
Two of the nine Independent Greek (ANEL) M.P.s voted in favour of the bill. Two ANEL MPs voted against the bill stating they will remain “faithful” to their “Christian and social beliefs as Greek patriots.” Five members of ANEL voted “present,” i.e. abstained.
Golden Dawn party voted against the bill while the Communist Party voted “present.”
MPs from SYRIZA, New Democracy, PASOK, To Potami and the Union of Centrists voted for the legislation, overwhelmingly supporting the bill to ensure equal rights of same-sex couples.
"On Monday the conditions and a good climate exist for us to agree on the basic principles of this agreement. Discussions are continuing at a technical level."
He categorically ruled out any discussion by the Government of further measures after the expiry of the programme. "We have achieved on 90% of the issues," he stressed, adding that "the snags are labour issues, a small bridgeable gap on the 2018 fiscal deficit, and energy".
Mr. Tzanakopoylos made it clear that "the Greek Government is not discussing further “measures” after the end of the Greek programme" i.e. from 2018 onwards. As regards the fiscal deficit of 0.1-0.2% of GDP, we are trying to find ways to close it we have categorically ruled out the possibility for a further 2% measures."
The Greek Government will not accept measures additional to those agreed upon in 2015… Everyone is working until the last minute to get an agreement both on the Second Assessment and on the debt."
Greece and its European Union and International Monetary Fund lenders disagree over labour and energy reforms and over the measures needed to close a projected fiscal deficit in 2018.
The EU and the IMF disagree on Greece's fiscal targets beyond 2018.
The IMF, which has yet to decide whether it will participate in Greece's bailout programme financially, says Greece cannot achieve its medium-term target for a Primary Surplus of 3.5% of GDP unless it is granted significant debt relief and adopts extra austerity measures.
To approve the target after 2018, the IMF wants further cuts in pension spending and the reduction of the tax-free threshold from 2018. Government spokesman Dimitris Tzanakopoulos said this week that Greece cannot accept more austerity measures after 2018.
The “serious disagreement between the IMF and European Institutions” is putting the chances of Greece’s economic recovery at risk, said Governor of the Bank of Greece Yiannis Sturnaras on Monday. “A possible failure to reach an agreement could halt the upward trend of the economy, resulting in the return to uncertainty and would undermine confidence.” He said that the disagreement between euro zone partners and the IMF on debt relief measures is delaying investment decisions.
He urged Greece’s European partners to make decisions on the measures that will ensure the long-term sustainability of the state debt and reduce the target for the Primary Surplus to 2% of GDP from 3.5% to enhance the prospects of growth.
Governor Stournaras said that “Despite the mistakes and setbacks, despite the significant economic and social costs of the crisis, Greece has made significant progress over the last six years in terms of budget adjustments and external imbalances.”
However, he said, the harsh measures implemented and the burden Greek people have shouldered are at serious risk. “Despite positive forecasts for the second half of 2016 and 2017, serious risks for the Greek economy still lurk. The main danger is a possible failure to reach an agreement for the Second Assessment of the programme and delays or setbacks in the implementation. The postponement of the decisions by the European partners on the measures that will ensure long-term sustainability of the state debt, would be a constraint to investment prospects in the country. This would hinder the access of the Greek government and Greek companies to international capital money, and thus perpetuate the economic crisis.”
In a series of meetings with European officials in Brussels on Thursday, Minister of Labour Effie Achtsioglou said the Greek government was determined to secure a “political agreement in principle” at Monday’s summit of Eurozone Finance Ministers, due to review the Second Assessment.
Ms. Achtsioglou said labour relations would be pivotal in talks as it remains “a deeply political issue” that cannot be solved at the level of the technical teams representing Greece’s creditors.
The Minister said she conveyed to European officials the Greek government’s commitment to restoring collective wage bargaining and ensuring Greek workers enjoy the labour rights enshrined in European legislation.
First easing of the Greek debt by the Eurozone?
According to a plan drafted by the European Stability Mechanism and Greece’s Public Debt Management Agency, Greek debt relief could start to take effect from 2030 onward and peak in 2060.
The plan has reportedly been well received by potential investors who believe it will pave the way for the European Central Bank to include Greece in its quantitative easing programme.
Head of the ESM, Klaus Regklingk will present the measures to ease the Greek debt to Finance Ministers of the Eurozone on Monday. "The document contains three different measures. The repayment period of loans from the old Financial Stabilisation Mechanism (EFSF) to be extended by four years on average. In addition, some fees for Greece could be waived – a move that could save the country 220€ million next year. But the central issue is to protect Greece from rising interest rates. To achieve this, the ESM could issue loans with a repayment period of 30 years or utilize the so-called interest rate swaps.
These measures could, according to the calculations of the ESM, reduce the debt by 21.8% between now and 2060.
On Tuesday, speaking in Parliament during a debate on the 2017 budget, Greek Finance Minister Euclid Tsakalotos said “December is the most crucial month since the summer of 2015. The stakes are high in December for progress in the Greek economy and our ability to achieve the road map we announced in the summer of 2015.”
Minister Tsakalotos said December 5th was a landmark date for the Greek economy and hoped that the three parts of the negotiation will be brought together (reforms, fiscal targets and debt relief) at the Eurogroup meeting scheduled for that day.
As regards the debt, the Minister said "I think by January we will have the details. There might be another Eurogroup, but very soon we will have a picture of whether we can enter the QE programme and when we will move to the abolition of capital controls, since a gradual lifting is currently underway.”
Referring to the 2017 budget, he said that essentially it was “mirroring the government policy on taxes and spending. It has positive messages and difficulties, as all budgets do, particularly in the period of crisis.”
The Finance Minister also noted that there were “people who the Government has tried to support and others that were treated unfairly” and stated that the government’s strategy was to lighten the burden from the most vulnerable classes as well as dealing with the issues of tax evasion and smuggling.
On Wednesday, Jeroen Dijsselbloem, the President of the Eurogroup and Dutch Finance Minister, said he was highly optimistic about reaching an overall agreement with Greece when he appeared before the European Parliament, a few days before Monday’s crucial meeting of Eurozone Finance Ministers.
Referring to the Greek Programme, the potential involvement of the IMF, and also the issue of the Greek debt, he said "We need to find a pragmatic way forward."
As regards the medium-term objective for a Primary Surplus of 3.5% of GDP, Mr. Dijsselbloem admitted for the first time that the IMF was to some extent correct to say that this is excessive. “On the one hand the IMF considers that it is difficult for Greece to maintain a Primary Surplus of 3.5% of GDP over a long period of time while on the other hand, some people consider it essential, given that Greece must comply with the Stability and Growth Pact.”
In a series of meetings with European officials in Brussels on Thursday, Minister of Labour Effie Achtsioglou said the Greek government was determined to secure a “political agreement in principle” at Monday’s summit of Eurozone Finance Ministers, due to review the Second Assessment.
Ms. Achtsioglou said labour relations would be pivotal in talks as it remains “a deeply political issue” that cannot be solved at the level of the technical teams representing Greece’s creditors.
The Minister said she conveyed to European officials the Greek government’s commitment to restoring collective wage bargaining and ensuring Greek workers enjoy the labour rights enshrined in European legislation.
Parliament Passes Same-Sex Couples and Equal Rights Law
On Friday the Greek parliament passed a bill expanding the rights of same-sex couples as well as ensuring equality in the workplace regardless of gender, religion or sexual orientation.
The bill was approved by 201 deputies and rejected by only 21. There were 73 MPs absent from the roll call.
Two of the nine Independent Greek (ANEL) M.P.s voted in favour of the bill. Two ANEL MPs voted against the bill stating they will remain “faithful” to their “Christian and social beliefs as Greek patriots.” Five members of ANEL voted “present,” i.e. abstained.
Golden Dawn party voted against the bill while the Communist Party voted “present.”
MPs from SYRIZA, New Democracy, PASOK, To Potami and the Union of Centrists voted for the legislation, overwhelmingly supporting the bill to ensure equal rights of same-sex couples.
The Second Assessment ...
19.11.2016
The technical teams of Greece’s Creditors returned to Athens on Monday to resume the final phase negotiations on the Second Assessment.
Officials are to have back-to-back talks over the weekend in a bid to reach a consensus on several thorny issues, notably regarding changes to labour laws. The Creditors want to make it easier for employers to carry out mass redundancies and oppose Greek demands to bring back collective wage bargaining.
There is also a difference of opinion between the International Monetary Fund and the Eurozone leaders as regards the country’s fiscal targets over the next few years.
The European Commission believes Greece can achieve a primary surplus of 3.5% of GDP by 2018. The IMF says that more austerity “measures” will be necessary for Greece to reach such a target.
Greek officials appear optimistic that ongoing talks will yield an agreement at the technical level by November 28th, paving the way for a positive Assessment at the meeting of Eurozone Finance Ministers on December 5th, where the issue of Greece’s debt relief is to be discussed.
Greece is hoping for a decision on short-term debt relief measures and a road map for medium- and long-term debt restructuring.
In an interview with the Wall Street Journal published on Friday, Finance Minister Euclid Tsakalotos called on Greece’s Creditors not to delay decisions on Greek debt, noting that this would in turn postpone investments and delay the country’s economic recovery.
On Monday, Minister Tsakalotos will present Greece’s draft budget for 2017 to Parliament ahead of a vote expected to take place by December 10th.
The next three weeks will also see the drafting of at least three pieces of bailout legislation: two multi-bills containing prior actions that are currently being discussed and a bill outlining the latest version of a mobility scheme for civil servants.
Discussions aimed at implementing the decisions of the Eurogroup on 24th May 2016 about Greek debt relief, are expected to commence immediately according to what was said yesterday by the Eurogroup Prseident Jeroen Dijsselbloem. "Greece's relations with its creditors are more constructive than ever and the Eurozone Finance Ministers will discuss a wide range of Greek debt relief measures at their meeting next week", he said.
"The present Greek Government seems to be very committed and working much more constructively than previous Governments. There is a degree of optimism."
"In December, we must discuss short-term measures concerning the debt; there are some things we can do now and in the coming years a series of measures can be set down about the end of the [bailout Ed.] Programme."
US President Barack Obama, on an official visit to Greece on Tuesday said in an interview that “Greece is in need of debt relief in order for the country to return to healthy economic growth.
“I will continue to urge Greece’s creditors to take the steps needed to ensure the country is well placed to return to robust economic growth, including by providing meaningful debt relief. Getting that done would not only fuel the Greek economic recovery, it would show that Europe can make its economy work for everyone” he added.
Sorting Out Main Pensions
On Thursday the Government announced that an extra 859€ million will be allocated to pay outstanding main pensions.
According to the Ministry of Labour, Social Security and Social Solidarity the Ministry, "The aim of the Government is, by June 2017, to solve the problem of delays in the payment of pensions, delays that plague thousands of pensioners, as a result of the policies of previous Governments."
The 859€ million will be earmarked in the 2017 State Budget.
The Week’s Numbers
Official figures publishes on Monday showed a Primary Surplus amounting to 6,497€ million, compared to the Primary Surplus of 4,532€ million for the same period in 2015 and the Primary Surplus target of 1,791€ million.
The net revenue in the State Budget amounted to 42,804€ million showing an increase of 1,572€ million or 3.8% against the 2015 Budget target.
State Budget expenditure for the period January-October 2016, amounted to 41,497€ million and showed a reduction of 3,233€ million against the target expenditure of 44,730€ million.
There is also a difference of opinion between the International Monetary Fund and the Eurozone leaders as regards the country’s fiscal targets over the next few years.
The European Commission believes Greece can achieve a primary surplus of 3.5% of GDP by 2018. The IMF says that more austerity “measures” will be necessary for Greece to reach such a target.
Greek officials appear optimistic that ongoing talks will yield an agreement at the technical level by November 28th, paving the way for a positive Assessment at the meeting of Eurozone Finance Ministers on December 5th, where the issue of Greece’s debt relief is to be discussed.
Greece is hoping for a decision on short-term debt relief measures and a road map for medium- and long-term debt restructuring.
In an interview with the Wall Street Journal published on Friday, Finance Minister Euclid Tsakalotos called on Greece’s Creditors not to delay decisions on Greek debt, noting that this would in turn postpone investments and delay the country’s economic recovery.
On Monday, Minister Tsakalotos will present Greece’s draft budget for 2017 to Parliament ahead of a vote expected to take place by December 10th.
The next three weeks will also see the drafting of at least three pieces of bailout legislation: two multi-bills containing prior actions that are currently being discussed and a bill outlining the latest version of a mobility scheme for civil servants.
Discussions aimed at implementing the decisions of the Eurogroup on 24th May 2016 about Greek debt relief, are expected to commence immediately according to what was said yesterday by the Eurogroup Prseident Jeroen Dijsselbloem. "Greece's relations with its creditors are more constructive than ever and the Eurozone Finance Ministers will discuss a wide range of Greek debt relief measures at their meeting next week", he said.
"The present Greek Government seems to be very committed and working much more constructively than previous Governments. There is a degree of optimism."
"In December, we must discuss short-term measures concerning the debt; there are some things we can do now and in the coming years a series of measures can be set down about the end of the [bailout Ed.] Programme."
US President Barack Obama, on an official visit to Greece on Tuesday said in an interview that “Greece is in need of debt relief in order for the country to return to healthy economic growth.
“I will continue to urge Greece’s creditors to take the steps needed to ensure the country is well placed to return to robust economic growth, including by providing meaningful debt relief. Getting that done would not only fuel the Greek economic recovery, it would show that Europe can make its economy work for everyone” he added.
Sorting Out Main Pensions
On Thursday the Government announced that an extra 859€ million will be allocated to pay outstanding main pensions.
According to the Ministry of Labour, Social Security and Social Solidarity the Ministry, "The aim of the Government is, by June 2017, to solve the problem of delays in the payment of pensions, delays that plague thousands of pensioners, as a result of the policies of previous Governments."
The 859€ million will be earmarked in the 2017 State Budget.
The Week’s Numbers
Official figures publishes on Monday showed a Primary Surplus amounting to 6,497€ million, compared to the Primary Surplus of 4,532€ million for the same period in 2015 and the Primary Surplus target of 1,791€ million.
The net revenue in the State Budget amounted to 42,804€ million showing an increase of 1,572€ million or 3.8% against the 2015 Budget target.
State Budget expenditure for the period January-October 2016, amounted to 41,497€ million and showed a reduction of 3,233€ million against the target expenditure of 44,730€ million.
President Obama's Speech
at Stavros Niarchos Foundation Cultural Centre in Athens, Greece (15.11.2016)
Hello, Greece! (Applause.) Yia sas! Kalispera! To the government and the people of Greece -- including Prime Minister Tsipras, who I thank for his partnership and for being here, along with so many young people, the future of Greece -- I want to thank you for your warm and generous welcome.
As many of you know, this is my final trip overseas as President of the United States, and I was determined, on my last trip, to come to Greece -- partly because I’ve heard about the legendary hospitality of the Greek people -- your philoxenia. (Applause.) Partly because I had to see the Acropolis and the Parthenon. But also because I came here with gratitude for all that Greece -- “this small, great world” -- has given to humanity through the ages.
Our hearts have been moved by the tragedies of Aeschylus and Euripides. Our minds have been opened by the histories of Herodotus and Thucydides. Our understanding of the world and our place in it has been expanded by Socrates and Aristotle.
In the United States, we’re especially grateful for the friendship of so many proud Greek Americans. In my hometown of Chicago -- (applause) -- you can find them in Greektown, with their foustanellas. (Laughter.) And together, we’ve celebrated Greek Independence Day at the White House. We’ve had some spanakopita and some ouzo. (Laughter.) Greek Americans have worn the uniform to keep our country free. Greek Americans have marched with Dr. Martin Luther King, Jr. to make us more just. Greek or American, we’re all cheering for Giannis Antetokounmpo -- (applause) -- who seems to be getting better each year. And if anyone seeks an example of our shared spirit, our resilience, they need look no further than New York City, near Ground Zero, where the Greek Orthodox church of St. Nicholas, once in ruins, is now rising again.
Most of all, we’re indebted to Greece for the most precious of gifts -- the truth, the understanding that as individuals of free will, we have the right and the capacity to govern ourselves. (Applause.) For it was here, 25 centuries ago, in the rocky hills of this city, that a new idea emerged. Demokratia. (Applause.) Kratos -- the power, the right to rule -- comes from demos -- the people. The notion that we are citizens -- not servants, but stewards of our society. The concept of citizenship -- that we have both rights and responsibilities. The belief in equality before the law -- not just for a few, but for the many; not just for the majority, but also the minority. These are all concepts that grew out of this rocky soil.
Of course, the earliest forms of democracy here in Athens were far from perfect -- just as the early forms of democracy in the United States were far from perfect. The rights of ancient Athens were not extended to women or to slaves. But Pericles explained, “our constitution favors the many instead of the few…this is why it is called a democracy.”
Athenians also knew that, however noble, ideas alone were not enough. To have meaning, principles must be enshrined in laws and protected by institutions, and advanced through civic participation. And so they gathered in a great assembly to debate and decide affairs of state, each citizen with the right to speak, casting their vote with a show of hands, or choosing a pebble -- white for yes, black for no. Laws were etched in stone for all to see and abide by. Courts, with citizen jurors, upheld that rule of law.
Politicians weren’t always happy because sometimes the stones could be used to ostracize, banish those who did not behave themselves.
But across the millennia that followed, different views of power and governance have often prevailed. Throughout human history, there have been those who argue that people cannot handle democracy, that they cannot handle self-determination, they need to be told what to do. A ruler has to maintain order through violence or coercion or an iron fist. There’s been a different concept of government that says might makes right, or that unchecked power can be passed through bloodlines. There’s been the belief that some are superior by virtue of race or faith or ethnicity, and those beliefs so often have been used to justify conquest and exploitation and war.
But through all this history, the flame first lit here in Athens never died. It was ultimately nurtured by a great Enlightenment. It was fanned by America’s founders, who declared that “We, the People” shall rule; that all men are created equal and endowed by our Creator with certain inalienable rights.
Now, at times, even today, those ideals are challenged. We’ve been told that these are Western ideals. We’ve been told that some cultures are not equipped for democratic governance and actually prefer authoritarian rule. And I will say that after eight years of being President of the United States, having traveled around the globe, it is absolutely true that every country travels its own path, every country has its own traditions. But what I also believe, after eight years, is that the basic longing to live with dignity, the fundamental desire to have control of our lives and our future, and to want to be a part of determining the course of our communities and our nations -- these yearnings are universal. They burn in every human heart.
It’s why a Greek bishop atop a mountain raised the flag of independence. It’s why peoples from the Americas to Africa to Asia threw off the yoke of colonialism. It’s why people behind an Iron Curtain marched in Solidarity, and tore down that wall, and joined you in a great union of democracies. It’s why, today, we support the right of Ukrainians to choose their own destiny; why we partner with Tunisians and the people of Myanmar as they make historic transitions to democracy.
This has been my foreign policy during my presidency. By necessity, we work with all countries, and many of them are not democracies. Some of them are democracies in the sense they have elections, but not democracies in the sense of actually permitting participation and dissent. But our trajectory as a country has been to support the efforts of those who believe in self-governance, who believe in those ideas that began here so many years ago.
And it is not simply a matter of us being true to our values. It’s not just a matter of idealism. I believe it is practical for the United States to support democracies. (Applause.) Because history shows us that countries with democratic governance tend to be more just, and more stable, and more successful.
Open, democratic societies can deliver more prosperity --because when people are free to think for themselves and share ideas and discover and create -- the young people who are here, what they’re able to do through the Internet and technology, that’s when innovation is unleashed, when economies truly flourish. That’s when new products, and new services, and new ideas wash through an economy. In contrast to regimes that rule by coercion, democracies are rooted in consent of the governed
-- citizens know that there’s a path for peaceful change, including the moral force of nonviolence. And that brings a stability that so often can facilitate economic growth.
The history of the past two centuries indicates that democracies are less likely to fight wars among themselves. So more democracy is good for the people of the world, but it’s also good for our national security. Which is why America’s closest friends are democracies -- like Greece. It’s why we stand together in NATO -- an alliance of democracies.
In recent years, we’ve made historic investments in NATO, increased America’s presence in Europe, and today’s NATO -- the world’s greatest alliance -- is as strong and as ready as it’s ever been. And I am confident that just as America’s commitment to the transatlantic alliance has endured for seven decades --whether it’s been under a Democratic or Republican administration -- that commitment will continue, including our pledge and our treaty obligation to defend every ally.
Our democracies show that we’re stronger than terrorists, and fundamentalists, and absolutists who can’t tolerate difference, can’t tolerate ideas that vary from their own, who try to change people’s way of life through violence and would make us betray or shrink from our values. Democracy is stronger than organizations like ISIL.
Because our democracies are inclusive, we’re able to welcome people and refugees in need to our countries. And nowhere have we seen that compassion more evident than here in Greece. (Applause.) The Greek people’s generosity towards refugees arriving on your shores has inspired the world. That doesn’t mean that you should be left on your own -- (applause)
-- and only a truly collective response by Europe and the world can ensure that these desperate people receive the support that they need. Greece cannot be expected to bear the bulk of the burden alone -- but the fact that your democracy opens your heart to people in need in a way that might not otherwise be the case.
Just as democracies are premised on the peaceful resolution of disagreements within our societies, we also believe that cooperation and dialogue is the best way to address challenges between nations. And so it is my belief that democracies are more likely to try to resolve conflicts between nations in a way that does not result in war. That’s how, with diplomacy, we were able to shut down Iran’s nuclear weapons program without firing a shot. With diplomacy, the United States opened relations with Cuba. (Applause.) With diplomacy, we joined Greece and nearly 200 nations in the most ambitious agreement ever to save our planet from climate change. (Applause.)
And speaking of climate change, I would point out that there is a connection between democracy and science. The premise of science is that we observe and we test our hypotheses, our ideas. We base decisions on facts, not superstition; not what our ideology tells us, but rather what we can observe. And at a time when the globe is shrinking and more and more we’re going to have to take collective action to deal with problems like climate change, the presence of a democratic debate allows the science to flourish and to shape our collective responses.
Now, democracy, like all human institutions, is imperfect. It can be slow; it can be frustrating; it can be hard; it can be messy. Politicians tend to be unpopular in democracies, regardless of party, because, by definition, democracies require that you don’t get a hundred percent of what you want. It requires compromise. Winston Churchill famously said that democracy is the worst form of government -- except for all the others. (Laughter.) And in a multiethnic, multiracial, multicultural society, like the United States, democracy can be especially complicated. Believe me, I know. (Laughter.)
But it is better than the alternatives because it allows us to peacefully work through our differences and move closer to our ideals. It allows us to test new ideas and it allows us to correct for mistakes. Any action by a President, or any result of an election, or any legislation that has proven flawed can be corrected through the process of democracy.
And throughout our history, it’s how we have come to see that all people are created equal -- even though, when we were founded, that was not the case. We could work to expand the rights that were established in our founding to African Americans, and to women, to Americans with disabilities, to Native Americans; why all Americans now have the freedom to marry the person they love. (Applause.) It’s why we welcome people of all races and all religions and all backgrounds, and immigrants who strive to give their children a better life and who make our country stronger.
And so here, where democracy was born, we affirm once more the rights and the ideals and the institutions upon which our way of life endures. Freedom of speech and assembly -- because true legitimacy can only come from the people, who must never be silenced. A free press to expose injustice and corruption and hold leaders accountable. Freedom of religion -- because we’re all equal in the eyes of God. Independent judiciaries to uphold rule of law and human rights. Separation of powers to limit the reach of any one branch of government. Free and fair elections -- because citizens must be able to choose their own leaders, even if your candidate doesn’t always win. (Laughter.)
We compete hard in campaigns in America and here in Greece. But after the election, democracy depends on a peaceful transition of power, especially when you don’t get the result you want. (Applause.)
And as you may have noticed, the next American president and I could not be more different. (Applause.) We have very different points of view, but American democracy is bigger than any one person. (Applause.) That’s why we have a tradition of the outgoing president welcoming the new one in -- as I did last week. And why, in the coming weeks, my administration will do everything we can to support the smoothest transition possible
-- because that’s how democracy has to work. (Applause.)
And that’s why, as hard as it can be sometimes, it’s important for young people, in particular, who are just now becoming involved in the lives of their countries, to understand that progress follows a winding path -- sometimes forward, sometimes back -- but as long as we retain our faith in democracy, as long as we retain our faith in the people, as long as we don’t waver from those central principles that ensure a lively, open debate, then our future will be okay, because it remains the most effective form of government ever devised by man.
It is true, of course, over the last several years that we’ve seen democracies faced with serious challenges. And I want to mention two that have an impact here in Greece, haven an impact in the United States, and are having an impact around the world.
The first involves the paradox of a modern, global economy. The same forces of globalization and technology and integration that have delivered so much progress, have created so much wealth, have also revealed deep fault lines. Around the world, integration and closer cooperation, and greater trade and commerce, and the Internet -- all have improved the lives of billions of people -- lifted families from extreme poverty, cured diseases, helped people live longer, gave them more access to education and opportunity than at any time in human history.
I’ve often said to young people in the United States, if you had to choose a moment in history to be born, and you did not know ahead of time who you would be -- you didn’t know whether you were going to be born into a wealthy family or a poor family, what country you’d be born, whether you were going to be a man or a woman -- if you had to choose blindly what moment you’d want to be born you’d choose now. Because the world has never, collectively, been wealthier, better educated, healthier, less violent than it is today. That’s hard to imagine, given what we see in the news, but it’s true. And a lot of that has to do with the developments of a integrated, global economy.
But trends underway for decades have meant that in many countries and in many communities there have been enormous disruptions. Technology and automation mean that goods can be produced with fewer workers. It means jobs and manufacturing can move across borders where wages are lower or rights are less protected. And that means that workers and unions oftentimes have less leverage to bargain for better wages, better benefits, have more difficulty competing in the global marketplace. Hardworking families worry their kids may not be better off than they were because of this global competition.
What we’ve also seen is that this global integration is increasing the tendencies towards inequality, both between nations and within nations, at an accelerated pace. And when we see people -- global elites, wealthy corporations -- seemingly living by a different set of rules, avoiding taxes, manipulating loopholes -- when the rich and the powerful appear to game the system and accumulate vast wealth while middle and working-class families struggle to make ends meet, this feeds a profound sense of injustice and a feeling that our economies are increasingly unfair.
This inequality now constitutes one of the greatest challenges to our economies and to our democracies. An inequality that was once tolerated because people didn’t know how unequal things were now won’t be tolerated because everybody has a cellphone and can see how unequal things are. The awareness that people have in the smallest African village, they can see how people in London or New York are living. The poorest child in any of our countries now has a sense of what other people have that they don’t. So not only is there increasing inequality, but also there is greater awareness of inequality. And that’s a volatile mix for our democracies.
And this is why addressing inequality has been one of the key areas of focus for my economic policy. In our countries, in America and in most advanced market economies, we want people to be rewarded for their achievement. We think that people should be rewarded if they come up with a new product or a new service that is popular and helps a lot of people. But when a CEO of a company now makes more money in a single day than a typical worker does in an entire year, when it’s harder for workers to climb their way up the economic ladder, when they see a factory close that used to support an entire city or town, fuels the feeling that globalization only benefits those at the top. And the reaction can drag down a country’s growth and make recessions more likely. It can also lead to politics that create an unhealthy competition between countries. Rather than a win-win situation, people perceive that if you’re winning, I’m losing, and barriers come up and walls come up.
And in advanced economies, there are at times movements from both the left and the right to put a stop to integration, and to push back against technology, and to try to bring back jobs and industries that have been disappearing for decades. So this impulse to pull back from a globalized world is understandable. If people feel that they’re losing control of their future, they will push back. We have seen it here in Greece. We’ve seen it across Europe. We’ve seen it in the United States. We saw it in the vote in Britain to leave the EU.
But given the nature of technology, it is my assertion that it’s not possible to cut ourselves off from one another. We now are living in a global supply chain. Our growth comes through innovation and ideas that are crossing borders all the time. The jobs of tomorrow will inevitably be different from the jobs of the past. So we can’t look backwards for answers, we have to look forward.
We cannot sever the connections that have enabled so much progress and so much wealth. For when competition for resources is perceived as zero-sum, we put ourselves on a path to conflict both within countries and between countries. So I firmly believe that the best hope for human progress remains open markets combined with democracy and human rights. But I have argued that the current path of globalization demands a course correction. In the years and decades ahead, our countries have to make sure that the benefits of an integrated global economy are more broadly shared by more people, and that the negative impacts are squarely addressed. (Applause.)
And we actually know the path to building more inclusive economies. It’s just we too often don’t have the political will or desire to get it done. We know we need bold policies that spur growth and support jobs. We know that we need to give workers more leverage and better wages, and that, in fact, if you give workers better wages businesses do better, too, because their customers now have money to spend.
We know that we have to invest more in our people -- the education of our young people, the skills and training to compete in the global economy. We have to make sure that it is easy for young people who are eager to learn and eager to work to get the education that they need, the training that they need, without taking on huge amounts of debt.
We know that we have to encourage entrepreneurship so that it’s easier to start a business and do business. (Applause.) We know that we have to strengthen the social compact so that the safety net that is available for people, including quality health care and retirement benefits, are there even if people aren’t working in the same job for 30 years, or 40 years, or 50 years.
We have to modernize our infrastructure, which will put people back to work. We have to commit to the science and research and development that sparks new industries.
In our trading relationships, we have to make sure that trade works for us, and not against us. And that means insisting on high standards in all countries to support jobs, strong protections for workers, strong protections for the environment, so that even as we freely trade, people and workers in all countries see the benefits of trade in their own lives, not just benefits for the bottom line of large, multinational corporations.
These are the kinds of policies, this is the work that I’ve pursued throughout my time as President. Keep in mind I took office in the midst of the worst crisis since the Great Depression. And we pursued a recovery that has been shared now by the vast majority of Americans. We put people back to work building bridges and roads. (Applause.) We passed tax cuts for the middle class. We asked the wealthiest Americans to pay a little more taxes -- their fair share. We intervened to save our auto industry, but insisted that the auto industry become more energy efficient, produce better cars that reduce pollution.
We put in place policies to help students with loans and protect consumers from fraud. We passed the strongest Wall Street reforms in history so that the excesses and abuses that triggered the global financial crisis never happen again -- or at least don’t start on Wall Street.
And today, our businesses have created more than 15 million new jobs. Incomes last year in America rose faster than any time since 1968. Poverty fell at the fastest rate since 1968. Inequality is being narrowed. And we’ve also begun to close the pay gap between men and women.
We declared that health care in America is a privilege not for the few, but a right for everybody. Today our uninsured rate is at the lowest levels on record. And we’ve done all this while doubling our production of clean energy, lowering our carbon pollution faster than any advanced nation. So we’ve proven that you can grow the economy and reduce the carbon emissions that cause climate change at the same time. (Applause.)
Now, I say all this not because we’ve solved every problem. Our work is far from complete. There are still too many people in America who are worried about their futures. Still too many people who are working at wages that don’t get them above the poverty line. Still too many young people who don’t see opportunity. But the policies I describe point the direction for where we need to go in building inclusive economies. And that’s how democracies can deliver the prosperity and hope that our people need. And when people have opportunity and they feel confidence the future, they are less likely to turn on each other and they’re less likely to appeal to some of the darker forces that exist in all our societies -- those that can tear us apart.
Here in Greece, you’re undergoing similar transformations. The first step has been to build a foundation that allows you to return to robust economic growth. And we don’t need to recount all the causes of the economic crisis here in Greece. If we’re honest, we can acknowledge that it was a mix of both internal and external forces. The Greek economy and the level of debt had become unsustainable. And in this global economy, investment and jobs flow to countries where governments are efficient, not bloated, where the rules are clear. To stay competitive, to attract investment that creates jobs, Greece had to start a reform process.
Of course, the world, I don’t think, fully appreciates the extraordinary pain these reforms have involved, or the tremendous sacrifices that you, the Greek people, have made. I’ve been aware of it, and I’ve been proud of all that my administration has done to try to support Greece in these efforts. (Applause.) And part of the purpose of my visit is to highlight for the world the important steps that have been taken here in Greece.
Today, the budget is back in surplus. Parliament passed reforms to make the economy more competitive. Yes, there is still much more work to do. I want to commend Prime Minister Tsipras for the very difficult reforms his government is pursuing to put the economy on a firmer footing. Now, as Greece works to attract more investment, and to prevent old imbalances from re-emerging, and to put your economy on a stronger foundation, you’ll continue to have the full support of the United States.
At the same time, I will continue to urge creditors to take the steps needed to put Greece on a path towards sustained economic recovery. (Applause.) As Greece continues to implement reforms, the IMF has said that debt relief will be crucial to get Greece back to growth. They are right. It is important because if reforms here are going to be sustained, people need to see hope, and they need to see progress. And the young people who are in attendance here today and all across the country need to know there is a future -- there is an education and jobs that are worthy of your incredible potential. You don’t have to travel overseas, you can put roots right here in your home, in Greece, and succeed. (Applause.)
And I’m confident that if you stay the course, as hard as it has been, Greece will see brighter days. Because, in this magnificent hall and center -- this symbol of the Greek culture and resilience -- we’re reminded that just as your strength and resolve have allowed you to overcome great odds throughout your history, nothing can break the spirit of the Greek people. You will overcome this period of challenge just as you have other challenges in the past.
So economics is something that will be central to preserving our democracies. When our economies don’t work, our democracies become distorted and, in some cases, break down. But this brings me to another pressing challenge that our democracies face -- how do we ensure that our diverse, multicultural, multiracial, multi-religious world and our diverse nations uphold both the rights of individuals and a fundamental civic adherence to a common creed that binds us together.
Democracy is simplest where everybody thinks alike, looks alike, eats the same food, worships the same God. Democracy becomes more difficult when there are people coming from a variety of backgrounds and trying to live together. In our globalized world, with the migration of people and the rapid movement of ideas and cultures and traditions, we see increasingly this blend of forces mixing together in ways that often enrich our societies but also cause tensions.
In the Information Age, the unprecedented exchange of information can always accentuate differences, or seem to threaten cherished ways of life. It used to be that you might not know how people in another part of your country, or in the cities versus the countryside, were living. Now everybody knows how everybody is living, and everybody can feel threatened sometimes if people don’t do things exactly the way they do things. And they start asking themselves questions about their own identity. And it can create a volatile politics.
Faced with this new reality where cultures clash, it's inevitable that some will seek a comfort in nationalism or tribe or ethnicity or sect. In countries that are held together by borders that were drawn by colonial powers, including many countries in the Middle East and in Africa, it can be tempting to fall back on perceived safety of enclaves and tribal divisions.
In a world of widening inequality, there's a growing suspicion -- or even disdain -- for elites and institutions that seem remote from the daily lives of ordinary people. What an irony it is, at a time when we can reach out to people in the most remote corners of the planet, so many citizens feel disconnected from their own governments.
So, just as we have to have an inclusive economic strategy, we have to have an exclusive political and cultural strategy. In all of our capitals, we have to keep making government more efficient, more effective in responding to the daily needs to citizens. Governing institutions, whether in Athens, Brussels, London, Washington, have to be responsive to the concerns of citizens. People have to know that they're being heard.
Here in Europe, even with today's challenges, I believe that by virtue of the progress it has delivered over the decades -- the stability it has provided, the security it's reinforced
-- that European integration and the European Union remains one of the great political and economic achievements of human history. (Applause.) And today more than ever, the world needs a Europe that is strong and prosperous and democratic.
But I think all institutions in Europe have to ask themselves: How can we make sure that people within individual countries feel as if their voices are still being heard, that their identities are being affirmed, that the decisions that are being made that will have a critical impact on their lives are not so remote that they have no ability to impact them?
We have to make clear that governments exist to serve the interest of citizens, and not the other way around. And so this is why, as President of the United States, I've pursued initiatives like the Open Government Partnership that promotes transparency and accountability so that ordinary people know more about the decisions that affect their lives. That's why both at home and around the world, we have taken steps to fight corruption that can rot a society from within.
As authoritarian governments work to close space that citizens depend upon to organize and have their voices heard, we've begun the work of empowering civil society to defend democratic values and promote solutions to the problems within our communities. And as so many people around the world sometimes are tempted by cynicism and not being involved because they think that politicians and government don’t care about them, we've created networks for young leaders and invested in young entrepreneurs, because we believe that the hope and renewal of our societies begins with the voices of youth. (Applause.)
In closing, our globalized world is passing through a time of profound change. Yes, there is uncertainty and there is unease, and none of us can know the future. History does not move in a straight line. Civil rights in America did not move in a straight line. Democracy in Greece did not move in a straight line. The evolution of a unified Europe certainly has not moved in a straight line. And progress is never a guarantee. Progress has to be earned by every generation. But I believe history gives us hope.
Twenty-five centuries after Athens first pointed the way, 250 years after the beginning of the great American journey, my faith and my confidence, my certainty in our democratic ideals and universal values remain undiminished. I believe more strongly than ever that Dr. King was right when he said that, “The arc of the moral universe is long, but it bends towards justice.” (Applause.) But it bends towards justice not because it is inevitable, but because we bend it towards justice; not because there are not going to be barriers to achieving justice, but because there will be people, generation after generation, who have the vision and the courage and the will to bend the arc of our lives in the direction of a better future.
In the United States, and in every place I have visited these last eight years, I have met citizens, especially young people, who have chosen hope over fear, who believe that they can shape their own destiny, who refuse to accept the world as it is and are determined to remake it as it should be. They have inspired me.
In every corner of the world, I have met people who, in their daily lives, demonstrate that despite differences of race or religion or creed or color, we have the capacity to see each other in ourselves. Like the woman here in Greece who said of the refugees arriving on these shores, “We live under the same sun. We fall in love under the same moon. We are all human -- we have to help these people.” Women like that give me hope. (Applause.)
In all of our communities, in all of our countries, I still believe there's more of what Greeks call philotimo -- (applause) -- love and respect and kindness for family and community and country, and a sense that we’re all in this together, with obligations to each other. Philotimo -- I see it every day -- and that gives me hope. (Applause.)
Because in the end, it is up to us. It's not somebody else's job, it's not somebody else's responsibility, but it's the citizens of our countries and citizens of the world to bend that arc of history towards justice.
And that’s what democracy allows us to do. That's why the most important office in any country is not president or prime minister. The most important title is “citizen.” (Applause.) And in all of our nations, it will always be our citizens who decide the kind of countries we will be, the ideals that we will reach for, and the values that will define us. In this great, imperfect, but necessary system of self-government, power and progress will always come from the demos -- from “We, the people.” And I'm confident that as long as we are true to that system of self-government, that our futures will be bright.
Thank you very much. (Applause.) Zito I ellas. (Applause.)
As many of you know, this is my final trip overseas as President of the United States, and I was determined, on my last trip, to come to Greece -- partly because I’ve heard about the legendary hospitality of the Greek people -- your philoxenia. (Applause.) Partly because I had to see the Acropolis and the Parthenon. But also because I came here with gratitude for all that Greece -- “this small, great world” -- has given to humanity through the ages.
Our hearts have been moved by the tragedies of Aeschylus and Euripides. Our minds have been opened by the histories of Herodotus and Thucydides. Our understanding of the world and our place in it has been expanded by Socrates and Aristotle.
In the United States, we’re especially grateful for the friendship of so many proud Greek Americans. In my hometown of Chicago -- (applause) -- you can find them in Greektown, with their foustanellas. (Laughter.) And together, we’ve celebrated Greek Independence Day at the White House. We’ve had some spanakopita and some ouzo. (Laughter.) Greek Americans have worn the uniform to keep our country free. Greek Americans have marched with Dr. Martin Luther King, Jr. to make us more just. Greek or American, we’re all cheering for Giannis Antetokounmpo -- (applause) -- who seems to be getting better each year. And if anyone seeks an example of our shared spirit, our resilience, they need look no further than New York City, near Ground Zero, where the Greek Orthodox church of St. Nicholas, once in ruins, is now rising again.
Most of all, we’re indebted to Greece for the most precious of gifts -- the truth, the understanding that as individuals of free will, we have the right and the capacity to govern ourselves. (Applause.) For it was here, 25 centuries ago, in the rocky hills of this city, that a new idea emerged. Demokratia. (Applause.) Kratos -- the power, the right to rule -- comes from demos -- the people. The notion that we are citizens -- not servants, but stewards of our society. The concept of citizenship -- that we have both rights and responsibilities. The belief in equality before the law -- not just for a few, but for the many; not just for the majority, but also the minority. These are all concepts that grew out of this rocky soil.
Of course, the earliest forms of democracy here in Athens were far from perfect -- just as the early forms of democracy in the United States were far from perfect. The rights of ancient Athens were not extended to women or to slaves. But Pericles explained, “our constitution favors the many instead of the few…this is why it is called a democracy.”
Athenians also knew that, however noble, ideas alone were not enough. To have meaning, principles must be enshrined in laws and protected by institutions, and advanced through civic participation. And so they gathered in a great assembly to debate and decide affairs of state, each citizen with the right to speak, casting their vote with a show of hands, or choosing a pebble -- white for yes, black for no. Laws were etched in stone for all to see and abide by. Courts, with citizen jurors, upheld that rule of law.
Politicians weren’t always happy because sometimes the stones could be used to ostracize, banish those who did not behave themselves.
But across the millennia that followed, different views of power and governance have often prevailed. Throughout human history, there have been those who argue that people cannot handle democracy, that they cannot handle self-determination, they need to be told what to do. A ruler has to maintain order through violence or coercion or an iron fist. There’s been a different concept of government that says might makes right, or that unchecked power can be passed through bloodlines. There’s been the belief that some are superior by virtue of race or faith or ethnicity, and those beliefs so often have been used to justify conquest and exploitation and war.
But through all this history, the flame first lit here in Athens never died. It was ultimately nurtured by a great Enlightenment. It was fanned by America’s founders, who declared that “We, the People” shall rule; that all men are created equal and endowed by our Creator with certain inalienable rights.
Now, at times, even today, those ideals are challenged. We’ve been told that these are Western ideals. We’ve been told that some cultures are not equipped for democratic governance and actually prefer authoritarian rule. And I will say that after eight years of being President of the United States, having traveled around the globe, it is absolutely true that every country travels its own path, every country has its own traditions. But what I also believe, after eight years, is that the basic longing to live with dignity, the fundamental desire to have control of our lives and our future, and to want to be a part of determining the course of our communities and our nations -- these yearnings are universal. They burn in every human heart.
It’s why a Greek bishop atop a mountain raised the flag of independence. It’s why peoples from the Americas to Africa to Asia threw off the yoke of colonialism. It’s why people behind an Iron Curtain marched in Solidarity, and tore down that wall, and joined you in a great union of democracies. It’s why, today, we support the right of Ukrainians to choose their own destiny; why we partner with Tunisians and the people of Myanmar as they make historic transitions to democracy.
This has been my foreign policy during my presidency. By necessity, we work with all countries, and many of them are not democracies. Some of them are democracies in the sense they have elections, but not democracies in the sense of actually permitting participation and dissent. But our trajectory as a country has been to support the efforts of those who believe in self-governance, who believe in those ideas that began here so many years ago.
And it is not simply a matter of us being true to our values. It’s not just a matter of idealism. I believe it is practical for the United States to support democracies. (Applause.) Because history shows us that countries with democratic governance tend to be more just, and more stable, and more successful.
Open, democratic societies can deliver more prosperity --because when people are free to think for themselves and share ideas and discover and create -- the young people who are here, what they’re able to do through the Internet and technology, that’s when innovation is unleashed, when economies truly flourish. That’s when new products, and new services, and new ideas wash through an economy. In contrast to regimes that rule by coercion, democracies are rooted in consent of the governed
-- citizens know that there’s a path for peaceful change, including the moral force of nonviolence. And that brings a stability that so often can facilitate economic growth.
The history of the past two centuries indicates that democracies are less likely to fight wars among themselves. So more democracy is good for the people of the world, but it’s also good for our national security. Which is why America’s closest friends are democracies -- like Greece. It’s why we stand together in NATO -- an alliance of democracies.
In recent years, we’ve made historic investments in NATO, increased America’s presence in Europe, and today’s NATO -- the world’s greatest alliance -- is as strong and as ready as it’s ever been. And I am confident that just as America’s commitment to the transatlantic alliance has endured for seven decades --whether it’s been under a Democratic or Republican administration -- that commitment will continue, including our pledge and our treaty obligation to defend every ally.
Our democracies show that we’re stronger than terrorists, and fundamentalists, and absolutists who can’t tolerate difference, can’t tolerate ideas that vary from their own, who try to change people’s way of life through violence and would make us betray or shrink from our values. Democracy is stronger than organizations like ISIL.
Because our democracies are inclusive, we’re able to welcome people and refugees in need to our countries. And nowhere have we seen that compassion more evident than here in Greece. (Applause.) The Greek people’s generosity towards refugees arriving on your shores has inspired the world. That doesn’t mean that you should be left on your own -- (applause)
-- and only a truly collective response by Europe and the world can ensure that these desperate people receive the support that they need. Greece cannot be expected to bear the bulk of the burden alone -- but the fact that your democracy opens your heart to people in need in a way that might not otherwise be the case.
Just as democracies are premised on the peaceful resolution of disagreements within our societies, we also believe that cooperation and dialogue is the best way to address challenges between nations. And so it is my belief that democracies are more likely to try to resolve conflicts between nations in a way that does not result in war. That’s how, with diplomacy, we were able to shut down Iran’s nuclear weapons program without firing a shot. With diplomacy, the United States opened relations with Cuba. (Applause.) With diplomacy, we joined Greece and nearly 200 nations in the most ambitious agreement ever to save our planet from climate change. (Applause.)
And speaking of climate change, I would point out that there is a connection between democracy and science. The premise of science is that we observe and we test our hypotheses, our ideas. We base decisions on facts, not superstition; not what our ideology tells us, but rather what we can observe. And at a time when the globe is shrinking and more and more we’re going to have to take collective action to deal with problems like climate change, the presence of a democratic debate allows the science to flourish and to shape our collective responses.
Now, democracy, like all human institutions, is imperfect. It can be slow; it can be frustrating; it can be hard; it can be messy. Politicians tend to be unpopular in democracies, regardless of party, because, by definition, democracies require that you don’t get a hundred percent of what you want. It requires compromise. Winston Churchill famously said that democracy is the worst form of government -- except for all the others. (Laughter.) And in a multiethnic, multiracial, multicultural society, like the United States, democracy can be especially complicated. Believe me, I know. (Laughter.)
But it is better than the alternatives because it allows us to peacefully work through our differences and move closer to our ideals. It allows us to test new ideas and it allows us to correct for mistakes. Any action by a President, or any result of an election, or any legislation that has proven flawed can be corrected through the process of democracy.
And throughout our history, it’s how we have come to see that all people are created equal -- even though, when we were founded, that was not the case. We could work to expand the rights that were established in our founding to African Americans, and to women, to Americans with disabilities, to Native Americans; why all Americans now have the freedom to marry the person they love. (Applause.) It’s why we welcome people of all races and all religions and all backgrounds, and immigrants who strive to give their children a better life and who make our country stronger.
And so here, where democracy was born, we affirm once more the rights and the ideals and the institutions upon which our way of life endures. Freedom of speech and assembly -- because true legitimacy can only come from the people, who must never be silenced. A free press to expose injustice and corruption and hold leaders accountable. Freedom of religion -- because we’re all equal in the eyes of God. Independent judiciaries to uphold rule of law and human rights. Separation of powers to limit the reach of any one branch of government. Free and fair elections -- because citizens must be able to choose their own leaders, even if your candidate doesn’t always win. (Laughter.)
We compete hard in campaigns in America and here in Greece. But after the election, democracy depends on a peaceful transition of power, especially when you don’t get the result you want. (Applause.)
And as you may have noticed, the next American president and I could not be more different. (Applause.) We have very different points of view, but American democracy is bigger than any one person. (Applause.) That’s why we have a tradition of the outgoing president welcoming the new one in -- as I did last week. And why, in the coming weeks, my administration will do everything we can to support the smoothest transition possible
-- because that’s how democracy has to work. (Applause.)
And that’s why, as hard as it can be sometimes, it’s important for young people, in particular, who are just now becoming involved in the lives of their countries, to understand that progress follows a winding path -- sometimes forward, sometimes back -- but as long as we retain our faith in democracy, as long as we retain our faith in the people, as long as we don’t waver from those central principles that ensure a lively, open debate, then our future will be okay, because it remains the most effective form of government ever devised by man.
It is true, of course, over the last several years that we’ve seen democracies faced with serious challenges. And I want to mention two that have an impact here in Greece, haven an impact in the United States, and are having an impact around the world.
The first involves the paradox of a modern, global economy. The same forces of globalization and technology and integration that have delivered so much progress, have created so much wealth, have also revealed deep fault lines. Around the world, integration and closer cooperation, and greater trade and commerce, and the Internet -- all have improved the lives of billions of people -- lifted families from extreme poverty, cured diseases, helped people live longer, gave them more access to education and opportunity than at any time in human history.
I’ve often said to young people in the United States, if you had to choose a moment in history to be born, and you did not know ahead of time who you would be -- you didn’t know whether you were going to be born into a wealthy family or a poor family, what country you’d be born, whether you were going to be a man or a woman -- if you had to choose blindly what moment you’d want to be born you’d choose now. Because the world has never, collectively, been wealthier, better educated, healthier, less violent than it is today. That’s hard to imagine, given what we see in the news, but it’s true. And a lot of that has to do with the developments of a integrated, global economy.
But trends underway for decades have meant that in many countries and in many communities there have been enormous disruptions. Technology and automation mean that goods can be produced with fewer workers. It means jobs and manufacturing can move across borders where wages are lower or rights are less protected. And that means that workers and unions oftentimes have less leverage to bargain for better wages, better benefits, have more difficulty competing in the global marketplace. Hardworking families worry their kids may not be better off than they were because of this global competition.
What we’ve also seen is that this global integration is increasing the tendencies towards inequality, both between nations and within nations, at an accelerated pace. And when we see people -- global elites, wealthy corporations -- seemingly living by a different set of rules, avoiding taxes, manipulating loopholes -- when the rich and the powerful appear to game the system and accumulate vast wealth while middle and working-class families struggle to make ends meet, this feeds a profound sense of injustice and a feeling that our economies are increasingly unfair.
This inequality now constitutes one of the greatest challenges to our economies and to our democracies. An inequality that was once tolerated because people didn’t know how unequal things were now won’t be tolerated because everybody has a cellphone and can see how unequal things are. The awareness that people have in the smallest African village, they can see how people in London or New York are living. The poorest child in any of our countries now has a sense of what other people have that they don’t. So not only is there increasing inequality, but also there is greater awareness of inequality. And that’s a volatile mix for our democracies.
And this is why addressing inequality has been one of the key areas of focus for my economic policy. In our countries, in America and in most advanced market economies, we want people to be rewarded for their achievement. We think that people should be rewarded if they come up with a new product or a new service that is popular and helps a lot of people. But when a CEO of a company now makes more money in a single day than a typical worker does in an entire year, when it’s harder for workers to climb their way up the economic ladder, when they see a factory close that used to support an entire city or town, fuels the feeling that globalization only benefits those at the top. And the reaction can drag down a country’s growth and make recessions more likely. It can also lead to politics that create an unhealthy competition between countries. Rather than a win-win situation, people perceive that if you’re winning, I’m losing, and barriers come up and walls come up.
And in advanced economies, there are at times movements from both the left and the right to put a stop to integration, and to push back against technology, and to try to bring back jobs and industries that have been disappearing for decades. So this impulse to pull back from a globalized world is understandable. If people feel that they’re losing control of their future, they will push back. We have seen it here in Greece. We’ve seen it across Europe. We’ve seen it in the United States. We saw it in the vote in Britain to leave the EU.
But given the nature of technology, it is my assertion that it’s not possible to cut ourselves off from one another. We now are living in a global supply chain. Our growth comes through innovation and ideas that are crossing borders all the time. The jobs of tomorrow will inevitably be different from the jobs of the past. So we can’t look backwards for answers, we have to look forward.
We cannot sever the connections that have enabled so much progress and so much wealth. For when competition for resources is perceived as zero-sum, we put ourselves on a path to conflict both within countries and between countries. So I firmly believe that the best hope for human progress remains open markets combined with democracy and human rights. But I have argued that the current path of globalization demands a course correction. In the years and decades ahead, our countries have to make sure that the benefits of an integrated global economy are more broadly shared by more people, and that the negative impacts are squarely addressed. (Applause.)
And we actually know the path to building more inclusive economies. It’s just we too often don’t have the political will or desire to get it done. We know we need bold policies that spur growth and support jobs. We know that we need to give workers more leverage and better wages, and that, in fact, if you give workers better wages businesses do better, too, because their customers now have money to spend.
We know that we have to invest more in our people -- the education of our young people, the skills and training to compete in the global economy. We have to make sure that it is easy for young people who are eager to learn and eager to work to get the education that they need, the training that they need, without taking on huge amounts of debt.
We know that we have to encourage entrepreneurship so that it’s easier to start a business and do business. (Applause.) We know that we have to strengthen the social compact so that the safety net that is available for people, including quality health care and retirement benefits, are there even if people aren’t working in the same job for 30 years, or 40 years, or 50 years.
We have to modernize our infrastructure, which will put people back to work. We have to commit to the science and research and development that sparks new industries.
In our trading relationships, we have to make sure that trade works for us, and not against us. And that means insisting on high standards in all countries to support jobs, strong protections for workers, strong protections for the environment, so that even as we freely trade, people and workers in all countries see the benefits of trade in their own lives, not just benefits for the bottom line of large, multinational corporations.
These are the kinds of policies, this is the work that I’ve pursued throughout my time as President. Keep in mind I took office in the midst of the worst crisis since the Great Depression. And we pursued a recovery that has been shared now by the vast majority of Americans. We put people back to work building bridges and roads. (Applause.) We passed tax cuts for the middle class. We asked the wealthiest Americans to pay a little more taxes -- their fair share. We intervened to save our auto industry, but insisted that the auto industry become more energy efficient, produce better cars that reduce pollution.
We put in place policies to help students with loans and protect consumers from fraud. We passed the strongest Wall Street reforms in history so that the excesses and abuses that triggered the global financial crisis never happen again -- or at least don’t start on Wall Street.
And today, our businesses have created more than 15 million new jobs. Incomes last year in America rose faster than any time since 1968. Poverty fell at the fastest rate since 1968. Inequality is being narrowed. And we’ve also begun to close the pay gap between men and women.
We declared that health care in America is a privilege not for the few, but a right for everybody. Today our uninsured rate is at the lowest levels on record. And we’ve done all this while doubling our production of clean energy, lowering our carbon pollution faster than any advanced nation. So we’ve proven that you can grow the economy and reduce the carbon emissions that cause climate change at the same time. (Applause.)
Now, I say all this not because we’ve solved every problem. Our work is far from complete. There are still too many people in America who are worried about their futures. Still too many people who are working at wages that don’t get them above the poverty line. Still too many young people who don’t see opportunity. But the policies I describe point the direction for where we need to go in building inclusive economies. And that’s how democracies can deliver the prosperity and hope that our people need. And when people have opportunity and they feel confidence the future, they are less likely to turn on each other and they’re less likely to appeal to some of the darker forces that exist in all our societies -- those that can tear us apart.
Here in Greece, you’re undergoing similar transformations. The first step has been to build a foundation that allows you to return to robust economic growth. And we don’t need to recount all the causes of the economic crisis here in Greece. If we’re honest, we can acknowledge that it was a mix of both internal and external forces. The Greek economy and the level of debt had become unsustainable. And in this global economy, investment and jobs flow to countries where governments are efficient, not bloated, where the rules are clear. To stay competitive, to attract investment that creates jobs, Greece had to start a reform process.
Of course, the world, I don’t think, fully appreciates the extraordinary pain these reforms have involved, or the tremendous sacrifices that you, the Greek people, have made. I’ve been aware of it, and I’ve been proud of all that my administration has done to try to support Greece in these efforts. (Applause.) And part of the purpose of my visit is to highlight for the world the important steps that have been taken here in Greece.
Today, the budget is back in surplus. Parliament passed reforms to make the economy more competitive. Yes, there is still much more work to do. I want to commend Prime Minister Tsipras for the very difficult reforms his government is pursuing to put the economy on a firmer footing. Now, as Greece works to attract more investment, and to prevent old imbalances from re-emerging, and to put your economy on a stronger foundation, you’ll continue to have the full support of the United States.
At the same time, I will continue to urge creditors to take the steps needed to put Greece on a path towards sustained economic recovery. (Applause.) As Greece continues to implement reforms, the IMF has said that debt relief will be crucial to get Greece back to growth. They are right. It is important because if reforms here are going to be sustained, people need to see hope, and they need to see progress. And the young people who are in attendance here today and all across the country need to know there is a future -- there is an education and jobs that are worthy of your incredible potential. You don’t have to travel overseas, you can put roots right here in your home, in Greece, and succeed. (Applause.)
And I’m confident that if you stay the course, as hard as it has been, Greece will see brighter days. Because, in this magnificent hall and center -- this symbol of the Greek culture and resilience -- we’re reminded that just as your strength and resolve have allowed you to overcome great odds throughout your history, nothing can break the spirit of the Greek people. You will overcome this period of challenge just as you have other challenges in the past.
So economics is something that will be central to preserving our democracies. When our economies don’t work, our democracies become distorted and, in some cases, break down. But this brings me to another pressing challenge that our democracies face -- how do we ensure that our diverse, multicultural, multiracial, multi-religious world and our diverse nations uphold both the rights of individuals and a fundamental civic adherence to a common creed that binds us together.
Democracy is simplest where everybody thinks alike, looks alike, eats the same food, worships the same God. Democracy becomes more difficult when there are people coming from a variety of backgrounds and trying to live together. In our globalized world, with the migration of people and the rapid movement of ideas and cultures and traditions, we see increasingly this blend of forces mixing together in ways that often enrich our societies but also cause tensions.
In the Information Age, the unprecedented exchange of information can always accentuate differences, or seem to threaten cherished ways of life. It used to be that you might not know how people in another part of your country, or in the cities versus the countryside, were living. Now everybody knows how everybody is living, and everybody can feel threatened sometimes if people don’t do things exactly the way they do things. And they start asking themselves questions about their own identity. And it can create a volatile politics.
Faced with this new reality where cultures clash, it's inevitable that some will seek a comfort in nationalism or tribe or ethnicity or sect. In countries that are held together by borders that were drawn by colonial powers, including many countries in the Middle East and in Africa, it can be tempting to fall back on perceived safety of enclaves and tribal divisions.
In a world of widening inequality, there's a growing suspicion -- or even disdain -- for elites and institutions that seem remote from the daily lives of ordinary people. What an irony it is, at a time when we can reach out to people in the most remote corners of the planet, so many citizens feel disconnected from their own governments.
So, just as we have to have an inclusive economic strategy, we have to have an exclusive political and cultural strategy. In all of our capitals, we have to keep making government more efficient, more effective in responding to the daily needs to citizens. Governing institutions, whether in Athens, Brussels, London, Washington, have to be responsive to the concerns of citizens. People have to know that they're being heard.
Here in Europe, even with today's challenges, I believe that by virtue of the progress it has delivered over the decades -- the stability it has provided, the security it's reinforced
-- that European integration and the European Union remains one of the great political and economic achievements of human history. (Applause.) And today more than ever, the world needs a Europe that is strong and prosperous and democratic.
But I think all institutions in Europe have to ask themselves: How can we make sure that people within individual countries feel as if their voices are still being heard, that their identities are being affirmed, that the decisions that are being made that will have a critical impact on their lives are not so remote that they have no ability to impact them?
We have to make clear that governments exist to serve the interest of citizens, and not the other way around. And so this is why, as President of the United States, I've pursued initiatives like the Open Government Partnership that promotes transparency and accountability so that ordinary people know more about the decisions that affect their lives. That's why both at home and around the world, we have taken steps to fight corruption that can rot a society from within.
As authoritarian governments work to close space that citizens depend upon to organize and have their voices heard, we've begun the work of empowering civil society to defend democratic values and promote solutions to the problems within our communities. And as so many people around the world sometimes are tempted by cynicism and not being involved because they think that politicians and government don’t care about them, we've created networks for young leaders and invested in young entrepreneurs, because we believe that the hope and renewal of our societies begins with the voices of youth. (Applause.)
In closing, our globalized world is passing through a time of profound change. Yes, there is uncertainty and there is unease, and none of us can know the future. History does not move in a straight line. Civil rights in America did not move in a straight line. Democracy in Greece did not move in a straight line. The evolution of a unified Europe certainly has not moved in a straight line. And progress is never a guarantee. Progress has to be earned by every generation. But I believe history gives us hope.
Twenty-five centuries after Athens first pointed the way, 250 years after the beginning of the great American journey, my faith and my confidence, my certainty in our democratic ideals and universal values remain undiminished. I believe more strongly than ever that Dr. King was right when he said that, “The arc of the moral universe is long, but it bends towards justice.” (Applause.) But it bends towards justice not because it is inevitable, but because we bend it towards justice; not because there are not going to be barriers to achieving justice, but because there will be people, generation after generation, who have the vision and the courage and the will to bend the arc of our lives in the direction of a better future.
In the United States, and in every place I have visited these last eight years, I have met citizens, especially young people, who have chosen hope over fear, who believe that they can shape their own destiny, who refuse to accept the world as it is and are determined to remake it as it should be. They have inspired me.
In every corner of the world, I have met people who, in their daily lives, demonstrate that despite differences of race or religion or creed or color, we have the capacity to see each other in ourselves. Like the woman here in Greece who said of the refugees arriving on these shores, “We live under the same sun. We fall in love under the same moon. We are all human -- we have to help these people.” Women like that give me hope. (Applause.)
In all of our communities, in all of our countries, I still believe there's more of what Greeks call philotimo -- (applause) -- love and respect and kindness for family and community and country, and a sense that we’re all in this together, with obligations to each other. Philotimo -- I see it every day -- and that gives me hope. (Applause.)
Because in the end, it is up to us. It's not somebody else's job, it's not somebody else's responsibility, but it's the citizens of our countries and citizens of the world to bend that arc of history towards justice.
And that’s what democracy allows us to do. That's why the most important office in any country is not president or prime minister. The most important title is “citizen.” (Applause.) And in all of our nations, it will always be our citizens who decide the kind of countries we will be, the ideals that we will reach for, and the values that will define us. In this great, imperfect, but necessary system of self-government, power and progress will always come from the demos -- from “We, the people.” And I'm confident that as long as we are true to that system of self-government, that our futures will be bright.
Thank you very much. (Applause.) Zito I ellas. (Applause.)
Lest we forget
12.11.2016
"Those who do not remember
the past are condemned to repeat it"
George Santayana
the past are condemned to repeat it"
George Santayana
TV Licences’ Controversy resolved
12.11.2016
On Thursday the composition of the National Broadcasting Council (ESR) was agreed.
To break the deadlock, the Government agreed that there will be more than just four TV channel licences. A Government amendment to the so-called Pappas Law had already transferred the authority for overseeing the auctioning of licences back to the ESR.
Originally, the Law had moved that authority from the ESR to the Minister. The reasoning at the time had been that the political opposition, notably New Democracy, had been blocking the composition of ESR’s board.
The ESR board, as agreed on Thursday, will be led by Athanasios Koutromanos, a former President of the Supreme Court who was proposed by ND. The Vice President will be Rodolfos Moronis, a journalist and former ESR member.
Presenting the agreement, Nikos Voutsis, Speaker of the Greek Parliament said, “We must move forward quickly, so that frequencies can be issued in a controlled and transparent fashion.”
In its statement regarding the establishment of the ESR, SYRIZA stressed “Today, the state of lawlessness and unaccountability which held sway for 27 years has been defeated and must be terminated immediately. Today the Channel Owners have been defeated and must, at last, pay a fee for the exploitation of the public good of the frequencies.”
“The Official Opposition has also accepted that the television stations are broadcasting illegally, and that they must be licenced. It has been accepted that the number of licenses cannot be unlimited. It has been accepted that subsequent moves to regulate television landscape will be made on the basis of Law 4450/2015.”
Finally, SYRIZA "welcomed" New Democracy “to the way of reason and legality".
Second Assessment and beyond…
On Saturday Prime Minister Tsipras said that the new administration could give “the necessary push, so we can cover the last crucial metres of the marathon” and that growth was on the horizon. He told his new Cabinet on Sunday that Athens "can and will" conclude the Second Assessment in time for long-awaited debt relief talks to begin in December.
Alexis Tsipras urged his Ministers to work hard to rapidly complete the review.
"The negotiation can and will be concluded on time, for us to have positive decisions at the Eurogroup on Dec. 5th, in other words, for talks to begin about specific short-term, mid-term and long-term measures for Greek debt relief."
If that happens, P.M. Tsipras said, Greece look forward to its inclusion in the European Central Bank's quantitative easing - an asset- buying programme from which it is currently excluded - within the first quarter of 2017. It can then regain access to the bond market by the time the current bailout programme expires in 2018.
All the stakeholders at the Eurogroup meeting on Monday said they anticipated the tying up by the end of the year of all major loose ends so the economy can find a "free path", as Euclid Tsakalotos puts it, and the country can return to the markets in 2017.
After the Eurogroup meeting, Klaus Regling, the Managing Director of the European Stability Mechanism (ESM) said short-term measures on Greece’s debt will be presented at December’s meeting.
“It’s too early to talk about any details but we’ve made good progress,” he said. “It’s important to say that some of these measures mean there could be additional cost upfront before one can have benefits later on… but then there should be savings in the longer-term. I’m optimistic that overall we can find solutions that will really have a visible, positive impact on Greek debt sustainability.”
This development will also allow the full involvement of the IMF in the programme, something which, in turn, will make it possible for the country’s inclusion in the ECB's quantitative easing programme.
On Tuesday in the first press briefing newly appointed Government spokesman Dimitris Tzanakopoulos said the conclusion of the Second Assessment is the Government’s first priority.
The second priority is the beginning of the debate on the final measures for debt relief. The third priority is boosting investment activity in the Greek economy. The fourth priority is the constant preoccupation with and orientation of Government towards the issues citizens are facing in their daily lives.
Moreover, he said that yesterday’s Eurogroup “is giving us one more reason to be optimistic” adding that “it is now a commonplace that the effective settlement of the debt issue is a priority for the eurozone and also for the international community.”
SYRIZA on Trump – USA President-elect
On Wednesday morning, Dimitris Papadimoulis, the Vice-President of the European Parliament and Leader of the Eurogroup of SYRIZA released this statement.
"Trump’s victory is a negative shock, a serious negative development for democracy and stability around the globe. The eagerness of his soul-mate Marine Le Pen to celebrate this victory clearly shows it.
At this moment, every democrat, every intelligent person everywhere in the world has every reason to be concerned. In Europe it is imperative for there to be an immediate mobilisation in all sectors for greater stability, cohesion, political development and for a more effective response to the wave of instability that will be spawned.
For Greece at this time two things are crucial. First is for us to hurry to implement the plan that will ensure debt relief and the shift to economic growth and secondly for us to put our own house in order to show Greece to be a pole of stability in the wider region.
The painful shock of Trump’s victory can be a wake-up call for a broad anti-fascist democratic alliance everywhere in the world, in order to respond to the dangers the Trump victory signifies."
Originally, the Law had moved that authority from the ESR to the Minister. The reasoning at the time had been that the political opposition, notably New Democracy, had been blocking the composition of ESR’s board.
The ESR board, as agreed on Thursday, will be led by Athanasios Koutromanos, a former President of the Supreme Court who was proposed by ND. The Vice President will be Rodolfos Moronis, a journalist and former ESR member.
Presenting the agreement, Nikos Voutsis, Speaker of the Greek Parliament said, “We must move forward quickly, so that frequencies can be issued in a controlled and transparent fashion.”
In its statement regarding the establishment of the ESR, SYRIZA stressed “Today, the state of lawlessness and unaccountability which held sway for 27 years has been defeated and must be terminated immediately. Today the Channel Owners have been defeated and must, at last, pay a fee for the exploitation of the public good of the frequencies.”
“The Official Opposition has also accepted that the television stations are broadcasting illegally, and that they must be licenced. It has been accepted that the number of licenses cannot be unlimited. It has been accepted that subsequent moves to regulate television landscape will be made on the basis of Law 4450/2015.”
Finally, SYRIZA "welcomed" New Democracy “to the way of reason and legality".
Second Assessment and beyond…
On Saturday Prime Minister Tsipras said that the new administration could give “the necessary push, so we can cover the last crucial metres of the marathon” and that growth was on the horizon. He told his new Cabinet on Sunday that Athens "can and will" conclude the Second Assessment in time for long-awaited debt relief talks to begin in December.
Alexis Tsipras urged his Ministers to work hard to rapidly complete the review.
"The negotiation can and will be concluded on time, for us to have positive decisions at the Eurogroup on Dec. 5th, in other words, for talks to begin about specific short-term, mid-term and long-term measures for Greek debt relief."
If that happens, P.M. Tsipras said, Greece look forward to its inclusion in the European Central Bank's quantitative easing - an asset- buying programme from which it is currently excluded - within the first quarter of 2017. It can then regain access to the bond market by the time the current bailout programme expires in 2018.
All the stakeholders at the Eurogroup meeting on Monday said they anticipated the tying up by the end of the year of all major loose ends so the economy can find a "free path", as Euclid Tsakalotos puts it, and the country can return to the markets in 2017.
After the Eurogroup meeting, Klaus Regling, the Managing Director of the European Stability Mechanism (ESM) said short-term measures on Greece’s debt will be presented at December’s meeting.
“It’s too early to talk about any details but we’ve made good progress,” he said. “It’s important to say that some of these measures mean there could be additional cost upfront before one can have benefits later on… but then there should be savings in the longer-term. I’m optimistic that overall we can find solutions that will really have a visible, positive impact on Greek debt sustainability.”
This development will also allow the full involvement of the IMF in the programme, something which, in turn, will make it possible for the country’s inclusion in the ECB's quantitative easing programme.
On Tuesday in the first press briefing newly appointed Government spokesman Dimitris Tzanakopoulos said the conclusion of the Second Assessment is the Government’s first priority.
The second priority is the beginning of the debate on the final measures for debt relief. The third priority is boosting investment activity in the Greek economy. The fourth priority is the constant preoccupation with and orientation of Government towards the issues citizens are facing in their daily lives.
Moreover, he said that yesterday’s Eurogroup “is giving us one more reason to be optimistic” adding that “it is now a commonplace that the effective settlement of the debt issue is a priority for the eurozone and also for the international community.”
SYRIZA on Trump – USA President-elect
On Wednesday morning, Dimitris Papadimoulis, the Vice-President of the European Parliament and Leader of the Eurogroup of SYRIZA released this statement.
"Trump’s victory is a negative shock, a serious negative development for democracy and stability around the globe. The eagerness of his soul-mate Marine Le Pen to celebrate this victory clearly shows it.
At this moment, every democrat, every intelligent person everywhere in the world has every reason to be concerned. In Europe it is imperative for there to be an immediate mobilisation in all sectors for greater stability, cohesion, political development and for a more effective response to the wave of instability that will be spawned.
For Greece at this time two things are crucial. First is for us to hurry to implement the plan that will ensure debt relief and the shift to economic growth and secondly for us to put our own house in order to show Greece to be a pole of stability in the wider region.
The painful shock of Trump’s victory can be a wake-up call for a broad anti-fascist democratic alliance everywhere in the world, in order to respond to the dangers the Trump victory signifies."
New Minister of Labour
On Monday, Effie Achtsioglou officially assumed her new responsibilities as Minister of Labour. Speaking after the ceremony-reception, held at the Ministry, Ms. Achtsioglou said:
"As far as the Ministry of Labour is concerned, we have critical battles in two main areas. The first area is the Second Assessment, the backbone of those negotiations are the labour issues, while the second area is the daily life of citizens, as that is reflected in the labour market."
"In the Second Assessment, in relation to the negotiations over labour issues, negotiations which have already begun and which are difficult, our aim is to restore basic collective labour rights, which were razed to the ground during the first two Memoranda and beyond that, to give substance to collective bargaining and collective agreements. Because, today, the right to collective bargaining still applies on paper; in practice, however, it has been completely removed. Our goal is to not allow any further deregulation in the labour market." She stressed that in the battle of the negotiations, the Government has significant "weapons", which are the findings of the Committee of Independent Experts, "a Committee established jointly with the Creditors. Therefore, its validity cannot be questioned in any way by the other side of the table."
"A second "weapon" is the European social model - those principles which are reflected in the documents of fundamental social rights that apply in Europe, and in which the right to collective bargaining holds a dominant position. So we have a strategy, we have "weapons" and, certainly, we have an objective - the objective of this Government is to defend the interests of the world of work.
Over and above the negotiations, "in the daily life of citizens and of labour relations, the labour market has been hit hard not only by the collapse of collective bargaining. It is also being hit hard by the phenomena of undeclared labour, of undeclared work, of uninsured work, of unpaid and poorly paid work which is full-time but appears as part-time." "The issue most at stake is the enforcement of legality in the labour market. Therefore, the first priority will be to strengthen the role of the control mechanisms, as well as the functioning of the Labour Inspectorate [ΣΕΕ] to enforce legality in the labour market."
"The Labour Ministry is a Ministry for work and not for words. We are moving forward in a coordinated way, collectively towards the implementation of our commitments made to the society and to the world of work, having in the forefront of our minds that the gravity of the moment does not allow us the luxury of "I'm above you or you are above me." The Ministry has an open door to citizens."
Stricter fines and penalties for tax evasion
The country’s tax administration is planning a new, much stricter fines’ system for businesses and the self-employed, given that the fines currently incurred by those who do not issue receipts amount to little more than a slap on the wrist, as the Finance Ministry’s Inspectors realized during inspections conducted mainly this summer at tourism destinations.
A number of tax-dodging enterprises appeared to be unfazed by the threat of fines introduced on July 25th and continued to avoid issuing receipts for their services, as the Inspectors noted.
At the same time, the tax administration also intends to introduce specific penalties and fines for professional categories that do not have to pay value-added tax (VAT). For example, the General Secretariat for Public Revenue is preparing a plan to impose fines on doctors, private schools and other tuition institutions, as well as other self-employed professionals and small and medium-sized enterprises with gross takings of up to 10,000€ a year that have been exempt from VAT if they violate the tax code.
On Monday, Effie Achtsioglou officially assumed her new responsibilities as Minister of Labour. Speaking after the ceremony-reception, held at the Ministry, Ms. Achtsioglou said:
"As far as the Ministry of Labour is concerned, we have critical battles in two main areas. The first area is the Second Assessment, the backbone of those negotiations are the labour issues, while the second area is the daily life of citizens, as that is reflected in the labour market."
"In the Second Assessment, in relation to the negotiations over labour issues, negotiations which have already begun and which are difficult, our aim is to restore basic collective labour rights, which were razed to the ground during the first two Memoranda and beyond that, to give substance to collective bargaining and collective agreements. Because, today, the right to collective bargaining still applies on paper; in practice, however, it has been completely removed. Our goal is to not allow any further deregulation in the labour market." She stressed that in the battle of the negotiations, the Government has significant "weapons", which are the findings of the Committee of Independent Experts, "a Committee established jointly with the Creditors. Therefore, its validity cannot be questioned in any way by the other side of the table."
"A second "weapon" is the European social model - those principles which are reflected in the documents of fundamental social rights that apply in Europe, and in which the right to collective bargaining holds a dominant position. So we have a strategy, we have "weapons" and, certainly, we have an objective - the objective of this Government is to defend the interests of the world of work.
Over and above the negotiations, "in the daily life of citizens and of labour relations, the labour market has been hit hard not only by the collapse of collective bargaining. It is also being hit hard by the phenomena of undeclared labour, of undeclared work, of uninsured work, of unpaid and poorly paid work which is full-time but appears as part-time." "The issue most at stake is the enforcement of legality in the labour market. Therefore, the first priority will be to strengthen the role of the control mechanisms, as well as the functioning of the Labour Inspectorate [ΣΕΕ] to enforce legality in the labour market."
"The Labour Ministry is a Ministry for work and not for words. We are moving forward in a coordinated way, collectively towards the implementation of our commitments made to the society and to the world of work, having in the forefront of our minds that the gravity of the moment does not allow us the luxury of "I'm above you or you are above me." The Ministry has an open door to citizens."
Stricter fines and penalties for tax evasion
The country’s tax administration is planning a new, much stricter fines’ system for businesses and the self-employed, given that the fines currently incurred by those who do not issue receipts amount to little more than a slap on the wrist, as the Finance Ministry’s Inspectors realized during inspections conducted mainly this summer at tourism destinations.
A number of tax-dodging enterprises appeared to be unfazed by the threat of fines introduced on July 25th and continued to avoid issuing receipts for their services, as the Inspectors noted.
At the same time, the tax administration also intends to introduce specific penalties and fines for professional categories that do not have to pay value-added tax (VAT). For example, the General Secretariat for Public Revenue is preparing a plan to impose fines on doctors, private schools and other tuition institutions, as well as other self-employed professionals and small and medium-sized enterprises with gross takings of up to 10,000€ a year that have been exempt from VAT if they violate the tax code.
Government Re-Shuffle
5.11.2016
On Friday, Prime Minister Alexis Tsipras completed a Government re-shuffle. Ministers will be sworn into office today, Saturday.
According to Government sources: “The Cabinet re-shuffle is designed to give special emphasis to the completion of the Assessment and the development of the economy. The intention of the Government is to respond in the best possible way to the key issues over the next critical 6 months: the Assessment, development, investment and employment.”
Dimitris Liakos is appointed Minister responsible for the implementation of Greece's bailout programme. Finance Minister Euclid Tsakalotos stays in his post.
Dimitris Papadimitriou is appointed Minister of Economy and Development with Stergios Pitsiorlas, head of the Privatisation and Investment Fund as his Deputy Minister. George Stathakis becomes Minister of Environment and Energy, replacing Panos Skourletis who becomes Minister of the Interior.
For the first time there is to be a Minister responsible for building a structure to respond to the issues of citizens’ everyday lives. This is the role of State Minister Alekos Flabouraris. The Minister of State Christophos Bernardakis takes on Strategic Planning and Government Co-ordination.
Nikos Pappas has the portfolio of Digital Telecommunications and Information - a new Ministry which brings together previous piecemeal arrangements.
Dimitris Tzanakopoylos becomes Minister of State and Government spokesman. Efi Achtsioglou is the new Minister of Labour, Social Security and Social Solidarity, replacing Giorgos Katrougalos.
Minister of Education, Research and Religious Affairs, Nikos Filis, whose relationship with the Orthodox Church had deteriorated badly was replaced by Kostas Gavroglou.
The almost daily inner Cabinet meetings will be attended by Dimitris Tzanakopoylos, Alekos Flabouraris, Christophos Bernardakis, Nikos Pappas, Olga Gerovasili, Panos Skourletis and Dimitris Liakos.
Government spokeswoman Olga Gerovasili announced the composition of the new cabinet. It numbers 48 ministers, of whom 15 are new, while 11 ministers from the old cabinet have been replaced.
The new cabinet is as follows:
Prime Minister: Alexis Tsipras
Government Vice-President: Yiannis Dragasakis
Interior Minister: Panos Skourletis
Alternate Minister for Civil Protection: Nikos Toskas
Deputy Minister for Macedonia-Thrace: Maria Kollia-Tsarouha
Economy and Development Minister: Dimitris Papadimitriou
Alternate Minister: Alexis Charitsis
Deputy Minister: Stergios Pitsiorlas
Digital Policy, Telecommunications and Media Minister: Nikos Pappas
National Defence Minister: Panos Kammenos
Alternate Minister: Dimitris Vitsas
Education, Research and Religions Minister: Kostas Gavroglou
Alternate Minister for Research: Kostas Fotakis
Deputy Minister: Dimitrios Baxevanakis
Deputy Minister: Konstantinos Zouraris
Labour, Social Insurance and Social Solidarity Minister: Efi Ahtsioglou
Alternate Minister for Combatting Unemployment: Rania Antonopoulou
Alternate Minister for Social Solidarity: Theano Fotiou
Deputy Minister for Social Insurance: Anastasios Petropoulos
Foreign Minister: Nikos Kotzias
Alternate Minister for European Affairs: George Katrougalos
Deputy Foreign Minister: Ioannis Amanatidis
Deputy Foreign Minister for Greek Diaspora: Terens Quick
Justice, Transparency and Human Rights Minister: Stavros Kontonis
Alternate Minister: Dimitris Papangelopoulos
Finance Minister: Euclid Tsakalotos
Alternate Finance Minister: Giorgos Chouliarakis
Deputy Finance Minister: Katerina Papanatsiou
Health Minister: Andreas Xanthos
Alternate Minister: Pavlos Polakis
Administrative Reconstruction Minister: Olga Gerovasili
Culture and Sports Minister: Lydia Koniordou
Deputy Minister for Sports: Giorgos Vasiliadis
Environment and Energy Minister: Giorgos Stathakis
Alternate Minister: Sokratis Famelos
Infrastructure and Transports Minister: Christos Spirtzis
Deputy Minister: Nikolaos Mavraganis
Migration Policy Minister: Yiannis Mouzalas
Deputy Minister: Ioannis Balafas
Shipping, Transport and Island Policy Minister: Panagiotis Kouroumblis
Deputy Minister: Nektarios Sandorinios
Rural Development and Foods Minister: Vangelis Apostolou
Alternate Minister: Ioannis Tsironis
Deputy Minister: Vasilis Kokkalis
Tourism Minister: Elena Kountoura
Minister of State: Alexandros Flambouraris
Minister of State: Christoforos Vernardakis
Deputy Minister to the Prime Minister: Dimitrios Liakos
Minister of State and Government spokesman: Dimitris Tzanakopoulos
Parliament President: Nikos Voutsis
The Second Assessment
Measures concerning both the pension system and “reforms” of the labour market are expected to be the focus of talks during the Second Assessment of Greece’s programme, Eurogroup President Jeroen Dijsselbloem said on Tuesday.
The Second Assessment of Greece’s programme, which is now underway, will be on the agenda of the next Eurogroup on November 7th. He also announced that the official conclusion of the first review now opened the way for short-term debt relief measures for Greece, as announced by the May 24th Eurogroup meeting. These measures focus on reducing vulnerability to interest rate changes, including a “gentler” profile for European Financial Stability Fund (EFSF) loans and debt repayments in 2017. The Institutions’ next mission to Athens has been scheduled for November 14th -21st.
Greek Labour Minister George Katrougalos gave assurances that the social security issues had been settled during the First Assessment and would not be re-opened in the Second Assessment. Minister Katrougalos told reporters that there will be a “tidying up” of welfare benefits, stopping those that overlapped with the Social Solidarity Income, but added that there would not be cuts to special categories of welfare payments, such as those to the disabled or family benefits. “What is happening now is checking the implementation of the law and the operation of the Single Social Insurance Agency,” he said.
Dimitris Liakos is appointed Minister responsible for the implementation of Greece's bailout programme. Finance Minister Euclid Tsakalotos stays in his post.
Dimitris Papadimitriou is appointed Minister of Economy and Development with Stergios Pitsiorlas, head of the Privatisation and Investment Fund as his Deputy Minister. George Stathakis becomes Minister of Environment and Energy, replacing Panos Skourletis who becomes Minister of the Interior.
For the first time there is to be a Minister responsible for building a structure to respond to the issues of citizens’ everyday lives. This is the role of State Minister Alekos Flabouraris. The Minister of State Christophos Bernardakis takes on Strategic Planning and Government Co-ordination.
Nikos Pappas has the portfolio of Digital Telecommunications and Information - a new Ministry which brings together previous piecemeal arrangements.
Dimitris Tzanakopoylos becomes Minister of State and Government spokesman. Efi Achtsioglou is the new Minister of Labour, Social Security and Social Solidarity, replacing Giorgos Katrougalos.
Minister of Education, Research and Religious Affairs, Nikos Filis, whose relationship with the Orthodox Church had deteriorated badly was replaced by Kostas Gavroglou.
The almost daily inner Cabinet meetings will be attended by Dimitris Tzanakopoylos, Alekos Flabouraris, Christophos Bernardakis, Nikos Pappas, Olga Gerovasili, Panos Skourletis and Dimitris Liakos.
Government spokeswoman Olga Gerovasili announced the composition of the new cabinet. It numbers 48 ministers, of whom 15 are new, while 11 ministers from the old cabinet have been replaced.
The new cabinet is as follows:
Prime Minister: Alexis Tsipras
Government Vice-President: Yiannis Dragasakis
Interior Minister: Panos Skourletis
Alternate Minister for Civil Protection: Nikos Toskas
Deputy Minister for Macedonia-Thrace: Maria Kollia-Tsarouha
Economy and Development Minister: Dimitris Papadimitriou
Alternate Minister: Alexis Charitsis
Deputy Minister: Stergios Pitsiorlas
Digital Policy, Telecommunications and Media Minister: Nikos Pappas
National Defence Minister: Panos Kammenos
Alternate Minister: Dimitris Vitsas
Education, Research and Religions Minister: Kostas Gavroglou
Alternate Minister for Research: Kostas Fotakis
Deputy Minister: Dimitrios Baxevanakis
Deputy Minister: Konstantinos Zouraris
Labour, Social Insurance and Social Solidarity Minister: Efi Ahtsioglou
Alternate Minister for Combatting Unemployment: Rania Antonopoulou
Alternate Minister for Social Solidarity: Theano Fotiou
Deputy Minister for Social Insurance: Anastasios Petropoulos
Foreign Minister: Nikos Kotzias
Alternate Minister for European Affairs: George Katrougalos
Deputy Foreign Minister: Ioannis Amanatidis
Deputy Foreign Minister for Greek Diaspora: Terens Quick
Justice, Transparency and Human Rights Minister: Stavros Kontonis
Alternate Minister: Dimitris Papangelopoulos
Finance Minister: Euclid Tsakalotos
Alternate Finance Minister: Giorgos Chouliarakis
Deputy Finance Minister: Katerina Papanatsiou
Health Minister: Andreas Xanthos
Alternate Minister: Pavlos Polakis
Administrative Reconstruction Minister: Olga Gerovasili
Culture and Sports Minister: Lydia Koniordou
Deputy Minister for Sports: Giorgos Vasiliadis
Environment and Energy Minister: Giorgos Stathakis
Alternate Minister: Sokratis Famelos
Infrastructure and Transports Minister: Christos Spirtzis
Deputy Minister: Nikolaos Mavraganis
Migration Policy Minister: Yiannis Mouzalas
Deputy Minister: Ioannis Balafas
Shipping, Transport and Island Policy Minister: Panagiotis Kouroumblis
Deputy Minister: Nektarios Sandorinios
Rural Development and Foods Minister: Vangelis Apostolou
Alternate Minister: Ioannis Tsironis
Deputy Minister: Vasilis Kokkalis
Tourism Minister: Elena Kountoura
Minister of State: Alexandros Flambouraris
Minister of State: Christoforos Vernardakis
Deputy Minister to the Prime Minister: Dimitrios Liakos
Minister of State and Government spokesman: Dimitris Tzanakopoulos
Parliament President: Nikos Voutsis
The Second Assessment
Measures concerning both the pension system and “reforms” of the labour market are expected to be the focus of talks during the Second Assessment of Greece’s programme, Eurogroup President Jeroen Dijsselbloem said on Tuesday.
The Second Assessment of Greece’s programme, which is now underway, will be on the agenda of the next Eurogroup on November 7th. He also announced that the official conclusion of the first review now opened the way for short-term debt relief measures for Greece, as announced by the May 24th Eurogroup meeting. These measures focus on reducing vulnerability to interest rate changes, including a “gentler” profile for European Financial Stability Fund (EFSF) loans and debt repayments in 2017. The Institutions’ next mission to Athens has been scheduled for November 14th -21st.
Greek Labour Minister George Katrougalos gave assurances that the social security issues had been settled during the First Assessment and would not be re-opened in the Second Assessment. Minister Katrougalos told reporters that there will be a “tidying up” of welfare benefits, stopping those that overlapped with the Social Solidarity Income, but added that there would not be cuts to special categories of welfare payments, such as those to the disabled or family benefits. “What is happening now is checking the implementation of the law and the operation of the Single Social Insurance Agency,” he said.
TV Licences
On Monday, in Parliament the Government submitted an amendment transferring all powers relating to the issuing of broadcasting licences and the tendering processes back to the National Broadcasting Council (ESR). Article 2A of the so-called Pappas Law, which transferred powers from the ESR to the Minister of State is withdrawn. The ESR will decide on the number of the TV licences to be auctioned.
On Thursday, Parliament voted on the amendment which complies with the ruling by the Council of State. Minister Pappas stated that the Law itself [N 4339/15] would be amended after the official reasoning behind the ruling of the Council of State is made public. According to its President, Nikos Sakellariou, this could take up to one month.
State Minister Pappas said the Law had transferred the authority for issuing licences from the ESR to him as Minister only because objections by the political opposition, notably New Democracy, had prevented the cross-party ESR from convening.
Minister Pappas said the government would proceed with "an overall change" of its law for the licensing of nationwide TV stations as soon as the Council of State issues its reasoning for a recent ruling deeming the TV auction to be unconstitutional.
"At the moment, we are all breaking the law, because the regime of the temporary licences has not been extended following a decision by the Council of State in 2010," Mr.Pappas said.
The fifth meeting of Parliamentary leaders failed to agree on the President of the ESR, Greece’s independent TV regulator.
Before voting against the setting up of the ESR, Mr. Mitsotakis, the President of New Democracy presented an alternative legislative proposal which made no reference to an auction for the licences and with no mandatory number of full-time workers on the Channels.
The final result of the voting at the Conference of Presidents on Monday was 16 In Favour (SYRIZA, PASOK, River, Independent Greeks), 6 Present (ND, KKE) [i.e. Abstentions Ed], 1 Against (Centre Union Party) and 1 Absent (Golden Dawn). In order to set up the National Broadcasting Council 19 votes in favour were needed. Therefore the majority of 4/5 was not achieved.
The Council of Presidents will re-convene on Monday, November 7th to try to break the deadlock over the composition of the ESR.
For more background, this link https://www.neweurope.eu/article/partners-crime-destructive-role-greek-media-economic-crisis/ takes you to an interesting article “Partners in Crime: The Destructive Role of the Greek Media during the Economic Crisis”
TV LICENCES
– The Council of State's Ruling
29.10.2016
On Wednesday, 26th October, the Council of State, Greece’s Supreme Court ruled that the Government’s auction process of TV licences was unconstitutional.
In October 2015, the Greek Parliament had approved a new media bill as part of the July bailout agreement with Greece’s creditors to open up competition in the media market.
On Wednesday, the Court of State ruled, by a majority of three, that the Government's auction process to comply with the July Agreement was flawed because it had not involved the National Broadcasting Council (ESR) - the independent media supervisory authority. Its members were to have been appointed by Parliament. The Government and New Democracy, however, had failed to reach agreement on the composition of the ESR, leaving seats vacant and the ESR not functioning.
Since then, State Minister Nikos Pappas had been handling media issues and overseeing the auction. “Greece is the only EU country that has never launched any licencing process for private TV channels for 25 years, maintaining the lawless regime of temporary licences,” Minister Pappas stated. He went on to explain that the October 2015 law itself was not unconstitutional. However Article 2a of that law, a specific provision giving the Government the right to conduct a licence auction in the event of the failure to establish the National Broadcasting Council (ESR) was ruled to be unconstitutional.
[Article 15 paragraph 2 of the Constitution states:"Radio and television are part of the state and are under its direct control. The control and the application of the management prerogatives are the exclusive responsibility the National Broadcasting Council (ESR) which is an independent body, as defined by the law."]
Minister Pappas continued “The Government is not going to back off; it is going to put an end to the lawlessness of the television scene. The closed club of Channel Owners will not continue. We are bringing in a new regulatory environment. The new auction process will be carried out by the ESR.”
“The Council of State’s decision has given rise to an injustice and a legal vacuum" because it had itself described the former state of affairs as unconstitutional.
“We were faced with a legal vacuum and a paradox. My predecessors, instead of facing up to the problem, kept extending the regime of temporary permits…Nobody have asked why New Democracy would not agree about the establishment of the ESR."
Government spokeswoman Olga Gerovassili said “The decision is binding, but that is not to say that the decision won’t be judged. This Court is taking the country back to the previous unconstitutional situation”.
She said the Government would table a bill in Parliament on Monday, permitting current TV channels to operate until new licenses are awarded. "Nothing will block the Government's determination to bring order... to the broadcasting scene," she said.
Following the decision, the four winning bidders’ deposits already paid to the state will be returned.
On Thursday, Prime Minister Alexis Tsipras requested that Parliament Speaker Nikos Voutsis assemble the Conference of Presidents on Monday with the aim of convening the National Broadcasting Council (ESR). [The Conference of Presidents includes the Leaders of all the Parliamentary Groups and has the power to choose, by consensus or by a majority of 4/5 of its members, the members of the independent authorities provided by the Constitution, in this case the ESR. Ed.]
The Prime Minister's press office said: "On Monday it will be clear if New Democracy really is interested in the establishment of the ESR or if it just wants to stop the auction from happening and wants the current regime of arbitrariness to continue.
"If New Democracy actually supports the need for the establishment and operation of the ESR, it has only to attend the Conference of Presidents of Parliament with a willingness to contribute to its establishment.
"The evasions and excuses are finished with. Either we agree or we disagree. There can be no doubt on this matter unless New Democracy is indifferent to the ruling of the Council of State and its implementation, and seeks instead to impede by all possible means the establishment of the National Broadcasting Council (ESR) to prevent the broadcasting scene from ever being regulated…
"On Monday, the Greek people will all understand what exactly Mr. Mitsotakis is after."
On Wednesday, the Court of State ruled, by a majority of three, that the Government's auction process to comply with the July Agreement was flawed because it had not involved the National Broadcasting Council (ESR) - the independent media supervisory authority. Its members were to have been appointed by Parliament. The Government and New Democracy, however, had failed to reach agreement on the composition of the ESR, leaving seats vacant and the ESR not functioning.
Since then, State Minister Nikos Pappas had been handling media issues and overseeing the auction. “Greece is the only EU country that has never launched any licencing process for private TV channels for 25 years, maintaining the lawless regime of temporary licences,” Minister Pappas stated. He went on to explain that the October 2015 law itself was not unconstitutional. However Article 2a of that law, a specific provision giving the Government the right to conduct a licence auction in the event of the failure to establish the National Broadcasting Council (ESR) was ruled to be unconstitutional.
[Article 15 paragraph 2 of the Constitution states:"Radio and television are part of the state and are under its direct control. The control and the application of the management prerogatives are the exclusive responsibility the National Broadcasting Council (ESR) which is an independent body, as defined by the law."]
Minister Pappas continued “The Government is not going to back off; it is going to put an end to the lawlessness of the television scene. The closed club of Channel Owners will not continue. We are bringing in a new regulatory environment. The new auction process will be carried out by the ESR.”
“The Council of State’s decision has given rise to an injustice and a legal vacuum" because it had itself described the former state of affairs as unconstitutional.
“We were faced with a legal vacuum and a paradox. My predecessors, instead of facing up to the problem, kept extending the regime of temporary permits…Nobody have asked why New Democracy would not agree about the establishment of the ESR."
Government spokeswoman Olga Gerovassili said “The decision is binding, but that is not to say that the decision won’t be judged. This Court is taking the country back to the previous unconstitutional situation”.
She said the Government would table a bill in Parliament on Monday, permitting current TV channels to operate until new licenses are awarded. "Nothing will block the Government's determination to bring order... to the broadcasting scene," she said.
Following the decision, the four winning bidders’ deposits already paid to the state will be returned.
On Thursday, Prime Minister Alexis Tsipras requested that Parliament Speaker Nikos Voutsis assemble the Conference of Presidents on Monday with the aim of convening the National Broadcasting Council (ESR). [The Conference of Presidents includes the Leaders of all the Parliamentary Groups and has the power to choose, by consensus or by a majority of 4/5 of its members, the members of the independent authorities provided by the Constitution, in this case the ESR. Ed.]
The Prime Minister's press office said: "On Monday it will be clear if New Democracy really is interested in the establishment of the ESR or if it just wants to stop the auction from happening and wants the current regime of arbitrariness to continue.
"If New Democracy actually supports the need for the establishment and operation of the ESR, it has only to attend the Conference of Presidents of Parliament with a willingness to contribute to its establishment.
"The evasions and excuses are finished with. Either we agree or we disagree. There can be no doubt on this matter unless New Democracy is indifferent to the ruling of the Council of State and its implementation, and seeks instead to impede by all possible means the establishment of the National Broadcasting Council (ESR) to prevent the broadcasting scene from ever being regulated…
"On Monday, the Greek people will all understand what exactly Mr. Mitsotakis is after."
FIRST ASSESSMENT COMPLETED
The Board of the European Stability Mechanism (ESM) finally approved the disbursement of a 2.8€ billion subtranche to Greece that completes the First Assessment of the country’s third bailout programme.
In a written statement by ESM Managing Director Klaus Regling said: “Today’s decision to disburse 2.8€ billion to Greece is a sign that the Greek people are steadily making progress in reforming their country. The Government has completed key milestones in the area of pension reform, bank governance, the energy sector, and revenue collection. It has also taken further steps in making the new privatisation and investment fund operational. If the Government continues to implement the reforms agreed in the ESM programme, growth of the Greek economy could accelerate next year and the Government may be able to start issuing bonds again next year.”
This 2.8€ billion disbursement consists of two parts: 1.1€ billion was approved for release following the full implementation of a set of 15 milestones by the Greek authorities, and is to be used for debt servicing. A further 1.7€ billion can now also be disbursed after a positive assessment of the clearance of net arrears by Greece; this amount will be disbursed to a dedicated account for clearing further arrears.
“I am also pleased to note that the Greek government has fulfilled its commitment to clear arrears, as this will have a positive impact on the country’s economy. I hope our good cooperation with the Greek Government continues, so that the Second Assessment of the Programme can be completed in a timely manner,” said Mr. Regling.
Second Assessment has begun
The Heads of the Institutions left Athens on Thursday and will return on 14th November.
The first round of negotiations relating to the Second Assessment with the representatives of the Institutions made "substantial progress" according to Finance Minister Euclid Tsakalotos.
The Board of the European Stability Mechanism (ESM) finally approved the disbursement of a 2.8€ billion subtranche to Greece that completes the First Assessment of the country’s third bailout programme.
In a written statement by ESM Managing Director Klaus Regling said: “Today’s decision to disburse 2.8€ billion to Greece is a sign that the Greek people are steadily making progress in reforming their country. The Government has completed key milestones in the area of pension reform, bank governance, the energy sector, and revenue collection. It has also taken further steps in making the new privatisation and investment fund operational. If the Government continues to implement the reforms agreed in the ESM programme, growth of the Greek economy could accelerate next year and the Government may be able to start issuing bonds again next year.”
This 2.8€ billion disbursement consists of two parts: 1.1€ billion was approved for release following the full implementation of a set of 15 milestones by the Greek authorities, and is to be used for debt servicing. A further 1.7€ billion can now also be disbursed after a positive assessment of the clearance of net arrears by Greece; this amount will be disbursed to a dedicated account for clearing further arrears.
“I am also pleased to note that the Greek government has fulfilled its commitment to clear arrears, as this will have a positive impact on the country’s economy. I hope our good cooperation with the Greek Government continues, so that the Second Assessment of the Programme can be completed in a timely manner,” said Mr. Regling.
Second Assessment has begun
The Heads of the Institutions left Athens on Thursday and will return on 14th November.
The first round of negotiations relating to the Second Assessment with the representatives of the Institutions made "substantial progress" according to Finance Minister Euclid Tsakalotos.
The Second Assessment begins
22.10.2016
Second Assessment
The Creditors’ Technical Teams arrived in Greece for Second Bailout Assessment arrived in Athens on Monday. The E.U. lead negotiators arrived on Wednesday and the IMF representatives were due on Friday.
The Creditors’ Technical Teams arrived in Greece for Second Bailout Assessment arrived in Athens on Monday. The E.U. lead negotiators arrived on Wednesday and the IMF representatives were due on Friday.
Labour market “reforms”, privatisations, the operation of the new Privatisation and Investment Fund and taxation are issues requiring agreement. The successful completion of the Assessment will see the release the remaining loan subtranche of 1.7 billion euros.
The Greek Government hopes that the Assessment will be completed by the end of November so that at the last Eurogroup of the year on December 5th the debt relief issue can be discussed.
The labour law “reforms” to be discussed include legislation to facilitate mass dismissals, collective contract bargaining, labour union regulations, minimum wage and special group salaries, such as judges and military staff. The new privatization fund is to be in operation before the end of the year. Also, parts of public utility companies should be transferred to the new fund.
In 2012 the New Democracy / PASOK coalition Government outlawed the mechanism of collective bargaining, cut the Minimum Wage and “liberalised” rules covering mass redundancies.
The creditors, particularly the International Monetary Fund, want further “liberalisation” of redundancy rules; they want to retain the current minimum wage system which is set by law and are opposed to the restoration of collective bargaining as practiced in other EU member states.
Other prior actions include the evaluation framework of public sector employees and their mobility, new boards of directors for public utility companies and the evaluation of boards of directors of banks by the Hellenic Financial Stability Fund.
"After so many years of recession where labour rights have been scrapped, Greece doesn't have any margin for extremes. Greece cannot forgo common practices which exist for workers in other EU member states," a Government official said. The official said a recent report by a Committee of Experts which suggested minimum wages should be endorsed by collective agreements was a good basis for the talks.
The Debt
In an interview for the Stuttgarter Nachrichten newspaper, German Finance Minister Wolfgang Schaeuble acknowledged that Greece has made progress in “reforms” but he rejected any discussions about debt relief before 2018.
Addressing SYRIZA’s Second Congress late on Thursday night, Alexis Tsipras said "I want to be clear. This vague urging us to 'do our homework and then we shall see' cannot be accepted."
"The Second Assessment will be concluded, and simultaneously the measures must be locked in on debt restructuring. And simultaneously we should enter the QE [ECB’s Quantitative Easing Programme Ed.]."
The German Finance Minister described as a “misunderstanding” the view that the IMF involvement in the Greek lending programme is uncertain because the debt is not sustainable. He denied that the German Government is on a collision course with the IMF, which is calling for measures to make the Greek debt sustainable.
The IMF has made its own participation in the next (3rd) bailout programme contingent upon debt relief. Individual EU member states, Germany chief among them, object to such calls. And so the IMF's future role remains unclear. The IMF has a key role to play in Greece's intended return to the financial markets. Participation in the financial markets is regarded as impossible without the IMF's seal of creditworthiness. The Greek Government has set its sights on returning to markets in 2017.
However, no other Institution has demanded more pro-business changes to Greece's labour relations policies. The IMF has been especially insistent that Greece relax its regulations on protection against dismissal. The IMF wants the Greek Government rather than social partners [employers and Trade Unions Ed.] to set the minimum wage, which has been reduced to 586€ a month. Meanwhile, Labour Minister Giorgos Katrougalos says he intends to wait for the European Court of Justice to pronounce its judgement on protection against dismissal.
The Greek Government hopes that the Assessment will be completed by the end of November so that at the last Eurogroup of the year on December 5th the debt relief issue can be discussed.
The labour law “reforms” to be discussed include legislation to facilitate mass dismissals, collective contract bargaining, labour union regulations, minimum wage and special group salaries, such as judges and military staff. The new privatization fund is to be in operation before the end of the year. Also, parts of public utility companies should be transferred to the new fund.
In 2012 the New Democracy / PASOK coalition Government outlawed the mechanism of collective bargaining, cut the Minimum Wage and “liberalised” rules covering mass redundancies.
The creditors, particularly the International Monetary Fund, want further “liberalisation” of redundancy rules; they want to retain the current minimum wage system which is set by law and are opposed to the restoration of collective bargaining as practiced in other EU member states.
Other prior actions include the evaluation framework of public sector employees and their mobility, new boards of directors for public utility companies and the evaluation of boards of directors of banks by the Hellenic Financial Stability Fund.
"After so many years of recession where labour rights have been scrapped, Greece doesn't have any margin for extremes. Greece cannot forgo common practices which exist for workers in other EU member states," a Government official said. The official said a recent report by a Committee of Experts which suggested minimum wages should be endorsed by collective agreements was a good basis for the talks.
The Debt
In an interview for the Stuttgarter Nachrichten newspaper, German Finance Minister Wolfgang Schaeuble acknowledged that Greece has made progress in “reforms” but he rejected any discussions about debt relief before 2018.
Addressing SYRIZA’s Second Congress late on Thursday night, Alexis Tsipras said "I want to be clear. This vague urging us to 'do our homework and then we shall see' cannot be accepted."
"The Second Assessment will be concluded, and simultaneously the measures must be locked in on debt restructuring. And simultaneously we should enter the QE [ECB’s Quantitative Easing Programme Ed.]."
The German Finance Minister described as a “misunderstanding” the view that the IMF involvement in the Greek lending programme is uncertain because the debt is not sustainable. He denied that the German Government is on a collision course with the IMF, which is calling for measures to make the Greek debt sustainable.
The IMF has made its own participation in the next (3rd) bailout programme contingent upon debt relief. Individual EU member states, Germany chief among them, object to such calls. And so the IMF's future role remains unclear. The IMF has a key role to play in Greece's intended return to the financial markets. Participation in the financial markets is regarded as impossible without the IMF's seal of creditworthiness. The Greek Government has set its sights on returning to markets in 2017.
However, no other Institution has demanded more pro-business changes to Greece's labour relations policies. The IMF has been especially insistent that Greece relax its regulations on protection against dismissal. The IMF wants the Greek Government rather than social partners [employers and Trade Unions Ed.] to set the minimum wage, which has been reduced to 586€ a month. Meanwhile, Labour Minister Giorgos Katrougalos says he intends to wait for the European Court of Justice to pronounce its judgement on protection against dismissal.
The Council of State: The TV Licences
The Council of State’s [The Supreme Court of Greece] plenary session on Tuesday agreed by 16 votes to 9 that the appeals lodged by six television channels against the recent government auction of TV licenses should be heard. The judges will now consider whether the law which made provision for the auction to reduce the number of nationwide TV licences to four was in line with the Constitution.
On Tuesday evening, Olga Gerovasili, the official Government spokeswoman said "With determination and respect for the law and our institutions, the Government is proceeding with the implementation of the people's mandate to enforce legality and regulation on the TV scene. Exactly what they, that is to say the political parties of the vested interests, refused to do for 27 years.
"Legality will prevail in spite of those who are fighting rearguard battles for the sake of the vested interests."
On Wednesday, a Government source commented on the decision of the Council of State: “Let no one rush to prejudge the outcome. Let us leave them to complete the hearing undisturbed.”
“The decision of the State Council on the formal admissibility of the Appeals on the issue of the television licenses prejudges nothing in terms of the substantive issue,” noted the Government official.
"Since various people have rushed to prejudge and gloat over the outcome of the State Council, we note that the State Council has already rejected a series of applications for interim relief [from paying the money for the licences Ed.], so the decision on the formal admissibility of the appeals does not mean anything in terms of the hearing on the substantive issues. And I would also note that with all this pressure exerted on the Council of State and the climate of terror which is being cultivated in recent days, I can not even begin to imagine what would have happened if the appeals had been formally judged unacceptable.”
The Council of State plenum will meet on October 24th and 26th to decide on the constitutionality and legality of the Government’s TV licencing law, Nikolaos Sakellariou, President of the Court announced on Wednesday.
The Council of State’s [The Supreme Court of Greece] plenary session on Tuesday agreed by 16 votes to 9 that the appeals lodged by six television channels against the recent government auction of TV licenses should be heard. The judges will now consider whether the law which made provision for the auction to reduce the number of nationwide TV licences to four was in line with the Constitution.
On Tuesday evening, Olga Gerovasili, the official Government spokeswoman said "With determination and respect for the law and our institutions, the Government is proceeding with the implementation of the people's mandate to enforce legality and regulation on the TV scene. Exactly what they, that is to say the political parties of the vested interests, refused to do for 27 years.
"Legality will prevail in spite of those who are fighting rearguard battles for the sake of the vested interests."
On Wednesday, a Government source commented on the decision of the Council of State: “Let no one rush to prejudge the outcome. Let us leave them to complete the hearing undisturbed.”
“The decision of the State Council on the formal admissibility of the Appeals on the issue of the television licenses prejudges nothing in terms of the substantive issue,” noted the Government official.
"Since various people have rushed to prejudge and gloat over the outcome of the State Council, we note that the State Council has already rejected a series of applications for interim relief [from paying the money for the licences Ed.], so the decision on the formal admissibility of the appeals does not mean anything in terms of the hearing on the substantive issues. And I would also note that with all this pressure exerted on the Council of State and the climate of terror which is being cultivated in recent days, I can not even begin to imagine what would have happened if the appeals had been formally judged unacceptable.”
The Council of State plenum will meet on October 24th and 26th to decide on the constitutionality and legality of the Government’s TV licencing law, Nikolaos Sakellariou, President of the Court announced on Wednesday.
Alexis Tsipras was re-elected President of SYRIZA unopposed with 93.54% of the vote at its Second Congress last weekend.
Corruption & Vested Interests in Greek Society Part 2
Alexis Tsipras’ speech in Parliament, opening the debate on corruption and the workings of vested interests in Greek society (10th October 2016). Part Two.
“So let us have a look at what is now the state of corruption and the vested interests that have held the country entrapped for more than forty years. And let us look at them from here, from this podium and in front of the whole Greek people who are watching us.
Twenty-seven years of impunity and the unaccountable operation of the broadcasting scene, beyond and outside any constitutional writ. And we come here today to say an end is coming to this lawlessness. Do you really think the average citizen does not understand? Do you take the citizens for fools? "The ignorant majority," as you once said? Why suddenly today do you all speak sharply about constitutional order? For twenty seven years, you reduced the country's Constitution to scrap paper, refusing to proceed with the competitive tendering for licences, the Constitution did not interest you.
My direct question, Mr. Mitsotakis, and I think you owe us an answer: Was the persistent refusal for twenty-seven years of your Governments, of New Democracy and of PASOK to settle the issue of licencing nationwide channels consistent with the Constitution? And why, if all those efforts were made, were all the auctions not completed? Why were they cancelled? Why they were postponed? Why did they fall through? Do you have something to say about this? Do you have any responsibility?
I will answer you in advance to also help you with your speech. For the same reason that from the first day you personally undermined the current Auctions, and, from the very first moment, their conduct, undermining the establishment of the National Broadcasting Council. For the same reason you sabotaged every effort made here to reach a consensus on this issue, efforts begun long before you took over because you didn’t want and you don’t want the broadcasting system in the country to be regulated, because you want to hold journalists hostage and the Channel Owners happy, by giving them the right to transmit to the free on the spectrum of the public frequencies without paying and so all are happy. All of course, except for the Greek citizens who are denied the right to objective and information from a variety of points of view, because it has now become evident ene to an elementary school pupil that the news media play in accordance with how the respective owner play their pipe. And this is obvious to every last Greek citizen.
Do you know something, however. We have decided that the holding of hostages and this game of reciprocal blackmail is to end. For the first time owners the news media were invited to pay what they owe to the Greek Treasury and the Greek people. On top of the 50€ million that we received over the whole of the previous period - the fees left uncollected by your own government- an auction was held. An auction that brought 255€ million to public funds, of which 90€ million are already in the public funds. And you know, already in their totality, they are being directed towards actions extremely necessary for society at a very difficult financial time for the country and the economy.
This, then, ladies and gentlemen, is the difference between us. The difference between us, ladies and gentlemen MPs, is that the same people you give loans with "air" [as guarantees] and to whom you give frequencies free of charge, we on the other hand bring them to the pay desk and they pay. They pay to the benefit of the Greek Treasury.
An auction took place, ladies and gentlemen MPs, which in practice proved absolutely honest, transparent, and in terms of public funds very effective…
So what you did you do then to undermine this process? You have threatened Ministers with special courts. You threatened to prosecute government officials who are carrying out their duties, the Tendering Committee. You have tried to create a climate of bullying the judiciary….
But I come now to the promise I gave you today that we will talk “names and addresses”.
Ladies and gentlemen, you know something that I'm very happy about with this auction for the licenses? I am very happy, because with this process the whole Greek people have finally found out that those who for years seemed to them invincible, monolithic giants were nothing more than ordinary entrepreneurs like everyone else and they should, like everyone in this country observe the law and be accountable to it, because the law applies to everyone.
The second thing that I am really excited about is what is coming out of the notorious Inquiry Commission and the loans of the political parties and the mass media…
…And what skeletons have been revealed! And what wardrobes have not been opened!
I want to glean some things that were said there by official lips, just so we do not forget. So there it was that Mr. Psycharis [Stavros Psycharis owns the Lambrakis Press which publishes the newspaper “Ta Nea” and “To Vima” and is a shareholder of ‘Teletypos S.A.”, which owns MEGA CHANNEL] admitted before the Commission that he has received a loan of 15€ million, with thin air as a guarantee. And when the President of the Commission asked him "what exactly do you mean, your guarantee was thin air?" "I meant what I said," he answered. To leave no unanswered questions. Thin air, ladies and gentlemen.
[More information about Mr. Psycharis can be found here http://www.eugreeka.com/inaccuracies-and-omissions-found-in-psycharis-asset-means-declaration-statement/ Ed.]
It was also to this Commission that Mr. Bobolas admitted that the banks gave loans to Channel Owners without any guarantees and that the "Big Channel", MEGA closed, not because the Government was organising an auction, but because the shareholders did not want to put their hands in their pockets. Obviously, when the loan-giving for thin air was stopped, Mr Mitsotakis.
It was to this Commission that Mr.Vardinogiannis confessed that the usual practice for lending money to TV channels on the basis of personal guarantees is a grey practice. It was to the same Commission that Mr. Alafouzos admitted that banks lent beyond all reason to the television stations, all in addition to his own station of course. And from what I know the Commission continues its work. Others will go on parade.
And so you come today you after everything that has come out into the open, after everything that has been narrated in this Commission, to talk, in the name of these people, about vested interests against us? That is to say, they disclose and admit what has been done in the country for so many years and you pretend what? Their desperate lawyers, desperate defenders, as desperate defenders of the vested interests, these people admit it and you try to rally the troops!...
Well, I will not step back. And do you know why I I am not going to step back, and why we will not step back? Because no one has us in their pocket. I have no obligations to anyone and I do not give account to anyone! And we will not step back, how ever much you threaten us, however much you blackmail us! This is the difference between us!
And you know why I have no obligations and we have no obligations and no one has us in their pocket? Because however long you search, in SYRIZA you will find neither arms nor bribes nor a sea of debt that’s why you should know we are not going to step back.
And since I mentioned a sea of debt. You went and set up another fabrication with the Attica Bank, but that too came at you like a boomerang. How do our people put it? You went for wool and found yourself fleeced.
You know something? Keep looking. Look, if you want to, at all our resources, because there are other resources for banks, but you will not find an accessory to a sea of debt in SYRIZA. Whichever sea of debt was granted by the Agricultural Bank, by the Bank of Attica or by another bank, was granted exclusively to your own friends and to yourselves, to your own political parties. Because if you want to speak specifically about the Bank of Attica, I want to remind you that it was PASOK and New Democracy which, in your days, took a loan of 13€ million from the Bank of Attica, and that this loan is currently not being serviced, and is not being repaid…..
Also I want to remind you who the CEO of the Bank of Attica was at the time – Mr. Manalis, a member of Mr. Samaras’ close circle,
You see, then, ladies and gentlemen MPs, ladies and gentlemen colleagues, how nice and sweet everything comes and ties up together? You see how this network of vested interests takes on flesh and bone and that is not just a ghost, but, a daily present material reality, the case of the vested interests, which is nourished by the sacrifices of the Greek people? Because the money of the banks money comes from there. The banks have been recapitalised. The money you have taken – your sea of debt – is the money which one by one, with their sacrifices, the Greek people are paying back.
And now you see why they all stake everything on the third act of the drama. It is because they see that their own network is now coming into light, that slowly things are beginning to be revealed and are beginning to take the road of justice….
So, let us speak now about the issue of the sea of debt of your parties, ladies and gentlemen. We won’t just leave it there. Let’s talk about the Kaloudis findings, and let me remind you about Mr. Giannitsis’ amendment in 2012, shortly before the elections, when there were no excuses.
Why now you all say, "Okay, what can we do? There were grants from Parliament, which were large, and for thirty years, forty years, and that constituted the status quo in which the two parties alternated in power with percentage votes close to 40%. So the banks had safeguards that they would get their money back."
In 2012, however, this excuse did not exist. Because the First Memorandum had already arrived, had already arrived and had sat on the backs of the Greek people, the grant in Parliament had been cut down by half and all opinion polls showed that, when we went to the elections, the two once mighty political parties which were used to taking 40 % of the vote, as it turned out one would take 19% and the other 12%.
And what did you do then? You who have the gall today to talk about scandals and services are, how much do you owe? Is it 210€ million you [New Democracy Ed.] owe, Mr Mitsotakis? You [PASOK Ed.], Mrs. Gennimata, how much? 189€ million on the backs of the Greek people.
And the Greek people wonder, will you give back this money or will you continue to live as parasites at the expense of the Greek people?
And will you tell us once, at last, where did all that huge mine of millions of euros go? 210€ million, 189€ million. What did you do? What did you do with the money? Will you tell us? Did you eat the money? Where did the money go?
And I ask you directly, Mr Mitsotakis. You took nice photos that you went to Moschato (suburb of Athens Ed.] - and good luck in your new offices. Is this the restitution? Well done. Make restitution. Will you pay it back? Will you begin to pay back even one euro from 210€ million you owe to the Greek people - and you have the nerve to talk about vested interests?
But, I don’t know, probably it’s a question of "borrowed and not returned" as you are also used to it being "borrowed and not returned" with your personal loans, which reminds about the "Chania Herald". I refer to 300,000€ loan - also in your name, if I am not mistaken – which you are not repaying.
A question: Will you repay it or shall it go as with other party monies onto the backs of the Greek people? Speak, finally! Give answers to the Greek people, directly in front of everyone!
But I come to 2012, because I think this was one of the biggest scandals involving public money. Because, I repeat, in 2012 everyone knew that there were no grants and your parties would not get these percentages of the vote.
And what did you do to contest the elections? Through the then Interior Minister Papademos, and Mr. Simitis’ Government Minister Mr. Giannitsis, you brought, at night as usual, an amendment. And what did this amendment in April 2012 say? It said that the parties should be given grants, unassigned to assets and not recoupable, relating to their funding for 2011 and for 2012 up until April, half of 2012, to contest the elections.
So what did New Democracy and PASOK do? When everyone else, SYRIZA, the Communist Party of Greece, the Independent Greeks, the Democratic Left, - all then contested the elections with money from the contributions of their members and with the least government funding, because those were their voting percentages then, they pocketed 30€ million in such a way as to prevent the banks from taking them as security for the millions you owed. And this they did in one night, with one amendment. This they did. And you have the audacity to come here today and speak.
This happened in 2012, ladies and gentlemen MPs, it is one of the biggest scandals on the misuse of public money to have ever occurred…
Let us continue, because there is a sequel. The elections take place. SYRIZA loses a few percentage points and here comes Mr. Samaras with Mr. Venizelos and make a coalition government. And then New Democracy comes with Article 78 of law 4146/2013 which exempts from any liability for the offence of malpractice by Bank Presidents, Board Members and Bank Executives in relation to loans made lavishly and without collateral to the then two big political parties. And it was precisely on the basis of this amendment, that the findings of the Attorney Kaloudis were put on record once and for all and by which the process of the criminal prosecution of forty-five bankers and fifteen political figures, including the general managers of both New Democracy and PASOK has commenced. And you talk about vested interests and interference in the Justice system.
Look, do not think your “works and days” will now be hidden by the hum of the mass media. The Greek people know. You talk about vested interests you who, for all your actions, should normally under other circumstances have begged the pardon of the Greek people, and you should have withdrawn the people who held positions of responsibility in these governments, and you should have refreshed your staffing. That’s what you should have done.
But you – you are the same people, the same families, the same individuals who bankrupted the country…
I am coming now to you, Mrs. Gennimata [Leader of PASOK Ed.]. Let me not leave you out. Alas. I do not know whether you will reply or Mr. Venizelos.
Mrs. Gennimata, one thing I want to know. Will you tell us where did these 15€ million come from that were suddenly discovered last January during the audit of your party funds by chartered accountants? You know something? It seems to me a little strange that you had such wealth that you could forget where it was, that you could overlook it. Fifteen million euros! That you did not have in your accounts.
You know, sometimes I can actually forget a five euro note, even a ten euro note in any old jacket; a fifty euro note- that I search for every time. When I lose a 50€ note, I know that I have lost a 50€ note. You, Mrs. Gennimata, on the other hand, did not even realize you had 16,000,000€?
Anyway, the point is not whether you got wind of that money; the point is what happened to it. Did you hand it over to repay your loans? Did those euros take flight along with the other 175€ million you have borrowed? Or perhaps they have been seized as evidence of some crime? Tell us, at last, some truth, so that finally the Greek people learn about it.
Because you know something, all of you? This money is not like the estate that one inherits from the property of their grandparents. That money is not your inheritance. It is money that you have borrowed from the banks which the Greek people are paying back with their blood. That money belongs to the Greek people and we must have it back.
Ladies and gentlemen MPs, I know that Mr. Mitsotakis will come up here after me, Mrs Gennimata will come and they will tell us: "Tsipras is divisive", "It was a divisive speech," "He threw mud at the fan." This is not about any mud or any fan. Everything I am referring to are in public legal briefs. They are matters which have finally taken the path to justice. They are matters you took action to conceal over the whole of the previous period and you still continue to do everything in your power to do so. Because this always was your sense of justice: the cover-up, the prevarication and, at the very end, the interference.
I want to say two words more about it, because in this recital of hypocrisy you accuse of interference in justice.
Listen, ladies and gentlemen of New Democracy and PASOK: Everybody in this country knows who lifted the telephone to guide senior and high prosecutors and magistrates. Everyone knows that both your parties have been at times agencies for dealing with pending judicial matters. But today that is finished. No case will fail to get to court in a timely fashion and no case will be forgotten.
One is currently the judge's responsibility: to rediscover the courage to do their duty selflessly and independently. I have said it before. This you consider interference? It is not interference to require that any honest judge who rises to the highest level of office - and you know, is not an office of Parliament nor is it our, it is an office of society, it is a patriotic duty, because in the end, this country has indebted, drowned in debt, society has been looted, the economy destroyed and finally justice must be done – whichever judge raises their head and says: "I will do my duty with independence and selflessness as ethics dictate," – that judge will have us at their side.
This, you know, is not interference. Last time in the debate on vested interests a few months ago I tried to explain to you exactly what interference is: the acquittals amendments, the amnesties, the filing of cases to order. What we have done and continue to do, is our duty. Each case, in which we suspected criminal activity, was referred directly and without delay to the relevant prosecutors.
We also did the same with the notorious case of the Hellenic Centre for Diseases Control and Prevention (KEELPNO), this hatchery of corruption in the country -and not too long ago. And at this moment, we have submitted to the prosecutor all the data about the case of the sinful contracts of KEELPNO along with OKANA [The Greek Organisation Against Narcotics Ed.], where according to the audits of the relevant bodies it is still not possible to determine where amounts of as much as 10€ million were spent when Mr. Loverdos was the Minister – I am hopeful that sometime it can be determined - and also the contracts which were made with advertising companies of well-known entrepreneurs.
Of course, it is possible for you, honourable former Ministers, -all of you who served - to keep your indemnity secure with the help, of course, of Mr. Venizelos, who was the initiator of the shameful Article 83 of the Constitution about Ministers’ immunity from responsibility…
So it is possible, the gentlemen, those of you who served as Ministers, to have immunity, to keep your indemnity secure, but in any case you are obliged to give political explanations before the Greek people. I would invite you to give them here in Parliament.
Since we are talking, then, about cover-ups, interference and amnesties, I would like to ask you, Mr Mitsotakis: Last March you again tried to create a climate and impressions about alleged Government interference in the Greek justice system. And what did you do? From this podium you regurgitated almost the entire line of defence of the accused Mr.Vgenopoulos, to name names. So Didn’t we say so?
So, I ask you directly: Today, after the criminal prosecution against Mr. Vgenopoulos for illegally lending 200€ million, do you still wish to appear before a court of law as counsel for the man in question?
So let me say this once and for all so you understand: You call it interference in the justice system when it is the will of the Government, which is authentic requirement of society, to investigate thoroughly all cases, which you took great care to hide in the drawers of the Ministries and audit mechanisms, all those cases which you did everything in your power for them to be ushered into the archives. Because for you, an independent judiciary is a "mangled" judiciary. For us an independent judiciary is one that investigates and applies the law everywhere, however high the ones being investigated are.
Did you not do the same with the cases of tax evasion? You hid lists in drawers and only when under the pressure of popular outcry you were forced to hand them over to the judiciary, you came out once more as defence counsel for your tax evader friends. And since you argued strongly in favour of the alleged illegal character of the use of the lists, of the famous memory sticks and of the lists by tax and Public Prosecutor authorities -because you said it - that it is unconstitutional and illegal - and when with our own amendment in Parliament we concluded this issue, you again rushed in to talk about violation of the Constitution, again, that is to say, you attempted to convert the Constitution into a weapon of the oligarchs and tax evaders.
Maybe you did it because you knew who were hiding within the lists, as was clearly demonstrated by the involvement of the member of the former government, bosom pal of Mr. Samaras, but yours too, apparently, Mr. Papastavros, who is involved in a large tax evasion case.
In reality, there is one question: OK, you are defending Mr.Vgenopoulos. You also defended Mr. Papastavros.
What about Mr. Sklavounos? Why did you make him responsible for the development plan of New Democracy? Didn’t you know that that man for many years was head of UBS in Greece, the bank which is today being audited for building a broad support to facilitate tax evasion? The Head of a bank which has been shown to have followed such practices in a series of countries and was called upon to pay huge fines, both in Europe and in America? But that is the sort of development you will bring in. Development with tax evasion running wild.
Ladies and gentlemen colleagues, it makes no sense for me to cite endless examples. What makes sense is for me to say in relation to the issues of tax evasion that the party is over and that now they are being audited and will be held accountable and all those who have concealed money will pay.
The lists of tax evaders are now being used to the full. While assessments from the lists from 2013 until 2014 were just 26.6€ million, with our own Government and within just 6 months these assessments have reached 900€ million. And the struggle continues.
On this occasion, I wish to inform Parliament that just ten days ago the Greek authorities received a new list from the Rhine Westphalia Authorities, from the Ministry of Mr. Emborian with the names of 475 large depositors in a bank in central Europe.
And you know the interesting thing is about this new list? These are 2010 figures, that is to say, data for a year for which no one can speak about a statute of limitation on the offences. And the list has been delivered to where it should, not into our drawers, but to the prosecuting authorities for the necessary action. This is another great success and we will give every assistance to prosecuting and auditing authorities for the complete identification and utilisation of this list.
Ladies and gentlemen, I want to close my opening speech – I am only closing my opening speech, don’t start rejoicing! - with the following: I don’t think there exists a Greek citizen who has not understood that in this country a great war is being waged. On the one hand, the forces of the vested interests, of corruption, of tax evasion, which have plundered the economy and society, bankrupted the country, struggling fiercely for the restoration of the old political system, to return to the practice of patronage state, of favours, of lawlessness and extortion.
On the other side are the healthy forces of society. And it is alongside these healthy forces that the Government wants to be. Despite the limitations, despite the chaos created forty years of corrosion and decline in every institution in the country, of each and every moral value, we are trying to bring order to the country.
I think every Greek citizen knows that this might be the only chance for our country. Even those who disagree with us are aware that we are the only ones that we can contribute a bit to it and achieve it; that we are the last hope for the country to be cleansed from the dung of the vested interests.
Mr Mitsotakis, in the previous debate a day ago in Parliament, you spoke from this podium, saying that each of us is our own experiences. And I agree with you. You said that I am "a child of the sit ins." And indeed, you are right. These are my own experiences, experiences of collective struggle. They are experiences of a sustained battle for a society of equality, freedom, justice.
You did not tell us what your own experiences are. Because when I was myself in sit ins and occupations, which you viewed as tearing down, paralyzing and destroying the country, then you started your political steps. And you started them with the close assistance of Mr. Christoforakos and with financial assistance from Siemens. That is the truth, Mr Mitsotakis.
You have talked here about an Agreement of Truth. So, I invite you to come here to the podium of Parliament as soon as I get down restore this truth.
If I, Mr Mitsotakis, I am "a child of the sit ins." -which indeed I am – you – and the whole of Greece knows it - you are a child of Siemens and the vested interests!
And, I want, Mr. Mitsotakis -to finish up - one thing, for you to get up on this podium, and respond to a single question. I think you owe an answer not to me, but to the Greek people. Now I am getting down, climb up here and answer a single question: Is there in the country a Siemens scandal, yes or no, Mr. Mitsotakis?”
Footnote:
The head of Alpha TV Dimitris Kontominas, a businessman who has also been involved in insurance, retail trade and cinema, was charged on Thursday with criminal counts of tax evasion and laundering income from illegal activity following an investigation carried out by financial prosecutors.
The charges concern a sum of about 48€ million that came to light as a discrepancy between Mr. Kontominas declared income and the bank deposits made in his name during the period 2006-2008.
The case against Mr. Kontominas was the result of a year-long investigation by financial prosecutors working with unified lists of tax-evaders, who had summoned him to explain the discrepancies in his financial affairs for the period in question. Mr. Kontominas denied committing any illegal act and had challenged the accusations made against him by the tax authorities. After a second review of the figures, however, his case against them was dismissed.
A year ago financial prosecutors had issued an order freezing Kontominas’ assets up to the sum of 100 million euros. The case file has now been forwarded from the Court of the First-Instance prosecutors to a special magistrate, who will summon the businessman to answer the charges made against him.
Alexis Tsipras’ speech in Parliament, opening the debate on corruption and the workings of vested interests in Greek society (10th October 2016). Part Two.
“So let us have a look at what is now the state of corruption and the vested interests that have held the country entrapped for more than forty years. And let us look at them from here, from this podium and in front of the whole Greek people who are watching us.
Twenty-seven years of impunity and the unaccountable operation of the broadcasting scene, beyond and outside any constitutional writ. And we come here today to say an end is coming to this lawlessness. Do you really think the average citizen does not understand? Do you take the citizens for fools? "The ignorant majority," as you once said? Why suddenly today do you all speak sharply about constitutional order? For twenty seven years, you reduced the country's Constitution to scrap paper, refusing to proceed with the competitive tendering for licences, the Constitution did not interest you.
My direct question, Mr. Mitsotakis, and I think you owe us an answer: Was the persistent refusal for twenty-seven years of your Governments, of New Democracy and of PASOK to settle the issue of licencing nationwide channels consistent with the Constitution? And why, if all those efforts were made, were all the auctions not completed? Why were they cancelled? Why they were postponed? Why did they fall through? Do you have something to say about this? Do you have any responsibility?
I will answer you in advance to also help you with your speech. For the same reason that from the first day you personally undermined the current Auctions, and, from the very first moment, their conduct, undermining the establishment of the National Broadcasting Council. For the same reason you sabotaged every effort made here to reach a consensus on this issue, efforts begun long before you took over because you didn’t want and you don’t want the broadcasting system in the country to be regulated, because you want to hold journalists hostage and the Channel Owners happy, by giving them the right to transmit to the free on the spectrum of the public frequencies without paying and so all are happy. All of course, except for the Greek citizens who are denied the right to objective and information from a variety of points of view, because it has now become evident ene to an elementary school pupil that the news media play in accordance with how the respective owner play their pipe. And this is obvious to every last Greek citizen.
Do you know something, however. We have decided that the holding of hostages and this game of reciprocal blackmail is to end. For the first time owners the news media were invited to pay what they owe to the Greek Treasury and the Greek people. On top of the 50€ million that we received over the whole of the previous period - the fees left uncollected by your own government- an auction was held. An auction that brought 255€ million to public funds, of which 90€ million are already in the public funds. And you know, already in their totality, they are being directed towards actions extremely necessary for society at a very difficult financial time for the country and the economy.
This, then, ladies and gentlemen, is the difference between us. The difference between us, ladies and gentlemen MPs, is that the same people you give loans with "air" [as guarantees] and to whom you give frequencies free of charge, we on the other hand bring them to the pay desk and they pay. They pay to the benefit of the Greek Treasury.
An auction took place, ladies and gentlemen MPs, which in practice proved absolutely honest, transparent, and in terms of public funds very effective…
So what you did you do then to undermine this process? You have threatened Ministers with special courts. You threatened to prosecute government officials who are carrying out their duties, the Tendering Committee. You have tried to create a climate of bullying the judiciary….
But I come now to the promise I gave you today that we will talk “names and addresses”.
Ladies and gentlemen, you know something that I'm very happy about with this auction for the licenses? I am very happy, because with this process the whole Greek people have finally found out that those who for years seemed to them invincible, monolithic giants were nothing more than ordinary entrepreneurs like everyone else and they should, like everyone in this country observe the law and be accountable to it, because the law applies to everyone.
The second thing that I am really excited about is what is coming out of the notorious Inquiry Commission and the loans of the political parties and the mass media…
…And what skeletons have been revealed! And what wardrobes have not been opened!
I want to glean some things that were said there by official lips, just so we do not forget. So there it was that Mr. Psycharis [Stavros Psycharis owns the Lambrakis Press which publishes the newspaper “Ta Nea” and “To Vima” and is a shareholder of ‘Teletypos S.A.”, which owns MEGA CHANNEL] admitted before the Commission that he has received a loan of 15€ million, with thin air as a guarantee. And when the President of the Commission asked him "what exactly do you mean, your guarantee was thin air?" "I meant what I said," he answered. To leave no unanswered questions. Thin air, ladies and gentlemen.
[More information about Mr. Psycharis can be found here http://www.eugreeka.com/inaccuracies-and-omissions-found-in-psycharis-asset-means-declaration-statement/ Ed.]
It was also to this Commission that Mr. Bobolas admitted that the banks gave loans to Channel Owners without any guarantees and that the "Big Channel", MEGA closed, not because the Government was organising an auction, but because the shareholders did not want to put their hands in their pockets. Obviously, when the loan-giving for thin air was stopped, Mr Mitsotakis.
It was to this Commission that Mr.Vardinogiannis confessed that the usual practice for lending money to TV channels on the basis of personal guarantees is a grey practice. It was to the same Commission that Mr. Alafouzos admitted that banks lent beyond all reason to the television stations, all in addition to his own station of course. And from what I know the Commission continues its work. Others will go on parade.
And so you come today you after everything that has come out into the open, after everything that has been narrated in this Commission, to talk, in the name of these people, about vested interests against us? That is to say, they disclose and admit what has been done in the country for so many years and you pretend what? Their desperate lawyers, desperate defenders, as desperate defenders of the vested interests, these people admit it and you try to rally the troops!...
Well, I will not step back. And do you know why I I am not going to step back, and why we will not step back? Because no one has us in their pocket. I have no obligations to anyone and I do not give account to anyone! And we will not step back, how ever much you threaten us, however much you blackmail us! This is the difference between us!
And you know why I have no obligations and we have no obligations and no one has us in their pocket? Because however long you search, in SYRIZA you will find neither arms nor bribes nor a sea of debt that’s why you should know we are not going to step back.
And since I mentioned a sea of debt. You went and set up another fabrication with the Attica Bank, but that too came at you like a boomerang. How do our people put it? You went for wool and found yourself fleeced.
You know something? Keep looking. Look, if you want to, at all our resources, because there are other resources for banks, but you will not find an accessory to a sea of debt in SYRIZA. Whichever sea of debt was granted by the Agricultural Bank, by the Bank of Attica or by another bank, was granted exclusively to your own friends and to yourselves, to your own political parties. Because if you want to speak specifically about the Bank of Attica, I want to remind you that it was PASOK and New Democracy which, in your days, took a loan of 13€ million from the Bank of Attica, and that this loan is currently not being serviced, and is not being repaid…..
Also I want to remind you who the CEO of the Bank of Attica was at the time – Mr. Manalis, a member of Mr. Samaras’ close circle,
You see, then, ladies and gentlemen MPs, ladies and gentlemen colleagues, how nice and sweet everything comes and ties up together? You see how this network of vested interests takes on flesh and bone and that is not just a ghost, but, a daily present material reality, the case of the vested interests, which is nourished by the sacrifices of the Greek people? Because the money of the banks money comes from there. The banks have been recapitalised. The money you have taken – your sea of debt – is the money which one by one, with their sacrifices, the Greek people are paying back.
And now you see why they all stake everything on the third act of the drama. It is because they see that their own network is now coming into light, that slowly things are beginning to be revealed and are beginning to take the road of justice….
So, let us speak now about the issue of the sea of debt of your parties, ladies and gentlemen. We won’t just leave it there. Let’s talk about the Kaloudis findings, and let me remind you about Mr. Giannitsis’ amendment in 2012, shortly before the elections, when there were no excuses.
Why now you all say, "Okay, what can we do? There were grants from Parliament, which were large, and for thirty years, forty years, and that constituted the status quo in which the two parties alternated in power with percentage votes close to 40%. So the banks had safeguards that they would get their money back."
In 2012, however, this excuse did not exist. Because the First Memorandum had already arrived, had already arrived and had sat on the backs of the Greek people, the grant in Parliament had been cut down by half and all opinion polls showed that, when we went to the elections, the two once mighty political parties which were used to taking 40 % of the vote, as it turned out one would take 19% and the other 12%.
And what did you do then? You who have the gall today to talk about scandals and services are, how much do you owe? Is it 210€ million you [New Democracy Ed.] owe, Mr Mitsotakis? You [PASOK Ed.], Mrs. Gennimata, how much? 189€ million on the backs of the Greek people.
And the Greek people wonder, will you give back this money or will you continue to live as parasites at the expense of the Greek people?
And will you tell us once, at last, where did all that huge mine of millions of euros go? 210€ million, 189€ million. What did you do? What did you do with the money? Will you tell us? Did you eat the money? Where did the money go?
And I ask you directly, Mr Mitsotakis. You took nice photos that you went to Moschato (suburb of Athens Ed.] - and good luck in your new offices. Is this the restitution? Well done. Make restitution. Will you pay it back? Will you begin to pay back even one euro from 210€ million you owe to the Greek people - and you have the nerve to talk about vested interests?
But, I don’t know, probably it’s a question of "borrowed and not returned" as you are also used to it being "borrowed and not returned" with your personal loans, which reminds about the "Chania Herald". I refer to 300,000€ loan - also in your name, if I am not mistaken – which you are not repaying.
A question: Will you repay it or shall it go as with other party monies onto the backs of the Greek people? Speak, finally! Give answers to the Greek people, directly in front of everyone!
But I come to 2012, because I think this was one of the biggest scandals involving public money. Because, I repeat, in 2012 everyone knew that there were no grants and your parties would not get these percentages of the vote.
And what did you do to contest the elections? Through the then Interior Minister Papademos, and Mr. Simitis’ Government Minister Mr. Giannitsis, you brought, at night as usual, an amendment. And what did this amendment in April 2012 say? It said that the parties should be given grants, unassigned to assets and not recoupable, relating to their funding for 2011 and for 2012 up until April, half of 2012, to contest the elections.
So what did New Democracy and PASOK do? When everyone else, SYRIZA, the Communist Party of Greece, the Independent Greeks, the Democratic Left, - all then contested the elections with money from the contributions of their members and with the least government funding, because those were their voting percentages then, they pocketed 30€ million in such a way as to prevent the banks from taking them as security for the millions you owed. And this they did in one night, with one amendment. This they did. And you have the audacity to come here today and speak.
This happened in 2012, ladies and gentlemen MPs, it is one of the biggest scandals on the misuse of public money to have ever occurred…
Let us continue, because there is a sequel. The elections take place. SYRIZA loses a few percentage points and here comes Mr. Samaras with Mr. Venizelos and make a coalition government. And then New Democracy comes with Article 78 of law 4146/2013 which exempts from any liability for the offence of malpractice by Bank Presidents, Board Members and Bank Executives in relation to loans made lavishly and without collateral to the then two big political parties. And it was precisely on the basis of this amendment, that the findings of the Attorney Kaloudis were put on record once and for all and by which the process of the criminal prosecution of forty-five bankers and fifteen political figures, including the general managers of both New Democracy and PASOK has commenced. And you talk about vested interests and interference in the Justice system.
Look, do not think your “works and days” will now be hidden by the hum of the mass media. The Greek people know. You talk about vested interests you who, for all your actions, should normally under other circumstances have begged the pardon of the Greek people, and you should have withdrawn the people who held positions of responsibility in these governments, and you should have refreshed your staffing. That’s what you should have done.
But you – you are the same people, the same families, the same individuals who bankrupted the country…
I am coming now to you, Mrs. Gennimata [Leader of PASOK Ed.]. Let me not leave you out. Alas. I do not know whether you will reply or Mr. Venizelos.
Mrs. Gennimata, one thing I want to know. Will you tell us where did these 15€ million come from that were suddenly discovered last January during the audit of your party funds by chartered accountants? You know something? It seems to me a little strange that you had such wealth that you could forget where it was, that you could overlook it. Fifteen million euros! That you did not have in your accounts.
You know, sometimes I can actually forget a five euro note, even a ten euro note in any old jacket; a fifty euro note- that I search for every time. When I lose a 50€ note, I know that I have lost a 50€ note. You, Mrs. Gennimata, on the other hand, did not even realize you had 16,000,000€?
Anyway, the point is not whether you got wind of that money; the point is what happened to it. Did you hand it over to repay your loans? Did those euros take flight along with the other 175€ million you have borrowed? Or perhaps they have been seized as evidence of some crime? Tell us, at last, some truth, so that finally the Greek people learn about it.
Because you know something, all of you? This money is not like the estate that one inherits from the property of their grandparents. That money is not your inheritance. It is money that you have borrowed from the banks which the Greek people are paying back with their blood. That money belongs to the Greek people and we must have it back.
Ladies and gentlemen MPs, I know that Mr. Mitsotakis will come up here after me, Mrs Gennimata will come and they will tell us: "Tsipras is divisive", "It was a divisive speech," "He threw mud at the fan." This is not about any mud or any fan. Everything I am referring to are in public legal briefs. They are matters which have finally taken the path to justice. They are matters you took action to conceal over the whole of the previous period and you still continue to do everything in your power to do so. Because this always was your sense of justice: the cover-up, the prevarication and, at the very end, the interference.
I want to say two words more about it, because in this recital of hypocrisy you accuse of interference in justice.
Listen, ladies and gentlemen of New Democracy and PASOK: Everybody in this country knows who lifted the telephone to guide senior and high prosecutors and magistrates. Everyone knows that both your parties have been at times agencies for dealing with pending judicial matters. But today that is finished. No case will fail to get to court in a timely fashion and no case will be forgotten.
One is currently the judge's responsibility: to rediscover the courage to do their duty selflessly and independently. I have said it before. This you consider interference? It is not interference to require that any honest judge who rises to the highest level of office - and you know, is not an office of Parliament nor is it our, it is an office of society, it is a patriotic duty, because in the end, this country has indebted, drowned in debt, society has been looted, the economy destroyed and finally justice must be done – whichever judge raises their head and says: "I will do my duty with independence and selflessness as ethics dictate," – that judge will have us at their side.
This, you know, is not interference. Last time in the debate on vested interests a few months ago I tried to explain to you exactly what interference is: the acquittals amendments, the amnesties, the filing of cases to order. What we have done and continue to do, is our duty. Each case, in which we suspected criminal activity, was referred directly and without delay to the relevant prosecutors.
We also did the same with the notorious case of the Hellenic Centre for Diseases Control and Prevention (KEELPNO), this hatchery of corruption in the country -and not too long ago. And at this moment, we have submitted to the prosecutor all the data about the case of the sinful contracts of KEELPNO along with OKANA [The Greek Organisation Against Narcotics Ed.], where according to the audits of the relevant bodies it is still not possible to determine where amounts of as much as 10€ million were spent when Mr. Loverdos was the Minister – I am hopeful that sometime it can be determined - and also the contracts which were made with advertising companies of well-known entrepreneurs.
Of course, it is possible for you, honourable former Ministers, -all of you who served - to keep your indemnity secure with the help, of course, of Mr. Venizelos, who was the initiator of the shameful Article 83 of the Constitution about Ministers’ immunity from responsibility…
So it is possible, the gentlemen, those of you who served as Ministers, to have immunity, to keep your indemnity secure, but in any case you are obliged to give political explanations before the Greek people. I would invite you to give them here in Parliament.
Since we are talking, then, about cover-ups, interference and amnesties, I would like to ask you, Mr Mitsotakis: Last March you again tried to create a climate and impressions about alleged Government interference in the Greek justice system. And what did you do? From this podium you regurgitated almost the entire line of defence of the accused Mr.Vgenopoulos, to name names. So Didn’t we say so?
So, I ask you directly: Today, after the criminal prosecution against Mr. Vgenopoulos for illegally lending 200€ million, do you still wish to appear before a court of law as counsel for the man in question?
So let me say this once and for all so you understand: You call it interference in the justice system when it is the will of the Government, which is authentic requirement of society, to investigate thoroughly all cases, which you took great care to hide in the drawers of the Ministries and audit mechanisms, all those cases which you did everything in your power for them to be ushered into the archives. Because for you, an independent judiciary is a "mangled" judiciary. For us an independent judiciary is one that investigates and applies the law everywhere, however high the ones being investigated are.
Did you not do the same with the cases of tax evasion? You hid lists in drawers and only when under the pressure of popular outcry you were forced to hand them over to the judiciary, you came out once more as defence counsel for your tax evader friends. And since you argued strongly in favour of the alleged illegal character of the use of the lists, of the famous memory sticks and of the lists by tax and Public Prosecutor authorities -because you said it - that it is unconstitutional and illegal - and when with our own amendment in Parliament we concluded this issue, you again rushed in to talk about violation of the Constitution, again, that is to say, you attempted to convert the Constitution into a weapon of the oligarchs and tax evaders.
Maybe you did it because you knew who were hiding within the lists, as was clearly demonstrated by the involvement of the member of the former government, bosom pal of Mr. Samaras, but yours too, apparently, Mr. Papastavros, who is involved in a large tax evasion case.
In reality, there is one question: OK, you are defending Mr.Vgenopoulos. You also defended Mr. Papastavros.
What about Mr. Sklavounos? Why did you make him responsible for the development plan of New Democracy? Didn’t you know that that man for many years was head of UBS in Greece, the bank which is today being audited for building a broad support to facilitate tax evasion? The Head of a bank which has been shown to have followed such practices in a series of countries and was called upon to pay huge fines, both in Europe and in America? But that is the sort of development you will bring in. Development with tax evasion running wild.
Ladies and gentlemen colleagues, it makes no sense for me to cite endless examples. What makes sense is for me to say in relation to the issues of tax evasion that the party is over and that now they are being audited and will be held accountable and all those who have concealed money will pay.
The lists of tax evaders are now being used to the full. While assessments from the lists from 2013 until 2014 were just 26.6€ million, with our own Government and within just 6 months these assessments have reached 900€ million. And the struggle continues.
On this occasion, I wish to inform Parliament that just ten days ago the Greek authorities received a new list from the Rhine Westphalia Authorities, from the Ministry of Mr. Emborian with the names of 475 large depositors in a bank in central Europe.
And you know the interesting thing is about this new list? These are 2010 figures, that is to say, data for a year for which no one can speak about a statute of limitation on the offences. And the list has been delivered to where it should, not into our drawers, but to the prosecuting authorities for the necessary action. This is another great success and we will give every assistance to prosecuting and auditing authorities for the complete identification and utilisation of this list.
Ladies and gentlemen, I want to close my opening speech – I am only closing my opening speech, don’t start rejoicing! - with the following: I don’t think there exists a Greek citizen who has not understood that in this country a great war is being waged. On the one hand, the forces of the vested interests, of corruption, of tax evasion, which have plundered the economy and society, bankrupted the country, struggling fiercely for the restoration of the old political system, to return to the practice of patronage state, of favours, of lawlessness and extortion.
On the other side are the healthy forces of society. And it is alongside these healthy forces that the Government wants to be. Despite the limitations, despite the chaos created forty years of corrosion and decline in every institution in the country, of each and every moral value, we are trying to bring order to the country.
I think every Greek citizen knows that this might be the only chance for our country. Even those who disagree with us are aware that we are the only ones that we can contribute a bit to it and achieve it; that we are the last hope for the country to be cleansed from the dung of the vested interests.
Mr Mitsotakis, in the previous debate a day ago in Parliament, you spoke from this podium, saying that each of us is our own experiences. And I agree with you. You said that I am "a child of the sit ins." And indeed, you are right. These are my own experiences, experiences of collective struggle. They are experiences of a sustained battle for a society of equality, freedom, justice.
You did not tell us what your own experiences are. Because when I was myself in sit ins and occupations, which you viewed as tearing down, paralyzing and destroying the country, then you started your political steps. And you started them with the close assistance of Mr. Christoforakos and with financial assistance from Siemens. That is the truth, Mr Mitsotakis.
You have talked here about an Agreement of Truth. So, I invite you to come here to the podium of Parliament as soon as I get down restore this truth.
If I, Mr Mitsotakis, I am "a child of the sit ins." -which indeed I am – you – and the whole of Greece knows it - you are a child of Siemens and the vested interests!
And, I want, Mr. Mitsotakis -to finish up - one thing, for you to get up on this podium, and respond to a single question. I think you owe an answer not to me, but to the Greek people. Now I am getting down, climb up here and answer a single question: Is there in the country a Siemens scandal, yes or no, Mr. Mitsotakis?”
Footnote:
The head of Alpha TV Dimitris Kontominas, a businessman who has also been involved in insurance, retail trade and cinema, was charged on Thursday with criminal counts of tax evasion and laundering income from illegal activity following an investigation carried out by financial prosecutors.
The charges concern a sum of about 48€ million that came to light as a discrepancy between Mr. Kontominas declared income and the bank deposits made in his name during the period 2006-2008.
The case against Mr. Kontominas was the result of a year-long investigation by financial prosecutors working with unified lists of tax-evaders, who had summoned him to explain the discrepancies in his financial affairs for the period in question. Mr. Kontominas denied committing any illegal act and had challenged the accusations made against him by the tax authorities. After a second review of the figures, however, his case against them was dismissed.
A year ago financial prosecutors had issued an order freezing Kontominas’ assets up to the sum of 100 million euros. The case file has now been forwarded from the Court of the First-Instance prosecutors to a special magistrate, who will summon the businessman to answer the charges made against him.
This Week in Politics
15.10.2016
The Debt
"The IMF’s well-known analysis of the viability of the debt must be finally acted on by Christmas, otherwise there is no way forward" Economy Minister Giorgos Stathakis told the Parliamentary Subcommittee on the Debt.
"The IMF’s well-known analysis of the viability of the debt must be finally acted on by Christmas, otherwise there is no way forward" Economy Minister Giorgos Stathakis told the Parliamentary Subcommittee on the Debt.
"The Government's strategy is to stick to the Eurogroup’s decision in May for us to quickly get to the discussion and for a solution to the debt to be found. In May the Eurogroup agreed a package of measures which will gradually be implemented, but it is essential that the cost of servicing the debt must not exceed 15% of GDP."
Specifically, the decision takes the form of three small 'boxes' of measures, most of which can be taken immediately.
The First "box" is the refinancing of part of the debt related to paying off the EFSF (The European Financial Stability Facility) and the ESM (European Stability Mechanism) by utilising the favourable situation in relation to interest rates, which have been reduced to 0% by the ECB. That is to say, one part of the debt can be refinanced at lower interest rates.
The Second "box" refers to short-term measures and includes stabilising the repayment interest rate - currently 70% of the debt is at floating interest rates. The "locking" in of interest rates can be of benefit to the tune of even two percentage points on a ten-year bond. Furthermore, it includes profits for the ECB and the European central banks, re-using resources to reduce interest rates and loan maturities that create turbulence and in particular the reshaping of some loans.
The Third "box" is for 2018 based on the implementation of the other two "boxes" and relates to measures, if deemed necessary, to avoid a deviation from the ceiling of 15% of GDP [to be spent on servicing the debt. Ed.].
"The general consensus is that the debt remains unsustainable and something more is needed to make it sustainable... Therefore some direct or indirect form of restructuring is needed that will adjust the debt to the economy's ability to service it and that requires some additional measures."
The Minister noted that "the current debt profile creates certainty for the next few years, but in the debt maturity timetable up to 2059, we find that there are peaks such as in 2023-2024, 2037-2039.
The debate taking place now has one principle: this debt must acquire a stable structure over time – to avoid these peaks and avoid constant fluctuations."
"This approach reassures the investor. The strategy is to find the tools and methods for this strategy to achieve stability and depth."
The IMF has delayed getting involved in Greece’s third bailout programme, because it believes the fiscal targets set for Greece by the Eurozone will never be achieved without debt relief. The EU maintains the Greek economy is recovering and has promised short-term measures to ease the burden of repayments.
David Lipton, Special Advisor to the Managing Director of the IMF, in an interview with the German newspaper Süddeutsche Zeitung, said that the IMF would enter the next bailout programme provided certain conditions were met so that Greece’s debt is sustainable.
“The intention is for the IMF to be involved,” Jeroen Dijsselbloem, President of the Eurogroup
said. “That involvement would also be financial and that is the starting point of our discussion.”
.......................
Economists at the Organisation for Economic Co-operation and Development (OECD) have forecast the Greek economy will grow during the second half of 2016, expanding to 1.9% GDP growth in 2017.
But the effects of the devastating six-year recession have been slow to spread. Unemployment remains the highest in Europe: 1.12 million people, 23% of the workforce, cannot find a job. Although young people are far more likely to be out of work, unemployment is rising for the over-55s, as older people are pushed out of the labour market in favour of younger, cheaper employees.
Specifically, the decision takes the form of three small 'boxes' of measures, most of which can be taken immediately.
The First "box" is the refinancing of part of the debt related to paying off the EFSF (The European Financial Stability Facility) and the ESM (European Stability Mechanism) by utilising the favourable situation in relation to interest rates, which have been reduced to 0% by the ECB. That is to say, one part of the debt can be refinanced at lower interest rates.
The Second "box" refers to short-term measures and includes stabilising the repayment interest rate - currently 70% of the debt is at floating interest rates. The "locking" in of interest rates can be of benefit to the tune of even two percentage points on a ten-year bond. Furthermore, it includes profits for the ECB and the European central banks, re-using resources to reduce interest rates and loan maturities that create turbulence and in particular the reshaping of some loans.
The Third "box" is for 2018 based on the implementation of the other two "boxes" and relates to measures, if deemed necessary, to avoid a deviation from the ceiling of 15% of GDP [to be spent on servicing the debt. Ed.].
"The general consensus is that the debt remains unsustainable and something more is needed to make it sustainable... Therefore some direct or indirect form of restructuring is needed that will adjust the debt to the economy's ability to service it and that requires some additional measures."
The Minister noted that "the current debt profile creates certainty for the next few years, but in the debt maturity timetable up to 2059, we find that there are peaks such as in 2023-2024, 2037-2039.
The debate taking place now has one principle: this debt must acquire a stable structure over time – to avoid these peaks and avoid constant fluctuations."
"This approach reassures the investor. The strategy is to find the tools and methods for this strategy to achieve stability and depth."
The IMF has delayed getting involved in Greece’s third bailout programme, because it believes the fiscal targets set for Greece by the Eurozone will never be achieved without debt relief. The EU maintains the Greek economy is recovering and has promised short-term measures to ease the burden of repayments.
David Lipton, Special Advisor to the Managing Director of the IMF, in an interview with the German newspaper Süddeutsche Zeitung, said that the IMF would enter the next bailout programme provided certain conditions were met so that Greece’s debt is sustainable.
“The intention is for the IMF to be involved,” Jeroen Dijsselbloem, President of the Eurogroup
said. “That involvement would also be financial and that is the starting point of our discussion.”
.......................
Economists at the Organisation for Economic Co-operation and Development (OECD) have forecast the Greek economy will grow during the second half of 2016, expanding to 1.9% GDP growth in 2017.
But the effects of the devastating six-year recession have been slow to spread. Unemployment remains the highest in Europe: 1.12 million people, 23% of the workforce, cannot find a job. Although young people are far more likely to be out of work, unemployment is rising for the over-55s, as older people are pushed out of the labour market in favour of younger, cheaper employees.
First Assessment completed
At its meeting on Monday October 10th, the Eurogroup authorised the disbursement of 1.1€ billion. It announced that Greece had undertaken the necessary “reforms” of pensions, of the energy sector and of the governance of banks, the independent management of state asset income and the privatisation programme.
At its meeting on Monday October 10th, the Eurogroup authorised the disbursement of 1.1€ billion. It announced that Greece had undertaken the necessary “reforms” of pensions, of the energy sector and of the governance of banks, the independent management of state asset income and the privatisation programme.
The Eurogroup welcomed the further progress on the Privatisation and Investment Fund, adding that the appointment of the members of the Board of the Fund, including its President and Managing Director is a "priority" in order to make the fund fully operational before the end of 2016, within the framework of the Second Assessment.
"We welcome the commitment of the Greek authorities to ensure that the appointment process is in accordance with the requirements of the legislation for the Fund so as to ensure the full independence and professionalism of the Board members and that corporate governance standards will be in accordance with international best practice."
On Tuesday, these appointments were published in the Government Gazette. The Government has appointed the five supervisory council members of the Hellenic Company of Holdings and Assets SA : Georgios Stamboulis, Georgios-Spyros Tavlas, Olga Haritou, Jacques Le Pape and David Vegara Figueras. The Greek Government chose three council members and the Creditors the other two. The Council will be chaired by French official Pape.
Pierre Moscovici, EU Economic Affairs Commissioner, said “all remaining milestones have been completed.”
Minister of Finance, Euclid Tsakalotos leaving the meeting expressed satisfaction at the outcome of the Eurogroup.
The 2.8€ billion sub-tranche is being disbursed in two installments simply for technical reasons. Greece must produce September’s final settlement statement on the clearance of payments of mature government bills. Official figures in September could not come out before the end of October. “The money will come, don’t worry,” said Jeroen Dijsselbloem, the head of the Eurogroup, describing the delay as an unavoidable data-collection issue, not a political decision.
"The disbursement of 1.7€ billion will be made on October 24th," said Minister Tsakalotos." That is at the next meeting the ESM (European Stability Mechanism), where official figures for September will confirm that we are well over our target."
"We welcome the commitment of the Greek authorities to ensure that the appointment process is in accordance with the requirements of the legislation for the Fund so as to ensure the full independence and professionalism of the Board members and that corporate governance standards will be in accordance with international best practice."
On Tuesday, these appointments were published in the Government Gazette. The Government has appointed the five supervisory council members of the Hellenic Company of Holdings and Assets SA : Georgios Stamboulis, Georgios-Spyros Tavlas, Olga Haritou, Jacques Le Pape and David Vegara Figueras. The Greek Government chose three council members and the Creditors the other two. The Council will be chaired by French official Pape.
Pierre Moscovici, EU Economic Affairs Commissioner, said “all remaining milestones have been completed.”
Minister of Finance, Euclid Tsakalotos leaving the meeting expressed satisfaction at the outcome of the Eurogroup.
The 2.8€ billion sub-tranche is being disbursed in two installments simply for technical reasons. Greece must produce September’s final settlement statement on the clearance of payments of mature government bills. Official figures in September could not come out before the end of October. “The money will come, don’t worry,” said Jeroen Dijsselbloem, the head of the Eurogroup, describing the delay as an unavoidable data-collection issue, not a political decision.
"The disbursement of 1.7€ billion will be made on October 24th," said Minister Tsakalotos." That is at the next meeting the ESM (European Stability Mechanism), where official figures for September will confirm that we are well over our target."
Second Assessment
Attention now turns to the Second Assessment of the Greek programme. The Institutions will return to Athens on Monday (17th October). The Second Assessment will focus on the reform of the Greek labour market, EU officials said.
Greek Minister of Labour Georgios Katrougalos stressed that the Greek Government will not sacrifice workers’ rights, even if offered a reduction in public debt, when Athens and its international creditors meet for talks on labour reform next week as part of the country’s bailout programme Second Assessment.
“We are not willing to sacrifice Greek workers’ rights for anything – even a reduction in debt,” said Georgios Katrougalos, the Greek Minister of Labour, referring to the IMF’s indication that debt relief could be offered in exchange for labour reform.
“Greece is the European country with the greatest deregulation of labour relations,” Minister Katrougalos insisted.
He reiterated that the Greek Government’s objective is to return to “the normal European level, in respect of the European social model”. “The IMF’s stance reflects an extremist neoliberal position that is incompatible with the European model.”
“We don’t intend to introduce more flexibility,” he said. “Half of the jobs created (since the SYRIZA Government was elected Ed.) are only part-time, precisely because flexibility already exists. So we don’t intend to bring in more flexibility”.
“Our position in regard to pensions, as well as wages, was that instead of cuts there should be increases,” the Minister insisted, warning that the third bailout programme is only “prolonging austerity”.
He argued that in order to avoid “uncontrolled bankruptcy”, the Government had been forced to strike a compromise that “no one was satisfied with.”
“We have accepted a neoliberal programme, but we have not been transformed into a neoliberal nation,” he said.
Attention now turns to the Second Assessment of the Greek programme. The Institutions will return to Athens on Monday (17th October). The Second Assessment will focus on the reform of the Greek labour market, EU officials said.
Greek Minister of Labour Georgios Katrougalos stressed that the Greek Government will not sacrifice workers’ rights, even if offered a reduction in public debt, when Athens and its international creditors meet for talks on labour reform next week as part of the country’s bailout programme Second Assessment.
“We are not willing to sacrifice Greek workers’ rights for anything – even a reduction in debt,” said Georgios Katrougalos, the Greek Minister of Labour, referring to the IMF’s indication that debt relief could be offered in exchange for labour reform.
“Greece is the European country with the greatest deregulation of labour relations,” Minister Katrougalos insisted.
He reiterated that the Greek Government’s objective is to return to “the normal European level, in respect of the European social model”. “The IMF’s stance reflects an extremist neoliberal position that is incompatible with the European model.”
“We don’t intend to introduce more flexibility,” he said. “Half of the jobs created (since the SYRIZA Government was elected Ed.) are only part-time, precisely because flexibility already exists. So we don’t intend to bring in more flexibility”.
“Our position in regard to pensions, as well as wages, was that instead of cuts there should be increases,” the Minister insisted, warning that the third bailout programme is only “prolonging austerity”.
He argued that in order to avoid “uncontrolled bankruptcy”, the Government had been forced to strike a compromise that “no one was satisfied with.”
“We have accepted a neoliberal programme, but we have not been transformed into a neoliberal nation,” he said.
SYRIZA National Congress
SYRIZA’s 2nd Congress is taking place from Thursday until this Sunday October 13th – 16th with provision for some 2,300 elected delegates. The slogan of the Congress is: "Ahead with the Left for the Greece we deserve. Social Justice - Democracy - Equitable Development."
According to the SYRIZA Press Briefing, “A key issue on the agenda of the Congress – apart from the obvious need for an updated political project to finally get the country out of the crisis - is the relationship of SYRIZA to Greek society. Central is the question of SYRIZA’s previous political entity the SYNAPSISMOS (Alliance).
“This is not because of internal party conflicts. It is because of the need to take stock after the intense political experience of the previous two to three years.
Key issues are:
a) The relationship of SYRIZA with society, including the party's difficulty in increasing the number of its members who actively participate in areas of mass activity and who inspire movements and who increase its contact with the society, given that the coming months will be characterized by the culmination of the Memorandum measures, while the faint signs of economic recovery will have only just begun to show through.
b) The party's relationships with social democracy at the European level, but also at home. As regards the first, the fine line must be sought out which must be set as a boundary to building alliances with European social democrats, but all sections of the party have recognized the usefulness of these alliances.
As regards the domestic social democracy, things are more difficult due to the insistence of its official bodies to identify with New Democracy. The question is whether SYRIZA should orientate itself politically directly to this space, possibly by attracting high-profile elements from it, or if SYRIZA should insist on the line of co-operation on the basis of converging programmes.
c) The improvement needed in the effectiveness of the governance of SYRIZA, but also the need to address certain negative symptoms which have begun to appear in the practical exercising of power. Also the Congress must advance the working through of SYRIZA’s programme to give some general guidelines for Government policy, and also to make the party-government connection more effective by upgrading the party’s role.
d) Regarding the evaluation of the previous years (especially the last two years), one vitally important issue is the false impression the party had about the balance of forces in the negotiations with the Lenders, another is the need to address some maximalist positions contained in the Thessaloniki Programme.
SYRIZA’s 2nd Congress is taking place from Thursday until this Sunday October 13th – 16th with provision for some 2,300 elected delegates. The slogan of the Congress is: "Ahead with the Left for the Greece we deserve. Social Justice - Democracy - Equitable Development."
According to the SYRIZA Press Briefing, “A key issue on the agenda of the Congress – apart from the obvious need for an updated political project to finally get the country out of the crisis - is the relationship of SYRIZA to Greek society. Central is the question of SYRIZA’s previous political entity the SYNAPSISMOS (Alliance).
“This is not because of internal party conflicts. It is because of the need to take stock after the intense political experience of the previous two to three years.
Key issues are:
a) The relationship of SYRIZA with society, including the party's difficulty in increasing the number of its members who actively participate in areas of mass activity and who inspire movements and who increase its contact with the society, given that the coming months will be characterized by the culmination of the Memorandum measures, while the faint signs of economic recovery will have only just begun to show through.
b) The party's relationships with social democracy at the European level, but also at home. As regards the first, the fine line must be sought out which must be set as a boundary to building alliances with European social democrats, but all sections of the party have recognized the usefulness of these alliances.
As regards the domestic social democracy, things are more difficult due to the insistence of its official bodies to identify with New Democracy. The question is whether SYRIZA should orientate itself politically directly to this space, possibly by attracting high-profile elements from it, or if SYRIZA should insist on the line of co-operation on the basis of converging programmes.
c) The improvement needed in the effectiveness of the governance of SYRIZA, but also the need to address certain negative symptoms which have begun to appear in the practical exercising of power. Also the Congress must advance the working through of SYRIZA’s programme to give some general guidelines for Government policy, and also to make the party-government connection more effective by upgrading the party’s role.
d) Regarding the evaluation of the previous years (especially the last two years), one vitally important issue is the false impression the party had about the balance of forces in the negotiations with the Lenders, another is the need to address some maximalist positions contained in the Thessaloniki Programme.
Prime Minister Alexis Tsipras’ speech in Parliament during the debate on corruption and vested interests on Monday October 10th (Part One)
“During previous parliamentary debates, whenever the discussion turned to the issues of corruption and vested interests, Mr. Mitsotakis [leader of New Democracy] chose to leave the House and run away. But we will not allow you to do this, Mr Mitsotakis. Today you will apologize for the lies and the slanders, but above all, for your actions.
Everyone in this room and in this country has their own history and you have yours. From the first moment of your election as President of New Democracy you rushed to confirm this history. You immediately allied yourself with the oldest corrupt system of vested interests in the country, with all those who have a huge responsibility - along with your governments - for the bankruptcy of the country, with those who had learned to have the state as their customer and built up, with the blessings of your governments, a sea of debt using air as guarantees.
When you found yourself in the leadership of the Official Opposition, just four months after the September election – last year – which gave SYRIZA, with a fresh popular verdict, for the second time in just seven months, a clear mandate to govern by a margin of seven and a half percentage points - almost from the first day, you, even though it was only four, five months after the election, called for elections, without regard for the economy, without regard for the situation in the country, without regard for the critical first Assessment and of course now without regard for the critical discussions about the alleviation of the debt.
And identifying completely and in the closest cooperation with the media establishment and TV channel owners - old and newer - and of course with the publishers, you have engaged in a fierce attack, in a relentless war against the newly elected Government of the country.
You know very well, what has been going on in the country for a year and half now, on the part of the vested interests and the media system, with your support and your assistance, you know very well, is not something simple. It will be a subject of study for sociologists and historians of the future, for political analysts, because it constitutes a sustained attempt to manipulate the popular will, a popular mandate which has been expressed often – especially at the ballot box, on two, three occasions.
This constitutes, in my view, a sustained attempt at a coup in a postmodern form, not using the military, but by using the media, with lies as weapons, with slander as weapons, with propaganda as weapons.
And do you know something? Today we are not living through the first, but the third act of this constant onslaught. The first act was played out in the period of the credit crunch, when New Democracy supported, tooth and nail, the efforts of the Creditors, but it failed. The second act was played out with the shameless doom-mongering in the period of the first and most difficult Assessment, when you had thrown all your money at the IMF, when the IMF called for further measures beyond the agreement, 3.6€ billion and then you begged Thomsen to hold out for more. However, you lost again and your failure was resounding.
Today we come here to attend the third act, that is, the furious effort of the bankrupt political system and its confederates in the media to wrap the country up in darkness. And they try to do it, observing strictly the principle that a lie which is constantly repeated in the end acquires the status of truth. That is their goal. And that is their goal because it seems that they have too much to hide and even more to keep in the dark. And so they want to throw out this Government, first and foremost because this Government has stopped doing them favours. And from behind, of course, you gave them your support.
You know something, however? Continually staking everything you have got on the game, in the end you will be left with nothing to play with and you will lose everything. And precisely because you know this, you are now fighting a rearguard action. And you know it because all your high hopes that the economy would collapse, that revenues would collapse, that the country would be destroyed – all you hopes! - one by one have been extinguished. All measures of the economy, despite your hoped-for expectations, suggest that now we have passed into a phase not only of stabilization but also of recovery.
You have accused us of loading the country with debt because we had to take a third loan. Why was it really? Why; Was it to pay back our own overspending or the overspending of your governments over the last forty years?
You have accused us of destroying the country and of causing recession by our hard negotiating, at the very moment that you who chose not to negotiate at all, you are responsible for the reduction in five years of the Gross Domestic Product by twenty five full percentage points. While we, in the first year of our responsibility - 2016 - have already returned it to positive rates and for the first time in very many years we are finishing up with a positive, and even the toughest of our creditors predict that growth next year will be high, close to 3%.
You have also accused us of destroying the economy, maintaining that revenues will collapse and the "cutter" [contingency measures in the event of missed Government income targets Ed.]will be applied. And we, ultimately, in the most difficult year, this year of the negotiation, of the two elections and one referendum, we achieved a surplus larger than the funds you left in the empty coffers that we took over, while in the first nine months of 2016, despite the Cassandras of the Summer, we already have 1.4€ billion more than the target. So, this dream of a collapse in revenues has gone too.
The First Assessment is formally closed. Soon the last monies will be released. And that will disappoint you as well.
Most important of all - because, as you know, numbers are just numbers, what is important is to see how these numbers are reflected in social reality -, with the help of funds from the NSRF which, for the first time in this country - you might wonder why it is for the first time - have been absorbed nearly 100%, and with the continuing record performance in tourism, we managed within a half year to scale unemployment back by almost four percentage points. And it keeps going down. And this is data which you can not deny, precisely because it is the data of ERGANI. In 2016 we had two hundred thousand more jobs.
So, here we are, then, because New Democracy and its leader have chosen to wage rearguard battles, running behind bankrupt Channel Owners and publishers. Because it is your last hope, Mr Mitsotakis, because your every forecast has turned out to be wrong and especially because you cannot bear it - neither you nor you friends, the entrepreneurs whose vested interests are intertwined with the state - you cannot bear to be away from the seats of power. But Members of the Opposition, you must swallow this: You will stay out of the government benches for many years to come.
And know this, not only because the use of intimidation and doom-mongering is already obsolete in the consciousness of the Greek people, and the news media has no effect, mainly it was not just yesterday that the Greek people found out who you are. The Greek people know you and remember you very well. And in particular every time you are critical and especially when you are critical of the social consequences of the programme, you know what our people say? Very simply: "Look who's talking," say the Greek people. "See what they are saying."
They say “Mr. Mitsotakis, all the time, with every challenge, does not miss any opportunity to identify his position with the most extreme positions of the Creditors.” They say “That is the Mr. Mitsotakis, who presented as the "only-way" and as "salvation" expenditure cuts across the board - the five years of destruction - overall cuts to pensions of 40% and who committed himself - as did the whole of the then Samaras government - to the zero deficit clause.” They say “That is the Mr. Mitsotakis, who boasts that he, as Minister of Administrative Reform, wanted to make layoffs in the public sector and is in favour of mass redundancies and the deregulation of labour in the private sector.”
They say “That is the Mr. Mitsotakis, who told us at the International Exhibition in Thessaloniki that he had a plan to reduce taxes, cutting about 2€ billion from public hospitals, public schools and eliminating all the social support programmes of the weak,” - programmes brought in by this Government as a first measure to combat the humanitarian crisis you created. These things you want to eliminate!
So that is why your critique, Mr Mitsotakis, is a critique that cannot get a purchase. It's a stale critique. Because your supposedly alternative programme is layoffs, cuts, deregulation, and downsizing of the public interest. And our people know this. They know, because after all they remember very well what you did in previous years.
So, what have you got left, then, to convince anyone that the country badly needs what you have lately called "political change"? So what? So you can return again to power, despite the fact that within a year, in three successive critical showdowns, two elections and a referendum, the Greek people pronounced judgement. It was against you all three times.
The possibility, therefore, of you convincing anyone that you have an alternative way out is beyond the realms of possibility. Your dream, your desire, your wish that the economy should collapse has not come true, unfortunately for you, fortunately for the country.
What remains for you then? You are left with one thing: To line up behind the bankrupt publishers and disgruntled TV Channel Owners who have to pay a visit to the Public Treasury for the first time - for the first time! – since the Restoration of Democracy [1974 Ed.]. And for this they are unhappy and for this they launch an unprecedented war of mudslinging.
Your goal here is, I think, obvious. Obviously you are not struggling in order to convince anyone that you are not intertwined with vested interests. Forget that, it does not wash. It would be easier to convince us that you were held in custody for six months, rather than that your faction and all those who were in government for so many years are not intertwined with the vested interests.
What is the goal, though? Look. The goal of New Democracy which hides behind the attack and the dirty work others do for it, is not, of course, to convince us that New Democracy and PASOK have no connections to the vested interests. Instead it is to persuade us: "Come come old chap, we are all the same, in this place we are all tainted, everyone’s got something to hide."
Rest assured, however, Mr Mitsotakis, we are not all the same. So today, it's time to speak out in this Chamber. And how does your nice slogan go? An "Agreement of Truth"? Very well! It is therefore time for you to prove it, Mr. Mitsotakis. It's time to tell us some truth. Because I intend today to speak with names and addresses, as we say. Because the vested interests have opted for lies and slander, on your account, to achieve what? To taint the moral advantage of the Left, the moral advantage of the current Government. And this –understand - is hubris. And after hubris comes nemesis.”
[to be continued…Ed]
“During previous parliamentary debates, whenever the discussion turned to the issues of corruption and vested interests, Mr. Mitsotakis [leader of New Democracy] chose to leave the House and run away. But we will not allow you to do this, Mr Mitsotakis. Today you will apologize for the lies and the slanders, but above all, for your actions.
Everyone in this room and in this country has their own history and you have yours. From the first moment of your election as President of New Democracy you rushed to confirm this history. You immediately allied yourself with the oldest corrupt system of vested interests in the country, with all those who have a huge responsibility - along with your governments - for the bankruptcy of the country, with those who had learned to have the state as their customer and built up, with the blessings of your governments, a sea of debt using air as guarantees.
When you found yourself in the leadership of the Official Opposition, just four months after the September election – last year – which gave SYRIZA, with a fresh popular verdict, for the second time in just seven months, a clear mandate to govern by a margin of seven and a half percentage points - almost from the first day, you, even though it was only four, five months after the election, called for elections, without regard for the economy, without regard for the situation in the country, without regard for the critical first Assessment and of course now without regard for the critical discussions about the alleviation of the debt.
And identifying completely and in the closest cooperation with the media establishment and TV channel owners - old and newer - and of course with the publishers, you have engaged in a fierce attack, in a relentless war against the newly elected Government of the country.
You know very well, what has been going on in the country for a year and half now, on the part of the vested interests and the media system, with your support and your assistance, you know very well, is not something simple. It will be a subject of study for sociologists and historians of the future, for political analysts, because it constitutes a sustained attempt to manipulate the popular will, a popular mandate which has been expressed often – especially at the ballot box, on two, three occasions.
This constitutes, in my view, a sustained attempt at a coup in a postmodern form, not using the military, but by using the media, with lies as weapons, with slander as weapons, with propaganda as weapons.
And do you know something? Today we are not living through the first, but the third act of this constant onslaught. The first act was played out in the period of the credit crunch, when New Democracy supported, tooth and nail, the efforts of the Creditors, but it failed. The second act was played out with the shameless doom-mongering in the period of the first and most difficult Assessment, when you had thrown all your money at the IMF, when the IMF called for further measures beyond the agreement, 3.6€ billion and then you begged Thomsen to hold out for more. However, you lost again and your failure was resounding.
Today we come here to attend the third act, that is, the furious effort of the bankrupt political system and its confederates in the media to wrap the country up in darkness. And they try to do it, observing strictly the principle that a lie which is constantly repeated in the end acquires the status of truth. That is their goal. And that is their goal because it seems that they have too much to hide and even more to keep in the dark. And so they want to throw out this Government, first and foremost because this Government has stopped doing them favours. And from behind, of course, you gave them your support.
You know something, however? Continually staking everything you have got on the game, in the end you will be left with nothing to play with and you will lose everything. And precisely because you know this, you are now fighting a rearguard action. And you know it because all your high hopes that the economy would collapse, that revenues would collapse, that the country would be destroyed – all you hopes! - one by one have been extinguished. All measures of the economy, despite your hoped-for expectations, suggest that now we have passed into a phase not only of stabilization but also of recovery.
You have accused us of loading the country with debt because we had to take a third loan. Why was it really? Why; Was it to pay back our own overspending or the overspending of your governments over the last forty years?
You have accused us of destroying the country and of causing recession by our hard negotiating, at the very moment that you who chose not to negotiate at all, you are responsible for the reduction in five years of the Gross Domestic Product by twenty five full percentage points. While we, in the first year of our responsibility - 2016 - have already returned it to positive rates and for the first time in very many years we are finishing up with a positive, and even the toughest of our creditors predict that growth next year will be high, close to 3%.
You have also accused us of destroying the economy, maintaining that revenues will collapse and the "cutter" [contingency measures in the event of missed Government income targets Ed.]will be applied. And we, ultimately, in the most difficult year, this year of the negotiation, of the two elections and one referendum, we achieved a surplus larger than the funds you left in the empty coffers that we took over, while in the first nine months of 2016, despite the Cassandras of the Summer, we already have 1.4€ billion more than the target. So, this dream of a collapse in revenues has gone too.
The First Assessment is formally closed. Soon the last monies will be released. And that will disappoint you as well.
Most important of all - because, as you know, numbers are just numbers, what is important is to see how these numbers are reflected in social reality -, with the help of funds from the NSRF which, for the first time in this country - you might wonder why it is for the first time - have been absorbed nearly 100%, and with the continuing record performance in tourism, we managed within a half year to scale unemployment back by almost four percentage points. And it keeps going down. And this is data which you can not deny, precisely because it is the data of ERGANI. In 2016 we had two hundred thousand more jobs.
So, here we are, then, because New Democracy and its leader have chosen to wage rearguard battles, running behind bankrupt Channel Owners and publishers. Because it is your last hope, Mr Mitsotakis, because your every forecast has turned out to be wrong and especially because you cannot bear it - neither you nor you friends, the entrepreneurs whose vested interests are intertwined with the state - you cannot bear to be away from the seats of power. But Members of the Opposition, you must swallow this: You will stay out of the government benches for many years to come.
And know this, not only because the use of intimidation and doom-mongering is already obsolete in the consciousness of the Greek people, and the news media has no effect, mainly it was not just yesterday that the Greek people found out who you are. The Greek people know you and remember you very well. And in particular every time you are critical and especially when you are critical of the social consequences of the programme, you know what our people say? Very simply: "Look who's talking," say the Greek people. "See what they are saying."
They say “Mr. Mitsotakis, all the time, with every challenge, does not miss any opportunity to identify his position with the most extreme positions of the Creditors.” They say “That is the Mr. Mitsotakis, who presented as the "only-way" and as "salvation" expenditure cuts across the board - the five years of destruction - overall cuts to pensions of 40% and who committed himself - as did the whole of the then Samaras government - to the zero deficit clause.” They say “That is the Mr. Mitsotakis, who boasts that he, as Minister of Administrative Reform, wanted to make layoffs in the public sector and is in favour of mass redundancies and the deregulation of labour in the private sector.”
They say “That is the Mr. Mitsotakis, who told us at the International Exhibition in Thessaloniki that he had a plan to reduce taxes, cutting about 2€ billion from public hospitals, public schools and eliminating all the social support programmes of the weak,” - programmes brought in by this Government as a first measure to combat the humanitarian crisis you created. These things you want to eliminate!
So that is why your critique, Mr Mitsotakis, is a critique that cannot get a purchase. It's a stale critique. Because your supposedly alternative programme is layoffs, cuts, deregulation, and downsizing of the public interest. And our people know this. They know, because after all they remember very well what you did in previous years.
So, what have you got left, then, to convince anyone that the country badly needs what you have lately called "political change"? So what? So you can return again to power, despite the fact that within a year, in three successive critical showdowns, two elections and a referendum, the Greek people pronounced judgement. It was against you all three times.
The possibility, therefore, of you convincing anyone that you have an alternative way out is beyond the realms of possibility. Your dream, your desire, your wish that the economy should collapse has not come true, unfortunately for you, fortunately for the country.
What remains for you then? You are left with one thing: To line up behind the bankrupt publishers and disgruntled TV Channel Owners who have to pay a visit to the Public Treasury for the first time - for the first time! – since the Restoration of Democracy [1974 Ed.]. And for this they are unhappy and for this they launch an unprecedented war of mudslinging.
Your goal here is, I think, obvious. Obviously you are not struggling in order to convince anyone that you are not intertwined with vested interests. Forget that, it does not wash. It would be easier to convince us that you were held in custody for six months, rather than that your faction and all those who were in government for so many years are not intertwined with the vested interests.
What is the goal, though? Look. The goal of New Democracy which hides behind the attack and the dirty work others do for it, is not, of course, to convince us that New Democracy and PASOK have no connections to the vested interests. Instead it is to persuade us: "Come come old chap, we are all the same, in this place we are all tainted, everyone’s got something to hide."
Rest assured, however, Mr Mitsotakis, we are not all the same. So today, it's time to speak out in this Chamber. And how does your nice slogan go? An "Agreement of Truth"? Very well! It is therefore time for you to prove it, Mr. Mitsotakis. It's time to tell us some truth. Because I intend today to speak with names and addresses, as we say. Because the vested interests have opted for lies and slander, on your account, to achieve what? To taint the moral advantage of the Left, the moral advantage of the current Government. And this –understand - is hubris. And after hubris comes nemesis.”
[to be continued…Ed]
Government Matters - this week
8.10.2016
Eurogroup Working Group meeting Monday
This coming Monday October 10th, the Eurogroup Working Group (EWG) will convene in Luxembourg in order to give the green light for the disbursement of the final 2.8€ billion attached to the First Assessment.
Earlier in the week the same source had stated that the EWG would only be convened if the Institutions had verified that all prerequisite measures had been finalised by the Greek Government.
The Constitutional Revision
Prime Minister Alexis Tsipras addressing the members of the Constitutional Dialogue Commission initiated the dialogue across the country which is expected to be completed in the spring of 2017 so that the parliamentary process can begin that autumn.
This coming Monday October 10th, the Eurogroup Working Group (EWG) will convene in Luxembourg in order to give the green light for the disbursement of the final 2.8€ billion attached to the First Assessment.
Earlier in the week the same source had stated that the EWG would only be convened if the Institutions had verified that all prerequisite measures had been finalised by the Greek Government.
The Constitutional Revision
Prime Minister Alexis Tsipras addressing the members of the Constitutional Dialogue Commission initiated the dialogue across the country which is expected to be completed in the spring of 2017 so that the parliamentary process can begin that autumn.
"Before we embark on the process set out by the Constitution, we want to exhaust every possibility for every last MP, the political parties, Parliament collectively to have their views, their opposing views, their points of agreement and possible composited positions documented by means of a broad and substantive dialogue."
"Our aim is first of all to make sure the country does not miss a great opportunity - Constitutional revision does not happen every day. Second, we must make sure we do not lose the opportunity of making use of and recording all views."
"We are taking an initiative but we do want it to be a government initiative - that is why you are here. Members of this Commission not only represent different professional and academic areas, but also the widest range of views present in Greek society."
"We believe that we should utilise as far as possible every last citizen in deciding what needs to be changed, what should not be changed, what is their opinion, what is their view in relationship to the institutional framework and the constitutional procedures."
A government press release noted that "The Constitutional Dialogue Commission will be responsible for conducting a broad, open debate on a national scale." The Commission's task "is the organization of thematic discussions and consultation events on constitutional revision in all municipalities of the country, with the participation of scientific and social organizations, citizen movements and collectives, and individual citizens."
The dialogue will also take place through an open website, where every citizen will be able to submit proposals.
After this first stage is completed, there will be a second stage at which "the conclusions of this public consultation will be collected by organizing 13 meetings in every region of the country." When the overall consultation is complete, which is set for the spring of 2017, the Constitutional Dialogue Commission will collect the results in a report, which it will deliver to a special Committee for final processing. A few months later, in autumn 2017, the parliamentary procedure defined by the Constitution and the Standing Orders will begin, after the consultation material has been delivered to all political parties.
"Our aim is first of all to make sure the country does not miss a great opportunity - Constitutional revision does not happen every day. Second, we must make sure we do not lose the opportunity of making use of and recording all views."
"We are taking an initiative but we do want it to be a government initiative - that is why you are here. Members of this Commission not only represent different professional and academic areas, but also the widest range of views present in Greek society."
"We believe that we should utilise as far as possible every last citizen in deciding what needs to be changed, what should not be changed, what is their opinion, what is their view in relationship to the institutional framework and the constitutional procedures."
A government press release noted that "The Constitutional Dialogue Commission will be responsible for conducting a broad, open debate on a national scale." The Commission's task "is the organization of thematic discussions and consultation events on constitutional revision in all municipalities of the country, with the participation of scientific and social organizations, citizen movements and collectives, and individual citizens."
The dialogue will also take place through an open website, where every citizen will be able to submit proposals.
After this first stage is completed, there will be a second stage at which "the conclusions of this public consultation will be collected by organizing 13 meetings in every region of the country." When the overall consultation is complete, which is set for the spring of 2017, the Constitutional Dialogue Commission will collect the results in a report, which it will deliver to a special Committee for final processing. A few months later, in autumn 2017, the parliamentary procedure defined by the Constitution and the Standing Orders will begin, after the consultation material has been delivered to all political parties.
Government Revenues Up
On Tuesday, data released by the Finance Ministry showed that the growing use of plastic money, combined with increased value-added tax takings and the decision by more people to pay this year’s Single Property Tax (ENFIA) in a lump sum sent the budget’s net revenues soaring in September.
The revenues after last month’s tax returns exceeded the target set in the budget by 840€ million, while the target for the first nine months of the year was exceeded by 1.062€ billion.
Bank figures show that credit and debit card transactions have this year increased by 50% over 2015. This has led to a rise in VAT takings since receipts are issued automatically upon payment.
A large number of Greeks opted to pay their ENFIA in a lump sum last month, either in cash or with cards. Bank sources say that tax payments via credit cards have increased 30-40% from last year.
Another factor that helped revenues was the increased number of tax inspections at Greek tourism destinations in August, which led to enterprises paying more value-added tax in September. Large companies pay their VAT the month after issuing their receipts and smaller companies pay it every quarter. This means that in October revenues will also increase.
The final factor that contributed to improved revenues in September was the increase in the top VAT bracket from 23% to 24%, which came into force on June 1st.
Draft Budget for 2017
On Monday the draft budget for 2017 was filed in Parliament. It shows predicted growth of 2.7%, a Primary Surplus [Government net income before debt servicing. Ed.] close to 2% of GDP but also an expenditure of 760€ million to support hundreds of thousands of households in distress.
Ministry of Finance sources confirmed that the prediction marks the return of the Greek economy to strong growth after eight years of recession.
Also, the draft budget projects a Primary Surplus close to 2% of GDP which is above the 1.75% target of the economic policy programme.
The amount of 760€ million is included as a provision in the budget for the Social Solidarity Income allocated to economically weak households, estimated to be 267,000 as of 01/01/2017.
On Tuesday, data released by the Finance Ministry showed that the growing use of plastic money, combined with increased value-added tax takings and the decision by more people to pay this year’s Single Property Tax (ENFIA) in a lump sum sent the budget’s net revenues soaring in September.
The revenues after last month’s tax returns exceeded the target set in the budget by 840€ million, while the target for the first nine months of the year was exceeded by 1.062€ billion.
Bank figures show that credit and debit card transactions have this year increased by 50% over 2015. This has led to a rise in VAT takings since receipts are issued automatically upon payment.
A large number of Greeks opted to pay their ENFIA in a lump sum last month, either in cash or with cards. Bank sources say that tax payments via credit cards have increased 30-40% from last year.
Another factor that helped revenues was the increased number of tax inspections at Greek tourism destinations in August, which led to enterprises paying more value-added tax in September. Large companies pay their VAT the month after issuing their receipts and smaller companies pay it every quarter. This means that in October revenues will also increase.
The final factor that contributed to improved revenues in September was the increase in the top VAT bracket from 23% to 24%, which came into force on June 1st.
Draft Budget for 2017
On Monday the draft budget for 2017 was filed in Parliament. It shows predicted growth of 2.7%, a Primary Surplus [Government net income before debt servicing. Ed.] close to 2% of GDP but also an expenditure of 760€ million to support hundreds of thousands of households in distress.
Ministry of Finance sources confirmed that the prediction marks the return of the Greek economy to strong growth after eight years of recession.
Also, the draft budget projects a Primary Surplus close to 2% of GDP which is above the 1.75% target of the economic policy programme.
The amount of 760€ million is included as a provision in the budget for the Social Solidarity Income allocated to economically weak households, estimated to be 267,000 as of 01/01/2017.
Completing the First Assessment ?
1.10.2016
New Omnibus Bill
On Tuesday the Greek Parliament passed measures required by the country’s creditors to "reform" the country’s electricity market and transfer state assets into an umbrella sovereign wealth fund. This is expected to conclude the First Assessment and result in the disbursement of the 2.8€ billion sub-tranche at the Eurogroup meeting on October 10th.
On Tuesday the Greek Parliament passed measures required by the country’s creditors to "reform" the country’s electricity market and transfer state assets into an umbrella sovereign wealth fund. This is expected to conclude the First Assessment and result in the disbursement of the 2.8€ billion sub-tranche at the Eurogroup meeting on October 10th.
The reforms were passed by a majority vote 152 to 141. Opposition parties all voted against the bill.
The legislation establishes a fund called the Hellenic Company of Assets and Shareholdings which will take control of public utilities and other assets for 99 years. The Greek Finance Ministry will appoint the majority of members to the fund's five-member executive board, but Greece’s Creditors will appoint its chairperson. A representative of the European Commission on Tuesday confirmed that Brussels has endorsed the three officials proposed by Athens.
In Parliament, Finance Minister Euclid Tsakalotos dismissed opposition charges that the Government was handing over sovereign rights to Greece’s Creditors.
"This new fund was the result of a compromise in negotiations ... but it up to us, our Government, to deliver a workable result," he told MPs during the debate.
"We are not handing over sovereignty or mortgaging the future. The fund is under the control of the Greek Finance Ministry. ... And passing assets to this fund does not mean that they will necessarily be privatised - at least not by this government."
The new measures place the state-run power and water companies under the fund's control for 99 years. It will be led by an official chosen by the creditors, while Greece's Finance Ministry will retain overall control.
The fund also is taking control of the state-owned subway operation in Athens, a military vehicle maker and a public property management fund.
Prime Minister Alexis Tsipras has publicly vowed to keep major utilities under state control, and Finance Minister Euclid Tsakalotos repeated that pledge on Tuesday.
"The Greek state remains the sole stakeholder of these assets," he told MPs. "Apart from privatisation, there are other ways to increase their value and we are concentrating on these alternatives."
Government officials released a statement saying that the transfer – grouping the Privatisation Agency [TAIPED], the Bank Stability Fund [HFSF], state properties and some state entities under a holding company – did not constitute plans for privatisations, but for more effective management and debt control.
"Transferring (the assets) to the fund does not mean the state forfeits its property. Secondly, it does not mean privatisation, and thirdly, these assets are not collateral for the loans of the country, " Energy Minister Panos Skourletis told Parliament.
The legislation establishes a fund called the Hellenic Company of Assets and Shareholdings which will take control of public utilities and other assets for 99 years. The Greek Finance Ministry will appoint the majority of members to the fund's five-member executive board, but Greece’s Creditors will appoint its chairperson. A representative of the European Commission on Tuesday confirmed that Brussels has endorsed the three officials proposed by Athens.
In Parliament, Finance Minister Euclid Tsakalotos dismissed opposition charges that the Government was handing over sovereign rights to Greece’s Creditors.
"This new fund was the result of a compromise in negotiations ... but it up to us, our Government, to deliver a workable result," he told MPs during the debate.
"We are not handing over sovereignty or mortgaging the future. The fund is under the control of the Greek Finance Ministry. ... And passing assets to this fund does not mean that they will necessarily be privatised - at least not by this government."
The new measures place the state-run power and water companies under the fund's control for 99 years. It will be led by an official chosen by the creditors, while Greece's Finance Ministry will retain overall control.
The fund also is taking control of the state-owned subway operation in Athens, a military vehicle maker and a public property management fund.
Prime Minister Alexis Tsipras has publicly vowed to keep major utilities under state control, and Finance Minister Euclid Tsakalotos repeated that pledge on Tuesday.
"The Greek state remains the sole stakeholder of these assets," he told MPs. "Apart from privatisation, there are other ways to increase their value and we are concentrating on these alternatives."
Government officials released a statement saying that the transfer – grouping the Privatisation Agency [TAIPED], the Bank Stability Fund [HFSF], state properties and some state entities under a holding company – did not constitute plans for privatisations, but for more effective management and debt control.
"Transferring (the assets) to the fund does not mean the state forfeits its property. Secondly, it does not mean privatisation, and thirdly, these assets are not collateral for the loans of the country, " Energy Minister Panos Skourletis told Parliament.
Second Assessment Negotiations
On Wednesday, Labour Minister George Katrougalos welcomed the report of the Commission of Independent Experts, published on Tuesday, on the reform of industrial relations which is to be a key issue of the Second Assessment.
The Minister said "On the three pillars of the negotiations, namely trade union law, mass redundancies, collective bargaining, the findings of the Commission support Greece’s positions either unanimously or by a broad majority, precisely because these positions have no aim other than the re-inclusion of our country in the norms of Europe. The Memoranda policies, as the Bible of extreme neo-liberalism, have completely deregulated the labour market in Greece. They have undermined all the guarantees of individual and collective labour law; essentially they have abolished collective bargaining and made the world of work a jungle.
"But now the time has come for the country's return to the European Social Model. Tomorrow, September 29th, the Findings and the positions of our country in general about labour relations are to be presented at a special session organised by the European Parliament's Employment Committee. For the first time, I asked, and it was accepted, for the issue of labour reforms in Greece to be a subject for discussion by the European Union Council of Ministers at its next meeting on October 13th. The anti-European and anti-social positions will be isolated.
"In conjunction with the joint declaration of our social partners [Employer and Employee Organisations Ed.] along the same lines, the Commission's Findings will be an important "weapon" in the negotiations about the return to a Social Europe."
Among the proposals of the eight-member International Commission of Experts with regard to collective labour contracts is the recommendation that employees should be represented in negotiations over collective contracts, so that this negotiation process will then cover the entire sector or professional group.
Reduced working hours or temporary suspension from work, with the state paying unemployment benefit and covering workers’ social security contributions while they are not working, are proposed, instead of mass redundancies.
On the issue of the minimum wage, the majority of the experts on the Commission agreed that this should be determined by the National General Collective Labour Contract, following consultations between the social partners (the employers and the employees) and independent experts.
On Wednesday, Labour Minister George Katrougalos welcomed the report of the Commission of Independent Experts, published on Tuesday, on the reform of industrial relations which is to be a key issue of the Second Assessment.
The Minister said "On the three pillars of the negotiations, namely trade union law, mass redundancies, collective bargaining, the findings of the Commission support Greece’s positions either unanimously or by a broad majority, precisely because these positions have no aim other than the re-inclusion of our country in the norms of Europe. The Memoranda policies, as the Bible of extreme neo-liberalism, have completely deregulated the labour market in Greece. They have undermined all the guarantees of individual and collective labour law; essentially they have abolished collective bargaining and made the world of work a jungle.
"But now the time has come for the country's return to the European Social Model. Tomorrow, September 29th, the Findings and the positions of our country in general about labour relations are to be presented at a special session organised by the European Parliament's Employment Committee. For the first time, I asked, and it was accepted, for the issue of labour reforms in Greece to be a subject for discussion by the European Union Council of Ministers at its next meeting on October 13th. The anti-European and anti-social positions will be isolated.
"In conjunction with the joint declaration of our social partners [Employer and Employee Organisations Ed.] along the same lines, the Commission's Findings will be an important "weapon" in the negotiations about the return to a Social Europe."
Among the proposals of the eight-member International Commission of Experts with regard to collective labour contracts is the recommendation that employees should be represented in negotiations over collective contracts, so that this negotiation process will then cover the entire sector or professional group.
Reduced working hours or temporary suspension from work, with the state paying unemployment benefit and covering workers’ social security contributions while they are not working, are proposed, instead of mass redundancies.
On the issue of the minimum wage, the majority of the experts on the Commission agreed that this should be determined by the National General Collective Labour Contract, following consultations between the social partners (the employers and the employees) and independent experts.
Tsakalotos in Luxembourg
Speaking on Tuesday at a European Investment Bank event on the recovery from the crisis and the real economy, at the macroeconomic but also the social level, Minister of Finance, Euclid Tsakalotos criticised the Eurozone’s way of operating, noting that even with the loose monetary policy of the ECB it is mainly the countries of the North which benefit and not those of the South that need it most.
He talked about the need for a new model of development in Europe – development which is "fairer, more social and more participatory".
One of the key points raised by Minister Tsakalotos was to emphasise how important it is for policy-makers not to neglect the social implications resulting, for instance, from wages and pensions’ adjustments. He stressed also that sound public administration and public investment are crucial since private efforts are not enough to achieve growth in the present scenario. Against this background, he concluded that while the Greek economy is returning to growth this year, particular attention must be placed on “social inclusion”, in order to ensure fair and sustainable growth.
"The aim of the Greek government is to return Greece to growth, but also to sustainable growth. For this to become a reality there must be a fairer distribution of profits to employees and to the regions together with greater democratic control of political decision-making.
"To achieve a balanced recovery, investment is needed and especially investment directed primarily at SMEs [Small- and Medium-sized Enterprises] which are currently finding it difficult to access finance from commercial banks.
"The European Investment Bank's role in this is crucial," noted the Greek minister and welcomed the recent proposal of the European Commission President, Jean-Claude Juncker for strengthening the Strategic Investment Fund.
Moreover, the Minister sent a clear message that to make Greece attractive to investment there needs to be an agreement on the debt as soon as possible.
"Investors are waiting for political decisions. If these decisions come in five years’ time, they will invest in five years’ time," he warned. He noted that wage levels are also the driving force for development.
Regarding the strategy of Greece on the path to sustainable recovery, he noted that efforts are being made to address decades of weaknesses such as the organisation and the use of publicly owned assets through the new Fund and the fight against tax evasion, bureaucracy and corruption.
Speaking on Tuesday at a European Investment Bank event on the recovery from the crisis and the real economy, at the macroeconomic but also the social level, Minister of Finance, Euclid Tsakalotos criticised the Eurozone’s way of operating, noting that even with the loose monetary policy of the ECB it is mainly the countries of the North which benefit and not those of the South that need it most.
He talked about the need for a new model of development in Europe – development which is "fairer, more social and more participatory".
One of the key points raised by Minister Tsakalotos was to emphasise how important it is for policy-makers not to neglect the social implications resulting, for instance, from wages and pensions’ adjustments. He stressed also that sound public administration and public investment are crucial since private efforts are not enough to achieve growth in the present scenario. Against this background, he concluded that while the Greek economy is returning to growth this year, particular attention must be placed on “social inclusion”, in order to ensure fair and sustainable growth.
"The aim of the Greek government is to return Greece to growth, but also to sustainable growth. For this to become a reality there must be a fairer distribution of profits to employees and to the regions together with greater democratic control of political decision-making.
"To achieve a balanced recovery, investment is needed and especially investment directed primarily at SMEs [Small- and Medium-sized Enterprises] which are currently finding it difficult to access finance from commercial banks.
"The European Investment Bank's role in this is crucial," noted the Greek minister and welcomed the recent proposal of the European Commission President, Jean-Claude Juncker for strengthening the Strategic Investment Fund.
Moreover, the Minister sent a clear message that to make Greece attractive to investment there needs to be an agreement on the debt as soon as possible.
"Investors are waiting for political decisions. If these decisions come in five years’ time, they will invest in five years’ time," he warned. He noted that wage levels are also the driving force for development.
Regarding the strategy of Greece on the path to sustainable recovery, he noted that efforts are being made to address decades of weaknesses such as the organisation and the use of publicly owned assets through the new Fund and the fight against tax evasion, bureaucracy and corruption.
"One way or the other there should really be a breakthrough on debt relief by the end of the year"
24.09.2016
On Tuesday, Prime Minister Tsipras sketched out a path he hopes will finally allow his country to exit its seven-year-old economic crisis, holding out the possibility of positive growth this year and a partial return to the bond markets in 2017.
Alexis Tsipras told Reuters that Greek Government revenues and tourist flows had been strong and that Greece could grow by 0.2 to 0.4% this year, well above Eurostat's forecast for a 0.3% contraction.
Asked if he thought Greece could meet or exceed Eurostat’s forecast of 2.7% growth for next year, Mr. Tsipras noted that it had exceeded the predictions so far this year and said that he expected "the same" for 2017. However, he said this would depend on the messages sent to the financial markets and whether there is a return of foreign investment.
He also said he hoped Greece, within the next six months, could be included in the European Central Bank's quantitative easing (QE) programme from which it has so far been excluded because of its low credit rating.
He emphasised that Greece's ability to issue some bonds next year, and to make a full return to the bond markets in 2018, is dependent on securing debt relief, on its growth improving, and on its obtaining an European Central Bank Debt Analysis showing that its debt is sustainable and how the country can live within its means.
When asked whether he was angry at Germany for not moving quicker on debt relief.
"It is a very serious issue ... it is not simply about [wearing] ties," he said. "It will change the ability of a country that has gone through a lot to actually have a sustained recovery."
"Europe must push ahead, irrespective of the internal issues and the electoral processes in each country. We must look at common interests and not issues at a micro-political level," he said.
He also said "one way or the other there should really be a breakthrough by the end of the year" on a debt relief proposal.
Greece has been criticized by its lenders for failing to act aggressively enough on reforms. PM Tsipras said he expected to be able to complete the second Assessment of the latest bailout programme by the end of October and argued that the first Assessment had covered the toughest issues.
"From here on, each Assessment will be crucial, but easier than the last one," he said. "We are rushing ... to be in a position to conclude the milestones at the end of September, start of October, at the scheduled Eurogroup, so at the end of October the second Assessment can be concluded."
The second Assessment, which entails “liberalising” labour laws, is being conducted by officials from the "quartet" - the European Commission, the European Stability Mechanism, the European Central Bank and the International Monetary Fund.
While the IMF is not officially part of the bailout, its presence in the review process is vital to reassure investors and creditors that Greece is abiding by the bailout programme.
Tsipras, whose labour minister has accused the IMF of taking an "extreme" stance on labour market reforms, said he thought it would be possible to work out a compromise but that the Fund needed to respect the "European acquis," a reference to the legislation and court decisions governing EU law.
"I don’t think we will have a difficulty in reaching a compromise on these issues," Tsipras said.
Tsipras said Greece had hoped for a clear signal from its lenders in May that the crisis was over, but it had in effect been told that "we disagree on the debt measures, wait until the end of the year."
"That is unfair for Greece," he said. "I am convinced our partners understand that and by the end of the year they will provide a solution to allow us into QE and will subsequently pave the way for Greece’s successful access to the markets."
Completing the First Assessment
On Friday, the Omnibus Bill which includes the pre-requisite measures for the completion of the first Assessment and the release of the next instalment of the 2.8€ billion bailout funds was tabled in Greek Parliament.
The measures in the bill, which will be debated over the next few days before going to a vote on Tuesday, include the abolition of all remaining exemptions in health contributions for pensions, the “liberalisation” of the electricity market and a second list of state-run utilities and enterprises whose publicly-owned shares will be transferred to a new holding company, a “Super-Privatisation” fund”.
Those organizations include the Public Power Corporation, the Athens Water and Sewage Company (EYDAP), the Thessaloniki Water and Sewerage Company (EYATH), the Hellenic Vehicle Industry (ELBO), Attiko Metro and Buildings’ Infrastructures SA.
The omnibus bill will be presented to the relevant parliamentary committee at 10:00 on Monday and will be discussed in plenary on Tuesday.
Beyond its legislative obligations, the Greek Government has also undertaken to tie up a series of loose ends. These include the appointment of a supervisory board for the new privatisation fund. Of the five members on the Board, Athens can appoint three but its proposals to date have been rejected by creditors.
Asked if he thought Greece could meet or exceed Eurostat’s forecast of 2.7% growth for next year, Mr. Tsipras noted that it had exceeded the predictions so far this year and said that he expected "the same" for 2017. However, he said this would depend on the messages sent to the financial markets and whether there is a return of foreign investment.
He also said he hoped Greece, within the next six months, could be included in the European Central Bank's quantitative easing (QE) programme from which it has so far been excluded because of its low credit rating.
He emphasised that Greece's ability to issue some bonds next year, and to make a full return to the bond markets in 2018, is dependent on securing debt relief, on its growth improving, and on its obtaining an European Central Bank Debt Analysis showing that its debt is sustainable and how the country can live within its means.
When asked whether he was angry at Germany for not moving quicker on debt relief.
"It is a very serious issue ... it is not simply about [wearing] ties," he said. "It will change the ability of a country that has gone through a lot to actually have a sustained recovery."
"Europe must push ahead, irrespective of the internal issues and the electoral processes in each country. We must look at common interests and not issues at a micro-political level," he said.
He also said "one way or the other there should really be a breakthrough by the end of the year" on a debt relief proposal.
Greece has been criticized by its lenders for failing to act aggressively enough on reforms. PM Tsipras said he expected to be able to complete the second Assessment of the latest bailout programme by the end of October and argued that the first Assessment had covered the toughest issues.
"From here on, each Assessment will be crucial, but easier than the last one," he said. "We are rushing ... to be in a position to conclude the milestones at the end of September, start of October, at the scheduled Eurogroup, so at the end of October the second Assessment can be concluded."
The second Assessment, which entails “liberalising” labour laws, is being conducted by officials from the "quartet" - the European Commission, the European Stability Mechanism, the European Central Bank and the International Monetary Fund.
While the IMF is not officially part of the bailout, its presence in the review process is vital to reassure investors and creditors that Greece is abiding by the bailout programme.
Tsipras, whose labour minister has accused the IMF of taking an "extreme" stance on labour market reforms, said he thought it would be possible to work out a compromise but that the Fund needed to respect the "European acquis," a reference to the legislation and court decisions governing EU law.
"I don’t think we will have a difficulty in reaching a compromise on these issues," Tsipras said.
Tsipras said Greece had hoped for a clear signal from its lenders in May that the crisis was over, but it had in effect been told that "we disagree on the debt measures, wait until the end of the year."
"That is unfair for Greece," he said. "I am convinced our partners understand that and by the end of the year they will provide a solution to allow us into QE and will subsequently pave the way for Greece’s successful access to the markets."
Completing the First Assessment
On Friday, the Omnibus Bill which includes the pre-requisite measures for the completion of the first Assessment and the release of the next instalment of the 2.8€ billion bailout funds was tabled in Greek Parliament.
The measures in the bill, which will be debated over the next few days before going to a vote on Tuesday, include the abolition of all remaining exemptions in health contributions for pensions, the “liberalisation” of the electricity market and a second list of state-run utilities and enterprises whose publicly-owned shares will be transferred to a new holding company, a “Super-Privatisation” fund”.
Those organizations include the Public Power Corporation, the Athens Water and Sewage Company (EYDAP), the Thessaloniki Water and Sewerage Company (EYATH), the Hellenic Vehicle Industry (ELBO), Attiko Metro and Buildings’ Infrastructures SA.
The omnibus bill will be presented to the relevant parliamentary committee at 10:00 on Monday and will be discussed in plenary on Tuesday.
Beyond its legislative obligations, the Greek Government has also undertaken to tie up a series of loose ends. These include the appointment of a supervisory board for the new privatisation fund. Of the five members on the Board, Athens can appoint three but its proposals to date have been rejected by creditors.
And The Second Assessment…
In an interview with the Wall Street Journal published on Friday, Prime Minister Alexis Tsipras said that the Institutions’ Second Assessment of the Greek Programme will be completed by the end of October and then the measures for debt relief will be defined by the end of 2016.
“The Greek Government is trying to secure debt relief from its international creditors, something considered unacceptable by the German public as the leadership of Berlin have one eye on elections next year. This is not fair. Every country in the EU has elections," said Prime Minister. "I respect the internal problems of Germany and I am very concerned about them, but I do not believe it is a strong argument."
The Prime Minister referred to the International Monetary Fund. "For the first time in seven years, the dilemma is not about our position." said Alexis Tsipras. "The issue is not that lazy Greeks did not keep their commitments. The dilemma is for Germany and the other countries who want the IMF involved in the programme at any cost."
"Therefore, they must decide: either they have the IMF in the programme and define concrete measures [on debt relief. Ed] or they will have to live with the idea that the IMF will not be in the programme and they will have to explain to their citizens how they are going to proceed without it."
The Prime Minister said that the second Assessment of the Greek Programme by the Institutions will be completed by the end of October and then the debt relief measures will be defined by the end of 2016. Then, Greece will be included in the European Central Bank’s quantitative easing programme (QE).
"Participation in the QE Programme will be the key to attracting investors," said the Prime Minister. "Everyone will understand that 'Grexit' is a thing of the past, that the crisis is over."
The Prime Minister said the decision to sign the third bailout deal last summer after months of negotiations with the country's international creditors had been a difficult dilemma for him. However, he said that the negotiating process has proved to be a valuable lesson for Greece and for the international community. "We tried to win something that was impossible for our partners to offer. Not because our claims and arguments were not just – they were quite just - but because the balance of forces was bad for us."
He added that this struggle had been useful because it changed the way other countries see the Greeks. “Before this struggle, the feeling was that the Greeks were lazy, that they must pay, that they must to learn to live within their means. Now the feeling is that the Greeks have suffered a great deal and have done a lot."
The IMF
Also on Friday, the IMF released a further report on Greece. Among its key points, the Report says that the structure of the Greek budget “should be improved with growth-friendly policies”. The report states a further reduction in current pensions is necessary. Non-performing loans are stressed as another problem and the Report wants them to “be reduced rapidly in order to create conditions for a resumption of credit to the economy.” Greece is at a crossroads needing bolder efforts to address key challenges, it states.
VAT
VAT Revenues increased significantly in August, surpassing monthly budget targets, while in the January-August period revenues surpassed targets by 3.01%.
Both the Finance Ministry and the Secretariat-General for Public Revenue expressed satisfaction over the increase of VAT revenue which is attributed largely to “significantly intensified controls” by the Tax Authorities on the Greek islands during the summer tourist season.
In Mykonos, VAT receipts surpassed monthly targets by 170.1%, in Rhodes by165.6%, in Santorini 114.4%, in Zakynthos by 91.2%, in Corfu 78.6%, in Chania 53.7% and in Heraklion 51.7%.
VAT revenues surpassed monthly targets by 9.91% in August, while net regular budget revenue also surpassed monthly targets last month despite the fact that collection of the ENFIA property tax was postponed until September.
In an interview with the Wall Street Journal published on Friday, Prime Minister Alexis Tsipras said that the Institutions’ Second Assessment of the Greek Programme will be completed by the end of October and then the measures for debt relief will be defined by the end of 2016.
“The Greek Government is trying to secure debt relief from its international creditors, something considered unacceptable by the German public as the leadership of Berlin have one eye on elections next year. This is not fair. Every country in the EU has elections," said Prime Minister. "I respect the internal problems of Germany and I am very concerned about them, but I do not believe it is a strong argument."
The Prime Minister referred to the International Monetary Fund. "For the first time in seven years, the dilemma is not about our position." said Alexis Tsipras. "The issue is not that lazy Greeks did not keep their commitments. The dilemma is for Germany and the other countries who want the IMF involved in the programme at any cost."
"Therefore, they must decide: either they have the IMF in the programme and define concrete measures [on debt relief. Ed] or they will have to live with the idea that the IMF will not be in the programme and they will have to explain to their citizens how they are going to proceed without it."
The Prime Minister said that the second Assessment of the Greek Programme by the Institutions will be completed by the end of October and then the debt relief measures will be defined by the end of 2016. Then, Greece will be included in the European Central Bank’s quantitative easing programme (QE).
"Participation in the QE Programme will be the key to attracting investors," said the Prime Minister. "Everyone will understand that 'Grexit' is a thing of the past, that the crisis is over."
The Prime Minister said the decision to sign the third bailout deal last summer after months of negotiations with the country's international creditors had been a difficult dilemma for him. However, he said that the negotiating process has proved to be a valuable lesson for Greece and for the international community. "We tried to win something that was impossible for our partners to offer. Not because our claims and arguments were not just – they were quite just - but because the balance of forces was bad for us."
He added that this struggle had been useful because it changed the way other countries see the Greeks. “Before this struggle, the feeling was that the Greeks were lazy, that they must pay, that they must to learn to live within their means. Now the feeling is that the Greeks have suffered a great deal and have done a lot."
The IMF
Also on Friday, the IMF released a further report on Greece. Among its key points, the Report says that the structure of the Greek budget “should be improved with growth-friendly policies”. The report states a further reduction in current pensions is necessary. Non-performing loans are stressed as another problem and the Report wants them to “be reduced rapidly in order to create conditions for a resumption of credit to the economy.” Greece is at a crossroads needing bolder efforts to address key challenges, it states.
VAT
VAT Revenues increased significantly in August, surpassing monthly budget targets, while in the January-August period revenues surpassed targets by 3.01%.
Both the Finance Ministry and the Secretariat-General for Public Revenue expressed satisfaction over the increase of VAT revenue which is attributed largely to “significantly intensified controls” by the Tax Authorities on the Greek islands during the summer tourist season.
In Mykonos, VAT receipts surpassed monthly targets by 170.1%, in Rhodes by165.6%, in Santorini 114.4%, in Zakynthos by 91.2%, in Corfu 78.6%, in Chania 53.7% and in Heraklion 51.7%.
VAT revenues surpassed monthly targets by 9.91% in August, while net regular budget revenue also surpassed monthly targets last month despite the fact that collection of the ENFIA property tax was postponed until September.
Alexis Tsipras at the
Thessaloniki International Fair
17.09.2016
Speaking from the platform of the 81st Thessaloniki International Fair (TIF), Prime Minister of Prime Minister Alexis Tsipras set out the Government’s road map out of the crisis for Greek society and its economy. He presented the two main pillars of government policy for the next year as being growth and social protection, having twin targets: the one is to unfold in a convincing way the Government’s positive perspective for the economy and the exit from the crisis, the other to announce specific actions to promote the development and further protection of vulnerable social strata.
He announced actions to improve the management of corporate liquidity, a bill for the disclosure of undeclared income, incentives for the employment of young scientists, more preschool places and meals in primary schools, and the strengthening of the health system with more qualified staff.
Initiatives he specified were:-
a) a system of recording transactions electronically exclusively for the use of businesses in connection with their dealings with the tax authorities and social security funds.
b) the voluntary disclosure of undeclared income.
c) 15,000 more places in nurseries to be funded by the revenue generated from the TV licences’ auction.
d) 60,000 more school meals that are also covered by the proceeds from the broadcasting licences.
e) Programmes for research and innovation as part of a wider programme for young scientists called "We change Greece", which is also covered by the licences.
f) The recruitment of 10,000 doctors and nursing staff.
“The decision on the(se) actions emerged after careful consideration of the alternatives that existed, because the Government wanted to use their very limited resources in a targeted manner, without the risk of making empty promises”, he said.
Five steps to get out of the crisis
In his speech the Prime Minister went on to outline the five steps to get out of the crisis
Alexis Tsipras maintained the perspective of “equitable development”. “The phrases - "Development and social policy go together” and "We cannot talk about development on the ruins of society" - are two of the main mottos of the Government. This concern is not accidental. First they highlight the consistent position of SYRIZA that growth should be distributed fairly, on the other hand they are responses to the exhausted resistance of Greek society and the concerns of citizens that they hear time and again about development, but do not to see any change in their daily lives.
That is why social policy is at the top of the Government’s agenda.
Consistent with this is the focus on the new productive model that the Government wants to build, with the focus on dignified work. At the same time, it focuses on the productive sectors of tourism, construction, new technologies and agricultural and animal rearing sector, based on data showing Greece’s advantages and which can bring large increases in employment. Public works can have a similar effect - projects such as roads that have the advantages of the direct absorption of EU funds and of massive employment growth.
The work, however, is not easy, because the society is very tired, and very sceptical.”
“IMF and EU’s constant clash and disagreement is hurting Greece”
On Sunday, Prime Minister Tsipras said that there is a growing rift between the IMF and the EU and that it is damaging Greece’s financial recovery.
“I would say that what is creating conditions of delay in our regaining the trust of the markets and investors…is the constant clash and disagreement between the IMF and European Institutions,” Tsipras said at a news conference in Thessaloniki.
The IMF has yet to decide if it will participate in Greece’s latest bailout saying that it is not sure if Greece’s debt is sustainable.
“The delay in deciding is making the economic situation is Greece more dire as investors are hesitant to re-enter the Greek market,” Mr. Tsipras said. The dispute has also held up the Greece’s participation in the European Central Bank’s Quantitative Easing programme, which is vital to the restoration of confidence and a faster return to growth. “A country which has made such a harsh adjustment cannot wait much longer,” he said of the 6 years of enforced austerity. “It is entitled to the fair regulation of the debt issue.”
“The country’s improved image abroad is not a natural phenomenon or just luck, but the result of specific policy choices and battles. We managed to escape from the undertakings made by the previous Government after long and hard negotiations. We achieved lower budget primary surplus targets, offering a breathing space to the society and the economy. In 2015 we committed ourselves to a budget target of -0.25% and we produced a surplus of +0.7% and in 2016 we will continue to exceed the targets”, he said.
The Prime Minister said in two years the Government will have the necessary fiscal space to reduce indirect taxes and to lower taxation on property, replacing the current Property Tax (ENFIA) with a new, fairer tax.
He stressed that the Government is fully implementing its commitments made last year’s TIF: protecting home owners, supporting farmers, maintaining ADMIE under state control, offering healthcare to 2.5 million people with no social security, preserving main pensions and abolishing a zero deficit clause for supplementary pensions, reforming civil administration, presenting a new regulatory framework for education, taking measures to support new scientists, revising legislation on public works, reviewing tax evasion lists, as well as the finally completed tender for TV licences in “a fully transparent way that benefits the public interest”.
In closing, Alexis Tsipras said the Government’s plan is to build wide and stable social alliances in a “national effort to find our footing after the country has learned its lessons from the past” and expressed his optimism that the country will achieve its goals.
Initiatives he specified were:-
a) a system of recording transactions electronically exclusively for the use of businesses in connection with their dealings with the tax authorities and social security funds.
b) the voluntary disclosure of undeclared income.
c) 15,000 more places in nurseries to be funded by the revenue generated from the TV licences’ auction.
d) 60,000 more school meals that are also covered by the proceeds from the broadcasting licences.
e) Programmes for research and innovation as part of a wider programme for young scientists called "We change Greece", which is also covered by the licences.
f) The recruitment of 10,000 doctors and nursing staff.
“The decision on the(se) actions emerged after careful consideration of the alternatives that existed, because the Government wanted to use their very limited resources in a targeted manner, without the risk of making empty promises”, he said.
Five steps to get out of the crisis
In his speech the Prime Minister went on to outline the five steps to get out of the crisis
- Complete the Second Assessment especially in the area of workers’ rights in a manner consistent, with the European social model.
- Complete the debt reduction settlement immediately and not after the German elections in 2017, as envisaged by Mr. Schaeuble.
- Achieve Greek membership of the European Central Bank’s Quantitative Easing Programme - the ECB's bond repurchase programme, which will reduce the cost of Government borrowing, restore liquidity, and enable the lifting of capital restrictions and full entry to the financial markets.
- Gain full entry to the financial markets.
- Lay the foundations for sustainable and lasting development. "The basic premise of equitable development is the transition to an outward-looking economy, based on support for employment, innovation, building networks and enhancing the business environment."
Alexis Tsipras maintained the perspective of “equitable development”. “The phrases - "Development and social policy go together” and "We cannot talk about development on the ruins of society" - are two of the main mottos of the Government. This concern is not accidental. First they highlight the consistent position of SYRIZA that growth should be distributed fairly, on the other hand they are responses to the exhausted resistance of Greek society and the concerns of citizens that they hear time and again about development, but do not to see any change in their daily lives.
That is why social policy is at the top of the Government’s agenda.
Consistent with this is the focus on the new productive model that the Government wants to build, with the focus on dignified work. At the same time, it focuses on the productive sectors of tourism, construction, new technologies and agricultural and animal rearing sector, based on data showing Greece’s advantages and which can bring large increases in employment. Public works can have a similar effect - projects such as roads that have the advantages of the direct absorption of EU funds and of massive employment growth.
The work, however, is not easy, because the society is very tired, and very sceptical.”
“IMF and EU’s constant clash and disagreement is hurting Greece”
On Sunday, Prime Minister Tsipras said that there is a growing rift between the IMF and the EU and that it is damaging Greece’s financial recovery.
“I would say that what is creating conditions of delay in our regaining the trust of the markets and investors…is the constant clash and disagreement between the IMF and European Institutions,” Tsipras said at a news conference in Thessaloniki.
The IMF has yet to decide if it will participate in Greece’s latest bailout saying that it is not sure if Greece’s debt is sustainable.
“The delay in deciding is making the economic situation is Greece more dire as investors are hesitant to re-enter the Greek market,” Mr. Tsipras said. The dispute has also held up the Greece’s participation in the European Central Bank’s Quantitative Easing programme, which is vital to the restoration of confidence and a faster return to growth. “A country which has made such a harsh adjustment cannot wait much longer,” he said of the 6 years of enforced austerity. “It is entitled to the fair regulation of the debt issue.”
“The country’s improved image abroad is not a natural phenomenon or just luck, but the result of specific policy choices and battles. We managed to escape from the undertakings made by the previous Government after long and hard negotiations. We achieved lower budget primary surplus targets, offering a breathing space to the society and the economy. In 2015 we committed ourselves to a budget target of -0.25% and we produced a surplus of +0.7% and in 2016 we will continue to exceed the targets”, he said.
The Prime Minister said in two years the Government will have the necessary fiscal space to reduce indirect taxes and to lower taxation on property, replacing the current Property Tax (ENFIA) with a new, fairer tax.
He stressed that the Government is fully implementing its commitments made last year’s TIF: protecting home owners, supporting farmers, maintaining ADMIE under state control, offering healthcare to 2.5 million people with no social security, preserving main pensions and abolishing a zero deficit clause for supplementary pensions, reforming civil administration, presenting a new regulatory framework for education, taking measures to support new scientists, revising legislation on public works, reviewing tax evasion lists, as well as the finally completed tender for TV licences in “a fully transparent way that benefits the public interest”.
In closing, Alexis Tsipras said the Government’s plan is to build wide and stable social alliances in a “national effort to find our footing after the country has learned its lessons from the past” and expressed his optimism that the country will achieve its goals.
Meetings to complete First Assessment
On Monday, representatives from the International Monetary Fund, the European Central Bank and European Commission - Greece's creditors - began assessing the country's progress on the remaining reforms prescribed in its international bailout programme - a key step before releasing the next tranche of 2.8€ billion.
The objective was to assess measures taken to “liberalise” its energy market, cut pension spending, speed up privatisations and strengthen banking governance in exchange for the fresh funds, which will be used to pay off state debts.
After meeting with the heads of the Institutions to Thursday, Minister of Economy, Development and Tourism, Giorgos Stathakis said "The mood was very positive. We are close to finalizing discussions; just some technical issues remain open."
On September 29th, the Euro Working Group will meet to give the "green light" for the release of the 2.8€ bn.
Privatisations
Privatisations are regarded as a key part of Greece's international bailouts by the Institutions. Greece has set up an umbrella privatisation agency to speed up the privatisation of public assets as part of the effort to raise 5.8€ billion by 2018.
Greece will launch a tendering process for the long-term lease of the 670 km Egnatia toll road for 35 years. Egnatia is a major trade route in the Balkans, linking Igoumenitsa port in eastern Greece to the Greek-Turkish border in the west. A senior official of the Privatisation Agency (HRADF) said on Thursday, "The decision was taken today by HRADF's board. The launch of the tender and the timetable will be announced by September 30th"as part of the effort to unlock the country's next tranche of bailout loans.
On Thursday, the Government submitted a draft bill on the lease of Hellenikon, the site of the old, disused Athens airport, which sits on prime beachfront real estate. In a 915€ million deal, a consortium led by Lamda Development, a Greek developer, would own part of the Hellenikon property and get a 99-year lease to develop all of it.
Athens and its lenders still need to reach agreement on who will oversee a new privatisation fund.
As part of the EU/IMF Assessment, Greece has also promised to conclude energy reforms.
On Monday, representatives from the International Monetary Fund, the European Central Bank and European Commission - Greece's creditors - began assessing the country's progress on the remaining reforms prescribed in its international bailout programme - a key step before releasing the next tranche of 2.8€ billion.
The objective was to assess measures taken to “liberalise” its energy market, cut pension spending, speed up privatisations and strengthen banking governance in exchange for the fresh funds, which will be used to pay off state debts.
After meeting with the heads of the Institutions to Thursday, Minister of Economy, Development and Tourism, Giorgos Stathakis said "The mood was very positive. We are close to finalizing discussions; just some technical issues remain open."
On September 29th, the Euro Working Group will meet to give the "green light" for the release of the 2.8€ bn.
Privatisations
Privatisations are regarded as a key part of Greece's international bailouts by the Institutions. Greece has set up an umbrella privatisation agency to speed up the privatisation of public assets as part of the effort to raise 5.8€ billion by 2018.
Greece will launch a tendering process for the long-term lease of the 670 km Egnatia toll road for 35 years. Egnatia is a major trade route in the Balkans, linking Igoumenitsa port in eastern Greece to the Greek-Turkish border in the west. A senior official of the Privatisation Agency (HRADF) said on Thursday, "The decision was taken today by HRADF's board. The launch of the tender and the timetable will be announced by September 30th"as part of the effort to unlock the country's next tranche of bailout loans.
On Thursday, the Government submitted a draft bill on the lease of Hellenikon, the site of the old, disused Athens airport, which sits on prime beachfront real estate. In a 915€ million deal, a consortium led by Lamda Development, a Greek developer, would own part of the Hellenikon property and get a 99-year lease to develop all of it.
Athens and its lenders still need to reach agreement on who will oversee a new privatisation fund.
As part of the EU/IMF Assessment, Greece has also promised to conclude energy reforms.
Preparing for the Second Assessment
A key issue to be dealt with in the Second Assessment is Labour Law Reform. On Wednesday, after his meeting with the Institutions’ representatives, Minister of Labour, George Katrougalos said the basis for the negotiations between the Government and the Institutions on Labour Law Reform will be the report of the International Committee of Experts. “Our differences with the IMF are so extreme that no substantial debate could take place if we didn’t have a reference text, such as that of the International Committee of Experts.”
Asked about mass redundancies, Mr. Katrougalos said that any substantive, binding talks on the issue will have to be held after the decision of the European Court which is expected to be issued towards the end of October, or early November. He also said that the Christmas and Easter bonuses will not be abolished.
The next meeting with the Institutions on labour reforms has been scheduled for October 17th.
Speaking at the Thessaloniki International Fair (TIF), Minister Katrougalos called on the Opposition parties to commit themselves to the national line, as agreed with the both the Business Sector and with the Trade Unions on opposing measures to make mass redundancies easier and on upholding trade union legislation. He said "For the first time we can start the negotiations about labour issues positively and assertively; we will not simply defend ourselves against the lenders' demands.We are seeking the reversal of deregulation with our first claim being the immediate reinstatement of collective bargaining, which means the return to the European social model".
A key issue to be dealt with in the Second Assessment is Labour Law Reform. On Wednesday, after his meeting with the Institutions’ representatives, Minister of Labour, George Katrougalos said the basis for the negotiations between the Government and the Institutions on Labour Law Reform will be the report of the International Committee of Experts. “Our differences with the IMF are so extreme that no substantial debate could take place if we didn’t have a reference text, such as that of the International Committee of Experts.”
Asked about mass redundancies, Mr. Katrougalos said that any substantive, binding talks on the issue will have to be held after the decision of the European Court which is expected to be issued towards the end of October, or early November. He also said that the Christmas and Easter bonuses will not be abolished.
The next meeting with the Institutions on labour reforms has been scheduled for October 17th.
Speaking at the Thessaloniki International Fair (TIF), Minister Katrougalos called on the Opposition parties to commit themselves to the national line, as agreed with the both the Business Sector and with the Trade Unions on opposing measures to make mass redundancies easier and on upholding trade union legislation. He said "For the first time we can start the negotiations about labour issues positively and assertively; we will not simply defend ourselves against the lenders' demands.We are seeking the reversal of deregulation with our first claim being the immediate reinstatement of collective bargaining, which means the return to the European social model".
Greece & The E.U. - The E.U. & Greece
10.09.2016
The first summit of the “Countries of the South” [-ern Europe] was held in Athens on Friday 9th September. The First Ministers, Alexis Tsipras (Greece), Francois Hollande (France), Matteo Renzi (Italy), Antonio Costa (Portugal), Mariano Rajoy (interim Prime Minister, Spain), Nicos Anastasiades (Cyprus) and Joseph Muscat (Malta) signed a Declaration setting out the vision of a different Europe, where growth, unity and social cohesion will take the place of austerity, division and inequalities. The fact that the political leaders are from across the political spectrum gives the initiative significantly more weight.
It was agreed make the Summit of the South an on-going project. The next meeting will be in Lisbon.
It was agreed make the Summit of the South an on-going project. The next meeting will be in Lisbon.
Greece fined for poor management of hazardous waste
The European Court of Justice has imposed a 10-million-euro fine on Greece for violating European regulations regarding the management of hazardous waste.
In a statement released Wednesday, the Court said that Greece had failed to fulfil its obligations under a 2009 judgement on waste treatment.
The Court said that Greece had failed to draw up or adopt a plan for the management of hazardous waste in line with EU requirements. It added that the country had failed to establish an integrated and adequate network of disposal installations for hazardous waste. Greece was also found in violation of guidelines relating to the recovery and disposal of waste and the authorisation and operation of landfills.
“The failure,” the court said Wednesday, “is particularly serious, in so far as it is liable to directly endanger human health and to harm the environment.”
A fine of 30,000€ was imposed on Greece on a daily basis until it complies with the 2009 ruling.
The European Court of Justice has imposed a 10-million-euro fine on Greece for violating European regulations regarding the management of hazardous waste.
In a statement released Wednesday, the Court said that Greece had failed to fulfil its obligations under a 2009 judgement on waste treatment.
The Court said that Greece had failed to draw up or adopt a plan for the management of hazardous waste in line with EU requirements. It added that the country had failed to establish an integrated and adequate network of disposal installations for hazardous waste. Greece was also found in violation of guidelines relating to the recovery and disposal of waste and the authorisation and operation of landfills.
“The failure,” the court said Wednesday, “is particularly serious, in so far as it is liable to directly endanger human health and to harm the environment.”
A fine of 30,000€ was imposed on Greece on a daily basis until it complies with the 2009 ruling.
"Greece no longer has the embarrassing 'privilege' of being the only country that has never conducted a tender for the licencing of private TV channels."
State Minister Nikos Pappas had meetings with the owners of the four companies provisionally awarded television broadcasting licences in last week’s tender. Meetings were held with ship owner Vangelis Marinakis, construction firm owner Christos Kalogritsas, ANT1 television chief Thodoris Kyriakou and the owner of SKAI Group, Yiannis Alafouzos. Their audits are pending. The Minister stressed the channels’ obligations to provide objective journalism and the protection of minors and the public at large as well as respect for the common good when presenting TV content. Furthermore, he reminded the owners of their obligations to hire at least 400 people per channel, and to present the public with a variety of content (news, arts and letters, current affairs, entertainment, Greek and foreign series, children’s shows, documentaries and sports). He also clarified technical obligations with regard to high definition equipment and 2,500 sq. metres of floor space. Should these conditions not be adhered to, then the TV licences can be revoked at any time during the 10-year period.
Stations that failed to “win” a TV licence will go off the air in 90 days.
Infrastructure, Transport and Networks Minister Christos Spirtzis said that no jobs would be lost as employees of the networks that failed to secure a licence would be absorbed by the two newcomers that were successful in the bidding process as well as the stations that will continue to broadcast as these are expected to expand and take on more employees.
Minister Pappas spoke of there being "a single standard procedure in relation to the management of public property. We have a good mixture of old and new TV channels, with a balance of experience and freshness that will give us a new television landscape, which the Greek people deserve". And he spoke of the need for a strong regulator, the National Radio and Television Council (ESR) "which will be the 'sleepless guardian ' of the level and quality that we as a State must ensure for Greek men and women."
"Greece no longer has the embarrassing 'privilege' of being the only country that has never conducted a tender for the licencing of private TV channels."
"We did not expect the price to go up so high. What we did was to design an auction that would maximize the gain for the Greek Government. That was what we managed to achieve."
"Now in our country legal channels will be broadcasting. Sustainable enterprises, living by their operations, producing quality and competitive television programming and not because of the interweaving of vested interests with the Government of the time. Channels which will inform the Greek people with objectivity and pluralism, not according to the behind the scenes relationships of the owner with political leaderships against a background of a sea of debt. This historic change in the broadcasting landscape in our country has been a demand of the Greek people for decades. It was a key SYRIZA commitment. "
Alexis Tsipras, referring to the decision to limit the number of national terrestrial TV broadcasting licences to four, invited the leadership of New Democracy to admit that " if we had done what they proposed and left the number [of licences] open, revenues to public funds would have been around 30€ million -10 licences at 3€ million each. Making our income 30€ million - and not 246€ million".
Referring to the way, previously, loans were given to media companies, the Prime Minister stressed that "we can not allow the impression that there is high taxation and strict law for some while for others who can escape, who can get loans with 'air' and can sell 'air', there is no law."
" So it is the end for the spivs, the end for those who were more highly favoured over others. From here on, everyone is equal before the law. And in this way we will also give the best signal abroad that we have now overcome the ills of the past and are ready to build a new Greece to get out of the crisis."
State Minister Nikos Pappas had meetings with the owners of the four companies provisionally awarded television broadcasting licences in last week’s tender. Meetings were held with ship owner Vangelis Marinakis, construction firm owner Christos Kalogritsas, ANT1 television chief Thodoris Kyriakou and the owner of SKAI Group, Yiannis Alafouzos. Their audits are pending. The Minister stressed the channels’ obligations to provide objective journalism and the protection of minors and the public at large as well as respect for the common good when presenting TV content. Furthermore, he reminded the owners of their obligations to hire at least 400 people per channel, and to present the public with a variety of content (news, arts and letters, current affairs, entertainment, Greek and foreign series, children’s shows, documentaries and sports). He also clarified technical obligations with regard to high definition equipment and 2,500 sq. metres of floor space. Should these conditions not be adhered to, then the TV licences can be revoked at any time during the 10-year period.
Stations that failed to “win” a TV licence will go off the air in 90 days.
Infrastructure, Transport and Networks Minister Christos Spirtzis said that no jobs would be lost as employees of the networks that failed to secure a licence would be absorbed by the two newcomers that were successful in the bidding process as well as the stations that will continue to broadcast as these are expected to expand and take on more employees.
Minister Pappas spoke of there being "a single standard procedure in relation to the management of public property. We have a good mixture of old and new TV channels, with a balance of experience and freshness that will give us a new television landscape, which the Greek people deserve". And he spoke of the need for a strong regulator, the National Radio and Television Council (ESR) "which will be the 'sleepless guardian ' of the level and quality that we as a State must ensure for Greek men and women."
"Greece no longer has the embarrassing 'privilege' of being the only country that has never conducted a tender for the licencing of private TV channels."
"We did not expect the price to go up so high. What we did was to design an auction that would maximize the gain for the Greek Government. That was what we managed to achieve."
"Now in our country legal channels will be broadcasting. Sustainable enterprises, living by their operations, producing quality and competitive television programming and not because of the interweaving of vested interests with the Government of the time. Channels which will inform the Greek people with objectivity and pluralism, not according to the behind the scenes relationships of the owner with political leaderships against a background of a sea of debt. This historic change in the broadcasting landscape in our country has been a demand of the Greek people for decades. It was a key SYRIZA commitment. "
Alexis Tsipras, referring to the decision to limit the number of national terrestrial TV broadcasting licences to four, invited the leadership of New Democracy to admit that " if we had done what they proposed and left the number [of licences] open, revenues to public funds would have been around 30€ million -10 licences at 3€ million each. Making our income 30€ million - and not 246€ million".
Referring to the way, previously, loans were given to media companies, the Prime Minister stressed that "we can not allow the impression that there is high taxation and strict law for some while for others who can escape, who can get loans with 'air' and can sell 'air', there is no law."
" So it is the end for the spivs, the end for those who were more highly favoured over others. From here on, everyone is equal before the law. And in this way we will also give the best signal abroad that we have now overcome the ills of the past and are ready to build a new Greece to get out of the crisis."
A new Vision for the E.U.
Dimitris Papadimoulis, Vice President of the European Parliament, MEP and head of the Syriza party delegation, last week gave a useful summary of SYRIZA’s strategy.
"The Summit of leaders of the European South (September 9th) aims to foster regional strategic alliances against Berlin’s austerity politics, as well as a quest for a new vision for Europe against the populist and xenophobic rhetoric of the conservative and far-right parties. The Greek side aims at invigorating the debate over the topic “what kind of Europe do we want”, enhancing the participation of civil society and citizens in the policy- and decision-making process. In this respect, the emphasis must be on the younger generations struggling to escape from the vicious circle of unemployment and recession.
The Greek PM last week made a set of policy proposals on the need for social and economic convergence, the transfer of more funds towards the European periphery to address the inequality and poverty, and the exclusion from annual budgets of any deficits created by public spending used fighting against unemployment.
The Greek government has put a great deal of effort and determination into dragging the country out of the restricted framework of financial control, setting the conditions for a steady return to growth and improvements in social justice mechanisms. The successful conclusion of the first review of the bailout programme has given space and time to the government to focus this time on other major fields of policy, such as constitutional reform and the preparation of the ground politically for a new social policy model.
The rapid and successful conclusion of the second Assessment of the bailout programme is of paramount importance for the country in its efforts to stand firm on the path of stability and reforms, despite and against the continuous efforts of certain political and media circles in the country and abroad to undermine the progress that has been made.
The European institutions and our partners have to acknowledge that more realistic primary surpluses are needed after 2018, as well as specification of the short- and mid-term measures to contribute towards achieving sustainable debt relief by the end of 2016. Maintaining such high levels of primary surpluses is not considered a viable option neither for the Greek government nor for the institutions. Lowering the target to around 2-2.5 per cent of GDP will allow a more balanced economic policy mix, encourage private investment and contribute to sustainable growth rates.
Addressing both issues and successfully concluding the second bailout review would act as a catalyst for future positive developments as it would enhance economic stability and have strong, positive and lasting impact on the real economy, employment rates, the investment climate and the welfare state."
Dimitris Papadimoulis, Vice President of the European Parliament, MEP and head of the Syriza party delegation, last week gave a useful summary of SYRIZA’s strategy.
"The Summit of leaders of the European South (September 9th) aims to foster regional strategic alliances against Berlin’s austerity politics, as well as a quest for a new vision for Europe against the populist and xenophobic rhetoric of the conservative and far-right parties. The Greek side aims at invigorating the debate over the topic “what kind of Europe do we want”, enhancing the participation of civil society and citizens in the policy- and decision-making process. In this respect, the emphasis must be on the younger generations struggling to escape from the vicious circle of unemployment and recession.
The Greek PM last week made a set of policy proposals on the need for social and economic convergence, the transfer of more funds towards the European periphery to address the inequality and poverty, and the exclusion from annual budgets of any deficits created by public spending used fighting against unemployment.
The Greek government has put a great deal of effort and determination into dragging the country out of the restricted framework of financial control, setting the conditions for a steady return to growth and improvements in social justice mechanisms. The successful conclusion of the first review of the bailout programme has given space and time to the government to focus this time on other major fields of policy, such as constitutional reform and the preparation of the ground politically for a new social policy model.
The rapid and successful conclusion of the second Assessment of the bailout programme is of paramount importance for the country in its efforts to stand firm on the path of stability and reforms, despite and against the continuous efforts of certain political and media circles in the country and abroad to undermine the progress that has been made.
The European institutions and our partners have to acknowledge that more realistic primary surpluses are needed after 2018, as well as specification of the short- and mid-term measures to contribute towards achieving sustainable debt relief by the end of 2016. Maintaining such high levels of primary surpluses is not considered a viable option neither for the Greek government nor for the institutions. Lowering the target to around 2-2.5 per cent of GDP will allow a more balanced economic policy mix, encourage private investment and contribute to sustainable growth rates.
Addressing both issues and successfully concluding the second bailout review would act as a catalyst for future positive developments as it would enhance economic stability and have strong, positive and lasting impact on the real economy, employment rates, the investment climate and the welfare state."
National TV Licences auction raises 246€ million
3.09.2016
On Tuesday, the Government began the process of auctioning four nationwide TV licenses. Greece currently has eight terrestrial TV channels broadcasting nationwide, meaning four will have to suspend operations after the licensing process is completed. The starting price for bids was set at 3€ million.
The new licences are intended to bring order to the television sector mired in debt and discredited because of its political links. The Government says the media along with business and political elites formed a triangle of power and vested interests that lay at the root of Greece's financial problems.
The Government maintains that current TV stations are operating illegally because their licenses were not tendered for; media ownership is opaque and existing media businesses have unpaid tax arrears and unserviced debts.
Conditions of participating in the bidding process included transparency about company ownership, and an agreed approach to the payment of outstanding taxes and debts. Leading private channel MEGA TV did not qualify to bid because it had not settled loan issues.
The auction process saw the price for each licence increase in increments of 500,000€ from the
3€ million starting point until there were only two contenders left, each of whom then submitted a sealed final bid for each licence.
Existing operators who failed to secure a licence will have 90 days before going off air, the Government said.
"After 27 years, an auction conducted in a fully legal and transparent way will bring order to a TV landscape that has a key role in forming political life in this country for years to come," said Syriza MP Nikos Syrmalenios. "It should be viewed as a positive development ... despite the protests and the objections."
In the event, the Government raised 246€ million from the television licence auction that saw just two of the seven current private national broadcasters survive.
The results were announced early Friday after TV executives were kept in isolation at a government building for more than two days during the sequential bidding.
TV stations Star and Alpha were eliminated during the bidding, while three other channels did not enter or were excluded due to financial trouble.
The Government says the new licenses will take effect in 90 days.
The new licences are intended to bring order to the television sector mired in debt and discredited because of its political links. The Government says the media along with business and political elites formed a triangle of power and vested interests that lay at the root of Greece's financial problems.
The Government maintains that current TV stations are operating illegally because their licenses were not tendered for; media ownership is opaque and existing media businesses have unpaid tax arrears and unserviced debts.
Conditions of participating in the bidding process included transparency about company ownership, and an agreed approach to the payment of outstanding taxes and debts. Leading private channel MEGA TV did not qualify to bid because it had not settled loan issues.
The auction process saw the price for each licence increase in increments of 500,000€ from the
3€ million starting point until there were only two contenders left, each of whom then submitted a sealed final bid for each licence.
Existing operators who failed to secure a licence will have 90 days before going off air, the Government said.
"After 27 years, an auction conducted in a fully legal and transparent way will bring order to a TV landscape that has a key role in forming political life in this country for years to come," said Syriza MP Nikos Syrmalenios. "It should be viewed as a positive development ... despite the protests and the objections."
In the event, the Government raised 246€ million from the television licence auction that saw just two of the seven current private national broadcasters survive.
The results were announced early Friday after TV executives were kept in isolation at a government building for more than two days during the sequential bidding.
TV stations Star and Alpha were eliminated during the bidding, while three other channels did not enter or were excluded due to financial trouble.
The Government says the new licenses will take effect in 90 days.
The four victors of the auction are SKAI TV owner Yannis Alafouzos who bought his licence for 43.6€ million, Yannis Kalogritsas, a Greek businessman who bought the licence for 52.6€ million for a new TV station, Greek shipowner Vangelis Marinakis who paid 73.9€ million for the third TV licence and Antenna TV owner Thodoris Kyriakou who paid 75.9€ million to obtain a licence.
Now that the results have been officially announced, the four successful companies will need to undergo an assets test to verify the legality of their bids. Following this, the licences will be officially issued as soon as the four national TV channels pay 30% of their final offer.
Alexis Tsipras described the price for broadcasting licences as unexpectedly high, underlining that every last euro will go to fund extraordinary measures to support vulnerable groups in society. "We have also sent a signal to foreign investors that there are rules here. Greek Governments will no longer play games. We will defend the public interest to the very end."
"A new page opens today for the broadcasting landscape and information media in our country. For the first time in the history of the country - and after thirty years of arbitrariness – we have rules that will be implemented as to the use of television frequencies. In terms of absolute transparency, constitutional legality is restored and finally the public interest is guaranteed," the Government spokesman Olga Gerovasili said in a statement after the completion of the tendering process for broadcasting licences. "The Government commends all those who contributed to the completion of this absolutely impartial process."
In an interview on SKAI TV, SYRIZA spokeswoman Rania Svingkou said:
"The Government aims to bring about something no previous government has dared to, that is to bring order to the broadcasting landscape by a competitive tendering process for licenses to put an end to a situation of lawlessness in which the television landscape could be said to have been held hostage by vested interests, and a situation in which those involved were never asked to pay for their licences.
By the decision, in 2010, of the State Council, the situation had to be brought to an end, as the operation of TV channels without permits was characterised as “an affront to the public interest”.
There were permits, but they were “temporary” permits. There were ongoing extensions of temporary licenses, there was no competition.
It is illegal to not respect the requirements of the Constitution and to not respect the decisions of the State Council which said there must be an end to this lawless regime.
According to the State Council the operation of television stations without permission was unconstitutional. To be able to operate a TV channel, it is necessary to have a legal licence.
Now that the results have been officially announced, the four successful companies will need to undergo an assets test to verify the legality of their bids. Following this, the licences will be officially issued as soon as the four national TV channels pay 30% of their final offer.
Alexis Tsipras described the price for broadcasting licences as unexpectedly high, underlining that every last euro will go to fund extraordinary measures to support vulnerable groups in society. "We have also sent a signal to foreign investors that there are rules here. Greek Governments will no longer play games. We will defend the public interest to the very end."
"A new page opens today for the broadcasting landscape and information media in our country. For the first time in the history of the country - and after thirty years of arbitrariness – we have rules that will be implemented as to the use of television frequencies. In terms of absolute transparency, constitutional legality is restored and finally the public interest is guaranteed," the Government spokesman Olga Gerovasili said in a statement after the completion of the tendering process for broadcasting licences. "The Government commends all those who contributed to the completion of this absolutely impartial process."
In an interview on SKAI TV, SYRIZA spokeswoman Rania Svingkou said:
"The Government aims to bring about something no previous government has dared to, that is to bring order to the broadcasting landscape by a competitive tendering process for licenses to put an end to a situation of lawlessness in which the television landscape could be said to have been held hostage by vested interests, and a situation in which those involved were never asked to pay for their licences.
By the decision, in 2010, of the State Council, the situation had to be brought to an end, as the operation of TV channels without permits was characterised as “an affront to the public interest”.
There were permits, but they were “temporary” permits. There were ongoing extensions of temporary licenses, there was no competition.
It is illegal to not respect the requirements of the Constitution and to not respect the decisions of the State Council which said there must be an end to this lawless regime.
According to the State Council the operation of television stations without permission was unconstitutional. To be able to operate a TV channel, it is necessary to have a legal licence.
"EU sleepwalking towards a cliff"
In a wide-ranging interview last Sunday, Prime Minister Alexis Tsipras said the EU was "sleepwalking towards a cliff" by sticking to austerity rules that created huge inequalities among members, and that Greece expected the agreement on debt relief to be honoured by end of 2016 so that its economy could recover.
"Brexit will either awaken European leaderships or it will be the beginning of the end of the EU," he said, referring to Britain's June vote to leave the 28-nation bloc.
Germany continues to operate as the “savings bank” of Europe with excessive surpluses, "frozen" wages and low inflation, at the same time as the EU's deficit-ridden southern members have broken all records for unemployment and a decline in growth. If this continues, we will see very unpleasant results in subsequent elections and referenda."
Asked if he would welcome the IMF's participation in the next Programme, the Prime Minister said that the more important issue for Greece is the removal of uncertainty, and therefore he has requested that all parties clarify their intentions as soon as possible.
"In any case, what we insist on is that the Agreement is an Agreement and that it must be implemented by all parties, whether they have elections next year in their country or not."
Asked if the Government will lay claim to a reduction of Primary Surpluses after 2018, he noted that the reduction of surpluses related to the decision that will be taken by the EU about debt relief, and recalled that "Europe is committed to this direction by the Agreement last June, and the Eurogroup decision of May 25th, which will be fine-tuned by the end of the year, that is when the IMF will decide whether to participate or not in the programme.
"Greece has kept its part of the Agreement and expects the same from its partners. We are not simply asking, we are demanding and expecting specific measures that will render the debt sustainable as part of the agreement we are implementing. "This (debt relief) will be followed by reduced (budget) surpluses after 2018, which will open the way for the economy's recovery," he said.
In terms of finding money for the Government’s social policy, he said that "even in the most difficult times for the economy we have demonstrated that social policy is our first concern," adding that, "even in the most difficult conditions, finding the resources to help those in need is a Government decision." The Prime Minister stressed that as the conditions in the economy improve so the Government’s social policy options will widen.
As far as the second Assessment is concerned, he said: "Our red line is to not take one step back from the European social settlement".
"If [German Finance Minister Wolfgang] Schaueble's dogma for a multi-speed Europe and economic zones of low-cost labour is not abandoned, Europe will be brought to the brink of dissolution," Prime Minister Tsipras said.
Referring to the countries of southern Europe, he noted "it is not necessary to create our own group, but in cooperation with other European countries of the periphery to talk about the need for social cohesion and for initiatives to transfer emergency funds to the region to enable its return to growth and to combat unemployment. We do not want to be the poor periphery of the EU, we want to be a new centre with a positive agenda and proposals for development and social cohesion."
In a wide-ranging interview last Sunday, Prime Minister Alexis Tsipras said the EU was "sleepwalking towards a cliff" by sticking to austerity rules that created huge inequalities among members, and that Greece expected the agreement on debt relief to be honoured by end of 2016 so that its economy could recover.
"Brexit will either awaken European leaderships or it will be the beginning of the end of the EU," he said, referring to Britain's June vote to leave the 28-nation bloc.
Germany continues to operate as the “savings bank” of Europe with excessive surpluses, "frozen" wages and low inflation, at the same time as the EU's deficit-ridden southern members have broken all records for unemployment and a decline in growth. If this continues, we will see very unpleasant results in subsequent elections and referenda."
Asked if he would welcome the IMF's participation in the next Programme, the Prime Minister said that the more important issue for Greece is the removal of uncertainty, and therefore he has requested that all parties clarify their intentions as soon as possible.
"In any case, what we insist on is that the Agreement is an Agreement and that it must be implemented by all parties, whether they have elections next year in their country or not."
Asked if the Government will lay claim to a reduction of Primary Surpluses after 2018, he noted that the reduction of surpluses related to the decision that will be taken by the EU about debt relief, and recalled that "Europe is committed to this direction by the Agreement last June, and the Eurogroup decision of May 25th, which will be fine-tuned by the end of the year, that is when the IMF will decide whether to participate or not in the programme.
"Greece has kept its part of the Agreement and expects the same from its partners. We are not simply asking, we are demanding and expecting specific measures that will render the debt sustainable as part of the agreement we are implementing. "This (debt relief) will be followed by reduced (budget) surpluses after 2018, which will open the way for the economy's recovery," he said.
In terms of finding money for the Government’s social policy, he said that "even in the most difficult times for the economy we have demonstrated that social policy is our first concern," adding that, "even in the most difficult conditions, finding the resources to help those in need is a Government decision." The Prime Minister stressed that as the conditions in the economy improve so the Government’s social policy options will widen.
As far as the second Assessment is concerned, he said: "Our red line is to not take one step back from the European social settlement".
"If [German Finance Minister Wolfgang] Schaueble's dogma for a multi-speed Europe and economic zones of low-cost labour is not abandoned, Europe will be brought to the brink of dissolution," Prime Minister Tsipras said.
Referring to the countries of southern Europe, he noted "it is not necessary to create our own group, but in cooperation with other European countries of the periphery to talk about the need for social cohesion and for initiatives to transfer emergency funds to the region to enable its return to growth and to combat unemployment. We do not want to be the poor periphery of the EU, we want to be a new centre with a positive agenda and proposals for development and social cohesion."
"Under no circumstances will we allow the Labour Code of Pinochet to hold sway in Greece"
27.08.2016
Government positions ahead of second Assessment
Collective Bargaining agreements are the Government’s "spearhead" in coming negotiations with the Institutions on labour relations, said Minister of Labour, George Katrougalos in a TV interview.
He reiterated that "a red line for the Government are mass redundancies" explaining that the Government's goal is to ward off the widespread deregulation that has taken place in recent years in the labour market.
Collective Bargaining agreements are the Government’s "spearhead" in coming negotiations with the Institutions on labour relations, said Minister of Labour, George Katrougalos in a TV interview.
He reiterated that "a red line for the Government are mass redundancies" explaining that the Government's goal is to ward off the widespread deregulation that has taken place in recent years in the labour market.
Referring to the measure of the self-financing of trade unions, Mr. Katrougalos argued that this enhances their autonomy. "Unions must be self-financing in order to be independent of the state. The measure will proceed following discussion with the trade unions, gradually and in stages."
"The Government will not accept any preconditions for declaring strikes, said Labour Minister George Katrougalos, stressing that "the strike is the ultimate weapon of workers. We will defend it right to the end.
"Under no circumstances will we accept that workers can not defend and assert their rights, particularly in the current environment of the labour relations jungle which we are trying to roll back using every means.
Referring to the IMF positions on collective labour agreements, Minister Katrougalos stressed that "under no circumstances will we allow the Labour Code of Pinochet to hold sway in Greece."
"Greece needs new jobs and not mass redundancies," noted the Minister explaining that it is only the IMF that is asking for layoffs, something which is incompatible with the European positions." The extreme neoliberal IMF positions have no place in Europe," he said.
Concerning the minimum wage, the Labour Minister said the Government wants the return to collective bargaining to be an element in the national collective employment agreement.
As regards pensions, he reiterated that "there will be no reduction in the basic pension" responding to the "tabloid propaganda" about which so much has been heard. When the total of the Basic and the Supplementary Pension is 1300€, there is no reduction. "
He agreed that pensions are low. "This is because that is all our economy can sustain at this time, but the link to GDP guarantees the growth of pensions as soon as there is an improvement."
Some compensatory measures for EKAS will begin immediately, and some in October, with retrospective effect, said Mr. Katrougalos. He added that EKAS had been replaced by the national pension that applies to everyone and is non-contributory. He also stated that Supplementary pensions exceeding 1,300€ are being recalculated. And he said that there are no further reductions.
"The millstone for the economy," declared the Minister of Labour is "black work" and he referred to the measures and controls which will be stepped up against undeclared work as well. The Labour Inspectorate will be strengthened with increased staff.
Finally, the Minister of Labour estimated that because of the good work that has already been done, the second Assessment should be completed during October and he added that the tranche of 2.8€ billion is not related to the second Assessment since that is the "tail-end" of the first Assessment.
"The Government will not accept any preconditions for declaring strikes, said Labour Minister George Katrougalos, stressing that "the strike is the ultimate weapon of workers. We will defend it right to the end.
"Under no circumstances will we accept that workers can not defend and assert their rights, particularly in the current environment of the labour relations jungle which we are trying to roll back using every means.
Referring to the IMF positions on collective labour agreements, Minister Katrougalos stressed that "under no circumstances will we allow the Labour Code of Pinochet to hold sway in Greece."
"Greece needs new jobs and not mass redundancies," noted the Minister explaining that it is only the IMF that is asking for layoffs, something which is incompatible with the European positions." The extreme neoliberal IMF positions have no place in Europe," he said.
Concerning the minimum wage, the Labour Minister said the Government wants the return to collective bargaining to be an element in the national collective employment agreement.
As regards pensions, he reiterated that "there will be no reduction in the basic pension" responding to the "tabloid propaganda" about which so much has been heard. When the total of the Basic and the Supplementary Pension is 1300€, there is no reduction. "
He agreed that pensions are low. "This is because that is all our economy can sustain at this time, but the link to GDP guarantees the growth of pensions as soon as there is an improvement."
Some compensatory measures for EKAS will begin immediately, and some in October, with retrospective effect, said Mr. Katrougalos. He added that EKAS had been replaced by the national pension that applies to everyone and is non-contributory. He also stated that Supplementary pensions exceeding 1,300€ are being recalculated. And he said that there are no further reductions.
"The millstone for the economy," declared the Minister of Labour is "black work" and he referred to the measures and controls which will be stepped up against undeclared work as well. The Labour Inspectorate will be strengthened with increased staff.
Finally, the Minister of Labour estimated that because of the good work that has already been done, the second Assessment should be completed during October and he added that the tranche of 2.8€ billion is not related to the second Assessment since that is the "tail-end" of the first Assessment.
The Prime Minister’s Week ahead
The speech of Prime Minister to the International Exhibition of Thessaloniki [ΔΕΘ] in mid September will focus on the concerns of ordinary people about everyday issues, but also on the cautiousness of a section of the market and business world towards SYRIZA.
According to Government officials, Alexis Tsipras will undertake to provide convincing answers to their questions and to set out the Government's plans for the next year, decisively quashing the doomsday scenarios some of the Opposition and the mass media are still attempting to promote. The statement said “The planning for the recovery of the economy, taking into account the expectations of citizens and the market, is not cut off from reality. Instead, it has its foundations in the positive data that have been emerging on the economic front: The income of the last seven months exceeds the target, confirming the Government's commitment that the "Cutter" or other new measures will not be activated. Liquidity is enhanced by more than twice the usual tax returns and the repayment of arrears of 1€ billion owed by individuals to the Treasury. On top of that, bank deposits are returning to the country and have already increased by 4€ billion. At the same time, labour market data show a significant potential for increased employment, although there remains the problem of “flexible working”.”
Meanwhile, next week the Government’s political strategy "Turning Outwards" begins to unfold mainly through Alexis Tsipras’ international contacts - around three pivotal themes: a) Expanding alliances and changing relationships in Europe, b) Attracting investment, c) Consolidation of Greece’s role as a base of stability base in the wider region of Southeast Europe and the Middle East, with the major points at this level being the refugee and energy issues.
Wednesday sees the start with the Prime Minister's journey to Paris, where he will participate in the meeting of European socialist leaders. There, Alexis Tsipras is reported to be determined to ask Europe's progressive forces to agree to a more assertive stance at the summit of leaders of the EU countries on September 16th in Bratislava and to arrive at, if at all feasible, specific proposals.
ENFIA bills to go online by end of August
On Monday it was announced by Deputy Finance Minister Tryfon Alexiadis that this year’s ENFIA property tax bills will be posted on the site of the General Secretariat for Information Systems
( www.gsis.gr ) by the end of August. The first instalment will be due in September. Mr. Alexiadis said that the tax would be payable in five instalments, the last due in January 2017. He added that the majority of taxpayers will pay the same or less than last year.
He added that certain taxpayers will have to pay more. According to Finance Ministry data, around 2.2 million homeowners will have to pay increased tax up to 50€ because of revised property values plus the scrapping of the 20% discount for vacant properties not connected to the electricity grid.
The Government is preparing a new tax to replace ENFIA. It will have a tax-free threshold and will transfer the tax burden to large properties and to the total sum of properties owned. An electronic property register will be created. From February 2017, 8,500,000 taxpayers will be required to declare their total assets in property and other forms.
The speech of Prime Minister to the International Exhibition of Thessaloniki [ΔΕΘ] in mid September will focus on the concerns of ordinary people about everyday issues, but also on the cautiousness of a section of the market and business world towards SYRIZA.
According to Government officials, Alexis Tsipras will undertake to provide convincing answers to their questions and to set out the Government's plans for the next year, decisively quashing the doomsday scenarios some of the Opposition and the mass media are still attempting to promote. The statement said “The planning for the recovery of the economy, taking into account the expectations of citizens and the market, is not cut off from reality. Instead, it has its foundations in the positive data that have been emerging on the economic front: The income of the last seven months exceeds the target, confirming the Government's commitment that the "Cutter" or other new measures will not be activated. Liquidity is enhanced by more than twice the usual tax returns and the repayment of arrears of 1€ billion owed by individuals to the Treasury. On top of that, bank deposits are returning to the country and have already increased by 4€ billion. At the same time, labour market data show a significant potential for increased employment, although there remains the problem of “flexible working”.”
Meanwhile, next week the Government’s political strategy "Turning Outwards" begins to unfold mainly through Alexis Tsipras’ international contacts - around three pivotal themes: a) Expanding alliances and changing relationships in Europe, b) Attracting investment, c) Consolidation of Greece’s role as a base of stability base in the wider region of Southeast Europe and the Middle East, with the major points at this level being the refugee and energy issues.
Wednesday sees the start with the Prime Minister's journey to Paris, where he will participate in the meeting of European socialist leaders. There, Alexis Tsipras is reported to be determined to ask Europe's progressive forces to agree to a more assertive stance at the summit of leaders of the EU countries on September 16th in Bratislava and to arrive at, if at all feasible, specific proposals.
ENFIA bills to go online by end of August
On Monday it was announced by Deputy Finance Minister Tryfon Alexiadis that this year’s ENFIA property tax bills will be posted on the site of the General Secretariat for Information Systems
( www.gsis.gr ) by the end of August. The first instalment will be due in September. Mr. Alexiadis said that the tax would be payable in five instalments, the last due in January 2017. He added that the majority of taxpayers will pay the same or less than last year.
He added that certain taxpayers will have to pay more. According to Finance Ministry data, around 2.2 million homeowners will have to pay increased tax up to 50€ because of revised property values plus the scrapping of the 20% discount for vacant properties not connected to the electricity grid.
The Government is preparing a new tax to replace ENFIA. It will have a tax-free threshold and will transfer the tax burden to large properties and to the total sum of properties owned. An electronic property register will be created. From February 2017, 8,500,000 taxpayers will be required to declare their total assets in property and other forms.
Government preparing for Assessment negotiations
20.08.2016
Georgos Katrougalos the Minister of Labour, Social Security and Welfare speaking in an interview last week emphasized that “there is a European way for labour relations and this is the way we propose, not the way proposed by the IMF.”
"We have entered a phase which shows that the economy is beginning to recover, and the real challenge is development that is fair for everyone,” He noted that in the forthcoming negotiations with the Institutions about labour, the Greek attitude will not be defensive, but positive and aggressive in order to reverse the widespread deregulation currently in force in the domestic labour market.
Approaching the new negotiations with the Institutions, the Minister explained what he had meant when he talked about isolating the IMF.
"The IMF is isolated by the very nature of its proposals - the extreme neo-liberalism that characterizes it. Precisely because it goes against the European social model. Therefore, what I said is that these views must be isolated. And just as they were isolated in the process of the negotiations on social insurance, I believe the same thing will happen this time. And why do I say that they were isolated in the process of the negotiations over social the insurance? Because then the IMF insisted on major cuts being made to pensions. We isolated this extreme view which would have led to a 13th reduction in main pensions – and a big reduction of all pensions, for all pensioners. We ended up with the pension reform, which – as well as establishing general principles for the future - protected the income of 80% of those with small and medium-sized pensions, - everyone with a pension of less than 1,300€.
"As regards labour relations, for the first time we will not be on the defensive against the Lenders because deregulation is so widespread that the situation at work today is actually a jungle. For the first time, positively and aggressively, we are seeking the reversal of deregulation and a return to collective bargaining. The minimum wage to be negotiated between the social partners. It was precisely on this programme -which is not defensive, but positive – that I sought an agreed opinion from the social partners, signatories to the National General Collective Labour Agreement, and I got it. We therefore have social front. On 16th to 17th September we are holding a large international conference, which will bring EU Ministers and representatives of the European Trade Unions together for us to show what I said before: that there is a European way for labour relations and this is the path we propose instead of the path proposed by the IMF.
"In regard to unemployment, we have a decrease of 2.1% over the last two years. A recent OECD report shows that this trend will continue because the prospects for the Greek economy's growth are well known. Also, a study of the Greek private sector shows that about half Greek companies plan to recruit in the next immediate period. Therefore, we have entered a phase which shows that the economy is beginning to recover, and the real challenge is that this growth is equitable growth. Growth for all.
"I believe that we are in a phase where it appears we are leaving the darkest days of the crisis behind us. For me a symptomatic figure is that for the first time the number of registered unemployed at the Employment Agency fell below the symbolic threshold of one million. Therefore I believe that this target of 300,000 new jobs set out in the Development Law is realistic and I will say it again: we do not want just any kind of development, we want development for all, and one of the first results of this equitable development will be to tackle this monster of unemployment."
Tax Evasion – next steps
The General Secretariat of Public Revenue has drafted a plan, starting in the Autumn, that will involve audits which will focus on doctors, engineers, plumbers, accountants, electricians, lawyers and others that are considered especially prone to tax evasion, as the government pursues its stated objective of combating and reducing tax evasion.
The audits will use different criteria for each occupational category. Auditors will look into the income declared in previous years, the operating costs of each occupation, and will factor in the loans an individual or company has taken out as well as their assets.
Tax return data have shown that about one in two self-employed people declares an annual income of up to 5,000€, which financial authorities claim is a far cry from reality.
Experts from the UK and France were employed to draft the Government’s plan. Nine members of the General Secretariat of Public Revenue attended a series of seminars over three weeks at the end of May and beginning of June in Paris, France.
Approaching the new negotiations with the Institutions, the Minister explained what he had meant when he talked about isolating the IMF.
"The IMF is isolated by the very nature of its proposals - the extreme neo-liberalism that characterizes it. Precisely because it goes against the European social model. Therefore, what I said is that these views must be isolated. And just as they were isolated in the process of the negotiations on social insurance, I believe the same thing will happen this time. And why do I say that they were isolated in the process of the negotiations over social the insurance? Because then the IMF insisted on major cuts being made to pensions. We isolated this extreme view which would have led to a 13th reduction in main pensions – and a big reduction of all pensions, for all pensioners. We ended up with the pension reform, which – as well as establishing general principles for the future - protected the income of 80% of those with small and medium-sized pensions, - everyone with a pension of less than 1,300€.
"As regards labour relations, for the first time we will not be on the defensive against the Lenders because deregulation is so widespread that the situation at work today is actually a jungle. For the first time, positively and aggressively, we are seeking the reversal of deregulation and a return to collective bargaining. The minimum wage to be negotiated between the social partners. It was precisely on this programme -which is not defensive, but positive – that I sought an agreed opinion from the social partners, signatories to the National General Collective Labour Agreement, and I got it. We therefore have social front. On 16th to 17th September we are holding a large international conference, which will bring EU Ministers and representatives of the European Trade Unions together for us to show what I said before: that there is a European way for labour relations and this is the path we propose instead of the path proposed by the IMF.
"In regard to unemployment, we have a decrease of 2.1% over the last two years. A recent OECD report shows that this trend will continue because the prospects for the Greek economy's growth are well known. Also, a study of the Greek private sector shows that about half Greek companies plan to recruit in the next immediate period. Therefore, we have entered a phase which shows that the economy is beginning to recover, and the real challenge is that this growth is equitable growth. Growth for all.
"I believe that we are in a phase where it appears we are leaving the darkest days of the crisis behind us. For me a symptomatic figure is that for the first time the number of registered unemployed at the Employment Agency fell below the symbolic threshold of one million. Therefore I believe that this target of 300,000 new jobs set out in the Development Law is realistic and I will say it again: we do not want just any kind of development, we want development for all, and one of the first results of this equitable development will be to tackle this monster of unemployment."
Tax Evasion – next steps
The General Secretariat of Public Revenue has drafted a plan, starting in the Autumn, that will involve audits which will focus on doctors, engineers, plumbers, accountants, electricians, lawyers and others that are considered especially prone to tax evasion, as the government pursues its stated objective of combating and reducing tax evasion.
The audits will use different criteria for each occupational category. Auditors will look into the income declared in previous years, the operating costs of each occupation, and will factor in the loans an individual or company has taken out as well as their assets.
Tax return data have shown that about one in two self-employed people declares an annual income of up to 5,000€, which financial authorities claim is a far cry from reality.
Experts from the UK and France were employed to draft the Government’s plan. Nine members of the General Secretariat of Public Revenue attended a series of seminars over three weeks at the end of May and beginning of June in Paris, France.
Nazi War Reparations
On Tuesday during a commemoration ceremony for 317 civilians massacred by the Nazis on August 16th 1943 in the village of Kommeno in North West Greece, Alexis Tsipras vowed to exhaust all diplomatic and, if necessary, legal means to secure reparations from Germany for its occupation of the country in World War II.
Alexis Tsipras called upon the current German Government to demonstrate a real recognition of the Third Reich crimes, stressing that there is a "moral and political duty towards the Greek people and the whole of Europe, towards the German people, towards justice itself and peace.
A special parliamentary committee recently prepared a report on the German war reparations, setting the total sum due at 300-400€ billion.
"Today I want, from this tortured place, to send a message. Greece and the Greek people do not forget its history, the massacres and war crimes of the Nazi army and we demand the present German government’s real recognition of them, even after a delay of 73 years.
"The pages of our history during the German occupation are stained with blood, but at the same time they are full of the pride and dignity and self-sacrifice of a people who fought with passion to the very end against the occupier.
"So today, in this historic, heroic place we honour their history and memory.
It is the responsibility of each and every Greek to erect a barrier against the Nazi ideology that made our villages, towns, our country and indeed the whole of continental Europe run with blood.
And this responsibility is part of our mission to deliver to future generations a society of peace, freedom, democracy and solidarity that will be the most potent antibodies against the poison of hatred and fear.
"And I think the time has come for the German Government in consultation and in a climate of good faith to recognize that the issue is unresolved and at last to sit down at the negotiating table.
We, on our part assure the Greek people that we are ready to do whatever it takes to close this historic chapter.
"And I want to repeat that this is not an opportunistic attempt to cover over the economic crisis.
The Greek people over the course of its history has spent much more difficult times than those we have been going through over the last five or six years.
So we are demanding not begging."
On Tuesday during a commemoration ceremony for 317 civilians massacred by the Nazis on August 16th 1943 in the village of Kommeno in North West Greece, Alexis Tsipras vowed to exhaust all diplomatic and, if necessary, legal means to secure reparations from Germany for its occupation of the country in World War II.
Alexis Tsipras called upon the current German Government to demonstrate a real recognition of the Third Reich crimes, stressing that there is a "moral and political duty towards the Greek people and the whole of Europe, towards the German people, towards justice itself and peace.
A special parliamentary committee recently prepared a report on the German war reparations, setting the total sum due at 300-400€ billion.
"Today I want, from this tortured place, to send a message. Greece and the Greek people do not forget its history, the massacres and war crimes of the Nazi army and we demand the present German government’s real recognition of them, even after a delay of 73 years.
"The pages of our history during the German occupation are stained with blood, but at the same time they are full of the pride and dignity and self-sacrifice of a people who fought with passion to the very end against the occupier.
"So today, in this historic, heroic place we honour their history and memory.
It is the responsibility of each and every Greek to erect a barrier against the Nazi ideology that made our villages, towns, our country and indeed the whole of continental Europe run with blood.
And this responsibility is part of our mission to deliver to future generations a society of peace, freedom, democracy and solidarity that will be the most potent antibodies against the poison of hatred and fear.
"And I think the time has come for the German Government in consultation and in a climate of good faith to recognize that the issue is unresolved and at last to sit down at the negotiating table.
We, on our part assure the Greek people that we are ready to do whatever it takes to close this historic chapter.
"And I want to repeat that this is not an opportunistic attempt to cover over the economic crisis.
The Greek people over the course of its history has spent much more difficult times than those we have been going through over the last five or six years.
So we are demanding not begging."
Government Matters this week
13.08.2016
Greek Debt Relief – an historic(al) precedent!
On Monday 8th August, on the sixty third anniversary of the signing of the 1953 London Debt Agreement, Prime Minister Alexis Tsipras said he thought his country’s creditors should grant debt relief to Greece.
The 1953 London Agreement on German External Debts was a debt relief treaty between the Federal Republic of Germany and creditor nations. Mr. Tsipras reminded his EU partners of the cut in Germany’s debt and how this had helped the debt-ridden country recover.
It covered money owed before and after WWII and reduced West German debt by 60% and extended the repayment period by 30 years. This enabled Western Germany to quickly recover from the war and re-emerge as a world economic power.
“On this day, in August 8, 1953, a nearly six-month negotiation between Germany and its creditors was concluded with the signing of the London Debt Agreement. The debt-ridden and war-torn Germany enjoyed the greatest act of solidarity in modern European history by having 60% of its foreign debt cancelled, its internal debts restructured,” P.M. Tsipras wrote, underlining the fact that Greece was a signatory to that Agreement.
"Europe should rise to the occasion; turn its gaze to the future by signing a new social contract that guarantees the prosperity of its peoples".
On Monday 8th August, on the sixty third anniversary of the signing of the 1953 London Debt Agreement, Prime Minister Alexis Tsipras said he thought his country’s creditors should grant debt relief to Greece.
The 1953 London Agreement on German External Debts was a debt relief treaty between the Federal Republic of Germany and creditor nations. Mr. Tsipras reminded his EU partners of the cut in Germany’s debt and how this had helped the debt-ridden country recover.
It covered money owed before and after WWII and reduced West German debt by 60% and extended the repayment period by 30 years. This enabled Western Germany to quickly recover from the war and re-emerge as a world economic power.
“On this day, in August 8, 1953, a nearly six-month negotiation between Germany and its creditors was concluded with the signing of the London Debt Agreement. The debt-ridden and war-torn Germany enjoyed the greatest act of solidarity in modern European history by having 60% of its foreign debt cancelled, its internal debts restructured,” P.M. Tsipras wrote, underlining the fact that Greece was a signatory to that Agreement.
"Europe should rise to the occasion; turn its gaze to the future by signing a new social contract that guarantees the prosperity of its peoples".
“Urgent need for cooperation in a period of instability”
On Monday August 1st Alexis Tsipras met with the President of the Republic of Bulgaria, Rosen Plevneliev. The subject was the need for “urgent cooperation in a period of instability”.
Greek Prime Minister stressed that this was about a "strategic alliance for our peoples and our region".
Mr. Plevneliev spoke warmly of the friendship, cooperation and love between the two peoples and noted the strategic cooperation between the two countries, on Europe, on the immigrant-refugee crisis, energy, transport - infrastructure, tourism as well as in other areas.
The Bulgarian President spoke of the need for joint actions on the diplomatic front and for responsible decisions, not only with regard to both countries but for the whole Europe.
Finally, Mr. Plevneliev expressed his gratitude for Greece’s assistance on the questions of Bulgaria’s entry into NATO and the EU.
For his part, Mr. Tsipras stressed that Bulgaria is a true friend of Greece, whose vision is one of closer cooperation between the two countries.
"Bulgaria is our country’s closest partner in the Balkans. Our goal is to upgrade the political dialogue and cooperation between the two countries."
On the agenda of the Greek Prime Minister’s visit to Sofia were four main pillars of cooperation: energy, political and diplomatic activity, economic infrastructure and cooperation on defence.
With regard to the energy sector, Government sources stressed that Bulgaria is an extremely important partner in the field of energy not only for Greece but also for broader USA and EU energy planning in the region towards the diversification of sources of energy supply mainly through the TAP (the Trans Adriatic Pipeline) and IGB (Interconnector Greece-Bulgaria) pipelines and the Azerbaijani gas pipeline but also through the establishment of a liquefied natural gas station (LNG) at Alexandroupolis. LNG will be transported to there from all over the world and fed into the TAP and IGB pipelines, making Alexandroupolis and Greece a key energy hub.
At the political and diplomatic level, the objective of the Prime Minister's visit was to upgrade the political dialogue with Bulgaria, focusing on the issues of cooperation and development in the Black Sea and relations with Russia.
As regards the economic infrastructure, key points of mutual interest are further cross-border cooperation in transport, the railway Varna-Alexandroupolis connection that connects the Black Sea with the Aegean Sea (by-passing Turkey and the Straits) which will open up the prospects for trade with Russia.
Cooperation on defence includes the transfer of Greek expertise for the modernization of the Bulgarian armed forces and its defence industry.
“A Meeting of the South”
Prime Minister Alexis Tsipras’ initiative to call a meeting of the leaders of the six southern countries of the EU seems to be getting a positive response.
The "Meeting of the South" in September, with Alexis Tsipras (Greece), Francois Hollande (France), Matteo Renzi (Italy), Antonio Costa (Portugal), Mariano Rajoy (Spain), Nicos Anastasiades (Cyprus) and Joseph Muscat (Malta) will be an informal gathering of First Ministers in Athens on September 9th. It is part of the Greek Government's international initiatives for stability and development in the EU. The Government's stated agenda is threefold: the formation of new relationships within the battered EU, initiatives to stabilise the neighbouring region in the light of the refugee crisis, and the need to attract foreign investment.
Greek Government circles said the message will be "More growth instead austerity"and "a new orientation of Europe in social policy."
The Social State, Development and the Constitution are the Government's priorities
On Tuesday 9th August, Prime Minister Alexis Tsipras defined the direction of the Government over the next period. The Government will proceed with three agendas - social, developmental and institutional. As regards the welfare state, the Prime Minister is expected to refer to this in his speech at the Thessaloniki International Fair, 10th to 12th September. Social announcements related to debt issues and the surplus are expected.
With regard to development, the Government is planning projects that have long been stalled, including five major road projects.
As regards institutional initiatives, a Committee composed of specialists, along with people from wider public life will begin work in September to promote discussions on the revision of the Constitution in all the country's municipalities, with the participation of scientific and social organizations, citizens’ organisations and individual citizens.
On top of all that, the Government is preparing for the establishment of the negotiating team and the finalisation of the second Assessment.
Measures to offset worst effects of EKAS cuts.
On Wednesday 3rd August, Prime Minister Alexis Tsipras unveiled a new batch of measures as part of a “new welfare state” to help weaker social groups.
[EKAS is the non-means tested supplementary Social Solidarity Benefit for Pensioners paid to the poorest Greek pensioners. The latest Memorandum required that it be phased out by 2019.]
All pensioners who have seen their EKAS benefit cut are to be exempt from having to pay contributions when they buy medicines; those who lost more than 30€ from their monthly EKAS payment will be exempted from paying the 6% healthcare contributions made by other pensioners; those whose monthly EKAS was cut by more than 115€ will be automatically issued with a Solidarity Card which entitles them to subsidized food purchases; those with more than 80% disability will be reimbursed the funds they have lost in EKAS cuts; and, in situations where both spouses have lost their EKAS benefit, one of the two will have it restored.
The cost of these offsetting measures is just under 50€ million for 2016. They apply to around 158,000 pensioners on low incomes who have lost all or a portion of their EKAS benefit since June 2016.
Prime Minister Tsipras said he hoped the Government would be able to continue the same offsetting measures next year at a projected cost of 120€ million.
On Monday August 1st Alexis Tsipras met with the President of the Republic of Bulgaria, Rosen Plevneliev. The subject was the need for “urgent cooperation in a period of instability”.
Greek Prime Minister stressed that this was about a "strategic alliance for our peoples and our region".
Mr. Plevneliev spoke warmly of the friendship, cooperation and love between the two peoples and noted the strategic cooperation between the two countries, on Europe, on the immigrant-refugee crisis, energy, transport - infrastructure, tourism as well as in other areas.
The Bulgarian President spoke of the need for joint actions on the diplomatic front and for responsible decisions, not only with regard to both countries but for the whole Europe.
Finally, Mr. Plevneliev expressed his gratitude for Greece’s assistance on the questions of Bulgaria’s entry into NATO and the EU.
For his part, Mr. Tsipras stressed that Bulgaria is a true friend of Greece, whose vision is one of closer cooperation between the two countries.
"Bulgaria is our country’s closest partner in the Balkans. Our goal is to upgrade the political dialogue and cooperation between the two countries."
On the agenda of the Greek Prime Minister’s visit to Sofia were four main pillars of cooperation: energy, political and diplomatic activity, economic infrastructure and cooperation on defence.
With regard to the energy sector, Government sources stressed that Bulgaria is an extremely important partner in the field of energy not only for Greece but also for broader USA and EU energy planning in the region towards the diversification of sources of energy supply mainly through the TAP (the Trans Adriatic Pipeline) and IGB (Interconnector Greece-Bulgaria) pipelines and the Azerbaijani gas pipeline but also through the establishment of a liquefied natural gas station (LNG) at Alexandroupolis. LNG will be transported to there from all over the world and fed into the TAP and IGB pipelines, making Alexandroupolis and Greece a key energy hub.
At the political and diplomatic level, the objective of the Prime Minister's visit was to upgrade the political dialogue with Bulgaria, focusing on the issues of cooperation and development in the Black Sea and relations with Russia.
As regards the economic infrastructure, key points of mutual interest are further cross-border cooperation in transport, the railway Varna-Alexandroupolis connection that connects the Black Sea with the Aegean Sea (by-passing Turkey and the Straits) which will open up the prospects for trade with Russia.
Cooperation on defence includes the transfer of Greek expertise for the modernization of the Bulgarian armed forces and its defence industry.
“A Meeting of the South”
Prime Minister Alexis Tsipras’ initiative to call a meeting of the leaders of the six southern countries of the EU seems to be getting a positive response.
The "Meeting of the South" in September, with Alexis Tsipras (Greece), Francois Hollande (France), Matteo Renzi (Italy), Antonio Costa (Portugal), Mariano Rajoy (Spain), Nicos Anastasiades (Cyprus) and Joseph Muscat (Malta) will be an informal gathering of First Ministers in Athens on September 9th. It is part of the Greek Government's international initiatives for stability and development in the EU. The Government's stated agenda is threefold: the formation of new relationships within the battered EU, initiatives to stabilise the neighbouring region in the light of the refugee crisis, and the need to attract foreign investment.
Greek Government circles said the message will be "More growth instead austerity"and "a new orientation of Europe in social policy."
The Social State, Development and the Constitution are the Government's priorities
On Tuesday 9th August, Prime Minister Alexis Tsipras defined the direction of the Government over the next period. The Government will proceed with three agendas - social, developmental and institutional. As regards the welfare state, the Prime Minister is expected to refer to this in his speech at the Thessaloniki International Fair, 10th to 12th September. Social announcements related to debt issues and the surplus are expected.
With regard to development, the Government is planning projects that have long been stalled, including five major road projects.
As regards institutional initiatives, a Committee composed of specialists, along with people from wider public life will begin work in September to promote discussions on the revision of the Constitution in all the country's municipalities, with the participation of scientific and social organizations, citizens’ organisations and individual citizens.
On top of all that, the Government is preparing for the establishment of the negotiating team and the finalisation of the second Assessment.
Measures to offset worst effects of EKAS cuts.
On Wednesday 3rd August, Prime Minister Alexis Tsipras unveiled a new batch of measures as part of a “new welfare state” to help weaker social groups.
[EKAS is the non-means tested supplementary Social Solidarity Benefit for Pensioners paid to the poorest Greek pensioners. The latest Memorandum required that it be phased out by 2019.]
All pensioners who have seen their EKAS benefit cut are to be exempt from having to pay contributions when they buy medicines; those who lost more than 30€ from their monthly EKAS payment will be exempted from paying the 6% healthcare contributions made by other pensioners; those whose monthly EKAS was cut by more than 115€ will be automatically issued with a Solidarity Card which entitles them to subsidized food purchases; those with more than 80% disability will be reimbursed the funds they have lost in EKAS cuts; and, in situations where both spouses have lost their EKAS benefit, one of the two will have it restored.
The cost of these offsetting measures is just under 50€ million for 2016. They apply to around 158,000 pensioners on low incomes who have lost all or a portion of their EKAS benefit since June 2016.
Prime Minister Tsipras said he hoped the Government would be able to continue the same offsetting measures next year at a projected cost of 120€ million.
Alexis Tsipras launches the Constitutional Review
30.07.2016
On Monday evening July 25th 2016, Prime Minister Alexis Tsipras presented his proposals for a constitutional review, which he said will signal “the new Greece of 2021”.
"The aim of our proposal is the deepening of democracy and of the role of the people in every aspect of political life and its verdict in shaping political developments."
"The aim of our proposal is the deepening of democracy and of the role of the people in every aspect of political life and its verdict in shaping political developments."
The key points of the Prime Minister’s speech
"Yesterday 42 years ended since the restoration of democracy in our country. The country and the Greek people have passed from the national divisions that go back to the civil war to democratic normality. We have moved on from the state of Nationalists and division, to the rule of law and guarantees of political freedom. It was a period of optimism that liberated the living resources of Greek society and its people.
Justified by the demand for democracy and freedom, it was the social issue, the confrontation between labour and capital, which took precedence in the political conflict. Greece finally aligned itself with the political conflicts that dominated the whole of Western Europe.
But the process of alternating governments, like any social process was contradictory. The social struggles turned into pitting the corporate defences of selfish interests against each other. The main political and ideological dividing lines of the first years of the new system of alternating governments gave way to the ideology of technocratic governance. This is the ideology in which it is accepted that the solutions to social problems can not be the subject of political debate or the organized participative consultation of all citizens.
42 years after the restoration of democracy in our country, the cycle of alternating governments closes, having given a long invaluable period of social peace and creativity, but it has also left a State with major pathologies, where the crisis and subsequent tutelage of the Memoranda have not only not blunted them but have indeed desperately increased them.
The economic crisis was ultimately the result of the defeat of the regime of alternating governments. The question is: What are we to do?
The answer to this question can not be the nation turning in on itself, as we see is being attempted in other European countries. The answer to today’s problems, to the new challenges and the new political reality that have taken shape over the last six years, can not just be a transition to a set up of New Alternating Governments.
It is an opportunity for a new start. For the reestablishment of democracy and the expansion of freedoms and of popular intervention.
For strengthening parliamentary institutions across and outside the workings of the patronage state and its mechanisms.
For protecting and expanding social rights in a society that has received repeated blows from the policy of austerity.
For building new institutions of popular participation and consultation which will produce from scratch a sense of common interest, of the common good. Because the common good is not something given a priori. Instead it is generated daily and its definition is directly dependent on the public consultation and the same institutions through which this consultation occurs.
This opportunity, therefore, we must not allow it to be lost. In previous elections, we received from the Greek people this mandate: Do away with the old.
The productive reconstruction we seek requires the political reconstruction of the country. The responsibilities of the political system for the financial and moral bankruptcy are huge. And the only way for us to get out of the crisis, once and for all is for us to finish with the old. To finish with what brought us to this point. And first of all, to change the state.
From here, from the Parliament of the Greeks, the temple of the Republic, I invite you today - I invite everyone, all the political and social forces of the country and above all the citizens themselves, the people itself, to a broad, open and fruitful dialogue about a new Constitution that will mark the new polity. About the Constitution that will lead to a new Greece. The Greece of 2021. For a society of affluence, justice, freedom and equality. For a state of democracy and dignity.
Consultation Process
Of equal importance to the content of the Revision of the Constitution, perhaps even more important, is the process by which we come to it.
The conservative world, the old political system and the technocratic elite want to limit the process of revision to the narrow confines of Parliament.
The constitutional review can and must be the laboratory for the formation of the political judgement of citizens themselves which will be reflected in the content of their proposals. Because the structure of the state, the constitution of the state is made by the people for the people and with the people. Not in their absence.
And this revolution of democracy in no way transgresses, as some might hasten to say, Article 110 of the Constitution which provides specific terms and conditions for the revision process. On the contrary, this concept is motivated completely within the spirit of the constitutional requirements, in expanding and guaranteeing its popular legitimacy.
We want a process that involves, organises, mobilize citizens. A process of active participation of citizens and not a restricted procedure, restricted to the four walls of Parliament House.
• In September the composition of a Steering Committee will be announced which will undertake to conduct a broad, open debate nationwide.
• Initially, there will be discussions on the revision in all the country's municipalities with the participation of scientific and social organisations, citizen movements and collectives and individual citizens. And in this effort we look forward to the assistance and support of the Local Government.
• In the second phase: the findings from this public consultation will be brought together by the organisation of 13 meetings in each Region of the country.
• The creation of a special website where all citizens will have the opportunity to submit their proposals, the things they agree with and their objections.
• After the end of this long consultation, in the spring of 2017, the Steering Committee will gather the results of the dialogue and will deliver its report to all political parties, which thereafter will take up the torch to start the parliamentary process, precisely as defined by Article 110 of the Constitution and the Parliament Regulation.
Proposals
The proposals which I am today putting forward at the official start of this dialogue, aim to trigger a fruitful dialogue. And these proposals cannot be otherwise than connected to and correspond with all my explanations above about the value of democratic participation and the need for expansion of the involvement of citizens in making critical decisions.
First keystone: a package of interrelated reforms to the architecture of the system of Government.
The constitutional establishment of simple proportional representation.
The constructive vote of no confidence.
The requirement that the motion of no confidence against the government is to be accompanied by a proposal for a new Prime Minister - something which serves the purpose of government stability.
We are suggesting the possibility of electing the President of the Republic by Parliament - only if the maximum consensus of two thirds of Parliament is secured by the person in two successive votes. If these are fruitless, then the third vote will belong to the electorate that will decide the election of the President by universal suffrage in a contest between the two candidates with the most votes from the last round of voting to parliament.
At the same time we are also opening up the debate on the President’s powers by proposing a reasonable increase in those powers in order to strengthen his regulatory, stabilizing and guarantor role and also for us to involve whenever necessary, the people themselves in the presidential election process, without, however, cutting short a government’s term of office or dissolving parliament. The moderate increase in responsibilities can strengthen the regulatory role of the President without touching the core of the system of government. For example: The right of the President to address Parliament for a good reason, his right to convene the Council of Political Leaders, but also to refer a law that has been voted on to a special consultative body composed solely of judges in order to rule on its constitutionality.
We propose to legislate firstly on MPs’ terms of office, so that no MP can be elected for more than two consecutive government terms or for eight consecutive years.
And secondly, the requirement that the Prime Minister, be defined exclusively as elected by the people, that is to say they must be an active MP.
Second keystone: the strengthening of institutions of direct democracy
The requirement that any treaty which transfers sovereign powers of the State must be subject to ratification by referendum,
The possibility of triggering a referendum on national matters to be initiated by popular demand and by the collection of more than 500,000 signatures.
The possibility of a triggering a referendum regarding a law that has been passed being initiated by popular demand and by the collection of more than 1 million signatures. This with the exception of laws regarding fiscal matters.
The possibility of a triggering a referendum regarding a legislative initiative by the citizens themselves being initiated by popular demand and by the collection of more than 1 million signatures.
Third Keystone: Strengthening the rule of law
Our goal here is to ensure the necessary balance between the principle of separation of powers, the speed in the administration of justice, legal certainty and respect for individual and social rights.
As regards the constitutional control, there has been much talk about the establishment of a Constitutional Court to replace the general and incidental constitutional control of the courts at each level. Here caution and an in depth discussion are needed. This is because we can not turn the judiciary into a legislative entity. At the same time we can not fail to recognize the need for legal certainty and for speed in the administration of justice in a world that is constantly being transformed. So we need to strike the right balance. The establishment by law of a special advisory body, composed exclusively of judges of the Supreme Courts that in exceptional cases, following a proposal from the President or the Government or 120 MPs, will give an opinion on a bill that has been passed, within a very short timeframe, finds the necessary balance between the principles we wish to observe.
Strengthening, however, of the rule of law also means strict observance of the principle of equality between citizens. It means that we can not allow arrangements that have converted Ministers and MPs into a caste which enjoys special privileges and operates without accountability.
Abolition of parliamentary immunity, the same penal reckoning as citizens, a possibility of exemption only from charges brought in relation to the exercise of their duties.
It will radically change the despicable provision that regulates the liability of Ministers.
As regards independent authorities: The technocratic ideology has glorified their operation and earnestly desires the constant expansion of their responsibilities and powers. Given, of course, the ever increasing technical nature of the exercise of power I do not dispute the need for Independent Authorities. Independence does not mean complete absence of parliamentary control. An objective of the dialogue is mechanism of control of independent authorities. We are sceptical about their proliferation. Let the Independent Authorities be assembled using smaller majorities where 4/5 are not assembled in a particular period.
Fourth Keystone of the proposals: State-Church relations.
We all know very well that this is an extremely sensitive issue – we propose the explicit guarantee of the religious neutrality of the State but with the preservation, for historical and practical reasons, of the recognition of Orthodoxy as the prevailing religion.
Fifth Keystone: social rights
The explicit ban on the removal from public control of water and electricity.
The clear and effective guarantee of free collective bargaining as the only means to determine salaries. The constitutional guarantee of obligatory arbitration.
These five keystones constitute a hard core of reforms aimed at the deepening of democracy, the establishment of institutions of consultation as well as the resolving of specific social antagonisms in positive way for the majority of society.
The public debate, the consultation of citizens and the parliamentary process are certain to highlight other issues as well. And this is exactly what we are looking for. Today we did not come here to finalise our proposals. But with these proposals we wish to open up a very meaningful and fruitful dialogue with citizens.
Today, with our proposal for the creation of a New Constitution, together with the people, together with the citizens of this country, we want to open a new phase.
We call upon the active citizens, we call upon the young men and women, to themselves open the way. Claim and demand a better Greece. Together let us create the new Greece."
Some initial reactions
Spokesman for AN.ELL. – the party of Independent Greeks, SYRIZA’s coalition partner, Ms. Papadopoulou, urged all the political forces to participate in the dialogue. She highlighted the need for proposals to be "specific" and not just "wishful thinking". She said that "the challenge of the constitutional revision is to achieve a broader consensus on a range of issues."
New Democracy, Potami and PASOK did not conceal their disagreement with the involvement of society in the dialogue on the constitutional review. They seem to have rushed to downgrade it, accusing the government effort of being a "show", pursuing petty considerations, and promoting fragmentation.
New Democracy intends to avoid participation in the dialogue and will take its position in Parliament "when the time comes".
New Democracy leader, Mr. Mitsotakis referred to the proposals as the Government’s efforts "to gain time to escape from its deep isolation" and "to escape from harsh reality" through a "perpetual consultation". "New Democracy will not participate in fake and meaningless consultations. It will take a position when Mr. Tsipras starts the process of revising the Constitution in the Greek Parliament."
A PASOK statement said that the Prime Minister has "again chosen "show" over substance" - its goal is "to distract people from the major problems they are experiencing." It said that PASOK will not get involved with the dialogue outside the parliamentary process.
The KKE (The Greek Communist Party) commented: "The SYRIZA-AN.ELL. Government continues the familiar tactic of continuously distracting the people from the real problems." The Government is "trying to dress in a progressive wrapping its proposals for the Constitution, which aim to make further reactionary changes in the functioning of the bourgeois state."
The new Electoral Law
"An historic demand becomes reality" - "Simple Proportional Representation vindicates decades of struggle for true equality and Democracy," were some of the reflections of Alexis Tsipras the Prime Minister, noting that the old establishment now knows that "The past can not have a future" "We will be here in 2019 as well" he said referring to the possibility of the next Government seeking to reverse the changes to the Greek electoral system.
During his speech, Alexis Tsipras also stressed that “for the first time an electoral law that is far from the logic of vested interests had been passed with a government majority.”
“I feel that today we have responded to an historic request”
“This government initiative honours the struggles of the Greek people for popular sovereignty and democracy.”
Speaking of voting at 17, he said “The aim is to prevent young men and women succumbing to depoliticisation and for them to come forward, taking their lives into their hands.”
Costas Zahariades, head of SYRIZA’s Parliamentary Group commented that "simple proportional representation, the equalising of votes to seats in Parliament, is now the law of the Greek state.
“The vote on the electoral law captured the collision of two worlds: on the one hand the conservative perception which expresses a fear of changing the system despite the impasse it has created in the country, and, on the other hand, the strategy for ending the crisis through the reconstruction of the political system and the need for governments of the broadest consensus and true representation.”
"Yesterday 42 years ended since the restoration of democracy in our country. The country and the Greek people have passed from the national divisions that go back to the civil war to democratic normality. We have moved on from the state of Nationalists and division, to the rule of law and guarantees of political freedom. It was a period of optimism that liberated the living resources of Greek society and its people.
Justified by the demand for democracy and freedom, it was the social issue, the confrontation between labour and capital, which took precedence in the political conflict. Greece finally aligned itself with the political conflicts that dominated the whole of Western Europe.
But the process of alternating governments, like any social process was contradictory. The social struggles turned into pitting the corporate defences of selfish interests against each other. The main political and ideological dividing lines of the first years of the new system of alternating governments gave way to the ideology of technocratic governance. This is the ideology in which it is accepted that the solutions to social problems can not be the subject of political debate or the organized participative consultation of all citizens.
42 years after the restoration of democracy in our country, the cycle of alternating governments closes, having given a long invaluable period of social peace and creativity, but it has also left a State with major pathologies, where the crisis and subsequent tutelage of the Memoranda have not only not blunted them but have indeed desperately increased them.
The economic crisis was ultimately the result of the defeat of the regime of alternating governments. The question is: What are we to do?
The answer to this question can not be the nation turning in on itself, as we see is being attempted in other European countries. The answer to today’s problems, to the new challenges and the new political reality that have taken shape over the last six years, can not just be a transition to a set up of New Alternating Governments.
It is an opportunity for a new start. For the reestablishment of democracy and the expansion of freedoms and of popular intervention.
For strengthening parliamentary institutions across and outside the workings of the patronage state and its mechanisms.
For protecting and expanding social rights in a society that has received repeated blows from the policy of austerity.
For building new institutions of popular participation and consultation which will produce from scratch a sense of common interest, of the common good. Because the common good is not something given a priori. Instead it is generated daily and its definition is directly dependent on the public consultation and the same institutions through which this consultation occurs.
This opportunity, therefore, we must not allow it to be lost. In previous elections, we received from the Greek people this mandate: Do away with the old.
The productive reconstruction we seek requires the political reconstruction of the country. The responsibilities of the political system for the financial and moral bankruptcy are huge. And the only way for us to get out of the crisis, once and for all is for us to finish with the old. To finish with what brought us to this point. And first of all, to change the state.
From here, from the Parliament of the Greeks, the temple of the Republic, I invite you today - I invite everyone, all the political and social forces of the country and above all the citizens themselves, the people itself, to a broad, open and fruitful dialogue about a new Constitution that will mark the new polity. About the Constitution that will lead to a new Greece. The Greece of 2021. For a society of affluence, justice, freedom and equality. For a state of democracy and dignity.
Consultation Process
Of equal importance to the content of the Revision of the Constitution, perhaps even more important, is the process by which we come to it.
The conservative world, the old political system and the technocratic elite want to limit the process of revision to the narrow confines of Parliament.
The constitutional review can and must be the laboratory for the formation of the political judgement of citizens themselves which will be reflected in the content of their proposals. Because the structure of the state, the constitution of the state is made by the people for the people and with the people. Not in their absence.
And this revolution of democracy in no way transgresses, as some might hasten to say, Article 110 of the Constitution which provides specific terms and conditions for the revision process. On the contrary, this concept is motivated completely within the spirit of the constitutional requirements, in expanding and guaranteeing its popular legitimacy.
We want a process that involves, organises, mobilize citizens. A process of active participation of citizens and not a restricted procedure, restricted to the four walls of Parliament House.
• In September the composition of a Steering Committee will be announced which will undertake to conduct a broad, open debate nationwide.
• Initially, there will be discussions on the revision in all the country's municipalities with the participation of scientific and social organisations, citizen movements and collectives and individual citizens. And in this effort we look forward to the assistance and support of the Local Government.
• In the second phase: the findings from this public consultation will be brought together by the organisation of 13 meetings in each Region of the country.
• The creation of a special website where all citizens will have the opportunity to submit their proposals, the things they agree with and their objections.
• After the end of this long consultation, in the spring of 2017, the Steering Committee will gather the results of the dialogue and will deliver its report to all political parties, which thereafter will take up the torch to start the parliamentary process, precisely as defined by Article 110 of the Constitution and the Parliament Regulation.
Proposals
The proposals which I am today putting forward at the official start of this dialogue, aim to trigger a fruitful dialogue. And these proposals cannot be otherwise than connected to and correspond with all my explanations above about the value of democratic participation and the need for expansion of the involvement of citizens in making critical decisions.
First keystone: a package of interrelated reforms to the architecture of the system of Government.
The constitutional establishment of simple proportional representation.
The constructive vote of no confidence.
The requirement that the motion of no confidence against the government is to be accompanied by a proposal for a new Prime Minister - something which serves the purpose of government stability.
We are suggesting the possibility of electing the President of the Republic by Parliament - only if the maximum consensus of two thirds of Parliament is secured by the person in two successive votes. If these are fruitless, then the third vote will belong to the electorate that will decide the election of the President by universal suffrage in a contest between the two candidates with the most votes from the last round of voting to parliament.
At the same time we are also opening up the debate on the President’s powers by proposing a reasonable increase in those powers in order to strengthen his regulatory, stabilizing and guarantor role and also for us to involve whenever necessary, the people themselves in the presidential election process, without, however, cutting short a government’s term of office or dissolving parliament. The moderate increase in responsibilities can strengthen the regulatory role of the President without touching the core of the system of government. For example: The right of the President to address Parliament for a good reason, his right to convene the Council of Political Leaders, but also to refer a law that has been voted on to a special consultative body composed solely of judges in order to rule on its constitutionality.
We propose to legislate firstly on MPs’ terms of office, so that no MP can be elected for more than two consecutive government terms or for eight consecutive years.
And secondly, the requirement that the Prime Minister, be defined exclusively as elected by the people, that is to say they must be an active MP.
Second keystone: the strengthening of institutions of direct democracy
The requirement that any treaty which transfers sovereign powers of the State must be subject to ratification by referendum,
The possibility of triggering a referendum on national matters to be initiated by popular demand and by the collection of more than 500,000 signatures.
The possibility of a triggering a referendum regarding a law that has been passed being initiated by popular demand and by the collection of more than 1 million signatures. This with the exception of laws regarding fiscal matters.
The possibility of a triggering a referendum regarding a legislative initiative by the citizens themselves being initiated by popular demand and by the collection of more than 1 million signatures.
Third Keystone: Strengthening the rule of law
Our goal here is to ensure the necessary balance between the principle of separation of powers, the speed in the administration of justice, legal certainty and respect for individual and social rights.
As regards the constitutional control, there has been much talk about the establishment of a Constitutional Court to replace the general and incidental constitutional control of the courts at each level. Here caution and an in depth discussion are needed. This is because we can not turn the judiciary into a legislative entity. At the same time we can not fail to recognize the need for legal certainty and for speed in the administration of justice in a world that is constantly being transformed. So we need to strike the right balance. The establishment by law of a special advisory body, composed exclusively of judges of the Supreme Courts that in exceptional cases, following a proposal from the President or the Government or 120 MPs, will give an opinion on a bill that has been passed, within a very short timeframe, finds the necessary balance between the principles we wish to observe.
Strengthening, however, of the rule of law also means strict observance of the principle of equality between citizens. It means that we can not allow arrangements that have converted Ministers and MPs into a caste which enjoys special privileges and operates without accountability.
Abolition of parliamentary immunity, the same penal reckoning as citizens, a possibility of exemption only from charges brought in relation to the exercise of their duties.
It will radically change the despicable provision that regulates the liability of Ministers.
As regards independent authorities: The technocratic ideology has glorified their operation and earnestly desires the constant expansion of their responsibilities and powers. Given, of course, the ever increasing technical nature of the exercise of power I do not dispute the need for Independent Authorities. Independence does not mean complete absence of parliamentary control. An objective of the dialogue is mechanism of control of independent authorities. We are sceptical about their proliferation. Let the Independent Authorities be assembled using smaller majorities where 4/5 are not assembled in a particular period.
Fourth Keystone of the proposals: State-Church relations.
We all know very well that this is an extremely sensitive issue – we propose the explicit guarantee of the religious neutrality of the State but with the preservation, for historical and practical reasons, of the recognition of Orthodoxy as the prevailing religion.
Fifth Keystone: social rights
The explicit ban on the removal from public control of water and electricity.
The clear and effective guarantee of free collective bargaining as the only means to determine salaries. The constitutional guarantee of obligatory arbitration.
These five keystones constitute a hard core of reforms aimed at the deepening of democracy, the establishment of institutions of consultation as well as the resolving of specific social antagonisms in positive way for the majority of society.
The public debate, the consultation of citizens and the parliamentary process are certain to highlight other issues as well. And this is exactly what we are looking for. Today we did not come here to finalise our proposals. But with these proposals we wish to open up a very meaningful and fruitful dialogue with citizens.
Today, with our proposal for the creation of a New Constitution, together with the people, together with the citizens of this country, we want to open a new phase.
We call upon the active citizens, we call upon the young men and women, to themselves open the way. Claim and demand a better Greece. Together let us create the new Greece."
Some initial reactions
Spokesman for AN.ELL. – the party of Independent Greeks, SYRIZA’s coalition partner, Ms. Papadopoulou, urged all the political forces to participate in the dialogue. She highlighted the need for proposals to be "specific" and not just "wishful thinking". She said that "the challenge of the constitutional revision is to achieve a broader consensus on a range of issues."
New Democracy, Potami and PASOK did not conceal their disagreement with the involvement of society in the dialogue on the constitutional review. They seem to have rushed to downgrade it, accusing the government effort of being a "show", pursuing petty considerations, and promoting fragmentation.
New Democracy intends to avoid participation in the dialogue and will take its position in Parliament "when the time comes".
New Democracy leader, Mr. Mitsotakis referred to the proposals as the Government’s efforts "to gain time to escape from its deep isolation" and "to escape from harsh reality" through a "perpetual consultation". "New Democracy will not participate in fake and meaningless consultations. It will take a position when Mr. Tsipras starts the process of revising the Constitution in the Greek Parliament."
A PASOK statement said that the Prime Minister has "again chosen "show" over substance" - its goal is "to distract people from the major problems they are experiencing." It said that PASOK will not get involved with the dialogue outside the parliamentary process.
The KKE (The Greek Communist Party) commented: "The SYRIZA-AN.ELL. Government continues the familiar tactic of continuously distracting the people from the real problems." The Government is "trying to dress in a progressive wrapping its proposals for the Constitution, which aim to make further reactionary changes in the functioning of the bourgeois state."
The new Electoral Law
"An historic demand becomes reality" - "Simple Proportional Representation vindicates decades of struggle for true equality and Democracy," were some of the reflections of Alexis Tsipras the Prime Minister, noting that the old establishment now knows that "The past can not have a future" "We will be here in 2019 as well" he said referring to the possibility of the next Government seeking to reverse the changes to the Greek electoral system.
During his speech, Alexis Tsipras also stressed that “for the first time an electoral law that is far from the logic of vested interests had been passed with a government majority.”
“I feel that today we have responded to an historic request”
“This government initiative honours the struggles of the Greek people for popular sovereignty and democracy.”
Speaking of voting at 17, he said “The aim is to prevent young men and women succumbing to depoliticisation and for them to come forward, taking their lives into their hands.”
Costas Zahariades, head of SYRIZA’s Parliamentary Group commented that "simple proportional representation, the equalising of votes to seats in Parliament, is now the law of the Greek state.
“The vote on the electoral law captured the collision of two worlds: on the one hand the conservative perception which expresses a fear of changing the system despite the impasse it has created in the country, and, on the other hand, the strategy for ending the crisis through the reconstruction of the political system and the need for governments of the broadest consensus and true representation.”
Scathing criticism of the IMF’s handling of Greece’s crisis – by the IMF
A report by the IMF's Independent Evaluation Office (IEO) concluded that the IMF’s top staff misled their own board, made a series of calamitous misjudgments in Greece, became euphoric cheerleaders for the euro project, and ignored warning signs of impending crisis.
It describes a “culture of complacency”, prone to “superficial and mechanistic” analysis, and traces a shocking break-down in the governance of the IMF, leaving it unclear who is ultimately in charge of this extremely powerful organisation.
“Many documents were prepared outside the regular established channels; written documentation on some sensitive matters could not be located. The IEO in some instances has not been able to determine who made certain decisions or what information was available, nor has it been able to assess the relative roles of management and staff,".
The report said the whole approach to the eurozone was characterised by “groupthink” and intellectual capture. They had no fall-back plans on how to tackle a systemic crisis in the eurozone – or how to deal with the politics of a multinational currency union – because they had ruled out any possibility that it could happen.
The IMF persistently played down the risks posed by ballooning current account deficits and the flood of capital pouring into the eurozone periphery, and neglected the danger of a "sudden stop" in capital flows.
At root was a failure to grasp the elemental point that currency unions with no treasury or political union to back them up are inherently vulnerable to debt crises. States facing a shock no longer have sovereign tools to defend themselves. Devaluation risk is switched into bankruptcy risk.
In Greece, the IMF signed off on a bail-out in 2010 even though it could offer no assurance that the package would bring the country’s debts under control or clear the way for recovery, and many suspected from the start that it was doomed.
“The harsh truth is that the bail-out sacrificed Greece in a “holding action” to save the euro and north European banks. Greece endured the traditional IMF shock of austerity, without the offsetting IMF cure of debt relief and devaluation to restore viability.”
“The attempt to force through an "internal devaluation" of 20% to 30% by means of deflationary wage cuts was self-defeating since it necessarily shrank the economic base and sent the debt trajectory spiralling upwards.”
The injustice is that the cost of the bail-outs was switched to ordinary Greek citizens – the least able to support the burden – and it was never acknowledged that the true motive of EU-IMF Troika policy was to protect monetary union. Indeed, the Greeks were repeatedly blamed for failures that stemmed from the policy itself. This unfairness – the root of so much bitterness in Greece – is finally recognised in the report.
“If preventing international contagion was an essential concern, the cost of its prevention should at have been borne – at least in part – by the international community as the prime beneficiary,” the Report said.
IMF Chief Christine Lagarde released a statement at the same time as the report. She rejects that there were EU political influences and other motivations at play in the IMF decisions. She did however refer to the “unprecedented” crisis that had caused the Fund to draw lessons in its own internal assessments.
Alexis Tsipras sets out the Seven Pillars of the Government’s Social Policy
Addressing the meeting of the Social Policy Government Council on Wednesday, Prime Minister Alexis Tsipras said that the old political establishment has left the majority of society unprotected in the economic crisis.
“The first pillar of the plan we are implementing refers to the upgrading of the health system - the creation of a comprehensive and adequately staffed primary health system. The first units will be ready in 2017.”
The second pillar of our plan refers to the social insurance “We have succeeded in the establishment of the national pension” said Prime Minister Tsipras.
The third pillar is the protection of the socially weak while the fourth and the fifth are related with the protection of the employment and the tackling of unemployment.
The sixth pillar is the housing policy with first priority being the protection of the first home (of people in debt), something that has been already achieved and finally the seventh pillar is education.
Education support for migrant children
He announced that Greece will employ hundreds of extra teachers to support the participation of thousands of migrant children mainly from Syria in the school system in the autumn.
A report by the IMF's Independent Evaluation Office (IEO) concluded that the IMF’s top staff misled their own board, made a series of calamitous misjudgments in Greece, became euphoric cheerleaders for the euro project, and ignored warning signs of impending crisis.
It describes a “culture of complacency”, prone to “superficial and mechanistic” analysis, and traces a shocking break-down in the governance of the IMF, leaving it unclear who is ultimately in charge of this extremely powerful organisation.
“Many documents were prepared outside the regular established channels; written documentation on some sensitive matters could not be located. The IEO in some instances has not been able to determine who made certain decisions or what information was available, nor has it been able to assess the relative roles of management and staff,".
The report said the whole approach to the eurozone was characterised by “groupthink” and intellectual capture. They had no fall-back plans on how to tackle a systemic crisis in the eurozone – or how to deal with the politics of a multinational currency union – because they had ruled out any possibility that it could happen.
The IMF persistently played down the risks posed by ballooning current account deficits and the flood of capital pouring into the eurozone periphery, and neglected the danger of a "sudden stop" in capital flows.
At root was a failure to grasp the elemental point that currency unions with no treasury or political union to back them up are inherently vulnerable to debt crises. States facing a shock no longer have sovereign tools to defend themselves. Devaluation risk is switched into bankruptcy risk.
In Greece, the IMF signed off on a bail-out in 2010 even though it could offer no assurance that the package would bring the country’s debts under control or clear the way for recovery, and many suspected from the start that it was doomed.
“The harsh truth is that the bail-out sacrificed Greece in a “holding action” to save the euro and north European banks. Greece endured the traditional IMF shock of austerity, without the offsetting IMF cure of debt relief and devaluation to restore viability.”
“The attempt to force through an "internal devaluation" of 20% to 30% by means of deflationary wage cuts was self-defeating since it necessarily shrank the economic base and sent the debt trajectory spiralling upwards.”
The injustice is that the cost of the bail-outs was switched to ordinary Greek citizens – the least able to support the burden – and it was never acknowledged that the true motive of EU-IMF Troika policy was to protect monetary union. Indeed, the Greeks were repeatedly blamed for failures that stemmed from the policy itself. This unfairness – the root of so much bitterness in Greece – is finally recognised in the report.
“If preventing international contagion was an essential concern, the cost of its prevention should at have been borne – at least in part – by the international community as the prime beneficiary,” the Report said.
IMF Chief Christine Lagarde released a statement at the same time as the report. She rejects that there were EU political influences and other motivations at play in the IMF decisions. She did however refer to the “unprecedented” crisis that had caused the Fund to draw lessons in its own internal assessments.
Alexis Tsipras sets out the Seven Pillars of the Government’s Social Policy
Addressing the meeting of the Social Policy Government Council on Wednesday, Prime Minister Alexis Tsipras said that the old political establishment has left the majority of society unprotected in the economic crisis.
“The first pillar of the plan we are implementing refers to the upgrading of the health system - the creation of a comprehensive and adequately staffed primary health system. The first units will be ready in 2017.”
The second pillar of our plan refers to the social insurance “We have succeeded in the establishment of the national pension” said Prime Minister Tsipras.
The third pillar is the protection of the socially weak while the fourth and the fifth are related with the protection of the employment and the tackling of unemployment.
The sixth pillar is the housing policy with first priority being the protection of the first home (of people in debt), something that has been already achieved and finally the seventh pillar is education.
Education support for migrant children
He announced that Greece will employ hundreds of extra teachers to support the participation of thousands of migrant children mainly from Syria in the school system in the autumn.
“The inclusion of all refugee children in the public school system will begin in September,” Mr.Tsipras said. “Around 800 backup teachers will be employed to meet the additional needs.”
On Wednesday Education Minister Nikos Filis said the Education Services were “prepared to enroll thousands of refugee children.” In what is to be an introductory year, the children will be taught Greek and another language of their choice, he said. Mathematics will also be on the curriculum.
He noted that refugee and migrant children will initially be schooled separately as the integration process will take time. “Initially (separate) reception classes will be set up at many schools, and gradually, it will be possible to fully integrate the children,” “We will try to have Greek and refugee children together in schools soon,” he said.
Children too distant from cities will be schooled inside their migrant camps, the Minister said.
According to the NGO Save the Children, which has warned of the risk of a lost generation, the refugee children stuck in camps in Greece on average have not been in school for a year and a half. And more than a fifth of school-age children have never set foot in a classroom.
On Wednesday Education Minister Nikos Filis said the Education Services were “prepared to enroll thousands of refugee children.” In what is to be an introductory year, the children will be taught Greek and another language of their choice, he said. Mathematics will also be on the curriculum.
He noted that refugee and migrant children will initially be schooled separately as the integration process will take time. “Initially (separate) reception classes will be set up at many schools, and gradually, it will be possible to fully integrate the children,” “We will try to have Greek and refugee children together in schools soon,” he said.
Children too distant from cities will be schooled inside their migrant camps, the Minister said.
According to the NGO Save the Children, which has warned of the risk of a lost generation, the refugee children stuck in camps in Greece on average have not been in school for a year and a half. And more than a fifth of school-age children have never set foot in a classroom.
179 MPs Vote in Favour
of Election Law
23.07.2016
Early Friday, the Greek Parliament voted to lower the voting age to 17 and to adopt a simple proportional representation system. The new electoral law scrapped the winning party’s 50-seat bonus in the 300-member parliament.
But the Government did not secure a supermajority, 200 votes, necessary for the changes to come into immediate effect. This means the changes will be introduced after the next general election. That means that the next Government will have the chance, if it can secure a supermajority, to pass a new law, preventing SYRIZA’s proposal from being implemented.
The law was passed with 179 in favour, 83 against and 19 voting “Present”.
But the Government did not secure a supermajority, 200 votes, necessary for the changes to come into immediate effect. This means the changes will be introduced after the next general election. That means that the next Government will have the chance, if it can secure a supermajority, to pass a new law, preventing SYRIZA’s proposal from being implemented.
The law was passed with 179 in favour, 83 against and 19 voting “Present”.
Mr. Vassilis Leventis, the President of the Centre Union Party, explained his party’s decision to support the new electoral law: “The first and major change that will come with the adoption of proportional representation is the cooperation of the political parties in a national plan to save the country. Until now, because of the seat-bonus, the political system had neither a culture of cooperation nor a political strategy for the political leaders to sit at the table to find solutions for the country. “Those parties and people who refuse to vote for a new electoral law are essentially supporting New Democracy and Mr. Mitsotakis. It is a great opportunity to move to coalition governments. None of the parties who call themselves "centrist" can see further than their... noses. They want to play their own games and hide behind partisan considerations.
I can not understand the attitude of these parties and especially PASOK, which just a year ago with the backing of the whole of the current Parliamentary Group filed a bill with exactly the same content. What has changed in a few months?”
“Those who talk about proportional representation resulting in ungovernability are power-mad dreamers who are nourishing the illusions of their partisan armies. In many countries in Europe, which have proportional representation, it is not the case, Germany being the first example. The political parties must put aside their own objectives and put the interests of the homeland above everything else. If this happens, then everyone will come closer and will agree on a plan for the restoration of the country.”
New Democracy, PASOK and To Potami criticized the abolition of the 50-seat bonus, arguing that it would lead to political instability as it will it much more difficult for the election winner to form a government on its own and will require wider cooperation among competing parties for an administration to be formed.
Reducing the voting age from 18 to 17 did not need a qualified majority, so 17-year-olds will be able to vote in the next general elections.
SYRIZA, Independent Greeks (ANEL), the Centre Union Party and two independent MPs voted in favour of the law. New Democracy party, PASOK and Potami voted against.
The Communist Party of Greece (KKE) registered “Present”.
I can not understand the attitude of these parties and especially PASOK, which just a year ago with the backing of the whole of the current Parliamentary Group filed a bill with exactly the same content. What has changed in a few months?”
“Those who talk about proportional representation resulting in ungovernability are power-mad dreamers who are nourishing the illusions of their partisan armies. In many countries in Europe, which have proportional representation, it is not the case, Germany being the first example. The political parties must put aside their own objectives and put the interests of the homeland above everything else. If this happens, then everyone will come closer and will agree on a plan for the restoration of the country.”
New Democracy, PASOK and To Potami criticized the abolition of the 50-seat bonus, arguing that it would lead to political instability as it will it much more difficult for the election winner to form a government on its own and will require wider cooperation among competing parties for an administration to be formed.
Reducing the voting age from 18 to 17 did not need a qualified majority, so 17-year-olds will be able to vote in the next general elections.
SYRIZA, Independent Greeks (ANEL), the Centre Union Party and two independent MPs voted in favour of the law. New Democracy party, PASOK and Potami voted against.
The Communist Party of Greece (KKE) registered “Present”.
Moscovici in Athens
European Economic and Financial Affairs Commissioner Pierre Moscovici met with Greek Prime Minister Alexis Tsipras in Athens on Monday July 18th. The purpose of his visit was to prepare the ground for talks on the implementation of the fiscal measures required for the second bailout programme Assessment.
Commissioner Moscovici said Athens and its Eurozone partners financing its bailout need to reach an agreement with the International Monetary Fund on more debt relief by the end of this year. It is in the interest of all parties, Moscovici said, for the IMF to stay fully on board the programme.
His visit was "a message of trust", the commissioner noted that Athens had made significant progress in reforming its economy and that the risk of leaving the euro common currency zone was no longer on the table.
After the meeting, he said "It is time for normality, it is time for stability, it is time for implementation and it is time for investment," Mr. Moscovici said.
"That doesn't mean that everything is done. We still have a way to go and there are discussions taking place and we need to complete some milestones."
The main concern is the lenders’ response to the Greek proposal for lower fiscal targets after 2018.
Specifically, the Greek government has asked for a Primary Surplus target of 2.5% in 2019 and 2% for 2020. According to Minister Tsakalotos, the 3.5% primary surplus target set for after 2018 is unrealistic. The International Monetary Fund agrees that this target is too high.
Finance Minister Euclid Tsakalotos suggested that the Greek Government may not submit its medium-term fiscal plan to parliament until there is an agreement with the country's lenders on its primary surplus targets.
"We'll discuss, we'll analyse those issues, we will see how the economy's funding needs will be affected and I believe that a solution will be found," he said.
Employers and Trade Unions make Joint Declaration on labour changes
On Tuesday representatives of employer associations and employee trade unions reached a minimum level of agreement on the changes required to labour laws, choosing to put aside disagreements and objections on specific issues, in order to give the Government a “significant weapon” in the forthcoming negotiations with creditors in September.
The Joint Declaration by the associations and the unions ratified that meetings should be held under the auspices of the International Labour Organization (ILO) and expressed agreement that a reduction to the minimum wage or the abolition of the Christmas, Easter and summer holiday bonuses, known as the 13th and 14th monthly salaries are not issues.
The Declaration also stressed that the minimum wage should be agreed by the social partners (employers and employees) in the context of the National General Collective Labour Contract and that the law on trade unions will need to be modernized, though without challenging the right to strike.
European Economic and Financial Affairs Commissioner Pierre Moscovici met with Greek Prime Minister Alexis Tsipras in Athens on Monday July 18th. The purpose of his visit was to prepare the ground for talks on the implementation of the fiscal measures required for the second bailout programme Assessment.
Commissioner Moscovici said Athens and its Eurozone partners financing its bailout need to reach an agreement with the International Monetary Fund on more debt relief by the end of this year. It is in the interest of all parties, Moscovici said, for the IMF to stay fully on board the programme.
His visit was "a message of trust", the commissioner noted that Athens had made significant progress in reforming its economy and that the risk of leaving the euro common currency zone was no longer on the table.
After the meeting, he said "It is time for normality, it is time for stability, it is time for implementation and it is time for investment," Mr. Moscovici said.
"That doesn't mean that everything is done. We still have a way to go and there are discussions taking place and we need to complete some milestones."
The main concern is the lenders’ response to the Greek proposal for lower fiscal targets after 2018.
Specifically, the Greek government has asked for a Primary Surplus target of 2.5% in 2019 and 2% for 2020. According to Minister Tsakalotos, the 3.5% primary surplus target set for after 2018 is unrealistic. The International Monetary Fund agrees that this target is too high.
Finance Minister Euclid Tsakalotos suggested that the Greek Government may not submit its medium-term fiscal plan to parliament until there is an agreement with the country's lenders on its primary surplus targets.
"We'll discuss, we'll analyse those issues, we will see how the economy's funding needs will be affected and I believe that a solution will be found," he said.
Employers and Trade Unions make Joint Declaration on labour changes
On Tuesday representatives of employer associations and employee trade unions reached a minimum level of agreement on the changes required to labour laws, choosing to put aside disagreements and objections on specific issues, in order to give the Government a “significant weapon” in the forthcoming negotiations with creditors in September.
The Joint Declaration by the associations and the unions ratified that meetings should be held under the auspices of the International Labour Organization (ILO) and expressed agreement that a reduction to the minimum wage or the abolition of the Christmas, Easter and summer holiday bonuses, known as the 13th and 14th monthly salaries are not issues.
The Declaration also stressed that the minimum wage should be agreed by the social partners (employers and employees) in the context of the National General Collective Labour Contract and that the law on trade unions will need to be modernized, though without challenging the right to strike.
No receipt issued? 250€ fine
The Finance Ministry is increasing fines for companies that do not issue retail receipts. The increased penalties will apply as of Monday, July 25th.
First-time violations in the issuing of receipts will incur a fine of half of the VAT with a minimum of 250€, with the minimum threshold rising to 500€ for larger companies. Fines will be doubled in case of a recurrence of the offense within five years and quadrupled in the third instance.
The aim of the measure is to correct a long-standing problem. To date, for example, if a cafeneion failed to issue receipts amounting to 20€ of VAT, then the fine would be just 10€. This acted as an incentive to avoid issuing receipts on a regular basis. Now this fine can be no smaller than 250€ regardless.
Ministry data, meanwhile, showed on Thursday that the unserviced debts of taxpayers to the state increased by another 300€ million in June to reach 89.6€ billion. In the first six months of 2016 the debts have risen by almost 10€ billion.
The Finance Ministry is increasing fines for companies that do not issue retail receipts. The increased penalties will apply as of Monday, July 25th.
First-time violations in the issuing of receipts will incur a fine of half of the VAT with a minimum of 250€, with the minimum threshold rising to 500€ for larger companies. Fines will be doubled in case of a recurrence of the offense within five years and quadrupled in the third instance.
The aim of the measure is to correct a long-standing problem. To date, for example, if a cafeneion failed to issue receipts amounting to 20€ of VAT, then the fine would be just 10€. This acted as an incentive to avoid issuing receipts on a regular basis. Now this fine can be no smaller than 250€ regardless.
Ministry data, meanwhile, showed on Thursday that the unserviced debts of taxpayers to the state increased by another 300€ million in June to reach 89.6€ billion. In the first six months of 2016 the debts have risen by almost 10€ billion.
A New Election Law
16.07.2016
The New Election Law
On Thursday, Prime Minister Alexis Tsipras said “now the time is right to talk about major reforms and changes that the country needs.”
The Government proposal is to bring in a simple proportional electoral system, abolish the 50-seat bonus for the winning party that exists under the current electoral system and lower the minimum voting age from 18 to 17.
Prime Minister Tsipras said the time was right for the President to be elected by the people instead of by Parliament. As regards a broader review of the Constitution, Tsipras said some of the proposed changes could be put to a referendum.
On Thursday, Prime Minister Alexis Tsipras said “now the time is right to talk about major reforms and changes that the country needs.”
The Government proposal is to bring in a simple proportional electoral system, abolish the 50-seat bonus for the winning party that exists under the current electoral system and lower the minimum voting age from 18 to 17.
Prime Minister Tsipras said the time was right for the President to be elected by the people instead of by Parliament. As regards a broader review of the Constitution, Tsipras said some of the proposed changes could be put to a referendum.
A Government spokesman said “For the first time, on the anniversary of the restoration of the Republic on 24th July, Greece will have a simple proportional electoral system. The Government has decided on the introduction of proportional representation as part of SYRIZA’s strategic plan to move to large institutional reforms, democratisation, and changes to the political map, to the political system and to the electoral law."
The bill for the introduction of proportional representation and voting at 17 is to be voted on by Parliament on 19th and 20th July.
“Between now and then the Government will use all its power not only to put political pressure on the other political parties that are currently opposed to PR., but also to make changes that can build a broader political consensus from the political Centre to the KKE. Already Interior Minister Panagiotis Kouroumplis has taken an initiative to make it possible for the KKE to vote for P.R.
Minister Kouroumplis separated out Article 2 of the bill, which included: a) the elimination of the 50 seat bonus and the introduction of proportional representation and b) the maintenance of the 3% threshold for entry into Parliament. The immediate result was that a few minutes afterwards the KKE spokesman Christos Katsotis announced that the Greek Communist Party will vote for the article on the introduction of P.R. and the abolition of the 50 seat bonus, as well as for Article 5. That Article sets out the bill’s entry into law and, as long as it gets 200 votes, proportional representation will take effect at the next elections.
As things stand a majority of MPs are in favour of P.R. (not counting Golden Dawn and its 18 MPs who are not included).
179 MPs are in favour of PR: 144 SYRIZA, 15 KKE, 9 Independent Greeks, 9 Centre Union Party, Thanasis Theocharopoulos of DIM.AR. (Elected PASOK) and the independent Nikos Nikolopoulos.
103 MPs are against: 75 New Democracy,15 PASOK (Thanasis Theocharopoulos disagreed), 10 Potami and Independents Leonidas Grigorakos. Stathis Panagoulis and Haris Theocharis.
The bill for the introduction of proportional representation and voting at 17 is to be voted on by Parliament on 19th and 20th July.
“Between now and then the Government will use all its power not only to put political pressure on the other political parties that are currently opposed to PR., but also to make changes that can build a broader political consensus from the political Centre to the KKE. Already Interior Minister Panagiotis Kouroumplis has taken an initiative to make it possible for the KKE to vote for P.R.
Minister Kouroumplis separated out Article 2 of the bill, which included: a) the elimination of the 50 seat bonus and the introduction of proportional representation and b) the maintenance of the 3% threshold for entry into Parliament. The immediate result was that a few minutes afterwards the KKE spokesman Christos Katsotis announced that the Greek Communist Party will vote for the article on the introduction of P.R. and the abolition of the 50 seat bonus, as well as for Article 5. That Article sets out the bill’s entry into law and, as long as it gets 200 votes, proportional representation will take effect at the next elections.
As things stand a majority of MPs are in favour of P.R. (not counting Golden Dawn and its 18 MPs who are not included).
179 MPs are in favour of PR: 144 SYRIZA, 15 KKE, 9 Independent Greeks, 9 Centre Union Party, Thanasis Theocharopoulos of DIM.AR. (Elected PASOK) and the independent Nikos Nikolopoulos.
103 MPs are against: 75 New Democracy,15 PASOK (Thanasis Theocharopoulos disagreed), 10 Potami and Independents Leonidas Grigorakos. Stathis Panagoulis and Haris Theocharis.
The Struggle continues…
On Sunday July 10th, Labour Minister Katrougalos made a clear statement of intent about the forthcoming negotiations with the Institutions: "The subject of the negotiations on labour issues is limited to just three issues: one that came from the Government side, that is the restoration of free collective bargaining and two fixed demands of the IMF: mass redundancies and trade union law. We will accept nothing else being put on the negotiating table and on all the issues to be discussed we will not accept any worsening in the position of workers, nor anything that is incompatible with the European Social Model.
"In the negotiations we will seek to isolate and neutralize the known positions of the IMF, just as we did in the National Insurance negotiations when they refused to accept a reasonable increase in National Insurance contributions to safeguard pensions. For this reason, the Labour Ministry has called a meeting of the social partner organizations to form a single social front on labour issues.”
That meeting took place on Tuesday when Minister Katrougalos met with employers’ associations and workers’ unions to form a common front in the face of the country’s creditors, ahead of September’s talks.
The associations and the unions undertook to draft a joint text in order to seek the wider support of the political parties with the declared intention to ‘take the big step of Greece’s return to the European social model so as to strengthen the rights of the workers,’ as the Minister explained it.
Minister Katrougalos said “the national social front will help us repel the extreme neoliberal positions of the well-known players. Greece will return to “social” Europe at the end of these negotiations. It will not be distanced from it.”
In a report released on Friday IMF underlined the reforms it expects Greek authorities to push through.
In its report, the IMF said it expects the Greek Government to keep in place the labour market reforms carried out by the previous New Democracy-PASOK coalition Government, including the reduction of the minimum wage to 586€. The Fund also wants legislation to make it easier for Greek employers to sack workers.
Tax evaders invited
A draft Tax Bill clause was submitted to the Greek Parliament on Wednesday extends an invitation to tax evaders to return to the taxpaying system on beneficial terms. Those involved with tax infringements pinpointed by the relevant authorities before the end of July 2015 but who have not been issued with a fine, because they are currently awaiting a court hearing or are going through arbitration, can make use of the beneficial clauses of the bill and pay reduced rates of as much as 50-90%.
Finance Ministry officials stated that the goal of the new bill is based on a need to increase revenue collection that the collection mechanism would never have otherwise gathered. Now the new Clause 45 calls on those who issued fake receipts to come forward and admit to their violations so that they can be penalized on more beneficial terms.
On Sunday July 10th, Labour Minister Katrougalos made a clear statement of intent about the forthcoming negotiations with the Institutions: "The subject of the negotiations on labour issues is limited to just three issues: one that came from the Government side, that is the restoration of free collective bargaining and two fixed demands of the IMF: mass redundancies and trade union law. We will accept nothing else being put on the negotiating table and on all the issues to be discussed we will not accept any worsening in the position of workers, nor anything that is incompatible with the European Social Model.
"In the negotiations we will seek to isolate and neutralize the known positions of the IMF, just as we did in the National Insurance negotiations when they refused to accept a reasonable increase in National Insurance contributions to safeguard pensions. For this reason, the Labour Ministry has called a meeting of the social partner organizations to form a single social front on labour issues.”
That meeting took place on Tuesday when Minister Katrougalos met with employers’ associations and workers’ unions to form a common front in the face of the country’s creditors, ahead of September’s talks.
The associations and the unions undertook to draft a joint text in order to seek the wider support of the political parties with the declared intention to ‘take the big step of Greece’s return to the European social model so as to strengthen the rights of the workers,’ as the Minister explained it.
Minister Katrougalos said “the national social front will help us repel the extreme neoliberal positions of the well-known players. Greece will return to “social” Europe at the end of these negotiations. It will not be distanced from it.”
In a report released on Friday IMF underlined the reforms it expects Greek authorities to push through.
In its report, the IMF said it expects the Greek Government to keep in place the labour market reforms carried out by the previous New Democracy-PASOK coalition Government, including the reduction of the minimum wage to 586€. The Fund also wants legislation to make it easier for Greek employers to sack workers.
Tax evaders invited
A draft Tax Bill clause was submitted to the Greek Parliament on Wednesday extends an invitation to tax evaders to return to the taxpaying system on beneficial terms. Those involved with tax infringements pinpointed by the relevant authorities before the end of July 2015 but who have not been issued with a fine, because they are currently awaiting a court hearing or are going through arbitration, can make use of the beneficial clauses of the bill and pay reduced rates of as much as 50-90%.
Finance Ministry officials stated that the goal of the new bill is based on a need to increase revenue collection that the collection mechanism would never have otherwise gathered. Now the new Clause 45 calls on those who issued fake receipts to come forward and admit to their violations so that they can be penalized on more beneficial terms.
Prime Minister Tsipras in China
9.7.2016
This week, Prime Minister Tsipras was in Beijing for a five-day visit to boost bilateral cooperation and attract more Chinese investment into Greece. Shortly before his visit, Greek lawmakers ratified the acquisitionl by China's leading shipping company COSCO of a majority shareholding in the Piraeus Port Authority.
COSCO and the Greek state privatization authority TAIPED officially signed an agreement for the sale of a majority stake in the Port of Piraeus (OLP). The initial agreement had been signed in April. The Chinese company is to buy 51% of Piraeus Port Authority (OLP) for 280.5€ million, with a further 16% for 88€ million after a five year period. That is contingent on COSCO completing investments worth 350€ million over the next ten years.
Under the deal, COSCO will take over the port’s management. Shipping giant COSCO will invest of 600€ million at the Port of Piraeus, its chairman, Xu Lirong, informed Greek Prime Minister Alexis Tsipras on the last day of his visit to China.
The company plans not only to make Piraeus the biggest commercial port in the Mediterranean and one of Europe’s most important, but also the biggest ship repair point in the eastern Mediterranean and one of the most important cruise tourism junctions in the world. This investment will be across all Piraeus Port Authority (OLP) activities, but will focus especially on ship repair activity and cruise tourism. It is in addition to the contractual obligations the company has undertaken as part of the acquisition deal.
The investment plan focuses on serving the big container ships (motherships) that link Asia with Europe, and is based on the high-level of know-how of Greek companies in the sector. “It would be important for the Chinese-managed shipyards to include the Greek products in their equipment lists,” "he said.
Prime Minister Tsipras said that the investment projects also include the upgrading of the railway network so that products imported through the port of Piraeus can be transported to the European markets. “With these investments, the port of Piraeus could soon find itself in 3rd place in the premier league of Mediterranean ports.”
That the Port of Piraeus is set to become a Chinese staging post into Europe is clear from the discussions between Prime Minister Alexis Tsipras and Chinese Government and business leaders.
Alexis Tsipras said: “The completion of the agreement with COSCO and the restoration of political stability in our country have provided the fertile soil for that company to more than double its proposed investment in Greece and that has paved the way for companies - giants of China and internationally. Greece is set to become a bridge between China and the West, between Asia and Europe."
At the same forum, Chinese Prime Minister Li Keqiang said that his country will help Greece become stronger inside a stronger Europe.
Heading up a large delegation of Government ministers and business leaders, Mr. Tsipras explored the prospects for cooperation in the fields of tourism, transport, culture, and high-technology.
"We received 6 million foreign tourists last year, but Chinese tourists made up only a small proportion of that figure," the Prime Minister said. "Hopefully two-way tourism can be boosted through such measures as direct flights."
On Sunday, Tsipras met with Wang Jianlin, President of the Wanda Group, a leading Chinese real estate developer who has in recent years invested heavily in the leisure industry, including cinema chains and theme parks. According to media reports, the Chinese businessman expressed interest in the promotion of mass tourism to Greece among Chinese consumers. They also discussed the possibility of setting up film production studios in Greece.
Prime Minister Tsipras visited the Huawei technology park, China's largest manufacturer of telecommunications equipment. During that visit, Tsipras proposed the creation of a technology park in Athens in collaboration with Huawei and suggested links be developed between the Chinese technology giant and the high technology hub of Thessaloniki.
Alibaba - the fourth largest company in the world in terms of market value and ZTE, the largest listed telecom equipment company in China have both expressed an interest in entering the Greek market.
When asked about the ongoing bidding process for the country's second largest port of Thessaloniki, Mr. Tsipras said the success of the cooperation over the Port of Piraeus made China a very desirable partner. The Port of Thessaloniki is a major gateway into the Balkans.
Under the deal, COSCO will take over the port’s management. Shipping giant COSCO will invest of 600€ million at the Port of Piraeus, its chairman, Xu Lirong, informed Greek Prime Minister Alexis Tsipras on the last day of his visit to China.
The company plans not only to make Piraeus the biggest commercial port in the Mediterranean and one of Europe’s most important, but also the biggest ship repair point in the eastern Mediterranean and one of the most important cruise tourism junctions in the world. This investment will be across all Piraeus Port Authority (OLP) activities, but will focus especially on ship repair activity and cruise tourism. It is in addition to the contractual obligations the company has undertaken as part of the acquisition deal.
The investment plan focuses on serving the big container ships (motherships) that link Asia with Europe, and is based on the high-level of know-how of Greek companies in the sector. “It would be important for the Chinese-managed shipyards to include the Greek products in their equipment lists,” "he said.
Prime Minister Tsipras said that the investment projects also include the upgrading of the railway network so that products imported through the port of Piraeus can be transported to the European markets. “With these investments, the port of Piraeus could soon find itself in 3rd place in the premier league of Mediterranean ports.”
That the Port of Piraeus is set to become a Chinese staging post into Europe is clear from the discussions between Prime Minister Alexis Tsipras and Chinese Government and business leaders.
Alexis Tsipras said: “The completion of the agreement with COSCO and the restoration of political stability in our country have provided the fertile soil for that company to more than double its proposed investment in Greece and that has paved the way for companies - giants of China and internationally. Greece is set to become a bridge between China and the West, between Asia and Europe."
At the same forum, Chinese Prime Minister Li Keqiang said that his country will help Greece become stronger inside a stronger Europe.
Heading up a large delegation of Government ministers and business leaders, Mr. Tsipras explored the prospects for cooperation in the fields of tourism, transport, culture, and high-technology.
"We received 6 million foreign tourists last year, but Chinese tourists made up only a small proportion of that figure," the Prime Minister said. "Hopefully two-way tourism can be boosted through such measures as direct flights."
On Sunday, Tsipras met with Wang Jianlin, President of the Wanda Group, a leading Chinese real estate developer who has in recent years invested heavily in the leisure industry, including cinema chains and theme parks. According to media reports, the Chinese businessman expressed interest in the promotion of mass tourism to Greece among Chinese consumers. They also discussed the possibility of setting up film production studios in Greece.
Prime Minister Tsipras visited the Huawei technology park, China's largest manufacturer of telecommunications equipment. During that visit, Tsipras proposed the creation of a technology park in Athens in collaboration with Huawei and suggested links be developed between the Chinese technology giant and the high technology hub of Thessaloniki.
Alibaba - the fourth largest company in the world in terms of market value and ZTE, the largest listed telecom equipment company in China have both expressed an interest in entering the Greek market.
When asked about the ongoing bidding process for the country's second largest port of Thessaloniki, Mr. Tsipras said the success of the cooperation over the Port of Piraeus made China a very desirable partner. The Port of Thessaloniki is a major gateway into the Balkans.
Labour Minister Katrouglos on Pensions
Speaking this week on ERT TV, Labour Minister George Katrougalos confirmed “There is no reduction in primary pensions. In cases where the total of the main and auxiliary pensions is 1,300€, the auxiliary pensions are also protected.”
This, the Labour Minister said, was putting into practice what the Government had pledged - that neither wages nor main pensions would be reduced and he explained that cuts are being made in the dividends of civil servants.
He accepted that the Government had not managed to save EKAS [the Social Solidarity Benefit for Pensioners to be phased out by 31.12.2019], "That cut is a bad thing."
“Our aim is to replace EKAS with an equivalent measure. This measure is the national pension, which covers more effectively the need to protect pensioners from poverty and social exclusion and is given to everyone, without a means test as under EKAS.”
“With the recalculation of pensions after 2018, pensioners will see their pensions going up” said the Labour Minister and he went on to talk about the Government's efforts to support those who losing EKAS with measures equivalent to it. For example they get their medication with a low prescription charge (10%), while the Government is studying, "what can be given to these people out of the 2015 surplus to relieve the pressure they will suffer." He also referred to the social solidarity income which he said is an attempt to safeguard everyone from poverty.
“Disability pensions are not being reduced. What is being said is a pure lie.”
“We do not have an across the board reduction in auxiliary pensions. The reductions are less than 20% for the insured” said Mr. Katrougalos stating that even for those who get a pension of more than 1300€, there is no across the board reduction. Recalculated in the new way, auxiliary pensions will result which, on the basis of the rule of equality, must be applied to the old and new members of the National Insurance Scheme.
We must have the same rules for all in the public and private sectors, which at the moment are different. We have created a committee with the participation of people with disabilities so that in the end the rules will be harmonised.”
Also in the interview, Mr. Katrougalos touched on some of the key issues to be dealt with in the Assessment for the final tranche of Bailout Funds due in October. "The Greek economy needs new jobs, not layoffs," he argued. “The Government will seek to isolate the IMF which is the only one insisting on mass redundancies, as happened on the pension issue. We will not accept any restriction of the right to strike" and he denied that the issue of the 13th and 14th salary was on the table. "This is a lie," he said flatly, and made it clear that there will be "no question of salary reductions as long as SYRIZA is in power."
Finance Minister Tsakalotos on “Equitable Development”
In a newspaper interview on Sunday, Greek Finance Minister Euclid Tsakalotos referred to the three factors that define “Equitable Development”.
"First is the fair re-distribution of the value that derives from production in the form of collective contracts and other forms of cooperative entrepreneurship. Secondly, the burdens and the benefits of growth will be fairly and equally distributed geographically. Finally, the third factor is justice in decision-making through agreement and common decisions between central government, the local authorities, the official agencies of the productive forces and especially those not up until now represented in official procedures."
He underlined the need for the Government to have a “specific and prioritised programme”.
Speaking this week on ERT TV, Labour Minister George Katrougalos confirmed “There is no reduction in primary pensions. In cases where the total of the main and auxiliary pensions is 1,300€, the auxiliary pensions are also protected.”
This, the Labour Minister said, was putting into practice what the Government had pledged - that neither wages nor main pensions would be reduced and he explained that cuts are being made in the dividends of civil servants.
He accepted that the Government had not managed to save EKAS [the Social Solidarity Benefit for Pensioners to be phased out by 31.12.2019], "That cut is a bad thing."
“Our aim is to replace EKAS with an equivalent measure. This measure is the national pension, which covers more effectively the need to protect pensioners from poverty and social exclusion and is given to everyone, without a means test as under EKAS.”
“With the recalculation of pensions after 2018, pensioners will see their pensions going up” said the Labour Minister and he went on to talk about the Government's efforts to support those who losing EKAS with measures equivalent to it. For example they get their medication with a low prescription charge (10%), while the Government is studying, "what can be given to these people out of the 2015 surplus to relieve the pressure they will suffer." He also referred to the social solidarity income which he said is an attempt to safeguard everyone from poverty.
“Disability pensions are not being reduced. What is being said is a pure lie.”
“We do not have an across the board reduction in auxiliary pensions. The reductions are less than 20% for the insured” said Mr. Katrougalos stating that even for those who get a pension of more than 1300€, there is no across the board reduction. Recalculated in the new way, auxiliary pensions will result which, on the basis of the rule of equality, must be applied to the old and new members of the National Insurance Scheme.
We must have the same rules for all in the public and private sectors, which at the moment are different. We have created a committee with the participation of people with disabilities so that in the end the rules will be harmonised.”
Also in the interview, Mr. Katrougalos touched on some of the key issues to be dealt with in the Assessment for the final tranche of Bailout Funds due in October. "The Greek economy needs new jobs, not layoffs," he argued. “The Government will seek to isolate the IMF which is the only one insisting on mass redundancies, as happened on the pension issue. We will not accept any restriction of the right to strike" and he denied that the issue of the 13th and 14th salary was on the table. "This is a lie," he said flatly, and made it clear that there will be "no question of salary reductions as long as SYRIZA is in power."
Finance Minister Tsakalotos on “Equitable Development”
In a newspaper interview on Sunday, Greek Finance Minister Euclid Tsakalotos referred to the three factors that define “Equitable Development”.
"First is the fair re-distribution of the value that derives from production in the form of collective contracts and other forms of cooperative entrepreneurship. Secondly, the burdens and the benefits of growth will be fairly and equally distributed geographically. Finally, the third factor is justice in decision-making through agreement and common decisions between central government, the local authorities, the official agencies of the productive forces and especially those not up until now represented in official procedures."
He underlined the need for the Government to have a “specific and prioritised programme”.
Tsipras: "BREXIT is a wake-up call"
2.7.2016
Tsipras, Gabriel call for new approach in Europe
On Thursday Prime Minister Alexis Tsipras received German Vice-Chancellor and Economy Minister Sigmar Gabriel on a three-day visit to Greece. Their discussion focused on investment possibilities in Greece and stressed the importance of a common front in order to replace austerity in the E.U. with growth and increased employment.
On Thursday Prime Minister Alexis Tsipras received German Vice-Chancellor and Economy Minister Sigmar Gabriel on a three-day visit to Greece. Their discussion focused on investment possibilities in Greece and stressed the importance of a common front in order to replace austerity in the E.U. with growth and increased employment.
Tsipras said it was time to discuss the project of a social Europe adding that BREXIT is a wake up call. Otherwise extreme rightwing parties will take the initiative and obtain a leading role, something that must be avoided. “We have to cooperate more closely,” he said. “Austerity policies will have to be replaced, and growth and job incentives will have to be high on policymakers’ agenda again.”
“It is a crucial moment,” Gabriel noted and stressed the importance of bringing Europe together based on growth and employment. He also stated that countries implementing reforms must be supported with investments and growth. He emphasized that Europe’s divide between the affluent northern countries and those in trouble like people in southern European member countries would have to be overcome by additional investment programmes.
“It’s not enough to tell people you have to put up with lower wages and pensions, while doing nothing to kick-start growth and employment,” the German Minister said in Athens.
The economy minister is being accompanied by a delegation of 40 German business leaders, with many of them keen on fostering bilateral deals in the renewables sector.
Part Privatisation of Piraeus Port
On Thursday the Greek Parliament ratified the sale of a majority stake of Piraeus Port to the Chinese company COSCO Shipping.
With 223 votes in favour –by M.P.s from six of the eight [SYRIZA, New Democracy, the Democratic Coalition, Potami, the AN-EL and the Centre Union Party with Golden Dawn and the Communist Party (KKE) voting against - a very large majority ratified the agreement on the transfer to COSCO.
Under the 368.5€ million deal signed in April between COSCO and Greece's privatisation agency, COSCO is to buy 51% of Piraeus for 280.5€ million, with a further 16% share for 88€ million in five years’ time. That is also contingent on COSCO completing investments worth 350€ million over the next decade.
"The Government, working with the Privatisation Fund, did what it had to do," Olga Gerovasili, the government spokeswoman, said in a statement. Neither changes in labour relations nor changes in the General Working Rules were raised as issues. These can be changed by the Board of Directors after negotiation with the representatives of the trade unions.
Greece will "name and shame" debtors owing more than 300,000€ to the State
Greece’s Finance Ministry will publish the names of those debtors owing more than 300,000€ to the tax office or to social security and pension funds. Their debts total 4.767€ billion.
The General Secretariat of Public Revenues has already sent notified big debtors calling on them to settle their debts by the end of the month.
A list has been compiled of big debtors to IKA and at the end of the month they will start publishing the names and the debt amounts on the internet.
Among the 4,422 businesses named as owing over 300,000€ to IKA are:
Proposed Electoral Reform
The Government’s draft Bill with proposed changes to the Electoral Law was posted for public consultation in Parliament on Friday. The new bill proposes a number of changes, such as the elimination of a 50-seat bonus for the winning party in elections. Another issue raised by the draft bill is the lowering of the Greek voting age to 17 years in an effort to broaden the electorate.
The bill proposes to retain the 3% threshold for a party’s entry into Parliament. The goal of the reforms is to match the actual electoral strength of each party with its the representation in the Greek Parliament to restore public confidence in democratic institutions and the political system.
The new bill requires the consent of 2/3 of the Greek Parliament, i.e. at least 200 votes.
Under the current system, the party that wins the general elections gains a 50-seat bonus. While this system has been credited with making it easier to form single-party governments, and therefore ensuring greater political stability, it has also been criticized for negating the need for politicians to seek common ground with rivals.
“It is a crucial moment,” Gabriel noted and stressed the importance of bringing Europe together based on growth and employment. He also stated that countries implementing reforms must be supported with investments and growth. He emphasized that Europe’s divide between the affluent northern countries and those in trouble like people in southern European member countries would have to be overcome by additional investment programmes.
“It’s not enough to tell people you have to put up with lower wages and pensions, while doing nothing to kick-start growth and employment,” the German Minister said in Athens.
The economy minister is being accompanied by a delegation of 40 German business leaders, with many of them keen on fostering bilateral deals in the renewables sector.
Part Privatisation of Piraeus Port
On Thursday the Greek Parliament ratified the sale of a majority stake of Piraeus Port to the Chinese company COSCO Shipping.
With 223 votes in favour –by M.P.s from six of the eight [SYRIZA, New Democracy, the Democratic Coalition, Potami, the AN-EL and the Centre Union Party with Golden Dawn and the Communist Party (KKE) voting against - a very large majority ratified the agreement on the transfer to COSCO.
Under the 368.5€ million deal signed in April between COSCO and Greece's privatisation agency, COSCO is to buy 51% of Piraeus for 280.5€ million, with a further 16% share for 88€ million in five years’ time. That is also contingent on COSCO completing investments worth 350€ million over the next decade.
"The Government, working with the Privatisation Fund, did what it had to do," Olga Gerovasili, the government spokeswoman, said in a statement. Neither changes in labour relations nor changes in the General Working Rules were raised as issues. These can be changed by the Board of Directors after negotiation with the representatives of the trade unions.
Greece will "name and shame" debtors owing more than 300,000€ to the State
Greece’s Finance Ministry will publish the names of those debtors owing more than 300,000€ to the tax office or to social security and pension funds. Their debts total 4.767€ billion.
The General Secretariat of Public Revenues has already sent notified big debtors calling on them to settle their debts by the end of the month.
A list has been compiled of big debtors to IKA and at the end of the month they will start publishing the names and the debt amounts on the internet.
Among the 4,422 businesses named as owing over 300,000€ to IKA are:
- 800 hotels, restaurants, bars, and catering services.
- 707 retail and wholesale companies
- 4 companies that are “inactive” or have ‘moved’ abroad leaving behind huge debts
- 297 service companies (cleaning, protection/security, advertising, management and …tax consultancies)
- 233 construction companies
- 207 companies from the food and drinks industry
- 120 publishing and media companies
- 75 private postal and telecommunications companies
- 103 educational companies
- 99 service enterprises, including hairdressers, beauty parlours and two funeral offices.
Proposed Electoral Reform
The Government’s draft Bill with proposed changes to the Electoral Law was posted for public consultation in Parliament on Friday. The new bill proposes a number of changes, such as the elimination of a 50-seat bonus for the winning party in elections. Another issue raised by the draft bill is the lowering of the Greek voting age to 17 years in an effort to broaden the electorate.
The bill proposes to retain the 3% threshold for a party’s entry into Parliament. The goal of the reforms is to match the actual electoral strength of each party with its the representation in the Greek Parliament to restore public confidence in democratic institutions and the political system.
The new bill requires the consent of 2/3 of the Greek Parliament, i.e. at least 200 votes.
Under the current system, the party that wins the general elections gains a 50-seat bonus. While this system has been credited with making it easier to form single-party governments, and therefore ensuring greater political stability, it has also been criticized for negating the need for politicians to seek common ground with rivals.
Tsipras calls for change in the EU
25.06.2016
In a moment of prescience ahead of the U.K.’s decision to leave the European Union, Prime Minister Alexis Tsipras, addressing the Council of Europe Parliamentary Assembly on Wednesday, called for a new social contract for Europe.
"The EU has opened its borders to austerity but closed them to refugees. This Europe which is itself reducing its own cohesion is a Europe in deep crisis and can not convince its people that they have an interest in supporting it."
The Prime Minister went on to say that Greece now needs the institutional reorganization of its already flexible labour market, not its complete levelling to the ground.
"The deregulation policies through the Memoranda are pushing Member States even to the point of violating their social obligations," he said.
He warned that democracy is in danger when social rights are not guaranteed and asked for the European Social Charter to be converted from a text of recommendations to a text of actions since "democracy is at risk when social rights are not guaranteed."
ESM disbursed 7.5€ billion
On Tuesday, the European Stability Mechanism (ESM) in bailout funds to Greece after the successful conclusion of the country's performance review, Klaus Regling, the head of the euro zone bailout fund announced.
Mr. Regling said the ESM would continue to provide loans to Athens under favourable conditions and noted that interest rates charged on Greek loans are less than 1.0 percent with the average maturity of the loans being 32 years.
Electoral and Constitutional Reform
The final proposals for Electoral and Constitutional Reform will be drafted after a round of consultations Alexis Tsipras will hold with political leaders. His focus is on the minor opposition parties in order to collect the required 2/3 majority of Parliament needed for the reforms to be implemented in time for the next election.
On Wednesday the ANEL President and Minister of National Defence, Mr. Kammenos said “It is time to move to a stable electoral system that will provide for proportional representation." He referred to decisions which SYRIZA and ANEL had taken before they became government coalition partners in a statement after his meeting with Prime Minister Alexis Tsipras to discuss changes to the electoral law and the constitutional review.
"ANEL, with SYRIZA, will conclude a joint Government proposal," he continued and expressed his hope to find common ground with other political forces, with the exception of New Democracy, in view of certain statements made by its President. Mr. Kammenos said the minimum entry to Parliament of 3% of the vote should remain, while the bonus of 50 seats should be reduced considerably.
"We are agreed on a proportional system. We will probably look for allies to agree that the bonus can not be 50 seats, but should be less. This government has demonstrated that governments can be formed to include other political actors. I do not understand why the opposition reacts so negatively," he said.
“Equitable development”
Also on Wednesday, a Government spokesman announced “The restoration of free collective bargaining for collective agreements and the Minimum Wage are the core of the position the Government will bring to the negotiation of the second Assessment. At the same time social guarantees are a prerequisite of the efforts of economic development.
Aviation Strike Averted
Greek civil aviation workers decided to suspend their planned 5-day strike that was to have taken place from June 20 to 25 following talks with the Government.
The aviation workers were set to protest against the new developments of the country’s regional airports.
Fear arose when on Monday, Greece’s privatization agency published an invitation to hire an adviser to decide if some 23 regional airports could be further developed, and workers took this as a threat to their job security.
After several meetings at a governmental level, the civil aviation workers union OSYPA said that it was satisfied that officials seemed to show “sensitivity” to the workers issues. Shortly after meeting with Greek Transport Minister Christos Spirtzis, OSYPA’s President Vassilis Alevizopoulos announced
“We convened an hour ago and decided to suspend the strike and proceed to an in-depth dialogue.”
The Prime Minister went on to say that Greece now needs the institutional reorganization of its already flexible labour market, not its complete levelling to the ground.
"The deregulation policies through the Memoranda are pushing Member States even to the point of violating their social obligations," he said.
He warned that democracy is in danger when social rights are not guaranteed and asked for the European Social Charter to be converted from a text of recommendations to a text of actions since "democracy is at risk when social rights are not guaranteed."
ESM disbursed 7.5€ billion
On Tuesday, the European Stability Mechanism (ESM) in bailout funds to Greece after the successful conclusion of the country's performance review, Klaus Regling, the head of the euro zone bailout fund announced.
Mr. Regling said the ESM would continue to provide loans to Athens under favourable conditions and noted that interest rates charged on Greek loans are less than 1.0 percent with the average maturity of the loans being 32 years.
Electoral and Constitutional Reform
The final proposals for Electoral and Constitutional Reform will be drafted after a round of consultations Alexis Tsipras will hold with political leaders. His focus is on the minor opposition parties in order to collect the required 2/3 majority of Parliament needed for the reforms to be implemented in time for the next election.
On Wednesday the ANEL President and Minister of National Defence, Mr. Kammenos said “It is time to move to a stable electoral system that will provide for proportional representation." He referred to decisions which SYRIZA and ANEL had taken before they became government coalition partners in a statement after his meeting with Prime Minister Alexis Tsipras to discuss changes to the electoral law and the constitutional review.
"ANEL, with SYRIZA, will conclude a joint Government proposal," he continued and expressed his hope to find common ground with other political forces, with the exception of New Democracy, in view of certain statements made by its President. Mr. Kammenos said the minimum entry to Parliament of 3% of the vote should remain, while the bonus of 50 seats should be reduced considerably.
"We are agreed on a proportional system. We will probably look for allies to agree that the bonus can not be 50 seats, but should be less. This government has demonstrated that governments can be formed to include other political actors. I do not understand why the opposition reacts so negatively," he said.
“Equitable development”
Also on Wednesday, a Government spokesman announced “The restoration of free collective bargaining for collective agreements and the Minimum Wage are the core of the position the Government will bring to the negotiation of the second Assessment. At the same time social guarantees are a prerequisite of the efforts of economic development.
Aviation Strike Averted
Greek civil aviation workers decided to suspend their planned 5-day strike that was to have taken place from June 20 to 25 following talks with the Government.
The aviation workers were set to protest against the new developments of the country’s regional airports.
Fear arose when on Monday, Greece’s privatization agency published an invitation to hire an adviser to decide if some 23 regional airports could be further developed, and workers took this as a threat to their job security.
After several meetings at a governmental level, the civil aviation workers union OSYPA said that it was satisfied that officials seemed to show “sensitivity” to the workers issues. Shortly after meeting with Greek Transport Minister Christos Spirtzis, OSYPA’s President Vassilis Alevizopoulos announced
“We convened an hour ago and decided to suspend the strike and proceed to an in-depth dialogue.”
Prime Minister Tsipras :
“The country is entering a stable macroeconomic, fiscal and investment environment.”
18.06.2016
President of the Eurogroup, Jeroen Dijsselbloem announced that on Friday the Governors of the European Stability Mechanism endorsed the updated Memorandum of Understanding with Greece and approved the next disbursement of 7.5€ billion.
The updated memorandum contains all the agreed reforms and the Automatic Financial Adjustment Mechanism. Eurozone finance ministers approved the release of the funding following talks in Luxembourg, deeming that Greece had fulfilled its pledges for economic reform.
“This is a welcome breath of oxygen for the Greek economy,” European Economic and Monetary Affairs Commissioner Pierre Moscovici told reporters after the meeting.
The cash is to be disbursed early next week in time for Athens to meet its debt repayments to the ECB and the International Monetary Fund in July. Of the 7.5€ billion, 1.8€ billion is to go toward paying off some of the state’s debts to suppliers.
From next Wednesday the ECB will be able to accept Greek government debt as collateral for central bank loans. This restores Greek banks’ access to cheap financing from the ECB.
In comments after the meeting, Finance Minister Euclid Tsakalotos said the focus would now shift toward growth over the coming year. But he underlined that authorities were aiming for a new kind of growth with an emphasis on respect for workers, fair wealth distribution, and respect for the environment.
Back in Athens, Prime Minister Alexis Tsipras also sounded an optimistic note, saying that most of the fiscal adjustment demands had been met, allowing the country to turn a page and pursue policies of economic growth. “A cycle is ending for the country,” he told a conference at the Acropolis Museum on Thursday, referring to the recent deal with international creditors, which, he said, aims at fiscal stability and the restoration of funding to the banking sector and the beginning of debt relief talks.
It’s the first time in six years, he said, that the country is entering “a stable macroeconomic, fiscal and investment environment.”
The updated memorandum contains all the agreed reforms and the Automatic Financial Adjustment Mechanism. Eurozone finance ministers approved the release of the funding following talks in Luxembourg, deeming that Greece had fulfilled its pledges for economic reform.
“This is a welcome breath of oxygen for the Greek economy,” European Economic and Monetary Affairs Commissioner Pierre Moscovici told reporters after the meeting.
The cash is to be disbursed early next week in time for Athens to meet its debt repayments to the ECB and the International Monetary Fund in July. Of the 7.5€ billion, 1.8€ billion is to go toward paying off some of the state’s debts to suppliers.
From next Wednesday the ECB will be able to accept Greek government debt as collateral for central bank loans. This restores Greek banks’ access to cheap financing from the ECB.
In comments after the meeting, Finance Minister Euclid Tsakalotos said the focus would now shift toward growth over the coming year. But he underlined that authorities were aiming for a new kind of growth with an emphasis on respect for workers, fair wealth distribution, and respect for the environment.
Back in Athens, Prime Minister Alexis Tsipras also sounded an optimistic note, saying that most of the fiscal adjustment demands had been met, allowing the country to turn a page and pursue policies of economic growth. “A cycle is ending for the country,” he told a conference at the Acropolis Museum on Thursday, referring to the recent deal with international creditors, which, he said, aims at fiscal stability and the restoration of funding to the banking sector and the beginning of debt relief talks.
It’s the first time in six years, he said, that the country is entering “a stable macroeconomic, fiscal and investment environment.”
On Friday Finance Minister Euclid Tsakalotos gave this interview to Euronews.
The interviewer started by noting that a year has passed since the Government signed the bailout deal with the Institutions and so avoided Grexit.
Euclid Tsakalotos:
“Well, I think it was a very difficult year. We had a road map out of the crisis, which included the completion of the recapitalization of the banks. Our goal was to put them on a sound footing.
It also included the completion of the first Assessment and certainly a commitment on the debt. I think that the decision of May 24th leads to the completion of the first Assessment and the disbursement of the tranche. At the same time, we achieved a good agreement on the debt.
I think it is an important agreement in the following sense. It really is the first time that the clause specifies the "if necessary". Until now, we had decisions whereby the Eurogroup was ready to take action “if necessary”. Now the phrase "if necessary" is clearly defined. Now, it is clear that after 2018 and for many years, the gross [debt Ed.]financing needs of Greece will not exceed 15% of its annual GDP. So, we have taken all the steps leading to the achievement of our objectives. So it's not a matter for the German, the French, the Spanish or the Greek Finance Minister. It is not a question of one of us waking up one morning and saying we must do something. We have already decided what the appropriate actions are. I think this is a very big step forward.
Greeks now expect us to turn the page. The programme was frontloaded. But that is an end of tax increases and furthermore we are unfolding our agenda of development.
Our effort will be strengthened by our membership on the ECB's quantitative easing programme. This move will result in the return of investors. It will require a lot of effort. I understand people’s pessimism. If you had asked me in September, which moment, in my opinion, would be the most difficult for our Government, I would have said it would be concluding the first Assessment. That is because this is a very front-loaded programme. So the frustration of some people is entirely understandable. Citizens have a point in view of the fact that the crisis has dragged on for five, six, seven years.
The Interviewer then asked: “Yes and you promised many things.
Do you think that people still believe you? Do they still listen to what you are saying to them?”
Euclid Tsakalotos:
We promised a lot and we have made compromises. But we did call an election and we submitted the agreement to the judgement of the citizens. Last September, for the first time, the citizens were asked and they knew what they were voting for. We did not say, for example, that we would put the agreement on ice and then changed our minds afterwards. This agreement, with all the positive and negative elements, was the focus of the last election campaign. The citizens made their choice.
How do you feel as a politician of the Left, when you are called upon to support and implement policies, such as the privatization of public property?
Euclid Tsakalotos:
As a Minister from the Left, I have to face up to these questions.
Last summer, there were people who said to me: "We do not need the left except when we have 5% growth and 5% unemployment. But if we are not useful to people when unemployment is at 25%, when there is no growth, then they are not going to vote for us when recovery comes either. Our citizens voted for us because they know that we will implement this programme with the utmost sensitivity. In the reform of the pension and taxation systems we put this concept into practice.
In France we see that the Government is trying to pass unpopular labour reforms. Citizens are protesting in the streets. Are you with the protesters or the French Government?
Euclid Tsakalotos:
Well, reform in the labour market is an issue that all countries have to face. I am not convinced that it is because of the lack of flexibility in the labour market that Europe is not doing well.
For decades we have heard about the importance of flexibility in the labour market. However, such steps have had no significant benefits for unemployment. For example, the Institutions are asking us to make it easier to sack people. As you know I am a Professor of Economics and the evidence does not support this view - that is to say, that easier redundancies lead to lower unemployment. In the end, we have the same levels of unemployment while the insecurity of workers increases.
On the table is a possibility of Brexit. The United Kingdom is heading for a referendum and is asking the people, In or Out of the European Union? What do you think; What would be best for the United Kingdom, the EU and Greece?
Euclid Tsakalotos:
I am sure that for the UK, Europe and Greece, it is best for the UK to remain in the European Union. I have no doubt about it. If Brexit becomes a reality, there will be other centrifugal forces. We had something similar in the 1930s with competitive devaluations, nationalisms with, as you know, very unpleasant consequences. So I'm very worried.
But whatever the result, all Europeans should take a lesson from us. If, for example, the Remain win by 2 or 3%, then this will be a very strong warning. If Europe does not react and does not guarantee citizens decent wages and pensions, if it does take care of the welfare state, then we will have more Brexit-type incidents in the future.
Your predecessor, Yannis Varoufakis, has repeatedly stated that the EU institutions do not operate in a democratic way. Do you agree with that? What is your experience?
Euclid Tsakalotos:
I think there is no question of democracy in Europe, it is not in question. I don’t think political scientists have been talking about that for the last ten years. It is absolutely critical not to put labels like populist on people who say "I want to have a say on the major issues affecting my life." If you call them populist, eventually you are led to Le Pen, to Brexit and to the extreme right. We must listen to people. Citizens are saying "I want to have a say in matters that affect my life. If Europe can not do it, then I will become anti-European."
When do you believe that Greece will change, so that people feel that the country is turning the page? Not just the numbers, I mean the real economy and people's lives?
Euclid Tsakalotos:
I think we will have failed if a year from now there are no obvious signs of recovery. You can call me again if you like, in a year. You can ask the question again. I hope that then, people will be experiencing the development aspects of the programme. I believe that growth will return and that the situation will be very different.
The interviewer started by noting that a year has passed since the Government signed the bailout deal with the Institutions and so avoided Grexit.
Euclid Tsakalotos:
“Well, I think it was a very difficult year. We had a road map out of the crisis, which included the completion of the recapitalization of the banks. Our goal was to put them on a sound footing.
It also included the completion of the first Assessment and certainly a commitment on the debt. I think that the decision of May 24th leads to the completion of the first Assessment and the disbursement of the tranche. At the same time, we achieved a good agreement on the debt.
I think it is an important agreement in the following sense. It really is the first time that the clause specifies the "if necessary". Until now, we had decisions whereby the Eurogroup was ready to take action “if necessary”. Now the phrase "if necessary" is clearly defined. Now, it is clear that after 2018 and for many years, the gross [debt Ed.]financing needs of Greece will not exceed 15% of its annual GDP. So, we have taken all the steps leading to the achievement of our objectives. So it's not a matter for the German, the French, the Spanish or the Greek Finance Minister. It is not a question of one of us waking up one morning and saying we must do something. We have already decided what the appropriate actions are. I think this is a very big step forward.
Greeks now expect us to turn the page. The programme was frontloaded. But that is an end of tax increases and furthermore we are unfolding our agenda of development.
Our effort will be strengthened by our membership on the ECB's quantitative easing programme. This move will result in the return of investors. It will require a lot of effort. I understand people’s pessimism. If you had asked me in September, which moment, in my opinion, would be the most difficult for our Government, I would have said it would be concluding the first Assessment. That is because this is a very front-loaded programme. So the frustration of some people is entirely understandable. Citizens have a point in view of the fact that the crisis has dragged on for five, six, seven years.
The Interviewer then asked: “Yes and you promised many things.
Do you think that people still believe you? Do they still listen to what you are saying to them?”
Euclid Tsakalotos:
We promised a lot and we have made compromises. But we did call an election and we submitted the agreement to the judgement of the citizens. Last September, for the first time, the citizens were asked and they knew what they were voting for. We did not say, for example, that we would put the agreement on ice and then changed our minds afterwards. This agreement, with all the positive and negative elements, was the focus of the last election campaign. The citizens made their choice.
How do you feel as a politician of the Left, when you are called upon to support and implement policies, such as the privatization of public property?
Euclid Tsakalotos:
As a Minister from the Left, I have to face up to these questions.
Last summer, there were people who said to me: "We do not need the left except when we have 5% growth and 5% unemployment. But if we are not useful to people when unemployment is at 25%, when there is no growth, then they are not going to vote for us when recovery comes either. Our citizens voted for us because they know that we will implement this programme with the utmost sensitivity. In the reform of the pension and taxation systems we put this concept into practice.
In France we see that the Government is trying to pass unpopular labour reforms. Citizens are protesting in the streets. Are you with the protesters or the French Government?
Euclid Tsakalotos:
Well, reform in the labour market is an issue that all countries have to face. I am not convinced that it is because of the lack of flexibility in the labour market that Europe is not doing well.
For decades we have heard about the importance of flexibility in the labour market. However, such steps have had no significant benefits for unemployment. For example, the Institutions are asking us to make it easier to sack people. As you know I am a Professor of Economics and the evidence does not support this view - that is to say, that easier redundancies lead to lower unemployment. In the end, we have the same levels of unemployment while the insecurity of workers increases.
On the table is a possibility of Brexit. The United Kingdom is heading for a referendum and is asking the people, In or Out of the European Union? What do you think; What would be best for the United Kingdom, the EU and Greece?
Euclid Tsakalotos:
I am sure that for the UK, Europe and Greece, it is best for the UK to remain in the European Union. I have no doubt about it. If Brexit becomes a reality, there will be other centrifugal forces. We had something similar in the 1930s with competitive devaluations, nationalisms with, as you know, very unpleasant consequences. So I'm very worried.
But whatever the result, all Europeans should take a lesson from us. If, for example, the Remain win by 2 or 3%, then this will be a very strong warning. If Europe does not react and does not guarantee citizens decent wages and pensions, if it does take care of the welfare state, then we will have more Brexit-type incidents in the future.
Your predecessor, Yannis Varoufakis, has repeatedly stated that the EU institutions do not operate in a democratic way. Do you agree with that? What is your experience?
Euclid Tsakalotos:
I think there is no question of democracy in Europe, it is not in question. I don’t think political scientists have been talking about that for the last ten years. It is absolutely critical not to put labels like populist on people who say "I want to have a say on the major issues affecting my life." If you call them populist, eventually you are led to Le Pen, to Brexit and to the extreme right. We must listen to people. Citizens are saying "I want to have a say in matters that affect my life. If Europe can not do it, then I will become anti-European."
When do you believe that Greece will change, so that people feel that the country is turning the page? Not just the numbers, I mean the real economy and people's lives?
Euclid Tsakalotos:
I think we will have failed if a year from now there are no obvious signs of recovery. You can call me again if you like, in a year. You can ask the question again. I hope that then, people will be experiencing the development aspects of the programme. I believe that growth will return and that the situation will be very different.
Greek Parliament Votes for New Development Law
On Thursday the new Development Law was agreed in principle by the Greek Parliament.
152 deputies of SYRIZA and Independent Greeks voted for the bill while all the other political parties voted against (101 votes) and the deputies of the Democratic Alliance were recorded as “present.”
Governmental sources said “The Government considers the new development law of special political and social importance. It expects it to impact positively on the economy and society and to energise the productive forces, boosting growth in a difficult period for the country.
"The strategic objective of the current Government is the productive reconstruction of the Greek economy on the basis of a sustainable and equitable development model.
"This objective goes beyond the mild fiscal adjustment of the current programme and lays the foundation for a productive economy and prosperous society.
“There will be a series of positive changes to the structure of the Greek economy by creating innovative businesses producing goods and services for the export market, increasing knowledge-intensive employment, technological upgrading, increasing the average size of firms and partnerships to achieve economies of scale, increase productivity/competitiveness, high value-added production, utilising the geographical location of the country and ultimately improving its position in the international division of labour.
“To this end, selected for particular support will be those economic sectors that can contribute to these positive changes and in which the country has comparative advantages, such as information and communication technologies and the agri-food chain (from the farm to the hotel) and the traditional sectors such as tourism and shipping.
“The new Development Law provides a number of innovative tools and incentives such as:
- The aid will primarily take the form of tax exemptions offering incentives for efficiency rather than support regardless of final outcomes.
- Secondly aid is to be provided both in the form of grants with a ceiling of 5€ million per investment plan in order to spread out the benefits, while after many years criteria for reducing regional disparities will be introduced.
“Innovative features of the new law are the use of new financial instruments and market mechanisms (funds, loans, shareholdings) to leverage Government credits with multiplier effects on the economy and a return of those credits over a 10- year period.
“In addition, special emphasis will be put on the synergies and networking between businesses and industries to achieve economies of scale and increased productivity. Mergers will be supported, as will business clusters, integrated spatial plans and local value chains. Moreover, procedures at all levels will be simplified and modernized, and the proposals of economic actors will be built in after extensive and exhaustive consultation with them.”
Noting the differences between the current law and the policies and laws of the past, the Government communiqué stresses that in world economic and political thought there is no one who claims that developed high-income countries such as Greece must compete with emerging economies on the basis of production costs i.e. with lower wages, lower tax rates, etc.
“It is a common assumption that only by maintaining the lead in productivity, quality and innovation, can the developed economies withstand competition while maintaining the high level of social welfare which they have achieved.
“However, all the Memorandum Programme’s policies implemented in recent years in Greece did exactly the opposite: Rather than invest in upgrading the productive base of the country, they put the Greek economy onto a process of internal devaluation in a "race to the bottom". Consistent with these policies was the ruination of the living standards of Greeks without any dramatic effect on the level of competitiveness. The new development law is going to change this logic. The first positive results will become visible in the Greek economy in the short term.”
In his reply during the debate, Economy Minister Giorgos Stathakis, refuted the "repeated argument" that "where the Left governs, growth is inhibited and where the right governs, development is accelerating," He stated that that argument is not based on any data.
"The Right proposes a rigid framework which includes the reduction of taxation which leads to a reduction of the welfare state, it leads to reduced national insurance contributions which means reduced pensions and the reduction of the state means more “markets” in sectors like health and education.
"The differences between us are given and self-evident and, because of this, the way we face the crisis and formulate our policy is also different. We have chosen a balanced increase in contributions/tax revenues, we have cut expenditure in an equitable manner and the framework of fiscal consolidation was the mildest possible in the present circumstances. This economic policy and the DNA of the Left are stabilizing the economy and are creating better conditions for the exit from the crisis."
Commenting on the new law, Minister Stathakis added that "we have chosen not to give large amounts to a few categories of investments as happened in the past. We have made a different choice and are directing resources to SMEs, to Primary Production, to innovation, to address regional disparities, with guaranteed resources upfront, unlike what happened with the previous development laws where the State made promises which it could not fulfill."
January-May Government budget surplus exceeds target
On Thursday, the Finance Ministry published data which showed a Central Government Primary Budget Surplus of 2.26€ billion for the first five months of 2016.
The central government surplus excludes the budgets of social security organisations and local administrations and is different from the figure monitored by Greece's EU/IMF lenders. Nevertheless it does indicate the state of the country's finances.
The government's target was for a primary budget deficit - which excludes debt-servicing costs - of 820€ million for that five-month period.
Net tax revenues came were 17.25€ billion, 759€ million above target, while spending was 2.36€ billion below target.
200,000 new jobs
On Thursday, the Ministry of Labour announced that more than 200,000 new jobs were created in the first five months of 2016 in the period January - May 2016. Job advertisements numbered 230 965, while advert withdrawals stood at 154.374.
"Unemployment remains the main problem of the country and the situation does not justify any kind of celebration. But the labour market is already showing significant signs of recovery" the Labour Ministry statement said.
Social Solidarity Measures
On Tuesday, Social Solidarity Deputy Minister Theano Photios announced measures to support poor households.
In mid-July (July 15-20) the application period will open for the Social Solidarity Income [Κοινωνικό Εισόδημα Αλληλεγγύης (ΚΕΑ)] in 30 municipalities, as a pilot scheme until the end of the year, at which time the rest of the country's municipalities will join, the Minister said.
She stated that the granting of the Social Solidarity Income will take into account the income of the previous six months, from the date of application. She noted that welfare and family benefits will continue to be paid, while adding that the income will be accompanied by measures to deal with the humanitarian crisis. Among them is the provision of free medicines, free water and free school meals for all children in the municipalities affected by poverty.
She stressed that for the beneficiaries she will attempt to negotiate with the ΔΕΗ a new lower social tariff, while, she stated, it is the desire of the Prime Minister for a rent subsidy to be considered for those in real need.
She emphasized that among the priorities of the programme is for about 10% of the beneficiaries is the process of getting them into the labour market, specifying that these include those who persistently avoid work. "The safety net must not be turned into afishing net that traps our fellow human beings in poverty" stated Mrs. Photios.
Finally, she clarified that the ΚΕΑ is tax free and unseizable (e.g. for debt repayment).
On Thursday the new Development Law was agreed in principle by the Greek Parliament.
152 deputies of SYRIZA and Independent Greeks voted for the bill while all the other political parties voted against (101 votes) and the deputies of the Democratic Alliance were recorded as “present.”
Governmental sources said “The Government considers the new development law of special political and social importance. It expects it to impact positively on the economy and society and to energise the productive forces, boosting growth in a difficult period for the country.
"The strategic objective of the current Government is the productive reconstruction of the Greek economy on the basis of a sustainable and equitable development model.
"This objective goes beyond the mild fiscal adjustment of the current programme and lays the foundation for a productive economy and prosperous society.
“There will be a series of positive changes to the structure of the Greek economy by creating innovative businesses producing goods and services for the export market, increasing knowledge-intensive employment, technological upgrading, increasing the average size of firms and partnerships to achieve economies of scale, increase productivity/competitiveness, high value-added production, utilising the geographical location of the country and ultimately improving its position in the international division of labour.
“To this end, selected for particular support will be those economic sectors that can contribute to these positive changes and in which the country has comparative advantages, such as information and communication technologies and the agri-food chain (from the farm to the hotel) and the traditional sectors such as tourism and shipping.
“The new Development Law provides a number of innovative tools and incentives such as:
- The aid will primarily take the form of tax exemptions offering incentives for efficiency rather than support regardless of final outcomes.
- Secondly aid is to be provided both in the form of grants with a ceiling of 5€ million per investment plan in order to spread out the benefits, while after many years criteria for reducing regional disparities will be introduced.
“Innovative features of the new law are the use of new financial instruments and market mechanisms (funds, loans, shareholdings) to leverage Government credits with multiplier effects on the economy and a return of those credits over a 10- year period.
“In addition, special emphasis will be put on the synergies and networking between businesses and industries to achieve economies of scale and increased productivity. Mergers will be supported, as will business clusters, integrated spatial plans and local value chains. Moreover, procedures at all levels will be simplified and modernized, and the proposals of economic actors will be built in after extensive and exhaustive consultation with them.”
Noting the differences between the current law and the policies and laws of the past, the Government communiqué stresses that in world economic and political thought there is no one who claims that developed high-income countries such as Greece must compete with emerging economies on the basis of production costs i.e. with lower wages, lower tax rates, etc.
“It is a common assumption that only by maintaining the lead in productivity, quality and innovation, can the developed economies withstand competition while maintaining the high level of social welfare which they have achieved.
“However, all the Memorandum Programme’s policies implemented in recent years in Greece did exactly the opposite: Rather than invest in upgrading the productive base of the country, they put the Greek economy onto a process of internal devaluation in a "race to the bottom". Consistent with these policies was the ruination of the living standards of Greeks without any dramatic effect on the level of competitiveness. The new development law is going to change this logic. The first positive results will become visible in the Greek economy in the short term.”
In his reply during the debate, Economy Minister Giorgos Stathakis, refuted the "repeated argument" that "where the Left governs, growth is inhibited and where the right governs, development is accelerating," He stated that that argument is not based on any data.
"The Right proposes a rigid framework which includes the reduction of taxation which leads to a reduction of the welfare state, it leads to reduced national insurance contributions which means reduced pensions and the reduction of the state means more “markets” in sectors like health and education.
"The differences between us are given and self-evident and, because of this, the way we face the crisis and formulate our policy is also different. We have chosen a balanced increase in contributions/tax revenues, we have cut expenditure in an equitable manner and the framework of fiscal consolidation was the mildest possible in the present circumstances. This economic policy and the DNA of the Left are stabilizing the economy and are creating better conditions for the exit from the crisis."
Commenting on the new law, Minister Stathakis added that "we have chosen not to give large amounts to a few categories of investments as happened in the past. We have made a different choice and are directing resources to SMEs, to Primary Production, to innovation, to address regional disparities, with guaranteed resources upfront, unlike what happened with the previous development laws where the State made promises which it could not fulfill."
January-May Government budget surplus exceeds target
On Thursday, the Finance Ministry published data which showed a Central Government Primary Budget Surplus of 2.26€ billion for the first five months of 2016.
The central government surplus excludes the budgets of social security organisations and local administrations and is different from the figure monitored by Greece's EU/IMF lenders. Nevertheless it does indicate the state of the country's finances.
The government's target was for a primary budget deficit - which excludes debt-servicing costs - of 820€ million for that five-month period.
Net tax revenues came were 17.25€ billion, 759€ million above target, while spending was 2.36€ billion below target.
200,000 new jobs
On Thursday, the Ministry of Labour announced that more than 200,000 new jobs were created in the first five months of 2016 in the period January - May 2016. Job advertisements numbered 230 965, while advert withdrawals stood at 154.374.
"Unemployment remains the main problem of the country and the situation does not justify any kind of celebration. But the labour market is already showing significant signs of recovery" the Labour Ministry statement said.
Social Solidarity Measures
On Tuesday, Social Solidarity Deputy Minister Theano Photios announced measures to support poor households.
In mid-July (July 15-20) the application period will open for the Social Solidarity Income [Κοινωνικό Εισόδημα Αλληλεγγύης (ΚΕΑ)] in 30 municipalities, as a pilot scheme until the end of the year, at which time the rest of the country's municipalities will join, the Minister said.
She stated that the granting of the Social Solidarity Income will take into account the income of the previous six months, from the date of application. She noted that welfare and family benefits will continue to be paid, while adding that the income will be accompanied by measures to deal with the humanitarian crisis. Among them is the provision of free medicines, free water and free school meals for all children in the municipalities affected by poverty.
She stressed that for the beneficiaries she will attempt to negotiate with the ΔΕΗ a new lower social tariff, while, she stated, it is the desire of the Prime Minister for a rent subsidy to be considered for those in real need.
She emphasized that among the priorities of the programme is for about 10% of the beneficiaries is the process of getting them into the labour market, specifying that these include those who persistently avoid work. "The safety net must not be turned into afishing net that traps our fellow human beings in poverty" stated Mrs. Photios.
Finally, she clarified that the ΚΕΑ is tax free and unseizable (e.g. for debt repayment).
"Equitable Development"
- the next stage for Greece
11.06.2016
Prime Minister Tsipras gave this interview last weekend:
The Assessment has been completed, but it leaves in its wake increases in direct and indirect taxes. In the past you have condemned such increases as essentially a reduction in the real income of citizens. What has changed now?
"The choice of the Government, throughout the previous period, was to prevent any further reductions in the incomes of the middle strata and especially of the more vulnerable. We negotiated hard with the Institutions on this… We know how difficult the situation is in society and in the real economy, after six years of austerity. But today, with the first assessment and the debt relief, the major part of last July's agreement has been completed. We can now say that the page has turned and the new period, towards the economic and social reconstruction of the country, has begun."
What are the objectives of this new period?
"It will be what we have called Equitable Development - Development because the country and the economy are entering a phase of reconstruction - and Equitable, because such development only makes sense when the benefits of permeate throughout the society. So we are talking about a development that is accompanied by more and stronger social protection, with support of labour and the small and medium economic forces, but also accompanied by the sharing of the benefits, exactly as the burdens were shared. This is the content of Equitable Development."
You are receiving criticism on the issue of the debt as well. The debt relief measures depend on the rigorous implementation of Memoranda obligations, while they seem quite vague. Are you satisfied with the Eurogroup decision?
"I am satisfied because it is the best we could achieve given the data. Just consider that most Ministers in the Eurogroup, including Schauble, did not want to even hear about debt relief. This was also the reason that previous governments had been aligned with the view that characterized the debt as sustainable. Eventually we have been able to reach a compromise so that the German Parliament does not have to ratify the agreement before the German General Elections. However, for the first time we have not secured promises but concrete commitments. Most importantly, the agreement provides a "debt cutter", which ensures that the country will not pay more than 15% of its annual GDP in debt repayments. To understand what this means, suffice it to say that from 2009 onwards our debt repayments accounted for between 26% up to 33% of GDP. If we had had this “cutter” from 2011 until 2015 we would have paid around 100€ billion less."
In the past the government has expressed discomfort about the role of the IMF in the negotiations. Recently, however, it took very positive positions on Greek debt. In the end is its involvement in the Greek programme a good or a bad thing?
"The IMF has positive positions on the debt, but at the same time, it has positions that I would characterize as very negative on many other issues. And, unfortunately, the negotiations are not Ά la carte where you pick from each menu what suits you to complete the agreement. You have to negotiate on the agreed positions of the Institutions. And this is where the problem lies. The Greek Government has expressed over and over again, hat it is crucial that the disagreements between the Institutions do not become cause for delays. When you have a whole country racked - and even because your own "failures", as they themselves have acknowledges- you can not say I am not coming to the negotiations until we agree. Or, even worse, until there is a serious threat of a “credit event”."
Many believe that the next very difficult "test" for the Government will be in relation to labour. Lenders are seeking in the second Assessment harsh changes to the law on labour relations and trade unionism. Will you accept such proposals? We ask because certain people are already putting their money on an impending “shipwreck” in the negotiations.
"In the last period we had our fill of anticipated shipwrecks. In the end no shipwreck occurred. In September, before the elections, our opponents were saying that with this Agreement, whoever was in the Ministry of Labour, would be forced to cut primary pensions. They were wrong. The same happened with those who a month ago anticipated that we would be forced to concede to the IMF demand for extra “contingency measures” of 3.6€ billion. I say directly that they will be wrong a second time. Greece can now draw red lines and can effectively defend them, something it did not do over the previous five years. We will defend the workers’ rights as we did with the Primary Residence and pensions. Besides, the involvement of the European parliament and of the International Labour Organisation in the negotiations broadens the alliances that we have already formed."
In a recent interview you replied that "you can accuse us of having illusions, but not that we lied." When did you realize that the Thessaloniki Agenda [SYRIZA’s Programme. Ed.] and remaining in the euro were incompatible things? And based on your current experience of the negotiations, if you could turn the clock back what promises would you not have made when you took over the government of the country?
"I have said this publicly, immediately after the forced compromise and the Agreement last July. I am baffled by those who pretend not to remember. They are trying to erase from the collective memory the elections of September and the sincerity with which we handled this whole forced retreat, our sole concern being to avoid a complete vacuum in the country. If you ask me about Thessaloniki, obviously what has changed are the conditions of fiscal adjustment. In the Thessaloniki Agenda we were talking about balanced budgets. The negotiations eventually resulted in a mild adjustment. But the Primary Surpluses agreed have nothing to do with what had been agreed previously. 20€ billion less austerity in a three year period is no small thing.
However the framework of the Thessaloniki Agenda remains. We have secured access to medical care for 2 million uninsured people. We established the solidarity card for thousands of households. The data for the first quarter of 2016 show that approximately 25,000 new jobs have been created. We are bringing forward community service programmes for 100,000 unemployed people, increasing the duration of employment from 5 to 8 months. We have promoted measures to support the weakest sections. We have hired staff in hospitals. We have promoted breakfast in primary schools. We have taken measures against the vested interests with the law on television licenses, dealing with the black political money, tackling tax evasion and the lists of the culprits and taking on smuggling."
Does the electoral law need changing? And if so, what changes are needed?
"The electoral law must be the subject of a broad social and political discussion. A discussion that must be completed in a timely fashion, that is to say well before the next elections which are in Autumn 2019, so that we conclude it there being any political considerations in mind. We intend to open this discussion immediately. I hope that the official opposition does not “go missing in action” again as it did in the discussion about foreign companies."
"The choice of the Government, throughout the previous period, was to prevent any further reductions in the incomes of the middle strata and especially of the more vulnerable. We negotiated hard with the Institutions on this… We know how difficult the situation is in society and in the real economy, after six years of austerity. But today, with the first assessment and the debt relief, the major part of last July's agreement has been completed. We can now say that the page has turned and the new period, towards the economic and social reconstruction of the country, has begun."
What are the objectives of this new period?
"It will be what we have called Equitable Development - Development because the country and the economy are entering a phase of reconstruction - and Equitable, because such development only makes sense when the benefits of permeate throughout the society. So we are talking about a development that is accompanied by more and stronger social protection, with support of labour and the small and medium economic forces, but also accompanied by the sharing of the benefits, exactly as the burdens were shared. This is the content of Equitable Development."
You are receiving criticism on the issue of the debt as well. The debt relief measures depend on the rigorous implementation of Memoranda obligations, while they seem quite vague. Are you satisfied with the Eurogroup decision?
"I am satisfied because it is the best we could achieve given the data. Just consider that most Ministers in the Eurogroup, including Schauble, did not want to even hear about debt relief. This was also the reason that previous governments had been aligned with the view that characterized the debt as sustainable. Eventually we have been able to reach a compromise so that the German Parliament does not have to ratify the agreement before the German General Elections. However, for the first time we have not secured promises but concrete commitments. Most importantly, the agreement provides a "debt cutter", which ensures that the country will not pay more than 15% of its annual GDP in debt repayments. To understand what this means, suffice it to say that from 2009 onwards our debt repayments accounted for between 26% up to 33% of GDP. If we had had this “cutter” from 2011 until 2015 we would have paid around 100€ billion less."
In the past the government has expressed discomfort about the role of the IMF in the negotiations. Recently, however, it took very positive positions on Greek debt. In the end is its involvement in the Greek programme a good or a bad thing?
"The IMF has positive positions on the debt, but at the same time, it has positions that I would characterize as very negative on many other issues. And, unfortunately, the negotiations are not Ά la carte where you pick from each menu what suits you to complete the agreement. You have to negotiate on the agreed positions of the Institutions. And this is where the problem lies. The Greek Government has expressed over and over again, hat it is crucial that the disagreements between the Institutions do not become cause for delays. When you have a whole country racked - and even because your own "failures", as they themselves have acknowledges- you can not say I am not coming to the negotiations until we agree. Or, even worse, until there is a serious threat of a “credit event”."
Many believe that the next very difficult "test" for the Government will be in relation to labour. Lenders are seeking in the second Assessment harsh changes to the law on labour relations and trade unionism. Will you accept such proposals? We ask because certain people are already putting their money on an impending “shipwreck” in the negotiations.
"In the last period we had our fill of anticipated shipwrecks. In the end no shipwreck occurred. In September, before the elections, our opponents were saying that with this Agreement, whoever was in the Ministry of Labour, would be forced to cut primary pensions. They were wrong. The same happened with those who a month ago anticipated that we would be forced to concede to the IMF demand for extra “contingency measures” of 3.6€ billion. I say directly that they will be wrong a second time. Greece can now draw red lines and can effectively defend them, something it did not do over the previous five years. We will defend the workers’ rights as we did with the Primary Residence and pensions. Besides, the involvement of the European parliament and of the International Labour Organisation in the negotiations broadens the alliances that we have already formed."
In a recent interview you replied that "you can accuse us of having illusions, but not that we lied." When did you realize that the Thessaloniki Agenda [SYRIZA’s Programme. Ed.] and remaining in the euro were incompatible things? And based on your current experience of the negotiations, if you could turn the clock back what promises would you not have made when you took over the government of the country?
"I have said this publicly, immediately after the forced compromise and the Agreement last July. I am baffled by those who pretend not to remember. They are trying to erase from the collective memory the elections of September and the sincerity with which we handled this whole forced retreat, our sole concern being to avoid a complete vacuum in the country. If you ask me about Thessaloniki, obviously what has changed are the conditions of fiscal adjustment. In the Thessaloniki Agenda we were talking about balanced budgets. The negotiations eventually resulted in a mild adjustment. But the Primary Surpluses agreed have nothing to do with what had been agreed previously. 20€ billion less austerity in a three year period is no small thing.
However the framework of the Thessaloniki Agenda remains. We have secured access to medical care for 2 million uninsured people. We established the solidarity card for thousands of households. The data for the first quarter of 2016 show that approximately 25,000 new jobs have been created. We are bringing forward community service programmes for 100,000 unemployed people, increasing the duration of employment from 5 to 8 months. We have promoted measures to support the weakest sections. We have hired staff in hospitals. We have promoted breakfast in primary schools. We have taken measures against the vested interests with the law on television licenses, dealing with the black political money, tackling tax evasion and the lists of the culprits and taking on smuggling."
Does the electoral law need changing? And if so, what changes are needed?
"The electoral law must be the subject of a broad social and political discussion. A discussion that must be completed in a timely fashion, that is to say well before the next elections which are in Autumn 2019, so that we conclude it there being any political considerations in mind. We intend to open this discussion immediately. I hope that the official opposition does not “go missing in action” again as it did in the discussion about foreign companies."
The E.U. discusses Structural Reforms 2.0
Speaking on Thursday at a panel on the E.U.’s «Structural Reforms 2.0», [which focuses on enhancing human resources to boost the bloc's competitiveness] convened under the aegis of the Brussels Economic Forum 2016, Finance Minister Euclid Tsakalotos said “The time has come for Greece to pursue a second generation of reforms to boost growth and employment, while the policy mix it followed during the crisis did not do the economy any good. Greece is turning the page, is breaking the vicious circle of fiscal measures causing recession and in turn the recession brings financial measures." The "sequence" of the reforms which have been implemented was not correct. Greece was called upon to complete an ambitious fiscal adjustment programme very quickly, to the detriment of employment and the economy.
The European Commissioner for Economic Affairs, Pierre Moskovisi, who opened the panel discussion, stressed that as far as he is concerned, for European citizens, reforms now mean "punishment" and not "progress". "This must change," stressed the Commissioner, speaking of the need for "productivity" to be central to E.U. policy.
The Greek Finance Minister, stressed the importance of investment not only for Greece but also for Europe, noting that low or zero interest rates which some countries favour, should be used to stimulate investment . "If Europe does not invest now, it will regret it in 20 years time," Mr. E. Tsakalotos proposed public investment in particular should not be included in the calculation of countries’ deficits, under the European Six monthly figures.
In an exchange of views on the benefits or otherwise of globalisation, Mr. Tsakalotos argued that he does not agree with the view expressed by the Managing Director of the European Stability Mechanism (ESM), Klaus Regling that all economists agree that globalization is a good thing, but that there is simply a communication problem. Mr. Tsakalotas identified the main problem as lying in the unequal distribution of the benefits from growth in productivity and noted that the fight against Euroscepticism is not just a matter of "communications": "There are winners and losers and it must be ensured that the losers also have opportunities."
In the discussion, the Deputy Prime Minister of Belgium said he thought it was "cynical" to say that globalization has not benefited the people and that it is wrong to place more importance on "social inequality" rather than on "social mobility".
Pierre Moskovisi stressed that "social inequality" and "social mobility" go together, and he argued that Europe must become more "popular" and address social issues such as "social inclusion".
“More Europe only makes sense if it is more democratic and more social, "said the Greek Finance Minister, expressing the hope that in the second generation of reforms, Europe will take into account the needs of the communities.
Disbursement nears
Discussions with the Institutions were completed on Wednesday (08.06.2016), so that the process of approving the agreement by European Parliaments can start said Government spokeswoman Olga Gerovasili at the press briefing, noting that the last outstanding issues for the completion of the first Assessment have already been settled.
The "green light" for the disbursement of the tranche of 7.5€ billion to Greece was given by the Euro Working Group [EWG] at its meeting on Thursday in Helsinki.
The next step is the approval by the five European Parliaments (the majority contributors to the ESM) and then the final approval for the completion of the evaluation will be given by the European Stability Mechanism (ESM), which will meet on 16th June.
[The function of the ESM is set out here http://www.europarl.europa.eu/RegData/etudes/note/join/2014/497755/IPOL-CON_NT(2014)497755_EN.pdf ]
Constitutional and the Electoral Law Reform
On the Constitutional and the Electoral Law, Mrs. Gerovasili said the Government will publish for public discussion proposals for the revision of the Constitution on July 25th, the anniversary of the restoration of Democracy in the country.
"The invitation to dialogue will be made to the country’s political forces but primarily to the society and to citizens. The Government's intention is for this discussion to be broad and deep in order to prepare for the radical changes needed in our political system - changes which will guarantee the deepening of democracy, popular sovereignty and participation."
Focal points of the Constitutional Review are the law on ministerial responsibility, the strengthening of the institution of referenda and changes to the electoral law based on a proportional representation system. Central to the initiative is the revision of the Constitution and the desire to redefine Church-State Relations - a subject about which the Church has appeared in principle to be open to discussion.
Combating Tax Evasion
On Saturday June 4th it was announced that, as of 2017, Greek tax authorities will have access to the records of the assets of Greek citizens in 100 countries, including tax havens such as Switzerland. The Greek Ministry of Finance, through the Automatic Exchange of Information (AEOI) system, will have a full picture of income, equities, deposits, mutual funds, dividends and other property Greek taxpayers possess abroad.
The AEOI is a branch of the Organisation For Economic Co-operation and Development (OECD) and aims at fighting tax evasion. It provides for the exchange of non-resident financial account information with the tax authorities in the account holders’ country of residence. Authorities can have access to the name of the depositor, date of birth and tax ID number.
The first batch of data that will be sent to Greek authorities will include information on foreign bank account deposits in 2016 in 60 different countries.
The first group of cooperating countries in 2017 will include all of Europe, excluding Austria, which will be integrated into the system by 2018. In the second group are, inter alia, Switzerland, United Arab Emirates, Andorra, Hong Kong, Russia and Singapore.
Speaking on Thursday at a panel on the E.U.’s «Structural Reforms 2.0», [which focuses on enhancing human resources to boost the bloc's competitiveness] convened under the aegis of the Brussels Economic Forum 2016, Finance Minister Euclid Tsakalotos said “The time has come for Greece to pursue a second generation of reforms to boost growth and employment, while the policy mix it followed during the crisis did not do the economy any good. Greece is turning the page, is breaking the vicious circle of fiscal measures causing recession and in turn the recession brings financial measures." The "sequence" of the reforms which have been implemented was not correct. Greece was called upon to complete an ambitious fiscal adjustment programme very quickly, to the detriment of employment and the economy.
The European Commissioner for Economic Affairs, Pierre Moskovisi, who opened the panel discussion, stressed that as far as he is concerned, for European citizens, reforms now mean "punishment" and not "progress". "This must change," stressed the Commissioner, speaking of the need for "productivity" to be central to E.U. policy.
The Greek Finance Minister, stressed the importance of investment not only for Greece but also for Europe, noting that low or zero interest rates which some countries favour, should be used to stimulate investment . "If Europe does not invest now, it will regret it in 20 years time," Mr. E. Tsakalotos proposed public investment in particular should not be included in the calculation of countries’ deficits, under the European Six monthly figures.
In an exchange of views on the benefits or otherwise of globalisation, Mr. Tsakalotos argued that he does not agree with the view expressed by the Managing Director of the European Stability Mechanism (ESM), Klaus Regling that all economists agree that globalization is a good thing, but that there is simply a communication problem. Mr. Tsakalotas identified the main problem as lying in the unequal distribution of the benefits from growth in productivity and noted that the fight against Euroscepticism is not just a matter of "communications": "There are winners and losers and it must be ensured that the losers also have opportunities."
In the discussion, the Deputy Prime Minister of Belgium said he thought it was "cynical" to say that globalization has not benefited the people and that it is wrong to place more importance on "social inequality" rather than on "social mobility".
Pierre Moskovisi stressed that "social inequality" and "social mobility" go together, and he argued that Europe must become more "popular" and address social issues such as "social inclusion".
“More Europe only makes sense if it is more democratic and more social, "said the Greek Finance Minister, expressing the hope that in the second generation of reforms, Europe will take into account the needs of the communities.
Disbursement nears
Discussions with the Institutions were completed on Wednesday (08.06.2016), so that the process of approving the agreement by European Parliaments can start said Government spokeswoman Olga Gerovasili at the press briefing, noting that the last outstanding issues for the completion of the first Assessment have already been settled.
The "green light" for the disbursement of the tranche of 7.5€ billion to Greece was given by the Euro Working Group [EWG] at its meeting on Thursday in Helsinki.
The next step is the approval by the five European Parliaments (the majority contributors to the ESM) and then the final approval for the completion of the evaluation will be given by the European Stability Mechanism (ESM), which will meet on 16th June.
[The function of the ESM is set out here http://www.europarl.europa.eu/RegData/etudes/note/join/2014/497755/IPOL-CON_NT(2014)497755_EN.pdf ]
Constitutional and the Electoral Law Reform
On the Constitutional and the Electoral Law, Mrs. Gerovasili said the Government will publish for public discussion proposals for the revision of the Constitution on July 25th, the anniversary of the restoration of Democracy in the country.
"The invitation to dialogue will be made to the country’s political forces but primarily to the society and to citizens. The Government's intention is for this discussion to be broad and deep in order to prepare for the radical changes needed in our political system - changes which will guarantee the deepening of democracy, popular sovereignty and participation."
Focal points of the Constitutional Review are the law on ministerial responsibility, the strengthening of the institution of referenda and changes to the electoral law based on a proportional representation system. Central to the initiative is the revision of the Constitution and the desire to redefine Church-State Relations - a subject about which the Church has appeared in principle to be open to discussion.
Combating Tax Evasion
On Saturday June 4th it was announced that, as of 2017, Greek tax authorities will have access to the records of the assets of Greek citizens in 100 countries, including tax havens such as Switzerland. The Greek Ministry of Finance, through the Automatic Exchange of Information (AEOI) system, will have a full picture of income, equities, deposits, mutual funds, dividends and other property Greek taxpayers possess abroad.
The AEOI is a branch of the Organisation For Economic Co-operation and Development (OECD) and aims at fighting tax evasion. It provides for the exchange of non-resident financial account information with the tax authorities in the account holders’ country of residence. Authorities can have access to the name of the depositor, date of birth and tax ID number.
The first batch of data that will be sent to Greek authorities will include information on foreign bank account deposits in 2016 in 60 different countries.
The first group of cooperating countries in 2017 will include all of Europe, excluding Austria, which will be integrated into the system by 2018. In the second group are, inter alia, Switzerland, United Arab Emirates, Andorra, Hong Kong, Russia and Singapore.
Prime Minister Tsipras:
“We must not waste this opportunity.”
04.06.2016
Tying up Assessment “loose ends”
On Thursday it was reported that Government officials are confident that bailout money will be disbursed to Greece on Monday 13th June.
Agreement has been reached on each of the outstanding issues. The reforms include the phasing out the income-based benefit for pensioners (EKAS) by 2020, starting this month, and selling a 20-24% stake in the power-grid operator ADMIE by the end of October.
Parliament voted on the Amendments on Thursday.
According to Finance Ministry officials, the only issue that is yet to be agreed related to the sale of non-performing loans (NPLs) that are guaranteed by the State. The NPLs issue is likely to be discussed along with the next set of prior actions required for the Greek government to unlock a second installment of 2.8€ billion in September.
On Thursday it was reported that Government officials are confident that bailout money will be disbursed to Greece on Monday 13th June.
Agreement has been reached on each of the outstanding issues. The reforms include the phasing out the income-based benefit for pensioners (EKAS) by 2020, starting this month, and selling a 20-24% stake in the power-grid operator ADMIE by the end of October.
Parliament voted on the Amendments on Thursday.
According to Finance Ministry officials, the only issue that is yet to be agreed related to the sale of non-performing loans (NPLs) that are guaranteed by the State. The NPLs issue is likely to be discussed along with the next set of prior actions required for the Greek government to unlock a second installment of 2.8€ billion in September.
Prime Minister Tsipras: “We must not waste this opportunity.”
On Thursday evening Alexis Tsipras speaking in the Cabinet said
"With the completion of the Assessment and the decisions about the debt, for the first time the opportunity opens up for us to move into a clear space where there is the prospect of recovery, stability, tranquillity and a healing the wounds that have been open all these the years. The Prime Minister proceeded to review both the implementation to date of the Government’s key announcements and to set out its priorities for the next period with an emphasis on sustainable development.
He stressed in this context that the passage has opened to a time of "equitable development" and highlighted the three priorities for the work of the Government: a) Social protection, b) Development of the economy, c) Fair distribution not only of the burdens but also of the benefits.
The Prime Minister underlined his view that the duty of the Government is to stand the country on its feet while at the same time giving a vision to the hallmark of social protection, to the people who have suffered, with stoicism in their daily lives. He asked Ministers to roll up their sleeves and stressed: “Neither the Opposition’s shouting, nor the mud-slinging, nor its populist gambits are of concern to us.”
“We can see positive developments in the Greek economy. A significant part of over 4€ billion of the 10.3€ billion disbursement will be channelled into the real economy by way of payment of government arrears. Immediately after the formal conclusion of the Assessment, in the next few days, we expect the re-acceptance of Greek Bonds by the European Central Bank (known as a waiver). And also soon we expect the inclusion of Greek bonds in the ECB's quantitative easing scheme.
“With the decision of the Eurogroup on 24th May to establish a debt cutting mechanism - a maximum percentage of the annual debt service costs for our country, the threat of Grexit has finally ended.
"We are modest about the successes of the negotiations, precisely because we know that only when we have managed to substantially reduce unemployment, and are consistently achieving sustainable and equitable development will it be the time and place for our celebrations."
The Prime Minister stressed the success of the completion of the reform of the pension system to restore its viability without cutting a penny from primary pensions and the protection of the vast majority of auxiliary pensions. The Government had kept completely protected the first home for the vast majority of borrowers and emphasised that the framework created to manage the red loans has nothing to do with what was being claimed by the Cassandras of doom.
A transition to an era of “equitable development”
The Prime Minister spoke extensively about the next period and noted that the possibility now opens up for calm, for a way out and for a future perspective which Greek society is looking for, exhausted by six years of austerity, and the prospect of a transition to an era of equitable development.
“The main objective is for the wealth generated to be distributed fairly and in the interests of the majority of society, with protection of jobs and wages.
It is the duty of the Government to ensure that citizens feel protected and to consider ways to broaden the scope of the protection afforded. The Social Solidarity Fund, with the 700€ million surplus recorded in 2015 can provide support to the social forces that need it and can create social protection structures such as the extension of the minimum guaranteed income to more citizens, and to employment and support programmes. Another example is the important initiative of ΔΕΗ to proceed with reductions of tariffs of up to 15% for consumers who pay promptly.”
On Thursday evening Alexis Tsipras speaking in the Cabinet said
"With the completion of the Assessment and the decisions about the debt, for the first time the opportunity opens up for us to move into a clear space where there is the prospect of recovery, stability, tranquillity and a healing the wounds that have been open all these the years. The Prime Minister proceeded to review both the implementation to date of the Government’s key announcements and to set out its priorities for the next period with an emphasis on sustainable development.
He stressed in this context that the passage has opened to a time of "equitable development" and highlighted the three priorities for the work of the Government: a) Social protection, b) Development of the economy, c) Fair distribution not only of the burdens but also of the benefits.
The Prime Minister underlined his view that the duty of the Government is to stand the country on its feet while at the same time giving a vision to the hallmark of social protection, to the people who have suffered, with stoicism in their daily lives. He asked Ministers to roll up their sleeves and stressed: “Neither the Opposition’s shouting, nor the mud-slinging, nor its populist gambits are of concern to us.”
“We can see positive developments in the Greek economy. A significant part of over 4€ billion of the 10.3€ billion disbursement will be channelled into the real economy by way of payment of government arrears. Immediately after the formal conclusion of the Assessment, in the next few days, we expect the re-acceptance of Greek Bonds by the European Central Bank (known as a waiver). And also soon we expect the inclusion of Greek bonds in the ECB's quantitative easing scheme.
“With the decision of the Eurogroup on 24th May to establish a debt cutting mechanism - a maximum percentage of the annual debt service costs for our country, the threat of Grexit has finally ended.
"We are modest about the successes of the negotiations, precisely because we know that only when we have managed to substantially reduce unemployment, and are consistently achieving sustainable and equitable development will it be the time and place for our celebrations."
The Prime Minister stressed the success of the completion of the reform of the pension system to restore its viability without cutting a penny from primary pensions and the protection of the vast majority of auxiliary pensions. The Government had kept completely protected the first home for the vast majority of borrowers and emphasised that the framework created to manage the red loans has nothing to do with what was being claimed by the Cassandras of doom.
A transition to an era of “equitable development”
The Prime Minister spoke extensively about the next period and noted that the possibility now opens up for calm, for a way out and for a future perspective which Greek society is looking for, exhausted by six years of austerity, and the prospect of a transition to an era of equitable development.
“The main objective is for the wealth generated to be distributed fairly and in the interests of the majority of society, with protection of jobs and wages.
It is the duty of the Government to ensure that citizens feel protected and to consider ways to broaden the scope of the protection afforded. The Social Solidarity Fund, with the 700€ million surplus recorded in 2015 can provide support to the social forces that need it and can create social protection structures such as the extension of the minimum guaranteed income to more citizens, and to employment and support programmes. Another example is the important initiative of ΔΕΗ to proceed with reductions of tariffs of up to 15% for consumers who pay promptly.”
Actions from the “Parallel Programme”
The Prime Minister proceeded to review the 11 actions for the first half of 2016, what has been done and what is planned for the immediate future "in order to be aligned with our intentions."
Specifically,
In the immediate future, before the end of the first six months, the Prime Minister announced that the Government is bringing forward these actions:
The Institutional Cuts
Alexis Tsipras also said that it is time to open the debate on the major institutional cuts. We are opening the discussion with the political parties, organizations and civil society about a number of cuts at the institutional level, about a revision of the constitution, about a new electoral law, "a discussion that must be done in a timely fashion and not in 2019 when we will have the next elections, so that it can’t be seen as an attempt to influence events instead of as an attempt to achieve a stable electoral system."
In this context, he expressed his intention to establish a working group with experts of recognized standing which will make proposals by the end of the summer.
The Prime Minister proceeded to review the 11 actions for the first half of 2016, what has been done and what is planned for the immediate future "in order to be aligned with our intentions."
Specifically,
- The law on the television licenses. It has been voted on and the auction proceeds. This ends the period of arbitrariness. By 15th August we will have the new television landscape.
- The access of the uninsured to health services, which affects 2 million of our fellow citizens and relieves them of an unbearable cost.
- The new law on public administration has been passed and implemented. A law to enhance transparency and meritocracy in public administration and the effectiveness of the services.
- The new law on research, also passed and implemented, removes distortions in the labour relations of researchers, simplifies the processes of research programmes and will be complemented by the establishment of the new Fund for the Support of Research and Innovation.
- The Joint Ministerial Decision to combat fuel smuggling, which provides for the establishment of input-output monitoring systems on seaborne transport and sets out the requirements for compliance, registration, operation and verification of the measurements.
In the immediate future, before the end of the first six months, the Prime Minister announced that the Government is bringing forward these actions:
- The implementation of the new Investment Law, which includes development incentives, creating a stable investment environment and the simplification of legislation.
- The tabling of the Social Economy Bill.
- The tabling of the Bill establishing the framework for the assignment and performance of Public Procurements.
- The tabling of the Bill to combat tobacco and alcohol smuggling.
- The vote on a law on voluntary disclosure, that is to say, on the last chance to register for all those with concealed income in the past and to pay their dues to the Greek Treasury.
- The tabling of the Bill governing public works, which will include a single public works licensing and monitoring system.
- The restart and continuation of small and large infrastructure projects in the energy and tourism sectors.
- The use of all available funds, with proper planning, of this year’s ΕΣΠΑ programmes.
- In preparation for the tourist season this year which is expected to be one of the most successful in recent years, with estimates of record arrivals.
- Enhancing efforts to reintegrate the unemployed into the labour market with targeted programmes starting in the immediate future and which will benefit about 150,000 unemployed people.
- Continuing the fight against undeclared work where our results have improved significantly.
- Continuing the battle against tax evasion, in cooperation with the relevant authorities, the Ministries of Finance and Justice as well as the Prosecutors of Financial Crime.
- The preparations for a major reform in education are proceeding.
The Institutional Cuts
Alexis Tsipras also said that it is time to open the debate on the major institutional cuts. We are opening the discussion with the political parties, organizations and civil society about a number of cuts at the institutional level, about a revision of the constitution, about a new electoral law, "a discussion that must be done in a timely fashion and not in 2019 when we will have the next elections, so that it can’t be seen as an attempt to influence events instead of as an attempt to achieve a stable electoral system."
In this context, he expressed his intention to establish a working group with experts of recognized standing which will make proposals by the end of the summer.
The battle continues against tax evasion
On Wednesday, President of New Democracy, Mr. Mitsotakis led his MPs out of the Greek Parliament Chamber. They withdrew from the debate on the Amendment which made it incompatible for a Greek politician or a member of their family to hold equity capital in off-shore companies. Mr. Tsipras commented: "They have run away either because they realized that they would suffer a huge defeat in the named roll-call vote or because they are hurrying to beat the 60 day deadline to dispose of their holdings of equity capital in foreign off-shore companies."
Specifically the Amendment establishes a total ban on the participation in the management or on the holding of capital of companies that have their headquarters abroad, by political figures and their relatives (spouses, estranged spouses, first-degree relatives). Besides politicians, the same prohibition applies to general and special secretaries of Parliament, the Ministries and Government Agencies. Also bank officers and court officials are prohibited from participating in companies with their HQ in a state which is “uncooperative in tax matters” or a state with a preferential tax regime. There is a 60 day period of grace for any shares in such companies to be disposed of.
With 190 "yes" votes SYRIZA, AN.ELL., PASOK, KKE and Potami passed the Amendment. The Union of Centrists’ MPs were recorded as "Present".
On Wednesday, President of New Democracy, Mr. Mitsotakis led his MPs out of the Greek Parliament Chamber. They withdrew from the debate on the Amendment which made it incompatible for a Greek politician or a member of their family to hold equity capital in off-shore companies. Mr. Tsipras commented: "They have run away either because they realized that they would suffer a huge defeat in the named roll-call vote or because they are hurrying to beat the 60 day deadline to dispose of their holdings of equity capital in foreign off-shore companies."
Specifically the Amendment establishes a total ban on the participation in the management or on the holding of capital of companies that have their headquarters abroad, by political figures and their relatives (spouses, estranged spouses, first-degree relatives). Besides politicians, the same prohibition applies to general and special secretaries of Parliament, the Ministries and Government Agencies. Also bank officers and court officials are prohibited from participating in companies with their HQ in a state which is “uncooperative in tax matters” or a state with a preferential tax regime. There is a 60 day period of grace for any shares in such companies to be disposed of.
With 190 "yes" votes SYRIZA, AN.ELL., PASOK, KKE and Potami passed the Amendment. The Union of Centrists’ MPs were recorded as "Present".
Eurogroup: Agreement on the Assessment, the Disbursement and the Debt Roadmap
28.05.2016
After an 11-hour meeting in Brussels which ended in the early hours of Wednesday morning, the President of the Eurogroup, Jeroen Dijsselbloem announced that agreement had been reached for the disbursement of 10.3€ billion to Greece in two phases, €7.5bn in June and €2.8bn in September. On the debt issue, he noted that there was also agreement on the short and medium term measures, as well as on a long term mechanism.
At a Press Conference on Thursday Finance Minister Euclid Tsakalotos said “The Assessment is complete and for the first time there is no dispute from anyone about the official recognition by the Eurogroup and the Institutions that the Greek debt is unsustainable. “There are some loose ends, as in all the previous Assessments, but there can be no doubt that the funds will be disbursed.
This Assessment is not the last, there will be more, but it was the most complex, the most difficult and the most important of the last five years. Because:
• the fiscal adjustment programme has been completed and there will be no need for additional fiscal measures to the end of the programme.
• an amount of about 2% of GDP has been received to meet the Government's arrears, which constitutes a powerful "weapon" in offsetting budgetary measures
• the three basic requirements have been fulfilled for the recovery (the recapitalization of the banks, improved liquidity, restored stability and the removal of the climate of uncertainty from the economy).”
The three main issues that remain open are:
1) The privatization of Greek assets. The commitment provided for the completion, by 23rd May of a memorandum of cooperation with investors. "Everyone requested a one month extension of that deadline.
2) As regards those "red loans" which have government guarantees, the issue arose because it had not been discussed at the technical level with the Institutions. The Greek Government and the Bank of Greece have a common stance on the issue. On Thursday afternoon a tele-conference took place between the Government, the Bank of Greece and the Institutions to find a common solution immediately.
3) Legal formalities concerning the privatization fund, such as the specification of its Board’s membership and its legal framework.
Mr. Tsakalotos said that the agreement was the result of a compromise. He spoke about the greater clarity and certainty regarding the financing of the Greek debt.
The actions on the debt will be short, medium and long term (with the existence of a mechanism to be decided in 2018 that will make debt sustainable in the long run). While the Eurogroup Ministers did not offer immediate debt relief, or make an unconditional promise of reducing the payments Greece must make to them, they did specify the criteria for it. Its communiqué after Tuesday’s meeting stated "The Eurogroup agreed today on a package of debt measures which will be phased in progressively, as necessary to meet the agreed benchmark on gross financing needs." The statement made it clear that the Greek Government’s gross financing needs will be kept below 15% of GDP in the medium term and below 20% of GDP beyond that.
The Finance Minister said he hoped Athens could swiftly qualify for the European Central Bank's quantitative easing (QE) programme after the successful conclusion of the Assessment.
"With this review one of our aims was ... to enter the quantitative easing programme, which we hope will come very soon,"
Under the QE programme, the ECB is currently buying 80€ billion of bonds each month to pump new stimulus funds into the Eurozone economy. Mr. Tsakalotos said he was optimistic the ECB would also soon resume accepting Greek government bonds as collateral for lending funds to Greek banks.
Both actions, he said, would "send a message to the markets that Greece is like every other country".
Asked if the government would ease capital controls imposed last June to arrest a run on deposits, Mr. Tsakalotos said it depended on the return of bank deposits. "I think capital controls depend on how much people will see changes from this deal. It's very important for capital controls to unwind, that money returns to banks," he said.
Deputy Finance Minister George Chouliarakis told reporters Greece could return to bond markets next year. "Our intention is to do this when there is stabilisation and after the economy recovers, and start in 2107... but we don't want to rush," He said.
It is the "beginning of the end of the vicious cycle of measures and recession" and of international supervision for the country, said the Minister Tsakalotos.
On Wednesday night, Prime Minister Alexis Tsipras said that the agreement reached at the Eurogroup meeting in Brussels would usher in a “period of stability”. “The Eurogroup decision lifts the uncertainty and we can now enter a period of stability. We now have the chance to build a stable economy with fair growth.”
IMF’s view
Speaking to reporters in Washington, a senior member of the International Monetary Fund said
"Greece is in a situation that needs a release of bailout funds and we are certainly ready to make concessions. But we have not withdrawn from the position that we need additional guarantees for its debt relief. The IMF does not agree with the feasibility analysis of the other Institutions but instead insists on our own estimates."
"We still do not have a situation where the IMF is able to say "we are ready to proceed" but I believe we can get there by the end of the year."
The IMF’s European director Poul Thomsen had made it clear after Tuesday’s Eurogroup that the IMF would reassess Greece’s situation later this year before its board is asked to take a decision on whether to join the programme or not. "It is now recognised by all stakeholders that Greek debt is unsustainable," Mr.Thomsen said.
This Assessment is not the last, there will be more, but it was the most complex, the most difficult and the most important of the last five years. Because:
• the fiscal adjustment programme has been completed and there will be no need for additional fiscal measures to the end of the programme.
• an amount of about 2% of GDP has been received to meet the Government's arrears, which constitutes a powerful "weapon" in offsetting budgetary measures
• the three basic requirements have been fulfilled for the recovery (the recapitalization of the banks, improved liquidity, restored stability and the removal of the climate of uncertainty from the economy).”
The three main issues that remain open are:
1) The privatization of Greek assets. The commitment provided for the completion, by 23rd May of a memorandum of cooperation with investors. "Everyone requested a one month extension of that deadline.
2) As regards those "red loans" which have government guarantees, the issue arose because it had not been discussed at the technical level with the Institutions. The Greek Government and the Bank of Greece have a common stance on the issue. On Thursday afternoon a tele-conference took place between the Government, the Bank of Greece and the Institutions to find a common solution immediately.
3) Legal formalities concerning the privatization fund, such as the specification of its Board’s membership and its legal framework.
Mr. Tsakalotos said that the agreement was the result of a compromise. He spoke about the greater clarity and certainty regarding the financing of the Greek debt.
The actions on the debt will be short, medium and long term (with the existence of a mechanism to be decided in 2018 that will make debt sustainable in the long run). While the Eurogroup Ministers did not offer immediate debt relief, or make an unconditional promise of reducing the payments Greece must make to them, they did specify the criteria for it. Its communiqué after Tuesday’s meeting stated "The Eurogroup agreed today on a package of debt measures which will be phased in progressively, as necessary to meet the agreed benchmark on gross financing needs." The statement made it clear that the Greek Government’s gross financing needs will be kept below 15% of GDP in the medium term and below 20% of GDP beyond that.
The Finance Minister said he hoped Athens could swiftly qualify for the European Central Bank's quantitative easing (QE) programme after the successful conclusion of the Assessment.
"With this review one of our aims was ... to enter the quantitative easing programme, which we hope will come very soon,"
Under the QE programme, the ECB is currently buying 80€ billion of bonds each month to pump new stimulus funds into the Eurozone economy. Mr. Tsakalotos said he was optimistic the ECB would also soon resume accepting Greek government bonds as collateral for lending funds to Greek banks.
Both actions, he said, would "send a message to the markets that Greece is like every other country".
Asked if the government would ease capital controls imposed last June to arrest a run on deposits, Mr. Tsakalotos said it depended on the return of bank deposits. "I think capital controls depend on how much people will see changes from this deal. It's very important for capital controls to unwind, that money returns to banks," he said.
Deputy Finance Minister George Chouliarakis told reporters Greece could return to bond markets next year. "Our intention is to do this when there is stabilisation and after the economy recovers, and start in 2107... but we don't want to rush," He said.
It is the "beginning of the end of the vicious cycle of measures and recession" and of international supervision for the country, said the Minister Tsakalotos.
On Wednesday night, Prime Minister Alexis Tsipras said that the agreement reached at the Eurogroup meeting in Brussels would usher in a “period of stability”. “The Eurogroup decision lifts the uncertainty and we can now enter a period of stability. We now have the chance to build a stable economy with fair growth.”
IMF’s view
Speaking to reporters in Washington, a senior member of the International Monetary Fund said
"Greece is in a situation that needs a release of bailout funds and we are certainly ready to make concessions. But we have not withdrawn from the position that we need additional guarantees for its debt relief. The IMF does not agree with the feasibility analysis of the other Institutions but instead insists on our own estimates."
"We still do not have a situation where the IMF is able to say "we are ready to proceed" but I believe we can get there by the end of the year."
The IMF’s European director Poul Thomsen had made it clear after Tuesday’s Eurogroup that the IMF would reassess Greece’s situation later this year before its board is asked to take a decision on whether to join the programme or not. "It is now recognised by all stakeholders that Greek debt is unsustainable," Mr.Thomsen said.
Last weekend saw the Government’s final preparations ahead of the crucial Eurogroup Meeting last Tuesday.
Speaking during the Parliamentary debate on the Omnibus Bill last Sunday, Prime Minister, Alexis Tsipras said: “The time has come to start closing the cycle of austerity and tutelage - History has turned the page”
Referring to the measures in the multi-bill, Alexis Tsipras said "There is no doubt that the 1.8% (cut of GDP) we are discussing today is not good. However, it is the first time that the sacrifices will have the prospect of a positive outcome.
"Obviously the increase in VAT by 1% is negative; the counter-proposal of the lenders was a VAT increase in energy and water from 13% to 23%. We have managed to maintain the protection of the primary residence and to create a stricter framework for the "red" loans. There was even a demand for ΑΔΜΗΕ [The Independent Operator of the Electricity Supply (ITSO)] to be sold off, which we which managed to prevent."
As for the new Public Assets Management Fund he said there is a "campaign of lies and misinformation" from New Democracy. He made it clear that the Fund is based in Greece and subject to Greek law while the lenders had demanded it should be established in Luxembourg and have foreign governance. The Government has control and Parliament has the power of scrutiny.
Also just because you (New Democracy) have equated sale with selling-off does not mean that it is true for us as well. Also “use” for us not does necessarily mean selling. 50% will go to investments. It is expressly defined in the law that the fund’s stock is not disposable and non-transferable. Would that we had been able to hand over all the assets of the Treasury’s Asset Development Fund to the new fund."
Regarding the Social Solidarity Fund, Mr. Tsipras said that “In 2015, Greece achieved a Primary Surplus of 1.7€ billion. On the basis of the Agreement, 700€ million can be used for social expenditure, 500€ million for mature bills and the other 500€ million on the debt. The Government decided to set up a Social Solidarity Fund in which to place, every year, the surplus and the money not budgeted for, such as the revenue from television licenses, tax evasion, smuggling and undeclared income.
The Fund will initially pay for an extension to the minimum guaranteed income programme, for the programme to address the humanitarian crisis, for the programme of public works and for compensation for injustices, such as the phasing out of the Social Security Benefit for pensioners.
"The next phase will be different for the Greek people. We are taking the last tough decisions. We proved that we know how to fairly distribute the burden. Tomorrow, things will be more demanding, because apart from distributing the burden fairly we must also distribute fairly the development fairly. "History has already turned the page. The inarticulate cries of the old political system will be just whispers in our ears. Spring may be coming to an end in a few days but the Spring of the Greek economy is just beginning."
The Omnibus Bill included increases in Indirect Taxes
From June 1st 2016, 12 indirect taxes will increase. Changes voted include a tax on pay-to-view TV, an increase in the basic rate of VAT and the abolition of the reduced VAT rates for the Aegean islands.
In October, the heating oil consumption tax begins, increased by 5 cents per litre, while tax increases on other fuels, cigarettes, other tobacco products, new taxes on fixed phones, coffee and e- cigarettes will be imposed in 2017 . In 2018 taxes on beer will increase and a tax imposed on staying in hotels and tourist accommodation.
Specifically, the schedule of the increases is as follows:
From June 1st, 2016
* Increase in the basic VAT rate from 23% to 24% on a range of products and services (real estate, cars, fuel, cigarettes, drinks, beverages, fixed and mobile phone bills, household equipment, packaged and processed food, food served in mass catering establishments, public transport tickets, taxi fares).
* Calculations using two criteria for the tax bracket of each vehicle: the retail value of each model and the level of pollutant emissions values.
* Imposition of a 10% surcharge on pay-TV bills.
* The removal of the 30% reduction of the VAT rate on 9 islands (Syros, Thassos, Andros, Tinos, Karpathos, Milos, Skyros, Alonnisos and Sifnos) and changed from 5% to 13%, from 9% to 13% and from 16% 24%.
On October 15, 2016
* Increase in the special heating oil consumption tax for the new winter period by 5 cents per litre, from 23cents to 0.28cents per litre.
From January 1, 2017
* Increasing consumption taxes on other fuels: The consumption tax on petrol is increased from 67cents to 70 cents per litre, while diesel goes from 33cents to 41cents per litre. The consumption tax on diesel gas will increase from 33cents to 43cents per litre.
* Increase in excise duties on cigarettes and tobacco products: The specific excise duty on fine-cut tobacco will increase from 156.70€ to 170€ per kilo. Proportionally the tax will increase from 20% to 26% of the retail price.
* Introduction of a consumption tax on imported and domestically produced coffee at rates of 2-3€ per kilo of roasted coffee and a rate of 4€ per kilo on instant coffee and preparations using the extracts, essences or concentrates of coffee.
* Introduction of a consumption tax on liquids used in electronic cigarettes: A tax will be imposed on the liquids at the rate of 10 cents per ml of liquid.
From July 1, 2017
* Imposition of a 5% tax on fixed telephone bills.
From January 1, 2018
* Increase in the special consumption tax on beer produced by small breweries and the elimination or reduction of excise duties on spirits produced in the Dodecanese.
* Residence tax levied on hotels and rented rooms - apartments: the residence tax will amount to 50cents per day-use of a room in 1-2 star hotels, 1.5€ in a 3 star hotel, 3€ in 4 stars and 4€ in a 5 star hotel.
Also, at 25cents per day use of a room – apartment in a 1-2 Key establishment to 50cents if it has 3 Keys and 1€ if it has 4 Keys.
Speaking during the Parliamentary debate on the Omnibus Bill last Sunday, Prime Minister, Alexis Tsipras said: “The time has come to start closing the cycle of austerity and tutelage - History has turned the page”
Referring to the measures in the multi-bill, Alexis Tsipras said "There is no doubt that the 1.8% (cut of GDP) we are discussing today is not good. However, it is the first time that the sacrifices will have the prospect of a positive outcome.
"Obviously the increase in VAT by 1% is negative; the counter-proposal of the lenders was a VAT increase in energy and water from 13% to 23%. We have managed to maintain the protection of the primary residence and to create a stricter framework for the "red" loans. There was even a demand for ΑΔΜΗΕ [The Independent Operator of the Electricity Supply (ITSO)] to be sold off, which we which managed to prevent."
As for the new Public Assets Management Fund he said there is a "campaign of lies and misinformation" from New Democracy. He made it clear that the Fund is based in Greece and subject to Greek law while the lenders had demanded it should be established in Luxembourg and have foreign governance. The Government has control and Parliament has the power of scrutiny.
Also just because you (New Democracy) have equated sale with selling-off does not mean that it is true for us as well. Also “use” for us not does necessarily mean selling. 50% will go to investments. It is expressly defined in the law that the fund’s stock is not disposable and non-transferable. Would that we had been able to hand over all the assets of the Treasury’s Asset Development Fund to the new fund."
Regarding the Social Solidarity Fund, Mr. Tsipras said that “In 2015, Greece achieved a Primary Surplus of 1.7€ billion. On the basis of the Agreement, 700€ million can be used for social expenditure, 500€ million for mature bills and the other 500€ million on the debt. The Government decided to set up a Social Solidarity Fund in which to place, every year, the surplus and the money not budgeted for, such as the revenue from television licenses, tax evasion, smuggling and undeclared income.
The Fund will initially pay for an extension to the minimum guaranteed income programme, for the programme to address the humanitarian crisis, for the programme of public works and for compensation for injustices, such as the phasing out of the Social Security Benefit for pensioners.
"The next phase will be different for the Greek people. We are taking the last tough decisions. We proved that we know how to fairly distribute the burden. Tomorrow, things will be more demanding, because apart from distributing the burden fairly we must also distribute fairly the development fairly. "History has already turned the page. The inarticulate cries of the old political system will be just whispers in our ears. Spring may be coming to an end in a few days but the Spring of the Greek economy is just beginning."
The Omnibus Bill included increases in Indirect Taxes
From June 1st 2016, 12 indirect taxes will increase. Changes voted include a tax on pay-to-view TV, an increase in the basic rate of VAT and the abolition of the reduced VAT rates for the Aegean islands.
In October, the heating oil consumption tax begins, increased by 5 cents per litre, while tax increases on other fuels, cigarettes, other tobacco products, new taxes on fixed phones, coffee and e- cigarettes will be imposed in 2017 . In 2018 taxes on beer will increase and a tax imposed on staying in hotels and tourist accommodation.
Specifically, the schedule of the increases is as follows:
From June 1st, 2016
* Increase in the basic VAT rate from 23% to 24% on a range of products and services (real estate, cars, fuel, cigarettes, drinks, beverages, fixed and mobile phone bills, household equipment, packaged and processed food, food served in mass catering establishments, public transport tickets, taxi fares).
* Calculations using two criteria for the tax bracket of each vehicle: the retail value of each model and the level of pollutant emissions values.
* Imposition of a 10% surcharge on pay-TV bills.
* The removal of the 30% reduction of the VAT rate on 9 islands (Syros, Thassos, Andros, Tinos, Karpathos, Milos, Skyros, Alonnisos and Sifnos) and changed from 5% to 13%, from 9% to 13% and from 16% 24%.
On October 15, 2016
* Increase in the special heating oil consumption tax for the new winter period by 5 cents per litre, from 23cents to 0.28cents per litre.
From January 1, 2017
* Increasing consumption taxes on other fuels: The consumption tax on petrol is increased from 67cents to 70 cents per litre, while diesel goes from 33cents to 41cents per litre. The consumption tax on diesel gas will increase from 33cents to 43cents per litre.
* Increase in excise duties on cigarettes and tobacco products: The specific excise duty on fine-cut tobacco will increase from 156.70€ to 170€ per kilo. Proportionally the tax will increase from 20% to 26% of the retail price.
* Introduction of a consumption tax on imported and domestically produced coffee at rates of 2-3€ per kilo of roasted coffee and a rate of 4€ per kilo on instant coffee and preparations using the extracts, essences or concentrates of coffee.
* Introduction of a consumption tax on liquids used in electronic cigarettes: A tax will be imposed on the liquids at the rate of 10 cents per ml of liquid.
From July 1, 2017
* Imposition of a 5% tax on fixed telephone bills.
From January 1, 2018
* Increase in the special consumption tax on beer produced by small breweries and the elimination or reduction of excise duties on spirits produced in the Dodecanese.
* Residence tax levied on hotels and rented rooms - apartments: the residence tax will amount to 50cents per day-use of a room in 1-2 star hotels, 1.5€ in a 3 star hotel, 3€ in 4 stars and 4€ in a 5 star hotel.
Also, at 25cents per day use of a room – apartment in a 1-2 Key establishment to 50cents if it has 3 Keys and 1€ if it has 4 Keys.
Preparing for the Eurogroup Meeting on Tuesday May 22nd
22.05.2016
Following the positive outcome of the last Eurogroup meeting on May 9th, the successful completion of the technical talks on the “Contingency Measures” last week and the legislation on the final “prior actions” by the Greek Parliament expected today (Sunday), the scene is set for Tuesday’s Eurogroup meeting to disburse the bailout funds and agree an approach to the alleviation of the Greek National Debt.
On Saturday, MPs started debating in Parliament’s full assembly the multi-bill containing the last in a series of “prior actions” the Government must take to implement the Assessment.
The measures have to be passed into legislation, most likely today, Sunday, before the meeting of Eurozone finance ministers on Tuesday 24th May at which up to €12bn in emergency funds could be released.
The Bill raises taxes, opens the way for the sale of banks' non-performing loans and sets up a new Public Assets Management Fund to deal with income from privatisations.
The list of new taxes includes coffee, cigarettes, e-cigarettes and beer. Excise duties will be increased on petrol, heating oil and natural gas. Taxes on gambling, TV subscriptions, landlines and internet broadband connections will be increased by between 5% and 10%.
Overnight stays at hotels bearing three stars or more will be subjected to extra taxes ranging from €2-€4, with a tax on rented rooms also being introduced.
Value added tax will increase from 23% to 24% and be applied to packaged foods, to ice cream, tavernas, taxis as well as airline and ferry tickets.
VAT and Other Tax Increases
SYRIZA spokeswoman, Rania Svingos, referring to the increase in VAT to 24%, noted that the lenders had wanted to increase the VAT on electricity and water by 10% and so the Government had chosen to increase VAT from 23 to 24% instead.
About increasing taxes, Mrs. Svingos explained the only other option would be "cutting public spending".
"In a country where public spending has already fallen by too much, what other means exist to reduce public expenditure, other than cutting wages and pensions?"
"We do not celebrate the increase in indirect taxes. We will try to make sure that the socially vulnerable are affected as little as possible and that the economy is affected as little as possible."
Indirect taxes are socially unjust taxes.
Lenders want to increase the VAT on electricity from 13% to 23%, and to put the VAT on the water up to 23% and that "instead of such an outrageous increase in the electricity tariffs and water which would hit the weakest, and instead of an increase in the reduced rate of VAT for books, the increase in the top rate of VAT from 23% to 24% was chosen. It was precisely to minimise the burden.
The measures have to be passed into legislation, most likely today, Sunday, before the meeting of Eurozone finance ministers on Tuesday 24th May at which up to €12bn in emergency funds could be released.
The Bill raises taxes, opens the way for the sale of banks' non-performing loans and sets up a new Public Assets Management Fund to deal with income from privatisations.
The list of new taxes includes coffee, cigarettes, e-cigarettes and beer. Excise duties will be increased on petrol, heating oil and natural gas. Taxes on gambling, TV subscriptions, landlines and internet broadband connections will be increased by between 5% and 10%.
Overnight stays at hotels bearing three stars or more will be subjected to extra taxes ranging from €2-€4, with a tax on rented rooms also being introduced.
Value added tax will increase from 23% to 24% and be applied to packaged foods, to ice cream, tavernas, taxis as well as airline and ferry tickets.
VAT and Other Tax Increases
SYRIZA spokeswoman, Rania Svingos, referring to the increase in VAT to 24%, noted that the lenders had wanted to increase the VAT on electricity and water by 10% and so the Government had chosen to increase VAT from 23 to 24% instead.
About increasing taxes, Mrs. Svingos explained the only other option would be "cutting public spending".
"In a country where public spending has already fallen by too much, what other means exist to reduce public expenditure, other than cutting wages and pensions?"
"We do not celebrate the increase in indirect taxes. We will try to make sure that the socially vulnerable are affected as little as possible and that the economy is affected as little as possible."
Indirect taxes are socially unjust taxes.
Lenders want to increase the VAT on electricity from 13% to 23%, and to put the VAT on the water up to 23% and that "instead of such an outrageous increase in the electricity tariffs and water which would hit the weakest, and instead of an increase in the reduced rate of VAT for books, the increase in the top rate of VAT from 23% to 24% was chosen. It was precisely to minimise the burden.
“Red Loans”
The Minister of the Economy Mr. Stathakis spoke in Parliament about the “Red Loans”. He said that the demand by the Institutions that all categories of loans be opened up to *Hedge Funds or Private Equity Funds had been successfully postponed until early 2018 for loans secured by the debtor’s Primary Residence, where its value is less than 140,000€. This affects not just 93% of mortgages but also business and consumer loans secured on Primary Residences.
[*These funds, sometimes known as “Vulture Funds”, invest in debt considered to be very weak or in default, known as distressed securities. Investors in these Funds profit by buying debt at a discounted price on a secondary market and then using numerous methods to gain a larger amount than the purchasing price. Ed]
Mr. Stathakis spoke of the establishment of a strong code of conduct for banks, which will include allowing households reasonable living expen
The Minister of the Economy Mr. Stathakis spoke in Parliament about the “Red Loans”. He said that the demand by the Institutions that all categories of loans be opened up to *Hedge Funds or Private Equity Funds had been successfully postponed until early 2018 for loans secured by the debtor’s Primary Residence, where its value is less than 140,000€. This affects not just 93% of mortgages but also business and consumer loans secured on Primary Residences.
[*These funds, sometimes known as “Vulture Funds”, invest in debt considered to be very weak or in default, known as distressed securities. Investors in these Funds profit by buying debt at a discounted price on a secondary market and then using numerous methods to gain a larger amount than the purchasing price. Ed]
Mr. Stathakis spoke of the establishment of a strong code of conduct for banks, which will include allowing households reasonable living expen