Strauss-Kahn’s bombshell: Greece asked IMF’s aid already in December 2009 tagged: , , , , , , , , , ,

Strauss-Kahn’s bombshell: Greece asked IMF’s aid already in December 2009

Posted by keeptalkinggreece in Economy, Politics

IMF’s head Dominique Strauss-Kahn just dropped a small bombshell amid a heated debate in Greece as to whether the government suffers form lack of coordination and credibility. Stauss-Kahn reveals that Greek Prime Minister George Papandreou asked the aid of IMF already 2 months after taking power,Greek Kathimerini reports in its Sunday edition.

Prime Minister George Papandreou called for the intervention of the International Monetary Fund in Greece at the beginning of December 2009, or two months after he took over the governance of the country, while he was publicly categorically rejecting such a possibility. This is revealed by the head of the IMF Dominique Strauss-Kahn in a documentary to be broadcast by French television channel Canal +  next month.

Interviewed by the “K”, the IMF said they did not comment on private conversations of its chief. In the context of the documentary, Strauss-Kahn revealed this information stressing at the same time the confidence Papandreou showed to him personally..

According to Strauss-Kahn, when the Greek prime minister exposed the idea to appeal for IMF aid 14 motnhs ago, he answered that European leaders would not accept any unilateral intervention by the IMF at any Euro zone member country.

The assessment of the French politician was reaffirmed at the EU leaders  summit on  December 11, 2009, when Mr. Papandreou raised the issue to his counterparts to receive a vehement denial. Instead of they requested assurances that Greece will not announce ”halt of payments”.

“However Papandreou’s public statements on the sidelines of the summit were at a completely different wavelength. He had stated in Brussels , an appeal to IMF was out of question”, Kathimerini stresses.

Lack of governance coordination

Last Thursday the Greek government was forced to make a sharp U-turn and withdraw an Interior ministry circular that was giving municipal authorities the power to charge backdated municipal taxes on previously undeclared ‘semi-outdoor’ spaces. 

Since last summer, more than 500,000 property owners had rushed to declare ‘semi-outdoor” spaces in buildings, flats and houses and take advantage of  Environment ministry measures allowing them to ‘maintain illegal enclosed building spaces for 40 years” and thus without paying backdated taxes.

The Interior ministry circular triggered a political uproar and nervous breakdowns in thousands of property owners, with media and opposition parties accusing the government that it lacks of governance coordination and credibility among the citizens.

The controversial circular was withdrawn after orders by PM Papandreou himself. Deputy Interior Minister Yiiorgos Dolios apologized officially but the damage for the government was done.

Greeks are angry anyway as they can’t predict what new measures will land on their heads and their pockets.