Greek PM & FinMin: No New Austerity If You Pay!

 Greek Prime Minister Lucas Papademos expressed satisfaction over the EU Summit of Dec 8-9th 2011, that layed the gorund for the new fiscal-disciplined European Fiscal Union. “Today’s summit decisions are a big step towards budget coordination and unification within the eurozone. By securing budget discipline we will in the future prevent uncontrolled deficits, which has led us to the crisis,” Papademos told reporters during a press conference.

Lucas Papademos can call himself ‘lucky’ because these new rules will apply to Greece after 2015, that is after the debt-ridden country completes its lender’s bailout programme. If the fiscla programme misses its targets of fiscla discipline and budget deficits, Greece will be most likle ythe first eurozone member that will get an automatic penalty for violating the rules. The ball is in citizens’ pockets as PM Papademos and FinMin Venizelos made it clear. The message they sent to Greeks is “Pay, so we don’t introduce new austerity measures” 

“If the measures for 2012 are implemented properly, there would be no need for new measures” said the Prime Minister, while similar was the message sent to citizens by FinMin ” I make a last appeal to be patient!”

Laconic Papademos appeared optimistic that Greece will achive its targets after three years of austerity. Papademos can be as optimistic as he wants because he has a job and a salary. The same applies for Venizelos.

For thousands of Greek households, for the 0ver 800 thousands jobless and thier families,  patience has been exhausted together with their financial means. Their optimism has vanished in the air too.

Further Papademos declared that

“This regulation will have to be enshrined in the Constitution,” Papademos told a press conference.

He added that although the summit decisions did not explicitly refer to the issue of Eurobonds, the scenario had not been ruled out.
When asked the Prime Minister on how exellissetai participation of banks in the exchange program bonds (PSI) the answer was brief, that “the omens are good” without being expanded further.

Changing the timing of elections

Expressly and unequivocally L. Papademos said the elections will be held after the government completed its obligations have been satisfied anatethei.Emfanistike least for now until the effectiveness of his government.

These means, however, that removing the February month as the election commission.

Come the new measures

As announced by the Prime Minister in a short time it will take decisions on new measures: time horizon 2012 to 2014 and even said that they will implement the new government.

Asked whether the deficit in 2011 will come with new measures directly intervened E. Venizelos who actually threw the ball””citizens!

The Prime Minister expressed the view that the Summit made important steps in addressing the crisis, adding that the ultimate goal is to have a Treaty amendment.

On his part, Deputy Prime Minister and Finance Minister Evangelos Venizelos said that the report of the findings of the current Council notes that the Greek PSI (ie the cost of taking the private sector) is “unique and exceptional circumstances” will help in the consultation with the private sector, which, he said, “I feel safer.”

Estimated, finally, Mr. Venizelos that the key decisions of the European Council confirmed that the full decision of 26 October.

However bad impression created by the sudden interruption of transmission of the interview the Prime Minister due to occupation of workers in the ERT.

Papademos described the Greek government’s efforts so far as «effective,» adding however that his administration would need to «successfully implement the economic program» agreed with the country’s foreign creditors if it is to comply with the new fiscal rules.

Twenty-six of the 27 EU leaders agreed to pursue a tougher budget discipline regime with automatic sanctions for deficit sinners in the single currency area. All 23 countries are committing to keep their deficits below 0.5 percent of GDP.

That cap can be broken to counteract a recession or in other exceptional circumstances. The European

Greece is satisfied with the recent EU summit, which resulted in stricter financial discipline for eurozone members, Greek Prime Minister Lucas Papademos said on Friday.

The two-day summit resulted in an agreement for stricter economic policy and fiscal discipline, signed by the 17 eurozone states and six other European Union members (Poland, Romania, Denmark, Lithuania, Latvia and Estonia).

“Today’s summit decisions are a big step towards budget coordination and unification within the eurozone. By securing budget discipline we will in the future prevent uncontrolled deficits, which has led us to the crisis,” the Greek premier said in his Twitter account.

He also said that eurozone leaders will make even more important decisions in the coming months.

Papademos said the October 26 agreement to write off part of Greece’s debt and bailout support was “beyond doubt”.

Greece, which found itself on the verge of default over excessive budget deficit and state debt, had to adopt a harsh austerity program in exchange for multibillion financial support from the European Union and the International Monetary Fund.

Pm Papademos might be satisfied with the UE Summit results however Greek citizens are not satisfied with Papademos. What we can do to solve this problem?