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Greece’s New Government: ND-PASOK-DEMLEFT? Live Blogging from Athens

It looks as if the new Greek government deal is almost sealed. Leaders of Nea Dimocratia, PASOK and Democratic Left have been holding meetings since last night with the target to form the new Greek government as soon as possible, even at the end of the day.

Evangelos Venizelos (PASOK) and Fotis Kouvelis (DEMLEFT) have agreed during a meeting on Tuesday morning that Antonis Samaras (ND) can be the Prime Minister of the coalition government.

PASOK and DEMLEFT have both tabled ND their eight and seven positions each, which both parties insist on in order to join the coalition.

Kouvelis insists on re-negotiation of the loan agreement (MoU) and on modifications on labour relations and that “reliable people” will take part in the cabinet.

ND officials hinted there was no problem with Kouvelis conditios.

On June 17 elections ND emerged first with 29.66% and 129 seats in Parliament, PASOK third with 12.28% and 33 seats and DEMLEFT sixth with 6.26% and 17 seats.

Together they will form a strong government with 179 seats in a Parliament of 300.

SYRIZA that emerged second with 26.89% and 71 seats will be main opposition party.

12:19 pm

According to Greek media, the teams of the three parties are working on the convocation programme of the new government.

It is highly possible that Samaras-Venizelos-Kouvelis will hold a meeting during the day.

01:24 pm

New Greek government plans to form a team that will negotiate the terms of Memorandum of Understanding with Greece’s lenders.

Samaras, Venizelos and Kouvelis will head the so-called “Greece’s National Negotiation Team” and are allegedly going to ask Alexis Tsipras (SYRIZA) to join it as well.

The idea of a National Renegotiation Team was brought up by Venizelos. He wants also Tsipras to participate as there are claims that Greece’s lenders would ask also Tsipras signature commitment to MoU.

Why should Greece’s lenders want Tsipras’ signature? Last winter they asked the written commitment by main opposition leader Samaras as it was clear that the country would head to elections and governing party PASOK would lose. 

02:17 pm

Negotiations to form a coalition government continue.

Athens Stock Exchange reacted positive to the news that there may be a government at the end of the day.

At 2:17 pm the General Index is at  594,80 points and  +2,43%.

 02:23 pm

German Chancellor Angela Merkel rejects concessions to the Greek bailout.

“The important thing is that the new government sticks with the commitments that have been made,” Merkel told reporters at the G-20 meeting in the Mexican resort of Los Cabos. “There can be no loosening on the reform steps.” (further reading Businessweek)

“Reforms” for one is “Tragedy” for the other…

02:37 pm

Slowly, KTG starts to think that  it may not be necessary that the party leaders struggling to form a government to waste their time on building a “Negotiation Team”.  Furthermore nobody can exclude the possibility that negotiations could very well backfire, as neither PASOK nor ND as partners of Papademos government managed to achieve the structural reforms  demanded by Greece’s lenders.

After the very clear message of Angela Merkel, also the EU reiterated that there would be no new agreement.

“We just decided on a second program recently so nobody is talking about a new memorandum of understanding,” European Commission spokesman Amadeu Altafaj told a regular briefing, referring to the agreement with Greece.

“We are talking about ensuring that Greece gets a government and that this government takes full ownership of the program and implements it to put the country back on track,” he said. (CNBC)

Altafaj said that on Tuesday noon despite some senior eurozone officials and the USA signalling support for a review of Greek bailout conditions.

 04:05 pm

Government talks continue in fast track.

ND officials leak to the Greek press that the new cabinet will also have technocrats at 30%.

DEMLEFT seems to object that former far-right LAOS members who joined ND should be appointed Ministers.

05:00 pm

No break-through news yet on the new Greek government. And there might be none today….

However as the “National Negotiation Team” puzzled some of  us, below some ‘bailout negotiation points” the new Greek government may put on the table:

Greece appears headed for a new clash with Germany over its rigid bailout program as the winners of Sunday΄s Greek election prepare to ask Europe for more time to cut public spending, according to Dow Jones Newswires.

Greece΄s conservative New Democracy party and its likely Socialist coalition partner, known as Pasok, are working on a proposal to ask other euro-zone countries for an extra two years to meet Greece΄s fiscal targets, officials involved in the preparations said. The request would mean that on top of the EUR173 billion ($218.7 billion) bailout plan agreed early this year, Greece would need an additional EUR16 billion in financing from Europe, these officials said. (via Capital.gr)

No, I do not know why I didn’t leave the country earlier…

oops a cartoon!

 by British Independent

 05:30 pm

Representatives from ND, PASOK and DEMLEFT are scheduled to meet at 6 pm to fine tune the new coalition government programme.

Kouvelis, Venizelos, Samaras

DEMLEFT Central Committee is to convene at 7 pm today and PASOK CC at 10 am Wednesday.

Hm… there may be no official announcments today…???

 08:03 pm

I do not think there will be any official announcement today, as officials from the three parties keep talking…

Live blogging concludes here for today. If there is a break-through announcement there will be a separate post.

Thank you for following KTG.

* Some background on Monday’s talks here

Keep Tuned with Keep Talking, Greece and if the server is down again, we will be blogging via www.keeptalkinggreece.wordpress.com

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52 comments

  1. Why PASOK and Democratic Left, who are socialist
    parties,join to Nea Dimocratia, who is a
    conservative party, and don’t join to Syriza?
    Have they lost their head? Do they want the defeat
    of Greek people?

  2. “Kouvelis insists on re-negotiation of the loan agreement (MoU) and on modifications on labour relations and that “reliable people” will take part in the cabinet” Reliable People? Samaras, Venizelos,..????
    Kouvelis seems to be forgetting that he is the 5th wheel on the wagon, a cosmetic excercise to make the figures look good. ND/PASOK don’t need him or DemLeft, they have a majority between them and Dem Left will not be able to stop anything, or push anything through that ND/PASOK don’t want. DemLeft will be chewed up and spat out by the ND/PASOK mob and will have nothing to show for it. An expression by a certain BBC commentator springs to mind here…

  3. Your moniker says that you know the answer to this.

  4. keeptalkinggreece

    my …what???

  5. No they want a government. And welcome to the world of coalition governments. Guess the word ‘compromise’ will become a Greek word after all. 🙂

  6. “reliable people” will take part in the cabinet” Reliable People?

    Yep, that will be a very hard thing to accomplish. I can’t think of one singl ND or PASOK politician that fits the bill… Guess they will look for outsiders and maybe even foreigners??? 😉

  7. Sorry, this was a reply to “antiglobb” (pushed the wrong button, ooops). Moniker means someone’s forum name.

  8. Part of the idea for this “new” government is to renegotiate the terms of the MoU (“Kouvelis insists on re-negotiation of the loan agreement (MoU))
    Who are they going to renegotiate this with? Germany already used their single-word vocabulary for everything at this stage; “Nein”.
    And Tsipras has made it perfectly clear he will not sign any deal unless it’s on the terms put foreward by SYRIZA. Are Samaras, Venizelos, Kouvelis now saying they agree with those? Or is this just another attempt to get “the boy” on board and cut the feet out from underneath him before the next election? For make now mistake, that election will happen, and a lot sooner than expected. By that time ND/PASOK and DemLeft will have made such a hash of things that even the densest of dense people will know not to vote for them again…

  9. keeptalkinggreece

    meaning Technocrats and DEMLEFT politicians lol

  10. keeptalkinggreece

    they whole ‘negotiation team’ strategy aims to persuade voters of ND & PASOK not to bang their heads on the wall IMHO

  11. The whole of the arrangements of the EZ are about to be renegotiated.

    1. Because Spain etc. are going to need big bailouts
    2. Because of Hollande’s election in France.

    Greece, as an EZ member will be part of those negotiations. Merkel’s “nein” ? All such statements are pre-negotiation posturing. Wait and see what is actaully proposed.

  12. Let the people of Greece know.

    The taxes a government collects from the people is collected for the people.

    To provide, hospitals, schools, roads and trasport facilities and security.

    And why should Greece sell its facilities to private companies so they can put the people in danger.

    One does not give his glass of water to be looked after by a stranger, who knows what they will do to it will they spit in it, piss in it or poison it before giving it back to you.

  13. In Greek political speak, “reliable people” means their old friends and relatives.

    They are what everyone else would call “unreliable people”

  14. If the comapnies are Greek owned, then I do not see why they are any more or less of a stranger than the government. If they are foreign owned, I agree with you.

  15. KTG, No one is talkng about a new MoU, because it is being over-taken by events (see my post above). They are talking about an EZ wide “Euro Pact Plus”.

  16. keeptalkinggreece

    yes, but Greeks speak of a new Greece tailored mou.

  17. Within the EU, companies based in other EU countries should not be counted as foreign. This is how the disgusting privatisations in the UK led to water companies being owned by Spanish companies, who refused to invest in new reservoirs. — and thus to the water shortages in the UK.

    Privatisation of natural monopolies is an EVIL thing when it concerns essential thinks like water, electricity, transport, oxygen etc. Britain has made a complete cockup of it, following a right wing market agenda. Now the Troika tries to impose this shit on Greece.

  18. Are the Greek political class hoping to drag this out?
    Delays renegotiations, thing meant to be done which haven’t happened… In a “close your eyes cross your fingers” sort of way -hoping something might turn up?
    Like say Merkel losing the elections which are coming in Germany? and a new German government which has a different view?

  19. It looks like ND/Pasok officials are entertaining an idea of a two year extension accompanied with a new mini-bailout worth some 16 billion euros.

    http://english.capital.gr/News.asp?id=1533669

    P.S. Nice to see your server is back in buziness.

  20. The whole Euro Pact Plus thing is a knee jerk reaction to the mess created over the last 2 or 3 years. Most of it is in fact a very important sounding name for the plans put foreward by Francois Hollande, a mere 120bn€ plan for growth and and jobs, attached to a preliminary plan for Monitary and Economic Union. If you read through this officially non-existing document (you can find it here
    http://www.telegraph.co.uk/finance/financialcrisis/9336766/Exclusive-Secret-EU-summit-document-shows-first-step-to-banking-union.html# (Sorry for the link KTG)), and you manage to decode it, you are looking at a blueprint for a 2-tier Europe, with the top tier being the centre of the current EU, and the lower tier a periphery of economic exploitation of resources and labour for the greater good of the centre powers. Nothing more, nothing less. And it is not even being negotiated, it is being “discussed” by unappointed officials who do not answer to anybody, the likes of Van Rompuy, Barosso, De Gucht, etc. As I’ve said before, as much as I dislike what he stands for and how he presents it and himself, it’s frightening how often I find myself in agreement with Mr. Farange these days.
    Apart from that, Greece just needs a fair deal right now, and the current MoU does not provide that. It must therefore be renegotiated, irrespective of how many times Merkel, Schauble & Co Inc. say “nein”.

  21. No disagreement with your post, Ephilant. But

    “it is not even being negotiated, it is being “discussed” by unappointed officials who do not answer to anybody”

    I think that is the way a lot of EU business is done.

  22. keeptalkinggreece

    thanks and …thanks 🙂

  23. Well of course. Any other way and they might not get the answer they want, so why ask the question in the first place. With the Irish giving away their right to say “no” (or should it be “nein”), there now is simply no stopping them.

  24. Only part of the story. There’s an EU water management policy, dictating “demand management” i.e. planning in shortages, and putting new capacity as bottom priority. [ Ditto electricity – hence the smart meters, which will cost a fortune and no-one wants ]

  25. Do the math: Syriza + Pasok + DemLeft < 150 seats.

  26. Negotiations, shmegotiations – you’re talking about German Euros, and there’s a strong majority here against more support for Greece (and without Germany in the boat, forget about more IMF bucks, too). Even if Merkel would want to pay more (prolly not), she can’t. But if you Brits want to help the Greeks out, go ahead, lend them some dozens of billion Pounds.

  27. keeptalkinggreece

    SYR+PAS+DEMLEFT = 121 seats

  28. 72% of Germans want to see Greece leave the Eurozone. Any German party would lose the election if they seriously proposed more financial support. I don’t think even the SPD would be so stupid, despite their lip services for “solidarity”.

  29. It has yet to be proposed, but the best thing for Europe would be for Germany to quit the euro. Go back to your overvalued DM and see what happens then.

  30. But then they wouldn’t have the rest of us to pay for it when it goes wrong…

  31. No, the best thing for Europe would be for lightning to strike the EU parliament while all the bureaucrats are posturing inside and bring it down.

  32. obviously you don’t have a clue. The EP has had no power to do anything, this is all the result of crap from Germany and France, with side dishes from idiot governments in the rest of Europe.

  33. And why is that, Gray? It’s because of the lies and propaganda that have been spun to the German people by the corrupt media and politicians in your country. The fact that 95% of the money spent went directly to banks and not to Greece is hidden because then the German govt would be revealed as supporting banks rather than economies. They prefer to lie and manipulate, blaming Greek people.

    And I suppose for some reason you have found it in your interests to continue the propaganda.

  34. Maybe its because the word “malaka” is not in their language?

  35. This is a comment I got yesterday evening from a contact in the EP,being an MEP, regarding the proposed changes to the Schengen agreement. The conversation was quite extensive, amongst other things on the subject of the power, or lack thereof, of the EP.

    “…one or more solutions to the crisis would be decided on by the governments of the members states, due to urgency, bypassing the EP. In effect that is a huge problem. There are signs of us making trouble though. Last week the Council decided to breach Lisbon in relation to the altering of the Schengen agreement to once again bypass us. The EP in response decided to refuse to cooperate in all matters of Justice until this is resolved. Basically we have gone on strike. Nothing has ever happened before like this. The attempts to alter Schengen have a nasty populist racist undertone.”

    Confirming exactly that, the EP has been bypassed because they too might “do the wrong thing” (quoted from the same conversation, by the same source!)

  36. True. What kind of “Parliament” does not have the power to amend, initiate or repeal legislation. Only to OK what is put in front of it.

  37. Intended as reply to xenos

  38. Interesting news. Not reported anywhere in the MSM, of course.

  39. PS. Does the MEP have a website, or is tweeting on this ? Many thanks.

  40. There haven’t been any seriously positive developments in Greece since the crisis began, so what the eff do you expect? That the media puts lipstick on the pig? Come on!

  41. The situation is so complex, and changes with every revision of the Treaties, that I am not up to date with the current position. In some areas the EP has powers of co-decision (with states and the Commission), in other policy areas it has weaker powers. The whole thing is a terrible mess, and has been repeatedly described as the EU’ democratic deficit, by academics.

    This situation has been created by national governments, who know the need for an EU but don’t want to lose power. So they created a fuckup. As they did with the euro, too. There’s no point in blaming the victims of this cockup: the blame lies squarely with national governments, and the UK is one of the worst offenders.

  42. This is exactly right: you have a good source. I have been following this nationalistic debacle carefully, where governments are trying to break the EU treaty provisions so they can do as they like, without restriction, and reintroduce border controls.

    Of course, this is all nationalistic crap. They have the right to use emergency border controls: long term ones would create havoc, stop trade, and lead Europe into catastrophe. We have the misfortune to be governed by a collection of right wing assholes across all of Europe — people who support banks and not people, and do not believe in the rule of law.

  43. I do not advocate putting lipstick on German pigs: I am telling you that the whole nature of the economic crisis in Europe is being lied about in the German press. The money went to banks, and not to Greece.

    If you Germans cannot deal with facts and reality, then you should just keep your mouths shut. This has nothing to do with the Greek economy or Greek people, or anything else outside Germany. It is about German lies and manipulations.

  44. If I can find my online sources, I’ll post them here. It is indeed missing from mainstream media, but is on the web.

  45. I did not know of this; it is extremely bad. We have lost control of everything in Europe.

  46. Or, if you want to be honest, simply put the money directly into German and French banks. Because that is the only thing that the Troika has done, apart from destroy the Greek economy with increased taxes and reduced expenditure demands.

  47. How would non-implementation of some/all of the Schengen provisions block trade ? The UK is non-Schengen and it doesn’t impact out intra-EU trade

  48. iaourti iaourtaki

    Looks like we have missed the referendum about this question. Calling some 1024 people on their home zone phone while lots of people only got mobiles isn’t making 72%. You get the answers you need from some bored old homies that can’t decide if their newspapers are comix or not.

  49. The crossing of borders quickly for trucks, lorries etc requires open borders within Schengen. The UK doesn’t have any (land) borders! The consequence of introducing checks at these borders would be massive delays and extra costs for food prices etc. (Food prices are already very high in the UK)

  50. What’s the definition of a camel?
    It’s a horse designed by an EU commission…

  51. You, of all people, tell others to care more about facts and reality? Oh, the irony!
    😀

  52. Iaourti, while every poll comes with its own rate of error, and while phone polls have their very own problems because the result will have to be adjusted in order to be representative, this method of investigating public opinions is still on quite solid mathematical grounds. A poll may differ from reality for about a few percent, but if a result is 72%, there’s a very high probability there’s a majority on that side. Your personal experience may vary, depending on your circle of friends. German communists may be overwhelmingly for more support for the Greeks, for instance. But they are a small minority here.