At the Cabiner meeting on Sunday afternoon the Greek government introduced a seven-points road-map as a precondition for the coalition government between PASOK and Nea Dimokratia. The cooperation frame work focuses on the Oct 26th Loan Aagreement and its implementation as as well the release of the sixt aid tranche of 8 billion euro (originally scheduled to be released in Sept 2-11)
1. Release of the 6th aid tranche
2. Immediate start negotiations with the Troika, proceed to and concluded as soon as possible the Oct 26th Loan Agreement
3. Submit to Parliament the Budget 2012 and vote for it before December 31st.
4. Complete the implementation of Budget 2011 as part of the fifth revision of the Memorandum of Understanding.
5. Take all necessary measures to secure the participation of Greek banks and Greek pension funds in the process provided by the decision of October 26th [meaning: Greek bonds haircut].
6. Shaping the legal and financial requirements for the implementation of the new scheme for private sector involvement (PSI).
7. Release of the first aid tranche of the new program to meet borrowing needs of Greece (additional 20 billion euros) before the end of February 2012.
Should Samaras (Nea Dimokratia) accept these conditions, he will be forced to abandon his ‘anti-memorandum’ policies. He said two days ago, he says YES to the loan-agreement but NO to ‘memorandum’ [that usually contain strict austerity measures with layoffs and heavy taxes].
Samaras wants snap elections within a short period of time, however PASOK’s road map shows elections in March 2012, the earliest.