ATHENS: The new Greek government presents on Friday a strategy to salvage its debt rescue programme, win favour with EU-IMF auditors and gain room to renegotiate terms with the EU and IMF.
But the state of the economy is grim and the eurozone climate is tough. Creditors have warned Greece that it is too far short of targets to merit a new deal, financial markets have again turned sceptical about eurozone prospects, and the IMF is gloomy about the global outlook.
Meanwhile Greece must win the confidence of the auditors to obtain the next slice of aid money which it needs to pay current expenditure.
Eurozone and EU finance ministers meet early next week to follow up on a summit last week, presented as a breakthrough in getting on top of the debt crisis, but decisions by the European Central Bank on Thursday disappointed markets, despite a rate cut.
The cost of borrowing for Spain and Italy is again on the rise, even though Ireland has successfully returned to the debt market.
Against this background, Greek Prime Minister Antonis Samaras will unveil his government's strategy on revising the country's EU-IMF bailout amid creditor warnings that the country is too far behind its targets.
Samaras will address parliament after 1530 GMT at the start of a three-day debate culminating in a vote of confidence on Sunday which the three-party coalition supporting his government is expected to win.
The 61-year-old former foreign minister took office after June 17 elections, promising the austerity-weary nation that he would re-examine salary cuts, tax rises and job losses. The economy is in the fifth year of recession.
But Samaras has run into opposition from Greece's so-called 'troika' of creditors -- the EU, the International Monetary Fund and the European Central Bank, and Greek officials are now beginning to backtrack on the issue of trying to renegotiate terms.
"First we must apply policies and have tangible results to show, and then to claim a renegotiation," an aide to the prime minister told the state-run Athens News Agency after talks began on Thursday with EU-IMF auditors.
The Financial Times reported on Thursday that Greece had altogether dropped its demand to ease rescue terms, citing the new finance minister.
"We can't ask for anything from our creditors before we get it back on course," Finance Minister Yannis Stournaras was quoted as saying by the FT.
Stournaras had earlier told reporters that Greece's recovery programme was "off-track in certain areas" after two electoral campaigns in two months, and that Greece still faces "difficult years ahead."
Samaras, whose government is to be confirmed with a weekend confidence vote in parliament, told auditors he was determined to "speed up structural reforms", his office said on Thursday.
indiatimes.com
But the state of the economy is grim and the eurozone climate is tough. Creditors have warned Greece that it is too far short of targets to merit a new deal, financial markets have again turned sceptical about eurozone prospects, and the IMF is gloomy about the global outlook.
Meanwhile Greece must win the confidence of the auditors to obtain the next slice of aid money which it needs to pay current expenditure.
Eurozone and EU finance ministers meet early next week to follow up on a summit last week, presented as a breakthrough in getting on top of the debt crisis, but decisions by the European Central Bank on Thursday disappointed markets, despite a rate cut.
The cost of borrowing for Spain and Italy is again on the rise, even though Ireland has successfully returned to the debt market.
Against this background, Greek Prime Minister Antonis Samaras will unveil his government's strategy on revising the country's EU-IMF bailout amid creditor warnings that the country is too far behind its targets.
Samaras will address parliament after 1530 GMT at the start of a three-day debate culminating in a vote of confidence on Sunday which the three-party coalition supporting his government is expected to win.
The 61-year-old former foreign minister took office after June 17 elections, promising the austerity-weary nation that he would re-examine salary cuts, tax rises and job losses. The economy is in the fifth year of recession.
But Samaras has run into opposition from Greece's so-called 'troika' of creditors -- the EU, the International Monetary Fund and the European Central Bank, and Greek officials are now beginning to backtrack on the issue of trying to renegotiate terms.
"First we must apply policies and have tangible results to show, and then to claim a renegotiation," an aide to the prime minister told the state-run Athens News Agency after talks began on Thursday with EU-IMF auditors.
The Financial Times reported on Thursday that Greece had altogether dropped its demand to ease rescue terms, citing the new finance minister.
"We can't ask for anything from our creditors before we get it back on course," Finance Minister Yannis Stournaras was quoted as saying by the FT.
Stournaras had earlier told reporters that Greece's recovery programme was "off-track in certain areas" after two electoral campaigns in two months, and that Greece still faces "difficult years ahead."
Samaras, whose government is to be confirmed with a weekend confidence vote in parliament, told auditors he was determined to "speed up structural reforms", his office said on Thursday.
indiatimes.com
No comments:
Post a Comment