Greek Gov’t Leaders to Set Greeces “Red Lines” on Wednesday

troika_out_grafitiThis Wednesday, one day before the  summit meeting in Brussels, Greek Prime Minister Antonis Samaras and PASOK leader and government’s vice president, Evangelos Venizelos will have a face to face conversation in order to set out Greece’s “red lines,” while anticipating the crucial negotiations with Troika. Troika’s officials will arrive in Athens on October 28th, the day Greeks celebrate the anniversary of Oxi day, and are expected to press for further strict measures and cuts.

Greece’s two partite coalition government leaders, will try to draw up a policy blue print that will balance between the denial of the government to take new strict fiscal measures, and the new Troika’s demands. It is important for the two coalition parties to have a joint stance, in order to face troika’s demands.

According to troika sources in Brussels, it is not true, that Greece’s creditors are planning to press for “additional horizontal cuts” but also, they are cautious over government’s ambitious target for primary surplus next year”.

Greek coalition partners have agreed that further “horizontal” cuts to salaries and pensions cannot be imposed on Greek society, reeling more than three years of austerity. This has not only been made crystal clear by both Samaras and Venizelos, but also by ministers and deputies of Greek coalition government.

These statements are in response to reports that troika wants another 2 billion euro in cuts and the ECB’s refusal to discuss the option of rolling over Greek bonds to cover a financing gap next year. The Greek side is also going to stress, that in accordance with a Eurogroup agreement, if Greece achieves primary surplus this year (something that it is already in track) talks on debt relief could be held.

The ambitious forecast of the Greek government that foresees a primary surplus for 2014, is something, that according to Brussels sources, our creditors openly question. In addition they want Greece to “honor the agreement and achieve the goals that have been already set, at all costs.”


  1. Ha! What a joke!- READ FROM – Monday, October 21, 2013
    “GREECE: A Country Striving for Normality”

    By Alexis Papachelas

    When quizzed about whether he is considering calling early elections, Prime
    Minister Antonis Samaras customarily replies that the country will go to the
    polls in 2016. Too bad few people believe that to be the case. There is nothing
    that Greece needs more than normality and stability. Whatever primary surplus
    the country produces, no matter how many investors come in search of business
    opportunities, nothing will ever change if no one knows which direction the
    country is taking.

    Greece has been a “normal country” during certain periods in history. These
    days normality is something to strive for. On the one hand we realize the
    importance of keeping it together as a nation, while on the other we flirt with
    national division, major conspiracies and preparing the ground for entering an
    “abnormal” phase.

  2. Samaras and the rest of his germanotsoliades traitors in ND/PASOK have destroyed the country

    Here is the latest absolutely disastrous news from Elstat, reporting on Q2 Greek Non-financial sector accounts

    During the second quarter of 2013, disposable income of the households and non-profit institutions serving households (NPISH) sector (S.1M) decreased by 9.3% in comparison with the same quarter of the previous year, from 33.2 billion euro to 30.1 billion euro. This was mainly on account of a decrease of 13.9% in the compensation of employees and a decrease of 12.4% in social benefits received by households.

    This was the biggest drop in household disposable income since Q3 2012. Is this part of the Grecovery?

    Next, the savings rate of the households and NPISH sector, defined as gross savings divided by gross disposable income, was -8.7% in the second quarter of 2013, compared with -6.7% in the second quarter of 2012.

    So, households are broke, unemployed, and have negative savings. But at least the stock market is up. Is this, too, part of the Grecovery?

    Finally, remember that myth about the suddenly accountable and responsible Greek government, which has a primary surplus, and is living within its means? Then please explain the following:

    Net borrowing of general government (S.13) during the second quarter of 2013 amounted to 14.0 billion euro, compared with 3.8 billion euro in the second quarter of 2012. The increase in the General Government deficit in the second quarter of 2013 is due to capital transfers in the context of the program of state aid to specific banks. Net borrowing of general government excluding the impact of the support to financial institutions in the second quarter 2012 amounted to 2.6 billion euro.

    This was the biggest quarterly government borrowqing in well… ever. Is this the final component of the Grecovery?

    And some other independent data poinst:

    Greek 2Q Govt Deficit Widens to 16.6% of GDP From 11.0% in 1Q – obviously, this spells Grecovery

    Greek Debt Swells to 169.1% of GDP in 2Q, Nearing Pre-PSI Levels – this definitely must be the Grecovery, right?

    The good news for all the broke, unemployment, incomeless Greeks: you still have your precious Euro.

  3. Greece can set as many red lines as it wants,but Greece will do as is told by her creditors in order to be kept afloat with other’s people money!Beggars can’t be choosers.

  4. You have to be grateful for the Troika-if they hadn’t bailed out Greece twice,now heading for a third time ,Greek incomes would drop by 109.3%,not just by the meager 9.3%.That’s what the Greek population apparently fails to understand!

  5. something can’t fall more than 100%

    you fail to understand who the true beneficiaries are of the Greek “bailout” and that is northern european insolvent banks that have received 80% + of the Greek “bailout” funds

    yes how did we survive before without the Troika or the Euro. the situation has gotten worse because of the Troika. more fear mongering on your end to protect your bank pay masters?