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| Pasok and New Democracy clashed in a war words on Monday, over a letter sent to European Commission Manuel Barroso by Pasok chief Evangelos Venizelos (file photo) |
Pasok leader Evangelos Venizelos has written to the European Commission, urging it to speed up a programme aimed at providing some relief to the recession-plagued economy. Venizelos, who resigned as finance minister last month, wrote to EU Commission President Jose Manuel Barroso on Monday to request a more targeted implementation of the growth programme, that would relax national contributions for EU-funded projects. He listed the priorities as major public works ventures like motorways and other infrastructure development, schemes to boost youth employment, and small business support. "We await the response of the European Commission with the expectation of a positive outcome," Venizelos wrote. He sent the letter after new figures revealed that 1,000 Greeks were losing their jobs a day last year, prompting the unemployment rate to surge to 21.8 percent in January. EU countries are also keen to see current coalition backers Pasok and New Democracy make a strong showing in the May 6 general election, faced with a growing anti-bailout backlash in Greek politics. New Democracy criticised the letter, saying that Venizelos was late in remembering the need for growth and social cohesion. Party spokesman Yiannis Michelakis said Venizelos was only bringing this up because of the looming elections and said he was finally coming around to the position advocated by ND leader Antonis Samaras. (Athens News/gw, AMNA)
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Party leaders resume poll race
PASOK’s Venizelos unveils social measures, ND's Samaras prepares to reveal economic agenda
PASOK leader Evangelos Venizelos tried to steal a march on his New Democracy rival Antonis Samaras on Tuesday by announcing proposals for new post-election social measures ahead of the conservative chief unveiling his latest plan to revive Greece’s shrinking economy.
Venizelos is due to begin a series of nationwide speeches on Wednesday ahead of the May 6 elections but sought to be the first to grab the media spotlight following the Easter holiday by presenting a series of social measures designed to ease the impact of the crisis on the most vulnerable members of Greek society.
Among the suggestions put forward by the former finance minister are extending the provision of healthcare. Thousands of Greeks who have lost their jobs are also losing access to public healthcare as they cannot collect the necessary social security credits. Venizelos also pledged to tackle youth unemployment. More than 50 percent of Greeks under 25 are jobless and the PASOK leader says he would use more European Union funds to tackle the problem. Venizelos spoke to European Commission President Jose Manuel Barroso on Monday to discuss the release of an extra 150 million euros.
Samaras will be hoping to eclipse Venizelos when he unveils his economic program tomorrow.
The New Democracy leader will set out a policy agenda, which is likely to include tax cuts, at Zappeio Hall in Athens, where he has already launched two previous economic proposals, known as Zappeio I and II.
ND also unveiled its candidate list, which included former Labor Minister Savvas Tsitouridis, who was forced to resign twice, and Giorgos Simbilidis, an MP who caused the downfall of the ND government of Costas Mitsotakis in 1993.
One of ND’s most serious threats at the ballot box comes from the Independent Greeks, which was set up by conservative exile Panos Kammenos. The nationalist party announced Tuesday that it would be cooperating with the small leftist group People’s Chariot, which was formed by Yiannis Dimaras, a PASOK deputy who was ousted from the Socialists when he voted against Greece’s first bailout in May 2010. Dimaras acknowledged that the merging of forces on different sides of the political spectrum was strange but said the two sides, both opposed to the new bailout, had agreed on 10 principles “to fight a common battle against treason.”
and no matter who wins , Greece will still be in deficit hell.....
IMF sees deficit over 7 pct in 2012
Report calls for spending cuts of at least 15 bln euros by 2017
By Sotiris Nikas
The budget deficit this year will be greater than the Greek government has forecast, according to a report published on Tuesday by the International Monetary Fund, which also stresses the need for additional spending cuts of at least 15 billion euros (7.7 percent of gross domestic product) between now and 2017.
The IMF expects the deficit to end the year at 7.2 percent of GDP, up from a forecast for 6.7 percent as seen in the supplementary budget passed by the government in February. The Washington-based Fund’s report that accompanied the new memorandum Athens signed with its creditors in March had forecast a deficit of 7.3 percent.
The new government to emerge from the May 6 elections will have to decide on measures amounting to 11.6 billion euros for 2013 and 2014. However, yesterday’s report seems to suggest that the fiscal adjustment will continue well beyond 2014 and will have to rely almost exclusively on spending containment: From 48.9 percent of GDP, spending will have to go down to 41.2 percent of GDP by end-2017.
Cutting expenditure seems to be the only way for Greece to improve its finances as general government revenues will continue to drop as a GDP ratio for the coming years: GDP is expected to grow after 2013, but the revenues will remain the same, sending their ratio to GDP lower. Therefore, in order for Greece to obtain primary budget surpluses, it will have to rein in spending.
All this will have to happen in a financial environment that will take long to recover, as the IMF is now expecting zero growth for 2013 and a 19.4 percent unemployment rate for this year and next.
The report further sees the country’s public debt dropping to 136.8 percent of GDP in 2017, from 153.2 percent this year and 160.9 percent in 2013, when its gradual decline will begin.
The recession will continue this year at the economy-stifling rate of 4.7 percent, with the only good news being that the IMF is expecting deflation of 0.5 percent this year and 0.3 percent in 2013, meaning retail prices will go down for two consecutive years.
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Barroso: Apply the memorandum
By Costas Karkayiannis
BRUSSELS - In a text he is set to deliver on Wednesday, European Commission President Jose Manuel Barroso is expected to insist that the application of major reforms to radically change Greece’s civil administration and state will render the country attractive to enterprises and reverse its negative image.
That will be possible through the strict application of the second memorandum Athens signed with its official creditors and the full utilization of the European resources and technical advice offered, a draft of the speech suggested.
"The success of the process eventually depends on Greece,» it says, while calling for «a unified national effort by the population and the political leadership."
He will call for 12 billion euros’ worth of spending cuts in the 2013-14 period, as well as funds for small and midsized enterprises.
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