Greece items of the day - first the politically correct media , then the view from the greek street......

Greece news of note.....

IMF urges more debt relief, reforms and financing

The International Monetary Fund attempted to focus Greek and European minds on Wednesday as it argued that Greece faces an 11-billion-euro funding gap and will need further debt relief, while warning Athens that a failure to overhaul its public sector will force the government to adopt more austerity measures.

In its 207-page report of the fourth review of the Greek adjustment program, the Washington-based fund raised serious questions about the scheme’s sustainability. IMF staff, led by the Fund’s representative in the troika, Poul Thomsen, suggested that Greece will need another 4.4 billion euros in financing next year and 6.5 billion euros in 2015.

Thomsen insisted the Greek economy would grow next year. “The exact timing is where the uncertainty comes,” he said, adding that lower-than-expected growth or a failure to meet revised privatization targets could lead to Athens requiring even more funding than the IMF has identified.

In recent months the eurozone has deflected any talk of a Greek funding gap as it insists the program is fully funded until next summer. The IMF’s executive board agreed on Monday to release another 1.7 billion euros in loans to Greece, taking its total contribution to the bailout to 28.4 billion euros. However, the IMF rules mean it cannot continue to fund the Greek bailout unless it is convinced that the country is fully financed for the next 12 months.

The Fund presented Greece’s European partners with another dilemma when it again raised the issue of debt relief, another matter that the eurozone has tried to keep a lid on, especially in the runup to German federal elections in September.

The IMF report suggested that Greece would need a debt reduction equivalent to 4 percent of its gross domestic product, or some 7.4 billion euros, between 2014 and 2015 in order for its debt to become sustainable. The Fund urged the eurozone to confront the issue sooner rather than later.

“Should debt sustainability concerns prove to be weighing on investor sentiments even with the framework for debt relief now in place, European partners should consider providing relief that would entail a faster reduction in debt than currently programmed,” it said.

At least one of the 24 IMF executive directors refused to approve the release of more funding for Greece. Paulo Nogueira Batista, who represents Brazil and 10 other member countries, said he doubted forecasts about Greece’s debt and economic growth, labeling them a “delusion.” Batista suggested there was a real danger the IMF might not get its money back from Greece and that the country had been pushed to the edge by its demanding consolidation program. “The widespread perception that the hardship brought on by draconian adjustment policies is not paying off in any way has further undermined public support for the adjustment and reform program,” he said. Nevertheless, the IMF’s report praised Greece for its fiscal efforts and urged it to step up its reform drive. “The fiscal adjustment remains exceptional by any international standard,” said the Fund. But it expressed concern about civil service reform, fearing that the focus is “shifting significantly away from ensuring the exit of redundant and unqualified staff to relocation of such staff within the public sector.” It also emphasized the need for Greece to improve its tax collection. “Unless the authorities tackle the problems of revenue administration with much greater urgency in coming months, a credible 2014 budget would again need to be centered on painful expenditure cuts,” Thomsen told reporters. Tzakri becomes fifth coalition MP not to back gov't legislation Fears that government MPs are suffering from “fatigue” due to having to frequently vote for new and unpopular measures was highlighted on Wednesday as PASOK’s Theodora Tzakri become the latest coalition lawmaker to refuse to support legislation. Tzakri voted “present” for an amendment regarding the settling of state debt to the Athens Water and Sewage Company (EYDAP), a move that is seen as a step toward privatizing the service. The amendment passed with just 51 votes in favor and 44 against in Parliament’s pared-down summer session. After the ballot, Tzakri accused Prime Minister Antonis Samaras of wanting to sell the family silver. “The stance I took is natural for progressive forces who want to stop Mr Samaras’s plans to sell off the country,” she said. Her action and comments led to a flurry of calls from PASOK’s leadership to Tzakri. She later issued a more moderate statement. “I disagree with the terms under which EYDAP is being privatized and that is why I voted ‘present,’” said the lawmaker from Pella in northern Greece. In an interview with Reuters this week, Finance Minister Yannis Stournaras expressed concern about the impact that “fatigue” among government deputies would have on the coalition’s reform drive. Tzakri is the fifth lawmaker from New Democracy and PASOK this month to fail to support government legislation. So far no MPs have been expelled as the two-party administration only has a five-seat parliamentary majority. But Samaras warned New Democracy deputies last week that if they do not back legislation that is linked to Greece’s bailout commitments, they will be expelled from the party. ekathimerini.com , Wednesday Jul 31, 2013 (21:41)

VAT rate cut application clarified anew General Secretary for Public Revenues Haris Theoharis issued some further clarifications on Wednesday regarding the reduction of value-added tax in food services as of today, following some confusion in regard to how the measure applies to non-alcoholic beverages. He explained that a soft drink provided to the consumer by a delivery firm will carry the regular 23 percent VAT rate, while the price at a restaurant, taverna etc will entail a 13 percent VAT rate for the trial period until end-December. Theoharis was reacting to the confusion generated by a Finance Ministry statement on Tuesday regarding the application of the new rate. He said that the measure brings Greece into line with a European Court of Justice ruling that identifies food services as allowing for on-site consumption along with the supply of accompanying services such as waiting, cleaning etc. The discrepancy between the tax on soft drinks consumed on-site and those purchased via delivery does not apply to food, Theoharis said. “It is not accurate that the rate for ready-made food varies depending on whether it is consumed in the store or outside it, e.g. through home delivery. In every case the reduced rate of 13 percent applies,” stated Theoharis. State pays half of its arrears  Nearly 4 billion euros has returned to the market since December, but delays persist  Alternate Finance Minister Christos Staikouras The Finance Ministry has paid arrears totaling some 4 billion euros owed to Greek taxpayers and companies since last December, which means that almost 50 percent of money in old debts to the private sector has returned to the market while another 4 billion has yet to be paid. Data presented on Wednesday in Athens by Alternate Finance Minister Christos Staikouras showed that the ministry has approved the payment of expired debts adding up to 5.4 billion euros, although the amount that has actually been paid to date stands at just under 4 billion. July payments reached 641 million euros, said Staikouras. In the period from January to July 2013 the ministry paid the retirement lump sum of 16,342 civil servants and covered 89 percent of military social security funding and 77 percent of the obligations of hospitals in the National Health System (ESY), i.e. 890 million euros out of a total 1.1 billion. In reference to the problems that have emerged over the course of paying the expired debts, Staikouras stated that “some solutions have been proposed, and they have been channeled toward reducing the slowdown in the payment rate as much as possible.” In the healthcare sector, and especially at ESY hospitals, direct funding by the General State Accounting Office has resulted in hospitals having fully paid all their old debts to procurement companies. Concerning the National Organization of Health Service Provision (EOPYY) and the payment of the expired obligations of previous social security entities, in July the ministry reissued an order for payments totaling 250 million euros to pharmaceutical companies, clinics and others that it had first issued in June but which had not been paid. Now 190 million euros of that has been sent to banks for immediate payment. There was also a notable slowdown in the payment of local authority debts, but this was mostly due to industrial action which affected the operations of municipal authorities. Items of the day from the real greek world...... Austrian NGO supplies Greek hospital with drugs & paramedic material for uninsured patients Posted by keeptalkinggreece in Society Gauze, catheters, syringes, cotton, latex-gloves, but also drugs and medicine for cancer patients. Medical and paramedical material. A whole of 5 tons of aid has reached state hospital ELPIS. The humanitarian aid has the sole purpose to be used for patients without insurance. The aid has been sent to ELPIS by the NGO “Griechenlandhilfe” based is Austria.The material is been donated by multinational pharmaceutical companies, diaspora Greeks in Austria and Germany come up for the transport of the aid. pictures here The explosive growth of unemployment has deprived thousands of Greeks from access to health care. Not only they cannot afford to pay a private doctor, they cannot even afford to buy an aspirin. Many municipalities and NGO’s set up health centers, where volunteering doctors, medical personnel and other volunteers offer theirs knowledge free of charge for those in need. Hospital ELPIS joined the network of solidarity with the needy patients offering healthcare services to those without insurance. ELPIS director Yiannaros and cotton from Austria. Speaking to news portal NewsIt, the general manager of ELPIS, Theodoros Yiannaros said “When a patient with cancer comes to the hospital we cannot tell him go first and find a job and then come back for the treatment.” According to Yiannaros, the free medical service is possible only through the support of “Griechenlandhilfe”. Austrian NGO “Griechenlandhilfe” (Greece Help) was established because the founders could not accept that “in rich Europe medical assistance is not possible because drugs, devices, or simple things like latex gloves and syringes are missing.” It brings aid to Greece since January 2013. Griechenlandhilfe notes on its website: “The recently initiated “health checks for non-insured” turn out that they provide only free diagnosis. the treatment has to be paid be the patient. Cynically said, they let patients die but they tell them what they die from.” PS Do you remember the humanitarian aid for Darfur, Northern Iraq, Bangladesh, Ethiopia and all the other spots in humanitarian crisis? A beneficial concert is urgently needed for the Greeks. Bono? Bob? Guys? Are you there? Greek gov’t announces home evictions to start on 1.1.2014 Posted by keeptalkinggreece in Economy, Society I had thought that 2013 would be the worst austerity year for the average Greek. But I was wrong. The worst is still to come and thus right with the beginning of 2014. After the immense pressure by the country’s lenders – the Troika – the Greek government announced the ‘gradual lifting of the ban on home evictions on the primary residence of people who cannot pay back their mortgage. Deputy Development Minister Thanasis Skordas said on Wednesday that the government seeks to implement a plan that will provide specific criteria so that not all properties will go under the hammer. Such criteria would be social (unemployed property owners and large families), income criteria, the period of auction freezing, amount of mortgage, the size of the property. The ban of home eviction for primary residence and property commercial value up to 200,000 euro was implemented in 2008. An extension was given end of 2012 for one more year. Greek government was shocked by the wave of suicides in Spain committed by property owners who had lost their home. The Troika had approved it under the condition that the period of mercy would end up December 31st 2013. readying to get hold of your home The Greek government bowed for one more time to lenders’ commandments. Again it’s the average Greek who will pay the price for decades of mismanagement and waste of public money. So far nobody has been held responsible for the economic squalor of the country and the hardship for million of Greek people. PS Ops! I forgot! “The country was saved”… Troika shuts down schools & kindergartens; more than 1,000 closed since 2011 Posted by keeptalkinggreece in Society A total 118 public elementary schools and kindergartens will be shut down this summer and another 29 will be merged after the Troika demands for “structural reforms”, “rationalization of state expenditure” – name it whatever you want. The 31 schools and 87 kindergartens to be shut down are located in Eastern Attica, Central Greece, and two areas in NE Greece (Rodopi, Xanthi). According to Greek education ministry the shut down will save 76,000 euro in public money for 2013 as it occurs in the middle of the year, while the saving will amount 228,000 euro for the year 2014. How the saving will triple? Do not ask me. It’s the Greek government logic which is rather tricky. The scheme of Greek logic is simple: School units are shut down + work places are limited = lay-off of teachers becomes inevitable. With this year’s decision a total of 1,038 primary and secondary education schools have been shut down since 2011. 2011: 800 2012: 120 2013: 118 The shut down and merger of public schools often ends up in conflict among parents, drivers and education ministry, as the state has to come up for the students’ transport cost. Money shortage normally delays the payments to transport means (buses, taxi) with the effect that they strike and the students have to seek other ways to attend classes. But this is not important. More important is that this year the Education Ministry practically dissolved the technical/vocational high schools by erasing 46 positions for specialized teachers. What? You want to study Graphic Design,  Hairdresser,  Cosmetics,  or get skills to work as assistant in a pharmacy, a laboratory, a hospital or at a dentists’, while in high school? You should go to a private technical & vocational high school and pay. The dissolved teacher’s positions at technical high schools made the impossible possible and thus overnight: 2,500 technical school teachers could be sent home in the context of ‘labor reserve’ scheme: 75% of the wage for 9 months, then dismissed. Troika was pressing in June… 100% BTW: while the plan to dissolve the technical & vocational public high schools was given to the press, Education Minister Arvanitopoulos was attending the opening ceremony of a new private technical and vovational high school. But that’s another story – just one more story of the “Once a Greek, always a Greek” book. In order to make the bitter pill of unemployment sweeter, the Education and Health Ministers, Arvanitopoulos and Georgiadis, decided that 55-60% of the 2,500 technical school teachers will be transferred to the health care sector. I mean it will be a real innovation to have a Graphic design teacher covering your post operation wound with a highly aesthetic pattern or a hair extensions specialist  gives you an injection with fluid antibiotics. PS I fully agree with the closure of  school units. What is the purpose of investing in kids’ education, when they complete primary and secondary education, university and post university studies to end up  jobless after all?

I heard, some ministers were practicing in difficult yoga poses to make the absurd look normal.