Stournaras prepares to start talks with troika
By Sotiris Nikas
Crucial negotiations between the Finance Ministry and the chief inspectors of the country’s creditors – known as the troika – get under way on Sunday, with Athens primarily aiming to secure the 1-billion-euro tranche due in mid-October, while on Friday Finance Minister Yannis Stournaras met with Moody’s officials.
The minister explained the state of the country’s economy to the credit rating agency mission and emphasized that Greeks cannot take any more austerity measures. The meeting reportedly took place in a good atmosphere, with the ministry expecting Moody’s to upgrade Greece’s rating soon.
Sunday’s meeting at 3 p.m., as well as those to follow, will be much more difficult. The agenda for the whole of the September inspection will be discussed, with the prior actions needed for the release of the next tranche at the forefront.
Officials note that there has been progress on all fronts, but add that it may take a few more days for all prior actions to be successfully completed.
The first action required for the disbursement of the 1 billion euros next month concerns the restructuring plans for defense industries EAS and ELVO and mining company Larco. The troika is expecting to see a reliable sale plan for Larco, and to make sure that the military section of Hellenic Defense Systems (EAS) and the Hellenic Vehicle Industry (ELVO) that will remain in operation will not run up major deficits. It is only under those conditions that the troika will accept the government’s proposals for the restructuring of the industries.
On Friday Stournaras further met with the deputy director general of the Directorate General for Competition of the European Commission, Gert-Jan Koopman, the technical staff of the troika and representatives of the Defense and Environment ministries. Talks centered on the state funding the aforementioned industries have received in recent years. Sources say that the talks were rather tough, with the Commission insisting on the recovery of illegal state subsidies.
On the new code pertaining to the law professions, the troika continues to oppose certain clauses, but this is not expected to create any significant problems in the negotiations.
The troika appears to be satisfied with the initiatives of the Administrative Reform Ministry for placing 12,500 civil servants in mobility schemes, according to sources. However, the importance of the issue means that the inspection will be particularly detailed.
Another prior action to be examined is the repayment of state arrears to the water and sewage companies of Athens (EYDAP) and Thessaloniki (EYATH). The next few days are set to see significant developments in this direction, while the state and EYDAP have still not agreed on the precise amount of the debt.
All of those four issues will have to be concluded within the next 10 days. The troika heads will depart owing to the Annual Meeting of the International Monetary Fund on October 11-13, while on October 14 the Eurogroup council of eurozone finance minister convenes. Unless a serious problem arises before then, the disbursement of the 1-billion-euro installment will be approved.
Therefore the main issues of the inspection will be broached from October 15. They concern the fiscal gap of the 2015-16 period, the coverage of the funding gap which from mid-2014 to end-2015 is estimated at 10.9 billion euros, and the sustainability of Greece’s public debt.
http://www.ekathimerini.com/4dcgi/_w_articles_wsite1_1_20/09/2013_519468
Nearly half of Greeks believe that Merkel reelection would be bad for Greece
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If Chancellor Angela Merkel were to win federal elections in Germany on Sunday, the consequences on Greece's interests would be "somewhat negative" according to 47 percent of Greeks questioned as part of Public Issue opinion poll published on Friday.
A sizable 79 percent of respondents also said they have a negative opinion of the German chancellor, who has insisted on a policy mix of tough austerity for Greece's European Union- and International Monetary Fund-backed bailout program.
Another 75 percent also responded that their overall view of Germany is negative, up from 66 percent in May 2011.
Just 10 percent of respondents said that Merkel's anticipated reelection may have positive consequences for Greece.
More than three million Greek citizens are currently uninsured and consequently have no access to public health care system and medical care. According to Dimitris Kontos, the President of Greek National Health Care system (EOPYY), the national health care system currently serves 6,171,000 people with insurance capacity, while the uninsured citizens are 3,068,000 people”.
However, estimations speak of even four million people without insurance as these figure do not include traders who closed their shops, constructor workers who hardly find a daily job and who easily lose their insurance right the moment they stop paying contributions.
Nevertheless, these numbers do not refer to the directly insured but also to their family members.
there are parents who are forced to postpone even simple surgeries for children because they have no access to public health care system and lack the necessary money for the surgery.
Prescription Medicine Scandal
I wonder if Dimitris Kontos spoke also about the increased expenditure for prescription medicine even if the patient is insured. No, drugs prices are not up, self-participation rate of the patient has not increased either.
It’s just that EOPYY has decreased its own participation in the drug price. So while a patient officially has to pay 10% for the medicine – even if it’s generic – he is surprised to have to pay 8-9 euro for a drug of 17 euro total cost. Because the EOPYY covers just 9 euro. and there is of course no medicine in the market at the cost prescripted and predicted by the EOPYY.
Maybe some participant at the event “Healthworld” organized by the Hellenic-American Chamber of Commerce in Athens can brief us if Kontos addressed also this inhumane problem especially for the chronic-ill low pensioners.
Greek Prime Minister Antonis Samaras has said the debt-ridden country could return to pre-crisis living standards within six years.
“According to most [experts], we will not need a couple of decades, not a couple of generations, but only six years,” he said in a speech.
He was speaking in Rome ahead of talks with EU officials in Brussels.
International lenders are due to conduct a new audit of Greece, where strikes against cuts are under way.
Greece’s economy has shrunk by 23% since 2008, and international lenders expect it to diminish by a further 4.2% this year.
Speaking at a conference organised by the International Herald Tribune, Mr Samaras said his government had implemented “sweeping reforms”. (full article BBC here )
PS I wonder how the 1.4 million unemployed will manage to survive another six years and then suddenly find themselves in their living standards as before the crisis. Greek miracle  ))
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