Representatives of ”Troika” (the International Monetary Fund, the European Union and the Central European Bank) are today beginning a series of talks with Greek government functionaries, before granting the fifth aid tranche of 110 billion euros agreed with Greece a year ago. Their task will not be easy, with the latest Greek economic data anything but encouraging. In the first four months of 2011, state revenue dropped by 9.2% , whereas an annual increase of 8.5% had been forecast.
The experts seem convinced that, even if – as has been announced – the government were to adopt the 3 billion euros in additional economic measures, it will not be possible to cut the deficit to 7.4% of gross domestic product (GDP).
Moreover, the socialist government under George Papandreou is going through a period of uncertainty and indecision, faced as it is with problems sparked by clashes between Ministries and disagreements over the policy direction taken so far by the Finance Ministry.
During a Cabinet meeting yesterday, the Prime Minister was once again forced to ask his Ministers (in view of the presentation before the Parliament of the medium-term economic programme brought in by the government) unity, collaboration and solidarity and urged them not to speak in public nor to the media about problems such as debt restructuring, ”…since these discussion will have international repercussions”.
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