The broken voice of Prime Minister Alexis Tsipras as he was reading the final lines of the new government’s policy statement in Parliament, undoubtedly, moved Greece.
Not only because it touched upon the people’s emotions, but because it reflected the pressure from the Europeans in the hard negotiation for changing economic policy from extreme austerity to a more balanced recipe of fiscal discipline and the prospect of growth.
The harsh truth though is that the creditors – world wide – are not moved, something which they have demonstrated at every opportunity they have been given.
So, at midnight on Sunday, the first objections were voiced against certain points in the new policy. The government which has been in power for two weeks will have to clarify these points by Wednesday’s Eurogroup, in order to avoid the full-on collision that nobody wants.
These points are the following:
Insurance: In no case is it enough to simply transfer resources from a “national wealth fund” which it is still uncertain what assets it will incorporate (sales from hydrocarbons that have yet to be found, revenue from real estate sales etc) in order to cover the deficits in the insurance system.
Privatizations: It is uncertain what will happen, as the revenue generated by the asset development fund TAIPED was to be used towards paying off the debt.
Changes to employment relations: The restoration of contract extensions and the system of triennial salary raises will suddenly burden the economy (both the public and private sector) with additional wage costs.
The government should clarify these “grey zones” and we should limits ourselves to the restoration of collective negotiation of social partners and the gradual increase of the minimum wage to 751 euros, positions of Mr. Tsipras which the Europeans have welcomed.
Perhaps that is enough for the successful outcome of the negotiations that will determine all of our lives for the next years.
Zois Tsolis
