The relationship of the government with the troika is set to take a turn for the worse, as they disagree on the future of defense industries EAS, ELVO and LARKO. The issue arose when the troika EC representative Matthias Mors sent an email “suggesting” that the three companies be bankrupted.
Government sources have suggested that there is no chance of the 2,100 currently employed by the three industries to be dismissed without compensation. The Greek side responded to the email with a detailed plan for the reform and restructuring of the ailing industries.
The plan, according to the Minister of Finances Yannis Stournaras, involves liquidation during operation, within a 5-year time frame. This will allow the government to take advantage of valuable assets tied in to the companies.
The European Commission on the contrary claims that they are still negotiating with the Greek government and deny the rumor that Mr. Mors demanded dismissals without compensation in his email. They did confirm that their goal is to find a solution that will not burden the budget.
