Beyond the Presidential Hall

The meetings of the Prime Minister and leader of the main opposition with the President dominated the news on Monday. Those…

Beyond the Presidential Hall |

The meetings of the Prime Minister and leader of the main opposition with the President dominated the news on Monday. Those meetings also highlighted the differences and intentions of the main political forces in the country.

Mr. Samaras expressed his belief that the current Parliament will elect a new President and insisted upon a bare minimum consensus in order to secure the exit from the crisis.

Mr. Tsipras on his behalf claimed that the government does not have the strength and is not in the position to negotiated with our creditors and partners for the debt and insisted on calling early elections in order to support a new government with a fresh popular mandate that will be in position to negotiate unlike the current one.

Both essentially repeated their opinions and nothing more.

In this respect, the meeting between the Minister of Finances Gikas Hardouvelis and the Governor of the Bank of Greece Yannis Stournaras was more critical.

According reports the two agreed that the current period is critical and at present it is important to come to an agreement with the troika, in order to break the new cycle of great uncertainty that hounds the country.

Mr. Hardouvelis and Mr. Stournaras insist that the current negotiations with the troika must end by the 15th of December, so that the precautionary credit line can follow, thus paving the way for the new debt settlement.

Both believe that to be the most correct path. They also clarify that it would be wise to release the 11.5 billion euros from the Financial Stability Fn and return those funds to the ESM, the European funding mechanism, in order to form the basis of the precautionary credit line,

In this case the debt will be reduced equally, by reducing interest rates and therefore the demand for a 4.5% primary surplus in 2016.

That way the fiscal policy will relax, resources may be diverted towards growth and social needs, which will kick start the economy and cover the many social needs.

In this respect Mr. Hardouvelis and Mr. Stournaras oppose those who want the FSF’s 11.5 billion to be used to buy out and nationalize the Banks, arguing that it is not ownership which is the main problem the banks face, but rather supervision.

The Minister and the Governor both adamantly believe that the international credit crisis of 2008 came as a result of a lack of supervision and not because of the bank’s ownership.

In other words bother Mr. Hardouvelis and Mr. Stournaras were clear and much more focused. Above all, they also point out the exact path the country must follow.

In this respect their meeting could be considered more critical and important than the two leaders visiting the President…

Antonis Karakousis

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