Prime Minister Lucas Papademos chaired a government meeting at the Maximos Mansion on Thursday, focusing on the government's economic programme and, according to reports, the prime minister presented to ministers a text of general principles in light of the crucial negotiations being carried out by the government.
According to the same reports, the ascertainment made many times was reiterated at the meting that the PSI and the new loan contract are interrelated, "everything is interrelated", as it was said characteristically, while a troika's report is also expected on the viability of the Greek debt based on the "completion" terms of the PSI.
If it is assessed in this report, in which other indicators are also jointly assessed, such as the economy's growth rate, that the Greek debt is not viable, then the PSI will change, after it is pointed out first which points must be amended. It is also noted that if the European Central Bank "enters" the PSI, the final agreement will take on different characteristics, while on the other hand there are various assessments by analysts as well as institutional officials that if this does not take place, there may be a "funding vacuum", in which case the question also arises "who shall cover it."
The same sources added that the guidelines were placed on the meeting's table of the upcoming tough negotiating with the troika, on the 10-page note that was prepared by its representatives and in particular all the aspects of the labour and salary issue, as well as the way of covering deviations of the 2011 budget amounting to 2 billion euros. Papademos, according to the same government sources, pointed out to the ministers the great pressure of time that exists for the negotiating on the new loan contract to be concluded and that the funding of the Greek economy is at stake. It was also revealed that this note containing the demands of the creditors for the country's funding has been given to the party leaders and the ministers involved. It was also stressed that the negotiation must have been agreed by February 13.
Also examined in the meeting chaired by the prime minister were the requirements set by the troika, such as labour issues, auxiliary pensions, organisms' mergers, various institutional issues (such as issues concerning justice), taxation issues, issues regarding the awardings and procurements of public projects and other institutional issues, such as various decisions that have been submitted to the ministerial council and are not yet state laws.
According to the same reports, signatures will be needed on the part of political party leaderships, however it has not been clarified at which stage of the discussions such a thing will be required and, lastly, the possibility of a meeting of party leaders with the prime minister on Saturday remains open.
SOURCE: ATHENS NEWS AGENCY