Galery

1

In my opinion, it is due to a thesis of the ECB, which would like it if measures which are taken in order to cover the fiscal gap would not lead to new funding. Has something similar happened in the past? Has everybody complied with their commitments? I must lay down all possible arguments. If necessary, we will turn to examples of other countries that have implemented similar measures.

Will we insist on the conversion of ANFAs?

We insist that we should respect our commitments under the Treaty of November 2012.

Is our suggestion for the conversion of bonds issued in 2009 within the consolidation of banks contrary to this?

It is a reasonable measure. But yes - it seems to be contrary to the claims of the ECB.

Do you have any suggestions at this point regarding in which direction things are more likely to develop? After the meetings that you had with Mr. Wieser, is there any idea how the financial deficit will be overcome in 2014?

I have. For example, Eurogroup was wondering if there is a "cushion" from the Financial Stability Fund. What could be left in excess, for example ... It is also possible to resort to markets in the second half of 2014. We will put all this on the table; the final decision will be taken in December.

Elections for the European Parliament

We want an extraordinary Eurogroup in April

Regarding debt: first, we had the elections in Germany. Now we are waiting for the Germans to form a government, and it is heard that decisions will be taken after the European elections in May ...

The truth is that they say that, first, the achievement of a primary surplus this year must be ratified by Eurostat, and this will happen in April. We will insist that at the time when this happens, decisions on debt should be taken even at an extraordinary meeting of Eurogroup. Many Member States do not want to take these decisions before the European Parliament elections. But it is unfair to us.

And yet, we have to go to the European elections ...

That’s right.

Have we submitted proposals for a new debt reduction?

We have discussed it.

Can you give us a framework?

Look, right now there are two possibilities. One of them is nominal cuts, and the other is to reduce interest rates, and extend payments. Nominal cuts are excluded by all Member States, although we would like these and they would solve many problems for us. It takes two to tango. Many countries forget this and therefore governments fall. We will therefore resort to a decision that involves many years of extension and further reductions in interest rates...

Within 50 years, for example?

50 years are not an unthinkable term. Of course, there may be a reduction in interest rates. This means that the percentage of GDP of debt will not fall much. However, it will facilitate contributions that have to be paid each year. If this had been done from the beginning, many problems would have been solved. Essentially, this is equivalent to Eurobonds for Greece – let’s put it bluntly. That is, a bond with a very long period and lower interest rate equivalent to the cost of the loan of the European Stability Mechanism.

Are we talking about a 50-year period for the two loans of the first and second support package?

Yes, we are talking about both packages. The first one is easier, but the second one is not something that is ruled out. We can fight.

Some will hasten to say that we get crumbs because they refuse to reduce our debt...

Why crumbs? Last year we paid 12 billion euro for interest, and this year, 6 billion euro and we intend to further reduce this contribution. Are these crumbs? Is a Eurobond a crumb? Let me tell you something. Regarding complex issues such as the viability of the Greek debt, we should avoid unilateralism. Cutting the debt is not a panacea; it will not have the same result in all cases. Whether the debt is viable is determined by investors if the debtor pays the interest.

We are talking about partial access to the bond market. How many years are needed in order to get full access?

It is difficult to make such a forecast. Factors such as good climate, psychology, and recovery of liquidity mechanisms are important. We want to believe that if there are no negative events internationally and if we continue with our financial policy, this will happen within 2 years.

Why should markets now rely on Greece?

Because Greece has made huge advances. At the previous Eurogroup, I talked about the surplus. This should be our argument - this appropriate measure. From 2009 to 2013, GDP has improved by 19% as a result of the government policy. This shows our great efforts and sacrifices of Greek people in order to avoid bankruptcy. Markets recognize these efforts and reward us.

Many analysts believe, however, that in order for foreigners to start reinvesting their capital in Greece, they need to be sure that we will continue to adapt under the continuous supervision by the EU. Will we never escape from supervision?

The previous Eurogroup "blessed" Ireland and Portugal to leave the programme. The time will come, when the same will happen to us. Remember that if, for example, spreads of bonds are an indicator, today this indicator is where Italy’s indicator was last year. This shows roughly where we are.

What will be the price to pay to let us back to markets?