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Leaders from the Troika arrive tomorrow with two "penalty cards in hand" for the new public payroll and privatization and at least for a week "will be sieving" the government's achievements in terms of assessment for the granting of the sixth tranche of the loan in September. 

However it is expected the high ranked Troika representatives to ask for explanations of the slowdown and weak earnings results in combating tax evasion and due to the deeper recession they tend to show a certain dose of tolerance, but only for limited deviations from the fiscal targets. 

In any case European Commission sources, expressed their surprise from the scenarios for renegotiation of the timetable and objectives of the medium-term program because of the recession and noted that the representation of the community participates in discussions "with a positive attitude" to support Greece, provided that there is conviction to strictly implementation all commitments. Based on sources the Troika leaders will ask for more clarifications on the implementation of the single payroll table, since they have been listening with concern about the "public payroll speed." 

Serious problem for the Troika officials is also the privatization process, which they say that "progresses at a pace of a turtle." The results have lowered the bar of expectations in terms of total revenue from 50 billion euros to 20 billion euros. Naturally, there is some understanding of the fact that the "sinking" of the Greek Stock Exchange index of listed state-owned enterprises acts as a brake for their privatization. 

Delay in Revenue 

First on the agenda are the pace of structural change and the delay of revenue. The European Union is expected to ask for explanations by highlighting the scourge of tax evasion, which is well established, with strengthening of the worsening crisis. It should be emphasized that the Commission was surprised by the information about the mood for renegotiating the timing and medium-term objectives of the program because of the recession, which is expected to be more severe than anticipated. 

The Commission stressed that they will have a full picture of the recession for 2011 on September 6, with the publication of data by Εurostat, and primarily on October 24 with the second report on the deficit and debt of the 27 member states. However, Troika officials are aware of the state of the recession and expressed their concern that "it will get worse until the end of 2011." 

In this situation, they are willing, within certain limits, to show some flexibility in their requirements, but senior officials in the Commission leave no room for relaxation in the evaluation of the Greek government as for the commitments it has made on the basis of the medium-term program. 

They will stay in Athens as long as necessary 

Sources from the European Commission did not exclude the possibility that the Troika may stay in Athens longer than planned, provided that there are complications in the talks and significant deviations from the agreed targets. 

Interesting is also the fact that the Commission fully explained that this aid will apply to the 6th tranche of the old loan, and not to the first tranche of the new loan agreed upon on July 21. And this is due to the emerged complications on the issue of guarantees that delayed the finalization of the new European assistance. 

Aid 

"We want to help you, both for our sake and for your good. You only need to show that you have rolled up your sleeves and have embarked on achieving the objectives." This statement by a senior officer of the General Directorate of Financial Affairs of the European Commission indicates fully the state of mind of the Troika. 

This position is reinforced by the fact that the Head of Mission of the European Commission Matthias Mors is mentioned among the Directorate General as "fair, a man of moderate tone, and everything else, but not go-getter, unlike his predecessor in Servaas Deroose" .