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The Troika wants actions, not promises

14 April 2011 / 13:04:32  GRReporter
2518 reads

We want actions, not promises on paper is the message of the Troika to the Greek government, reports Vima. Obviously, the supervisors from the International Monetary Fund, the European Central Bank and the European Commission have had enough of promises and plans by the Greek rulers and want to see concrete actions beyond those carried out so far, because, otherwise, the 12 billion euros of the fifth tranche of the financial support will not be transferred.
 
The paper refers to an anonymous source that follows closely the talks between the Greek officials and Poul Thomsen, Claus Masuch and Juncker Krueger. The significant differences between the planned and the achieved targets in both the budget revenues and expenditures threaten the regular payment of the financial support, which could become the turning point for the local economy. According to information based on data from the National Audit Office, 87% of the expenditures of the state financial plan are inelastic, constant, in other words they could not be cut, because they cover pensions, salaries, social benefits. The costs that the government is not inclined to reduce further include the subsidies for the social security funds and the health care system, without which the state can not function.
 
Despite the wishes of the Greek government, the reality proves to be particularly harsh especially in view of the first calculations which show two billion euros delay in the plan for deficit reduction. The tripartite supervisory mission recommends that the government should finally get down to work and start the real reforms so as to ensure proper implementation of the plan. According to the Greek edition, they recommend greater cost reductions in all ministries and state institutions as well as a significant reduction in the salaries of the civil servants they employ.

The newspaper reports that the international technocrats have met with a number of general secretaries and senior officials from the ministries that were full of general ideas, but had no concrete proposals and measures. The lack of vision and political courage, comment those familiar with the matter, would cost much higher than the Greek rulers suggest now. By the end of the month, the Troika will send official letters to the Prime Minister George Papandreou and to the Minister of Finance Georgios Papakonstantinou. These letters will contain explicit comments on the program implemented so far and what is required to be done immediately. If they are not taken into account by the time of the next visit of the mission to Athens, Greece could remain unsupported.

"The time has come for major decisions," they said from the ministry and warned of ruthlessness - a reliable promise, but we do not yet know how trustworthy it is.

Tags: EconomyMarketsEconomic crisisTroikaDeficit
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