We’re making 100 but we owe 166!

According to the EC, which today released its Spring economic forecasts, Greece’s public debt will reach 166,1% in 2012.  

However, speaking from Oslo, the Prime Minister stressed that the Greek debt is manageable without restructuring. As stated in his speech at the meeting of the Conference on Progressive Governance on: “The Agenda following the crisis for the center-left”, we have decided to remain within the Union and defend the euro.

The PM referred to a series of measures implemented by the Greek government, such as deregulation and changes in taxing and insurance, and their results which, he said, is the reduction of the deficit by 5% in 1 year, the rise of exports and the positive signs of progress in tourism. For his position regarding the management of our debt he relied on the assessment of IMF.

“The Greek drama has become a European drama” he said, adding that this crisis is testing European identity, solidarity and ability to manage of such situations.

During the debate, the PM said that the defects of the monetary union in Europe were revealed by this crisis, and referred to the need for the establishment of Eurobonds, and the law on financial transaction tax.

Papandreou also mentioned that the problem of immigration has become huge and noting that these problems are not easily dealt with, added that they must be addressed in a collective manner and that it is possible to resolve them.

Conservative politicians pursue policies of fear, he said, which are reproduced by some media, but progressive politicians implement policies of hope. As for the European course, he estimated that Europe does not go far enough, although it is a potential answer to the crisis.

Regarding Greece, Papandreou said that it is the key throughout the Balkans and the Mediterranean. Referring to the crisis, he said that we can look at it as an opportunity for a new model of “green” development. He also stressed that competitiveness is not only having to deal with debts and deficits, and that the real challenge is to “humanize” globalization.