“150.000 public employees will have to go”

In the beginning of his speech at the Economist conference being held in Lagonissi, PM Giorgos Papandreou spoke for evidence that the country is emerging from the recession, in the form of "rays of light".

He said he is determined to take any additional measures to lead the country out of the recession and announced voluntary departures from the State in order to reduce the number of employees by 150.000, together with retirements and contracts.

The PM made special mention to the decrease in the deficit by 5 points, to a series of reforms in the public sector and the professions, as well as to factors such as increased exports, improved competitiveness and enhanced shipping and tourism.

He noted the 0,8% GDP increase in the first quarter of this year, in comparison with the last quarter of 2010, and the steady decline of the inflation rate in the economy, data that he identified as indicators of an exit from the recession.

In addition, Papandreou stressed that public employees have decreased by 82.000, about 10% that is, and acknowledged that every Greek citizen has made great personal sacrifices for the reforms. He also said that the government will review allowances and tax exemptions, while special emphasis will be placed on combating tax evasion.

He talked about privatizations of 50 billion euros, referring to the prospect of reducing the State’s participation in OTE, PPC, OPAP, EYDAP and the ports.

Once again, he rejected the debt restructure scenario – the benefits would be much fewer than the costs, he mentioned characteristically, and identified the creation of a primary surplus as the key objective of the economic policy.

Moreover, the PM called for a national understanding in order to get out of this unprecedented crisis; a national understanding, which he described as a "national necessity", even shifting his speech from English into Greek.

Finally, he referred particularly both to Greece's relations with the Arab world and the importance of its relationship with Israel, which is expected to play an influential role in Europe's energy supply.