An attempt to beautify selective default

he next days are quite critical, as stated by Prime Minister George Papandreou speaking during the cabinet meeting and referring to the latest developments in Europe concerning the Greek debt issue.

Papandreou noted that in recent days the European partners: “are pressing more and more for overall solutions”, since “they are now facing the truth” that the problem is not solely Greek, but “a broader structural problem for the future of European countries”. “Our goal”, he added “is the possible reduction of the burden being carried today by the Greek people. Our aim is to leave the deficit of Greece behind and create production and surpluses”.

Finally, he stated that opportunism should not be allowed. “Deliberately confusing terminology used by rating agencies in technical rankings brings on painful situations for the real economy and the citizens”.

A message of national unity and calm to the citizens and opposition parties was sent out by Finance Minister Evangelos Venizelos speaking in Parliament, while reassuring them that selective default is not bankruptcy and that there shall be no problems.

Furthermore, the minister addressed the opposition parties dramatically, stating: “Have mercy and show national unity. Those who pay are the poor people, not the rich people who have pulled out their money. This is no time for petty party comments and wordplay”, while he reserved a separate remark for Mr. Antonis Samaras, whom he accused of demagoguery and wordplay. He also called upon the opposition to “support the government and follow through with military-like consistency”.

“I am acting on behalf of the Prime Minister but as a minister, I have a responsibility to the people. I urge people to listen to their government and the minister who  informs them responsibly. We are fighting to stabilize the situation; the handling of the said situation is fine and is following a planned course. Demagogic and irresponsible statements are dangerous”, he underlined, adding that “there is no danger or threat of bankruptcy, nor will anyone be allowed to play with words and the distress of the citizens, as well as the state, and no one will be allowed to play with institutional entities”.

In addition, Mr. Venizelos clarified that there is no problem with the Greek banking system, which is “completely covered and secured”. There is not, nor will there be any problem of funding safety. The latest downgrade from Fitch came without any real effects on banks, and the same applies to the results of stress tests that we will have tomorrow.  There is no problem, and that is my institutional and unequivocal affirmation”.

“If some try to be populists and translate the ‘selective default’ term differently, I tell them that this is neither bankruptcy nor default. It is a temporary rating of Greek bonds. We need to be serious and stay calm”.