An angry Troika is coming

A new round of tough and critical negotiations is starting in a few hours between the Greek government and the heads of the Troika, who are coming to Athens to complete their assessment of the Greek economy in view of the disbursement of the sixth tranche of the 110-billion-euro loan.

The powerful Troika agents, Matthias Mors (EU), Paul Thomsen (IMF) and Klaus Masuch (ECB), have the first word on these negotiations. And they will initially be informed by the staff of the Troika team who have been here for a while, and will then sit at the table with the economy team of the government.

The aim of all sides is to avoid a potential negative assessment of the fate of Greek economic "conversion" at all costs, as this could prove disastrous for the implementation of the new support program for our country even before it starts.

Despite all this, information indicates that the Troika leaders are worrying about the "paralysis", as it has already been designated, of the tax collecting mechanism and the deep recession that is affecting the economy and is already undermining all objectives.

Thomsen and Masuch are appear extremely concerned about the implementation progress and the failure to achieve the objectives of the mid-term, refusing to blame only the larger-than-expected recession. And they seem especially concerned about the three commitments from the Greek side that do not seem to move forward: the infamous single payroll, the abolition of public bodies and the privatization program.

So, the economy team are required to find a "golden formula" against these odds and especially achieve what has been described by finance minister Evangelos Venizelos in statements at the PASOK cabinet. That is, the redefinition of the schedule, but mainly of the targets of the adjustment program or the alteration of the privatiztions timetable.

It is more than obvious that the numbers are "not adding up" and the government has already abandoned the idea of a 3,5% recession for this year (it might even exceed 5%).

Therefore it will ask the Troika to change the deficit target (7,6% decrease of the GDP) as in a different case the solution is the implementation of new measures.

However, predictions are not on the side of he government, mainly because the Troika cannot decide on any revision of the deficit target. This is the responsibility of our European creditors and particularly Commissioner Olli Rehn, who last Saturday rushed to leave an open possibility for new "sales/guarantees" on behalf of our country to overcome the objections of other Europeans who are still not in favor of yet another "Greek rescue"…