New measures haunting the government
There is immense pressure from the Troika in order for new measures to be taken and for the necessary guarantees to be given by the government so that both EU leaders and lenders are reassured.
The doubts that were expressed in the Ecofin meeting and the hurried return of the PM in Athens created many scenarios of bankruptcy or elections - as a result, there was mayhem inside and outside the country.
The situation will be discussed with as much calm as is physically possible, but things seem uncontrollable:
The Troika seems to be asking for very strict measures, such as firing thousands of public servants immediately and increasing taxes. It is unknown whether the demand is accompanied by threats - whichever those may be - apart from the delay of the 6th installment, and whether we would be led to a payment stoppage.
Minister of Finance Evangelos Venizelos seems to have asked for the PM to be in Athens, since he cannot decide upon the new measures by himself. Information came forward that he will not hesitate to resign if the demands of theTroika exceed certain limits, or if there are some that will not support the measures.
This decision of Mr. Venizelos' to call the PM is said to have displeased Mr. Papandreou, who had arranged important meetings. The climate was even worse since the PM's trip had already displeased many members of the government since they couldn't understand why he had to remain abroad for so many days when the situation here is so critical.
Therefore, in this climate scenarios of elections have emerged with the excuse that there is no consensus. This "election talk" seemed like a measure of pressure on the part of Mr. Venizelos towards the PM, something that enraged the Prime Minister's circle. However, elections are now being dismissed as absurd by all sides.
In order to alleviate the situation, Mr. Venizelos said there is no threat of a bankruptcy, simply a need for "serious and final decisions. It is the time for all possible initiatives in organisation, management, law and other sectors to be taken immediatelly in order for the country to move forward.
it is unknown at this point whether the situation is irreversible or it is simply a case of the government making it seem worse than it actually is in order to pass harsher measures.
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