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Fears of cancellation of the July 21 agreement

Fears of cancellation of the July 21 agreement

The government’s worst nightmares are returning, seeing as all the efforts and sacrifices of the Greek people to exit the crisis may have been in vain, as the Troika is threatening us with the most painful consequences such as bankruptcy and an exit from the euro.

The government’s worst nightmares are returning, seeing as all the efforts and sacrifices of the Greek people to exit the crisis may have been in vain, as the Troika is threatening us with the most painful consequences such as bankruptcy and an exit from the euro.

All the horror scenarios were discussed during the cabinet meeting on Sunday, with Venizelos warning in every direction that the European Union is now reviewing the crucial decision of July 21, which would enable Greece to join the support mechanism and ensure smooth lending at least for the next three years.

The situation on our partners' part, based on which the government is called upon to make decisions, is that they are one step away from a critical review of the agreement, both because of the reactions exhibited by national parliaments and of the failure of Greece to meet its commitments. Bankruptcy is unlikely to be avoided in case of a revision, as it would mean the permanent removal of any trust the Troika has put in the Greek effort.

And just because things are so marginal, it was decided on Sunday not to announce additional measures, but to give the go-ahead to Venizelos to commit to any measures required by our European partners at today’s teleconference with them.
 
The government seems determined to fulfill every request, although internal voices urge not to exceed a certain limit and prefer to lead the country to elections. A subtle threat about resorting to the polls was included in Venizelos’ intervention on Sunday evening, when he ascribed heavy responsibility to ND and Antonis Samaras for their attitude and also criticized the attitude of the media, which question the seriousness of the situation.
 
Now, the government must focus on persuading our lenders that it will meet the 2011 government target in every way, even if the special fee on real estate, to be imposed by the PPC, may not perform adequately.
 
However, the problem the government is now facing is the very unstable situation inside the country as uncertainty can have cataclysmic effects, especially on the banking system. For this reason it will seek to receive a positive message from the Troika as soon as possible to restore some calm and assuage public opinion.
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