Papandreou asks Europeans to calm the markets

“We are continuing to overcome the challenge we face”, stated the PM after his meeting with the President of the European Council in Brussels. Mr. George Papandreou, who made no joint statements with Mr. Herman Van Rompuy, essentially confirmed that ten days before the crucial summit on Oct. 23rd, the countries of the EU are divided.

“The challenge is to reach a comprehensive and lasting solution to the crisis facing the Eurozone”, Papandreou stated, identifying the stakes of the upcoming gathering of EU leaders.

Without revealing details of what Mr. Van Rompuy said on the contents of the configuration of the package solution’s, Mr. Papandreou underlined the importance of deepening economic and intergovernmental cooperation, strengthening the EFSF and stabilizing the European banking system

Speaking in English, the PM assured journalists of the international media that his government is implementing a reform program. “The Greek people want change”, stated Mr. Papandreou, conveying the Greeks’ commitment to implementing any changes “as painful as those may be”. The fact that the PM only generally alluded to last week’s statements by Mr. Sarkozy and Mrs Merkel  is interesting, as he confined himself to referring to the positive messages by Greece’s institutional partners.

Mr. Papandreou’s statement after his 50-minute-long meeting was:

“Good afternoon,

Our Summit on October 23rd is called upon to decide on a comprehensive and lasting solution to the crisis in the Eurozone.

After my meeting with President Van Rompuy I can assure you that we are moving forward to meet this challenge.
And this comprehensive package will include issues such as the need for deeper economic cooperation, integration and governance, the strengthening of the EFSF and the strengthening of the European banking system.

A crucial element is to make the necessary decisions concerning Greece, building on our recent summit conclusions of July 21st.

We need to ensure confidence and calm in the markets.

We need to lead to sustainable growth and investment.

Because Greece has great potential but this potential has in the past been mismanaged.

That is why we are moving ahead with major reforms.

We are implementing radical changes throughout the Greek economy and public administration to guarantee competiveness, productivity, growth, transparency and social justice.

In this respect, the recent statement by institutional partners shows the positive momentum we have achieved.

As I have told President Van Rompuy, It is the Greek people that want change. We want change in Greece. And however painful they might be, we are committed to make these changes in the best interests of the Greek people, defending their right for a better future, a most prosperous and just future.

Again, we are all now aware that we also must tackle flaws in the institutional design of the Eurozone.

So I’d like to add my voice to those who believe in a deeper and stronger Europe – such as the 96 personalities who yesterday called for a European solution.

This is the task – but I am more optimistic that there is a new will to live up to this common challenge for Europe.

So I believe we can make this crisis an opportunity for success both in Greece and in Europe”.

Informing  journalists, government spokesman Mr. Mosialos stated that the government is negotiating proposals whereby the improvement of the July 21st decisions can be pursued. Mr. Mosialos underlined that the basic need is to lighten the load that the Greek people are called to carry.

According to Mr. Mosialos, extending the payback period or reducing the lending rates in Greece would lighten the load. Avoiding mention of a possible debt “haircut” that will mean the assumption of default, Mr. Mosialos cited data in which Greece spent 12 billion to pay off interest in 2009, a sum which in 2012 is expected to soar to 17.9 billion.