Urgent meeting between Papademos and Vanizelos

Following the meeting between Venizelos and the Troika auditors, the minister of Finance and the PM are examining the latest data as it now stands after the ECOFIN and the Eurogroup yesterday Monday.

Lucas Papademos and Evangelos Venizelos are seeking the appropriate strategy that will allow Greece to escape the clamp of the debt and the new recovery measures. The next critical date is the summit on January 30.

According to the Greek version, the PSI problems arose because of the IMF’s refusal to give more money to Europe.

So that leaves Germany and Greece. Given that Berlin is not known for its generosity, the point is that the government will be under pressure for new measures. Otherwise, it will have to risk an involuntary solution to the haircut through the activation of compulsory participation clauses.

A difficult decision for Athens

The decision will be very difficult for Athens as beyond the social strengths that are exhausted, it has been shown that constant measures plunge the economy into recession more and more. As a result, the estimate for 2020 has increased to 150% despite the haircut.

"The key is to have satisfactory growth rates by 2020 and after that," said Evangelos Venizelos speaking to reporters in Brussels. "We need to create a state of security and certainty in Greece, one where the Greek economy can operate as well, attract foreign investors, proceed with privatizations and return deposits to Greek banks, in order to halt the recession and have a better macroeconomic framework for the coming years."

The new loan agreement will follow. The crucial element is the reassurance that our country can undertake its commitments and carry them out. "So, we must make commitments for the current period and the period after the elections. And this must be done now. There will be a signed commitment from all", Venizelos said.

The cabinet and the parliament will be informed on all these issues in the coming days, while new appointments of the PM with the political leaders are not excluded.