Reservations and questions about the Troika’s "numbers"

The final deal between the Troika, the government and its supporting parties leads to strange and dangerous paths. Political factors involved in the government, ministers and members of the economic team are keep their distance and suddenly expressing doubts about whether we actually need to agree to a huge new adjustment package of 4.4 billion euros in the name of the economic survival of the country.

This means that at the time of the culmination of the bargains which will literally determine everything (from the new measures, the new loan, the haircut or our defaulting to the fate of the parties and the government, the possibility of immediate elections, etc.), doubts and reservations are being raised about the magnitude of the Troika requirements, even within the government.

Speaking at toprotothema.gr, a major player at a crucial ministry for the implementation of the memorandum says "it’s inconceivable that the Troika only last week sent us its 10-page book of mandates requiring financial correction at 1% of the GDP and measures of 2.2 billion euros, and within a few days we are having to discuss a 2% hole and measures of 4.4 billion. What if tomorrow we find out that suddenly we need, let’s say, 8 billion, as a "cushion" not only for 2011 and 2012, but for 2013 as well? Who will keep count then?"

So many seem to want to develop their own red lines moments before the critical consultations. Ministers, policy makers and party members are express concern about whether they must commit and to what exactly, while more and more requirements and data are being placed on the table. The Troika seems to be exhausting its negotiating constraints with measures that must be finalized by the end of the week, and which will form the basis of the new memorandum. The IIF has proven to be an aid towards this purpose, saying last night that the sacrifices and the considerations for the new loan must reach a conclusion in order to have a favorable closure to the haircut deal.