Giorgos is about to destroy the Troika deal

fter leaving the government and while he is with one foot out of the door of the presidency of his party, George Papandreou decided to fight the banks, thus putting the agreement on the new loan at risk

Speaking to the Parliamentary Team of PASOK, he raised the flag against the banks, stressing that their help will not be accepted without the issuance of common shares for the government that will ultimately lead to their nationalization, which the Troika has categorically renounced.

“We insist on negotiating with the Troika on this point, which is our commitment to the people”, stated the PASOK president characteristically, who did not fail to mention vested interests: “I have no personal feuds with anyone, but I will never become a puppet”, he said and stated that he regretted not moving forward with the change in the electoral law.

While negotiations between the Troika and the Papademos government are at a breaking point, in the wake of further reductions in wages and pensions, a new thorn is added, which will be a topic of discussion in the meeting of political leaders supporting the government, which will take place on Friday or Saturday.

Deputy PM and Finance Minister Evangelos Venizelos moved along the same wavelength, stressing that “the government finds itself in tough negotiations with the Troika on the method to be chosen in relation to the recapitalization of banks”.

He was in favor of common stock “as the President of PASOK stated earlier”, adding that the three political leaders are called upon to convince their counterparts that this is the correct solution, something which will be judged with the Troika on Sunday.

Mr. Charis Kastanidis this morning expressed a corresponding and... fanatical view , while the categorical way in which the PASOK leadership spoke bordered on sensationalism, as early in the morning the Deputy Finance Minister Philippos Sachinidis admitted that the government is under suffocating pressure from the Troika in order to recapitalize the banks with tools that do not guarantee the right to vote in favor of the public sector.

Specifically, Mr. Sachinidis, responding to a question by SYRIZA MP Dimitris Papadimoulis mentioned - inter alia - that “there is a text which has been circulated by the Troika, which does not raise the use of the existing legislative framework as an issue for discussion, but rather suggests the utilisation of new tools that can give the right to the IFSF to turn these tools into non-voting convertible bonds whereby the fund can proceed with the recapitalization of banks” and added that “this is up for debate”.

Mr. Sachinidis noted that the “discussions are ongoing and in progress… the government has not succumbed, but it is negotiating, keeping in mind the protection of the common interest in order to achieve the largest recovery rate of the money which we will provide for the capitalization of the banking system”.

On the other hand, Mr. Papadimoulis stated that “we have a doctrine: when there are profits, they are privatized, and when there are losses, they are socialized”.