Reshuffle and changes after the tranche

The Greek government is now drawing a plan for the next day, taking for granted that the disbursement of the tranche has been decided and the only thing remaining is to establish some procedural details. Without being complacent, it says this development came due to the "successful negotiating tactics of the prime minister that will also bring more than the 31.5 billion of the tranche."

 

The government believes that it the issue of extension has been resolved, no matter the way that the IMF and the EU might choose to finance the Greek debt. They believe that the money to recapitalize the banks, in connection with resources that will be channeled into large projects, will provide liquidity to the economy and will soon change the climate, creating conditions of recovery.

 

They underplay, however, the suffocating conditions of supervision imposed by Germany to unblock the tranches of a total of 44 billion euros. They hope that the budget will be respected after the economy starts rising and enters a recovery course.

 

The prime minister met with the representatives of COSCO and Hewlett-Packard yesterday, in a symbolic gesture to emphasize that henceforth the effort will focus on attracting investment and making Greece an entrepreneurship- friendly country. As he said, similar agreements will develop Greece’s economy and create jobs.

 

As the issue of the tranche is almost resolved, Samaras focuses on the inside. The priority is to restore cohesion in the tri-party government, which was tested in last month's votes. It is necessary in order to address the social discontent and the reactions the implementation of measures will cause to the affected groups.

 

Shortly after the release of the tranche, there will be a meeting of political leaders to redefine the relationship between the parties, the structures and the functioning of the government.

 

The reshuffle requested by PASOK president Evangelos Venizelos is also on the table. The government team does not deny it but says that PASOK will have to decide how it will handle the intra-party issues and whether it will place its prominent members in the government or not.

 

The vote of the measures brought the PM closer to the PASOK chairman and it is clear that they are still striving not just for DIMAR’s stay in government, but also for a more active participation.

 

The left-wing part of the tri-party government will have a critical role in the coming months, while further distancing would cause political developments. DIMAR’s increased participation in government would also restore the PM’s credibility abroad after it was damaged by the votes on the measures and privatizations.