No problem with Manitakis assures Greek premier

This morning the PM Samaras had a telephone conversation with Democratic Left president Fotis Kouvelis and assured him that there is no issue with the minister of Administrative Reform and that the government supports Manitakis’ plan for transfers in the public sector.

The Ministry of Finance last night leaked that negotiations with the troika on reforming the public sector are done by Stournaras. Manitakis’ answer was that in this case the Finance minister should sign the final draft agreed with troika. Manitakis warned that he would resign if Stournaras insisted on the dismissal of civil servants in consultation with troika and he would not accept layoffs.

Besides, he cannot remove him without the assent of the other two political leaders and mostly Kouvelis who has proposed him. In such an eventuality the consequence would be for Kouvelis to leave the government but after retreating on the issue of the extension of the hike he cannot afford to do so with the layoffs as well. And it is not in Samaras’ best interests to have a completely discredited Democratic Left in the coalition government.

Of course, since the government is in full support of Manitakis the entanglement is transferred in the troika negotiations which should overcome its reservations.

The key issue at tomorrow's meeting will be the National Bank - Eurobank merger which is made more difficult by troika’s reservations about the size of the new group that will emerge and the funds that will be needed to recapitalize the banks. The big problem is the troika requirement to change the way in which the director of the new group will be appointed; they don’t want him appointed by the Greek government as is the case now in the National Bank. Maximos Mansion, however, opposes this requirement