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Cleavage in PASOK

07 March 2010 / 13:03:10  GRReporter
2693 reads

The new restrictive measures for the rehabilitation of the economic stability blew up not only the public but also the political circles in Greece. While the unions and the radical left opposition were protesting in front of the Parliament inside was held another discussion regarding the acceptance of the new bill “Protection o the national economy – additional measures for mastering the financial crisis”. The economic crisis in the country turned upside down all the known rules of politics and turned the members of two completely different parties into adherents – the extreme right party LAOS and the governing socialistic party PASOK.

The discussion in the Parliament grew into a pen duel between the members of the governing party when the Deputy Minister of Finance Filipos Sahianidis stated: “When you go to borrow money you have no possibility to set the rules of crediting yourself.” This statement of the deputy minister came in support of the increase of the VAT by two points and the cuts in the expenses in the public sector. Measures which have to show the external markets that Greece has the will to handle the financial crisis and does not only count on the support of the European Union.

The leader of the parliamentary group of PASOK Hristos Paputsis on the other hand sharply attacked the words of the deputy minister Filipos Sahianidis and even asked him ironically: “Do you even know to which government you serve as a deputy minister of finance?” Paputsis made some sharp critics towards the economic policy of the socialistic government. He accused the socialist governors of their right centrist approach and incompetence. Hristo Paputsis did not forget to make an accusation also to the Minister of Finance Georgios Papakonstantinou and the Minister of Economy and Development Luka Katseli. According to him the two ministers have not stipulated any measures for the strengthening of the production and the economic growth and the result of the current economic policy will be an even deeper recession and impoverishment.

Many economic specialists share the opinion of the leader of the parliamentary group of PASOK that the Greek government has to take some immediate measures for the rehabilitation of the production in the country. The specialists comment that the acceptance of the second package of restrictive economic measures will lead to the shrinking of the internal economy and if the government is not ready with a plan for subsidizing of new projects, the economic agony of the country will last for years. Regarding this matters are also growing the rumors that the government is discussing the possibility of appointing of a person who will coordinate the four most important ministries (of the economy, finance, infrastructure and environment). His task will be to follow and synchronize the activities of these ministries in the field of the development of production. The name of person who is currently mentioned to take this position is the former deputy chairman of the European central bank Luka Papadimou. Experts are saying that Papadimou is not very positive about this candidature, however he has not yet given any official statement.


Tags: PoliticsEconomy recession
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