The leader of the right New Democracy Antonis Samaras wants a change in the administration of four key ministries in the new coalition government, Greek media reports. The Ministry of Defence, Ministry of Citizens Protection, Ministry of Internal Affairs, Ministry of Regional Development, Ministry of Justice will have new heads after Papandreou has agreed to resign as prime minister and convene a provisional coalition government.
The fourth position which the right leader insists on being changed is the position of the government spokesman, who will present the new government group. It will provide for the financial aid to Greece for the next four years and will hold early parliamentary elections in February next year for the country to achieve the political stability needed for the long-term recovery programme.
After the political madness, as the Austrian press calls the recent developments in Greece, the time has come for the real work of the Greek government, which has severely lagged behind in the performance of their duties related with the financial aid from Europe and the International Monetary Fund. At the last meeting of the Socialist Council of Ministers seven tasks were outlined that should be implemented in order for Greece to continue to receive international financial support. The payment of the sixth tranche of € 8 billion by December 15 is the first task that should be resolved immediately and today, the Minister of Finance Evangelos Venizelos has left for Brussels for the meeting of Eurogroup.
Meanwhile, the new leaders must quickly make a good impression on Europe and the International Monetary Fund, which in recent days have lost almost all confidence in Greece's ability to deal with important external and internal political issues in a reasonable manner. They should enter into immediate negotiations for the European Financial Stability Facility to negotiate the terms and timeframe in which the new bailout should start and at the same time, to persuade the International Monetary Fund to support the new Memorandum.
These processes will revive the issue related to the government guarantees that Finland requires from Greece to participate in the bailout that has been forgotten in the last month. Once the new government is composed, immediate negotiations and consultations will begin on the objectives under the Memorandum and the implementation of the budget for 2011. The draft budget for 2012 should be submitted in parliament for first reading by November 20 and passed by December 31 this year.
To do all this, however, the programme for the second medium-term financial aid must be supported by three-fifths of the deputies, or about 180 votes. The main features of the programme include a new € 130 billion (€ 100 billion for the economy and € 30 billion to recapitalize banks in need) financial assistance and 50% reduction in the face value of Greek government bonds, which will cut the Greek debt by about € 100 billion. The rescue fund for banks with fresh European funds should be established and ready for action by early January next year.
By the end of February 2012, Greece should receive the first tranche of the new bailout, which is estimated at € 20 billion. The amount is significantly higher than previously obtained, because at that time a large bond package worth € 14.4 billion will mature.
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