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live The fall of Papandreou: CNN advises him to get a helicopter

04 November 2011 / 16:11:17  GRReporter
4199 reads

Papandreou has to be sure that a helicopter is waiting for him on the roof of the presidential residence to save him from angry protesters - like Argentine President Fernando de la Rua in December 2001, CNN draws the fate of the Greek Prime Minister. The analysis of the Greek drama makes a comparison with the Argentine crisis of 10 years ago and there are more than a few similarities between the economic situations of the two countries.

In both cases, there is a drastic increase in interest rates on external borrowing, which is followed by a serious decline in competitiveness. Both Argentina and Greece continue to import more than they export, the negative trade balance is increasing and the foreign debt is growing uncontrollably. For some time, external borrowing has maintained the standard of living, but after problems have been brought to the surface, there comes the time for action. Instead of radical structural reforms that will quickly reduce budget expenditure, drastic tax increases are being implemented, although both countries are not able to take an increase in the tax burden.

All this leads to persistent and increasingly violent public protests, which for two years and one month have made the PASOK government not only unpopular, but also unwanted by the Greek people.

"Greece’s PM faces knife-edge vote," reads the homepage of the online edition of BBC. The edition states that the decisions to call a referendum have confused and shocked the European leaders and even if the government obtains a vote of confidence, the fate of Greece remains unknown.

No one is taking the risk of forecasting the next move of hereditary Prime Minister Papandreou. The Washington Post notes that the opposition New Democracy led by Antonis Samaras has requested extraordinary elections by the end of the year. Papandreou has refused this proposal and today a crucial vote of confidence is expected. The publication stresses, "However the situation is resolved, it seems unlikely that Greece’s participation in the bailout will remain unsettled for more than a month, as had earlier appeared to be the case." In other words, the Europeans will not wait indefinitely for Greece to wander to give it the financial aid agreed at the end of last month.

Der Spiegel comes out with the title "White flag from Athens" as a comment on the withdrawn proposal for a referendum. The publication notes that this decision of Papandreou’s is the result of political pressure by Europe and states, "We are observers of a unique political setting."

Reuters focuses on the recovery of markets after the Greek Prime Minister has withdrawn his decision for a referendum. They describe the vote of confidence as "a cliff-hanger confidence vote." The edition refers to government sources, according to which even if the vote of confidence passed, this government was counting the days until the end because Papandreou had agreed to withdraw after the start of negotiations for a coalition government.

No hope is given however in the title of The Independent, which reads, "Euro chaos: Britain prepares for the worst" , and the text explains that the UK is drawing up plans in the event of a possible collapse of the entire euro area. "Greece's financial future remains entirely uncertain, after an extraordinary day of rumours and reversals in which Prime Minister George Papandreou finally gave up on his plan for a referendum and appealed for national unity."

Because the world already knows that all decisions in Greece are next to the last, the current lull comes before the storm. All are awaiting the developments of the vote of confidence and the manoeuvre the political opposition will make to oust Papandreou and provide for the financial aid to the country.

 

Tags: PoliticsPapandreouWorld mediaConfidence voteGreek parliament
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