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Greece will not seek an extension of its bailout package

08 February 2015 / 22:02:10  GRReporter
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At the moment, Greece’s Prime Minister, Alexis Tsipras, without his usual broad smile, is presenting the policy statement of the government of SYRIZA and Independent Greeks in parliament. The presentation will launch a three-day debate, scheduled to finish either Tuesday night or Wednesday morning, with a vote of confidence for the government.

Tsipras said that his government's view remained unchanged and no extension of the current bailout programme would be requested. On the contrary, the European partners will be offered a new bridging programme supposed to last until June.

The balconies of parliament are chock-full of people who had occupied their seats well before the beginning of the meeting. The Honorary President of New Democracy, Konstantinos Mitsotakis, is among the crowd as well: he said he came to hear the prime minister’s speech.

"Not only technocrats participate in these negotiations. There is another important factor. The Greek people and the peoples of Europe. Austerity is catastrophic, a technical solution to the debt will be found. Respecting its financial targets is the responsibility of Greece. Not austerity," Tsipras pointed out, and added:

"A clarification to all: we won't negotiate our national sovereignty. The memorandum was cancelled by the people. The new government is not entitled to seek an extension of the Memorandum. We want a bridging programme until June. This is what we're striving for: a new agreement with the partners, a bridging programme. Despite all difficulties, there are proposals to find a solution in the negotiations with our creditors. The new plan will respect the rules of the euro area, but will not condemn us to a recession."

"Europe must not commit a nation to humiliation. I can assure the national representation and the people that we are working firmly and steadfastly toward an agreement with the partners, and we will achieve it. "

The prime minister directly accused the former government for having deliberately sought a two-month programme extension until the end of February, at a time when Europe was offering a six-month extension. Its purpose, according to Tsipras, was to leave the new government amid a ‘scorched earth’, pinned down by impossible negotiating deadlines.

"The example of humble life must start from us," said Tsipras and added that he would ask the president of the parliament to cancel benefits like MP’s vehicles.

The Finance Minister Yannis Varoufakis

Tsipras announced the following government targets:

  - measures aimed at dealing with the humanitarian crisis, i.e. provision of free food, electricity and health care;

  - restoration to work only for cleaners, school security guards and employees of university administrations. Their numbers must be consistent with 2015 appointment limits.

At the same time, the prime minister announced spending cuts, starting with the privileges of MPs. He said:

  - the number of employees in the government building will be reduced by 30% and the prime minister's security outfit – by 40%;

  - the number of ministerial advisers will be cut as well.

"We will create an investigative commission on the memorandum," Tsipras stressed.

He also announced the restoration of the old national television ERT. "We will recreate the ERT from scratch. The new national TV will only be sustained by subscription fees and will not receive any support from the state budget. ERT will be competitive in Greece and abroad, will broadcast everywhere, without revanchism and without huge fees, according to the government's plan. "

The first comments of analysts are that Alexis Tsipras’ policy statement drags Greece into direct conflict with its European partners ahead of the Eurogroup meeting on Wednesday and the summit on Thursday. They remind that the President of the Eurogroup, Jeroen Dijsselbloem, gave a clear sign that Europe would not furnish bridging loans to Greece.

Meanwhile, the former chairman of the US Federal Reserve Alan Greenspan said that Greece's exit from the eurozone is inevitable. He told the BBC, he could not see anyone who would want to extend more loans to Greece to boost its economy.

"I do not think that the issue can be resolved without Greece’s leaving the eurozone," he said and added: "I think it is just a matter of time before everyone recognises that parting is the best strategy."

Tags: policy statement Alexis Tsipras government of SYRIZA and Independent Greeks
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