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Project for a Second Memorandum While Unions are Asking for the Annulment of the First One

27 July 2010 / 16:07:46  GRReporter
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The Triple insists on faster implementation of reforms in state companies, proceeding to a unified system of salaries and general forms, reorganizing the hospital finances and on opening closed jobs.

“It's not to be taken additional financial measures” confirmed yesterday a member of the economic team, adding that the state has already saved € 4 billion by cutting costs, which can be used to cover urgent needs in hospitals, state enterprises and insurance funds.

We are pushing also structural changes, beginning with the reorganization project of the Greek state railways. Proposals for reforms in urban transport will be submitted this year too. Once the Triple completes the revision, a team composed of representatives of the European Union, the European Central Bank and the International Monetary Fund will write a report on the Greek economy progress. The government will sign an agreement or second memorandum with the IMF, the EU and the ECB according to which the following reforms will be made:  

1. Reorganization programs for all unprofitable state enterprises

2. Opening of closed jobs. After road transport come lawyers, notaries, pharmacists and other professionals whose revenue or profit limit is determined by administrative decisions.

3. Reorganization of hospital finances. Teams of auditors will review the finances of all hospitals.

4. Composing identical tables for public sector employees’ payment and the dialogue with the union of the public sector employees will begin in September.

The controlling team for Greece expressed its satisfaction that the changes anticipated for June were met. It also expressed bewilderment about soaring inflation and concerns about the inability to reduce costs of state enterprises and hospitals.

They said from the Ministry of Finance they were confident that the second installment of the loan payable on September 13 and amounting to € 9 billion is ensured. The report of the Triple will seal its payment. It will reflect the financial situation, the reforms and the structural changes that have taken place and will specify the next steps.

The presence of the Triple’s team in Athens led to discussions on government reorganization as the examination and the findings will act as a stress test on ministers. The Prime Minister George Papandreou probably will necessarily compile a new list of ministers who will run the same pace without lagging.

The first day of the Euro monitoring coincided with three strikes against the new bill presented by the Minister of Transport Dimitris Repas. The situation in Greece with the queues at the gas stations, the strike of trucks and tanks owners, the dispatchers’ “white strike” and the threat of strike by the owners of gas stations clearly revealed the difficulties in implementing the Memorandum. On one hand, the ministries have to begin structural changes, but on the other – the government faces rebellion of workers and the Triple wishes to preserve public peace. But the time for reforms is scarce and as Minister Repas said for Mega Channel: “Everything must be done quickly. We have no time to lose.”

Meanwhile, the Athens Attorney Association announced that cancellation of the Council of State’s memorandum will be requested on July 29 and there will be a press conference the same day.  

Towards the payment of € 9 billion from the support mechanism for Greece

Monday - July 26

The team of the Triple started revisions to verify payment.

Today, tomorrow and on Thursday

Team meetings of the Triple with government ministers, representatives of the State Debt Management Agency, the Federation of Greek Industrialists, the Bank of Greece, the National Audit Office and the Statistical Office.  

August 2 to 6

Making a report on the results of the examination, which will describe the achieved progress and will determine the next steps.

August 6

Leaving Athens. Most likely there will be a press conference during which will be distributed text with the first results of the examination.  

August 20

Session of the working group of the European Commission, dealing with the implementation of the Memorandum.

August 23

Greece submits to the European Commission a formal request for approval of payment.

The specified term is 15 days.


September 7

Session of Εurogroup, formal permission for the payment.

September 10

The Administrative Board of the IMF meets in Washington to approve the second installment. 

September 13

EU’s payment of € 6.5 billion to the account of the Greek State in the Bank of Greece. IMF will pay € 2.5 billion on the same or the next day to supplement the second installment of the support mechanism.

In short from Vima Newspaper

Tags: NewsPoliticsReformsState companiesAuditorsHospitals
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