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22 June 2013

Reuters: Greek PM - Political crisis, privatisation gap won't derail bailout


Prime Minister Antonis Samaras said that Greece's recent government crisis and failure to meet privatisation targets would not derail an international bailout.

Samaras's government saw its parliamentary majority sharply reduced after the small Democratic Left party left the ruling coalition to protest against an abrupt shutdown of the state broadcaster ERT.

Samaras and PASOK leader Evangelos Venizelos are expected to meet to update their coalition agreement and arrange a cabinet reshuffle. According to Greek media reports, Yannis Stournaras is expected to remain finance minister. The new government will have to conclude talks with the so-called "troika" of international lenders - the European Union, the International Monetary Fund and the European Central Bank - who return to Athens later this month for a regular review of Greece's compliance with the terms of their bailout.

In their updated coalition agreement, PASOK and Samaras's conservative New Democracy party are expected to reiterate their pledge to meet Greece's fiscal goals, while rejecting new austerity measures and agreeing to pushing the lenders gradually to allow tax cuts to help soften a deep, six-year-old recession.

Full article



© Reuters


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