In his first address as Prime Minister of Greece, Antonis Samaras said that he asked the Troika for a two-year extension to meet bailout objectives and in exchange for this move the government is ready to commit to a more ambitious privatization plan than previously envisaged. At the same time, he pledged to merge and/or close down tens of public organizations, and bodies before the end of 2012. Most importantly, Samaras emphasized that his government will stand on three points: the delineation of Greece's EEZ, it will actively promote European policy and it plans to create a new bases for alliances.
The Premier told Parliament during the presentation of his government’s policy platform that the only priority of the coalition government is to tackle the recession which is already in its fifth year. He stressed that some terms in the agreements must be extended, so as to help the economy to return to growth.
Samaras said it was clear fiscal adjustment would take more than two years, as initially agreed with lenders, repeating a pre-election call to lessen the pain of austerity by getting the troika to extend the period to four years.
"The adjustment must not take place over two years, but longer. And the programme misses its targets because of the recession, this is no reason to take more fiscal measures as we have done so far. Recession must be stopped, not continuously deepen," he said. "With this uncontrolled recession, the programme's funding needs are rising. We want this to stop and to start getting out of this dead end," he said. "This is the subject of our 'renegotiation'."
Just one week after receiving major eye surgery, the Greek Prime Minister admitted that the fiscal reform program has gone off target, and that the country has been lagging in reforms, but the focus is now on selling state assets, such as the country’s railway company, and finally liberalizing the energy market.
He also pledged to fight against waste in public spending because he said the government is determined to make a series of major structural reforms, "not because the loan agreement asks it of us, but because should have already done this, in fact, we should have adopted these measures years ago.”
He noted that Greece's position is in Europe and expressed the optimism that Greece can reverse the current negative market outlook, but he did not hide his discontent at the statements made by various foreign (and domestic) pubic officials who have consistently and publicly suggested (guessed) that Greece could be forced out of Europe’s joint currency. “We can’t be trying to restart the privatizations, attract investments, while foreign officials publicly speak about the possibility of Greece returning to the drachma.”
He then outlined a nine step program that aims to reverse the lagging economy while at the same time create conditions for development:
He said that the government also plans to promote state assets that are not directly linked to his government's contractual obligations, such as the rail industry, energy market liberalization (regarding PPC), but he noted that the networks will remain under state control. Whoever decides to invest will have to do so with the intention of creating jobs.
Samaras said that his government also plans to promote concession contracts such as ports and marinas and revealed that there is already interest from various companies who are currently operating in the cruise industry.
Concerning development of state property, the premier noted that designs are already maturing for the former airport area in Elliniko but he also stressed that his government plans to create an investment vehicle for the real estate that runs all the way from Faliro to Sounio (southern Attica).
The PM said his government was keen on unlocking NSRF funds (EU development funds) of some 12.5 billion euros and said that his priority will be to lessen the bureaucracy.
He revealed that tens of government agencies and organizations will either merge or be permanently shut down after being evaluated, while he revealed that some evaluations have already begun and will be completed before the end of the year.
Samaras said the government will support liquidity by promoting the return of deposits in Greek banks.
He also said that the government plans to adopt measures to combat expenditure, and he stressed that offsetting of debts to and from the State will be completed in 1,5 years because the State cannot require citizens to pay, when it is late in paying them back. If this is done correctly, this will have no cost and be very effective to many businessmen.
Concerning taxes, he said the government must ease payments (in several installments) so that they do not burden taxpayers.
He also said that there shouldn't be any layoffs in the public sector, while he also announced a series of initiatives to reform the political system including putting an end to the controversial law on ministerial immunity.
Samaras said that the coalition government is determined to address the hikes in prices and noted that this will be done by breaking up commercial cartels and limiting the profit of middlemen.
The Prime Minister announced that Greek banks must immediately give some relief to borrowers and loans should not exceed 30 percent of one's salary.
On the subject of crime, and illegal immigration, Samaras said that Greece needs legislative, judicial and penal changes. That is why the three leaders agreed to adopt a series of measures that will address all these issues in cooperation with all the other political parties in a parliamentary debate.
Lastly, Samaras described the ugliness of the situation, by saying that it was unacceptable for people to watch as their living standards deteriorated, while others who are not as strong commit suicide because of their despair.
"What is described in the convergence program of the three parties is fully valid. We are not begging, but determined to make a series of structural changes."
The Greek Parliament on Saturday afternoon will begin debating the policy statement and then it will hold a vote of confidence on Sunday night. With 179 of the legislature’s 300 seats held by the coalition, the government is expected to gain the vote.
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