Crisis: Greece, political uncertainty real risk to economy

04 November , 14:04

(ANSAmed) - ATHENS - Today the political situation in Greece seems even more confused than yesterday, if possible, and the only certainty is the continuation of political instability, seriously harming the country's already troubled economy. Nobody knows what Premier Giorgio Papandreou wants to do when (if) he obtains a vote of confidence from his party's MPs. Many say - as he himself has made very clear - that he has no plans to resign, and that he will blame the leader of Nea Dimocratia, Antonis Samaras, for a possible failure to form a transitional government. Sources close to Nea Dimocratia reported that yesterday afternoon a short telephone conversation took place between Papandreou and Samaras, an initiative of the current Premier. But when Papandreou proposed to open a dialogue on the formation of a transitional government, Samaras reportedly told the Premier that this is out of the question without his resignation. The problem, analysts agree, is the continuation of political uncertainty. In fact, even if an agreement is reached between the parties on the formation of a transitional government or a government of national unity, the money of the sixth tranche (eight billion euros) of the first bailout package to Greece will not reach the State treasury if Greece fails to meet all promises it made at the European Summit of October 27. Another open issue is the country's 2012 budget which, according to the Constitution, must be presented in Parliament by next week. And then there are all laws - still waiting to be passed- that were presented after the pledges made by the country in the context of the country's medium-term development plan regarding - among other things - the ''temporary suspension of 30,000 surplus State employees, the closing or merger of state-controlled companies and the implementation of the privatisation programme. As if that is not enough, State revenues diminished over the past months due to many strikes staged in all sectors, and the money currently in the in the coffers of the State will run out, according to the Finance Ministry, on December 10. In the best scenario, the sixth tranche of eight billion euros will arrive on December 15. (ANSAmed).

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