It is the former prime minister Lucas Papademos, who has steered Greece with his caretaker government in these months of crisis, to launch yet another alarm: “The state will have enormous difficulties in meeting its expenses in June”, and the entire Greek economy - Papademos declared in a document published yesterday by the Greek newspaper To Vima, and relaunched today by the Financial Times - risks collapse as early as next month, with consequent non-payment of salaries and pensions, if a stable government does not emerge from the elections of 17 June.
In fact, a source from the Athens government confirmed to the City newspaper the reliability of the document, specifying that it was handed over to President Karolos Papoulias during last week's negotiations with political leaders to arrive at the formation of a coalition government.
The former premier denounced a collapse in tax revenues and a relaxation in spending controls during last month's election campaign. Growing fears of political instability and a possible exit from the euro have prompted many Greeks to defer paying taxes and withdrawing deposits from banks, the FT said, adding that financial institutions estimate they have been withdrawn over 3 billion euros after the elections of 6 May.
