Greece intends to put an end to austerity policies and negotiations with the Troika: this is why he is asking Europe for a "bridge loan" to get to the summer without extending the current funding program, expiring at the end of the month, and find meanwhile a new deal to avoid default. The Greek new prime minister announced it yesterday Alexis Tsipras, who in his keynote address to the Athens Parliament reaffirmed his commitment to "respect the programme" with which Syriza won the elections. This will be the line that Finance Minister Yani Varoufakis will take at the Eurogroup on 11 February, in which a shared solution to the Greek situation will be sought.
"The first priority of this government is to face the great wounds opened by the rescue plan - underlined Tsipras -, to face the humanitarian crisis as we promised to do before the elections" and the "scorched earth" left by the Troika and by the head of the previous government, the conservative Antonis Samaras.
THE SYRIZA PROGRAM
The first promise that Tsipras intends to keep is to reopen the public tv Greek Ert, which was closed by previous governments because it was considered a source of infinite waste. The new executive in Athens also wants to interrupt some privatizations, summarize i public employees “unlawfully fired” and re-guarantee thehealth care free to all. “We will gradually bring it to 751 euros in 2016 the minimum wage”, the Prime Minister announced again, then confirming the measures on theelectricity and free food for the poor. Cuts are also expected: from government aircraft to cars available to ministers, while Tsipras' office will see the reduction of half of the staff and a third of the security staff.
In any case, during the three-four-month moratorium requested by Athens, the Greek government would not introduce any measure of its program contrary to the memorandum signed with the Troika, while the creditors would refrain from sending the country into default. At the end of spring, the Greek government would present a new contract with Europe which would guarantee the keeping of the accounts and the sustainability of the debt through its restructuring.
"Greece wants to pay its debt, but it wants to reach a common understanding with its partners for everyone's interest - the Greek Premier went on to say - the problem of the Greek debt is not economic, but political".
TSIPRAS ATTACKS BERLIN
After the unsuccessful meeting of Varoufakis with the German Finance Minister, the rigorist Wolfgang Schaeuble, in his speech Tsipras chose to attack Berlin, stating that "it is a historic obligation to ask for war reparations from Germany". The reference is to the 50% debt that was subscribed to Federal Germany in 1953 for the damages owed by Nazi Germany from all countries, including Greece. Greece has “a moral obligation to our people, to history, to all Europeans who fought and gave their lives against Nazism – added the Premier -. Our historical obligation is to claim the loan (which the Third Reich forced the then Hellenic Central Bank to pay, ed) and the reparations for the German occupation, which lasted four years.
VAROUFAKIS-PADOAN HIT AND REPLY
Meanwhile, a dispute also took place between Varoufakis and the Italian Minister of Economy, Pier Carlo Padoan. After last Tuesday's visit, the Greek minister gave a background story to Presadiretta: “Italian officials have told me they cannot tell the truth. Italy is also at risk of bankruptcy, but fears retaliation from Germany. Who will it be after us? What will happen when Italy discovers that it is impossible to stay within austerity?”. Varoufakis also called Italy's debt "unsustainable".
Padoan's reply came in a tweet:
.@Presa_Direct Solid and sustainable Italian debt. Statements @yanisvaroufakis out of place.
— PCPadoan (@PCPadoan) February 8 2015
Varoufakis then added that “the whole of Europe is covered by a cloud of fear. We are running the risk of becoming worse than the Soviet Union. We Greeks do not have a monopoly on the truth, but what we can do, for Europe and for Italy in particular, is to open a small path towards the truth. Thus we will be able to abandon the darkness of austerity and enter the light of a sober and rational European discussion. Sooner or later, Chancellor Merkel will have to explain to us why she does not approve of our proposals ”.
MARKETS: RATES ON GREEK BONDS RISE, THE ATHENS STOCK FALLS
Meanwhile, on the financial side, today yields on 10-year Greek government bonds rise by 69 basis points, to 11,14%, while the three-year bond rate jumps by as much as 120 points, to 19,8%. The Athens Stock Exchange dropped 4,5% in mid-morning and the banking index dropped almost 8%. Standard & Poor's cut Greece's sovereign debt rating to B- from B on Friday. Moody's placed its Caa1 rating on watch for a possible downgrade.
