Samaras Readies to Visit Merkel, Hollande to Make Greece’s Case
Greek Prime Minister Antonis Samaras’ brief summer vacation is just about over
Greek Prime Minister Antonis Samaras, struggling to get a consensus
in his shaky coalition government for another $14.16 billion in cuts and
austerity measures he’d vowed to avoid, will take his case to German
Chancellor Angela Merkel in Berlin on Aug. 24. The next day he will
visit French President Francois Hollande.
Before that, Samaras was scheduled to meet in Athens with Jean-Claude
Juncker, chief of the Eurozone, the 17 countries that, including
Greece, use the euro as a currency, and try to convince him that Greece
is doing all it can to bring down its fiscal deficit.
Germany is Europe’s largest contributor to a first series of $152
billion in rescue loans for Greece and a second bailout of $173 billion
that is on hold until Samaras makes more budget cuts and administers
more reforms, although he reportedly will ask Greece’s lenders – the
Troika of the European Union-International Monetary Fund-European
Central Bank (EU-IMF-ECB) for a two-year extension to meet the fiscal
targets it has set.
The pay cuts, tax hikes and slashed pensions the Troika insisted upon
have worsened a five-year-long recession, putting 1.15 million people
out of work and shrinking the economy by 6.2 percent in the second
quarter. The Troika also wants Greece to start repaying its second
bailout – if it’s released at all – in 2016, but Samaras wants that
pushed back to 2020.
He will have a hard sell as many senior members in Merkel’s ruling
Christian Democratic Union (CDU) have lost patience with what they said
is Greece’s unwillingness to make reforms and they want the bailouts to
stop and for Greece to leave the Eurozone. A Greek government official
told Reuters that, “Our priority is to regain our credibility by showing
our determination.” Hollande, elected on the same day in June that
Samaras’ New Democracy Conservative party also won, but without enough
of the vote, forcing him to form a coalition, has said that Greece has
no choice but to administer more austerity although he campaigned on an
anti-austerity platform.
When he returns, Samaras will find a hostile domestic audience as he
tries to prepare Greeks, already crushed by austerity measures, that
he’s going to put more on them, although he said during his campaign
ahead of the June 17 elections that he would not. Samaras and his
reluctant partners, the PASOK Socialists of Evangelos Venizelos and the
Democratic Left of Fotis Kouvelis, under recently promised Greeks there
would be no more pay cuts, tax hikes and slashed pensions but the
government is set to deliver more deep cuts in pensions.
Berlin insists that Athens honor its pledges but was open to
discussion, German government spokesman Steffen Seibert told reporters.
Asked about a two-year extension, he said: “The Chancellor will of
course first listen to what Mr. Samaras has to say about the situation
in Greece and about the implementation of its program. For her, as for
the rest of the German government, the agreed memorandum of
understanding which sets out what the Greeks must achieve and which
remains valid for us, forms the basis for working together with or
helping Greece.”
But even if he gets the extension, Samaras’ government then would
have to raise from $24.6-$61.7 billion but said it would not ask the
Troika for assistance. Reuters said EU officials are working out a “last
chance” for Greece to reduce its staggering $460 billion debt and bring
its deficit, now at 9.1 percent, to 3 percent within two years, a goal
many analysts said cannot be achieved.