Friday March 27, 2015 Search
Weather | Athens
14o C
09o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Gov't, troika reach deal, paving way for aid release

 PM confirms that 15,000 civil servants to go by end of 2014
The IMF’s troika representative to Greece Poul Thomsen (right) speaks as Greek Financial Minister Yannis Stournaras listens during a conference on the economy in central Athens on Monday.

Government and troika officials on Monday announced that they had finally reached a deal on a series of contentious reforms – including thousands of layoffs in the civil service – following two weeks of tough talks, paving the way for the release of crucial rescue funding over the coming days.

After Finance Minister Yannis Stournaras heralded the breakthrough on Monday morning, telling reporters, “We have a deal,” Prime Minister Antonis Samaras gave a triumphant televised address in which he sought to reassure Greeks that three years of tough measures had not been in vain.

“The sacrifices are beginning to pay off,” he said, adding that “the situation is changing, the psychology is changing.“ “Until recently, Greece had been an example to avoid in Europe,” he said, echoing Stournaras’s conviction that Greece would achieve a primary surplus this year, allowing it to seek more debt relief.

The premier also confirmed that a total of 15,000 civil servants would be dismissed before the end of 2014, with 4,000 to go this year, but he stressed that each departure would be replaced by a new recruit. “The same number of new people will be recruited in their place,” he said.

Poul Thomsen, the head of the International Monetary Fund’s mission to Greece, struck a similar note at a conference in Athens organized by The Economist, saying that public sector staff “will not be eliminated but replaced by young, capable people.” He did not confirm explicitly that the one-hiring-to-one-firing ratio would apply.

Thomsen stressed that Greece had “indeed come a long way” with its reform program, noting that “the fiscal adjustment has been exceptional by any standard.” He noted, however, that major challenges remained. “Tax evasion remains a huge problem,” he said. Nevertheless, Greece has ticked enough boxes to put it on course for the release of a 2.8-billion-euro loan tranche that had been due in March as well as 7.2 billion euros for the recapitalization of the country’s banks, the envoy said.

An official statement issued jointly by the IMF, the European Commission and the European Central Bank, which have jointly extended Greece two foreign bailouts worth 240 billion euros since 2010, confirmed that the creditors were happy with the government’s performance. “Fiscal performance is on track to meet the program targets, and the government is committed to fully implement all agreed fiscal measures for 2013-2014 that are not yet in place,” the statement said, adding that the release of a loan tranche of 2.8 billion euros that had been due in March “could be agreed soon by the euro-area member states.”

The deal with the troika prompted angry responses from opposition parties, with Alexis Tsipras, the head of the main leftist opposition SYRIZA, taking particular issue with the civil service layoffs which he described as “human sacrifices.“ “Instead of emerging from the crisis, we are sinking further and further into it,” he said.

ekathimerini.com , Monday April 15, 2013 (21:57)  
ND, PASOK say coalition signed up to tough terms
Greek defense minister heads to USA after controversy
Police find Xeros’s bomb-testing spot
Judges send 32 to trial for kickbacks in submarine deal
Bank deposits lost another 7.6 billion euros last month
Lenders saw their customers’ deposits shrink further last month, Bank of Greece data showed on Thursday, while the flight appears to be continuing this month. On the bright side, the Europea...
Cash concerns keep Athens bourse action tight
Cash is drying up in the Greek market and this is being felt increasingly at the local bourse as well, as the benchmark saw all its Tuesday gains evaporate on Thursday on relatively low turn...
Inside Business
BASKETBALL
All is well that ends well for Olympiakos
Young Ioannis Papapetrou helped Olympiakos stage an impressive last-quarter performance to beat visiting Efes Anadolu 86-75 on Thursday and bring its Euroleague losing streak to an end. The ...
BASKETBALL
Reds survive KAO Dramas scare in Piraeus
KAO Dramas gave depleted Olympiakos a scare at the Peace and Friendship Stadium on Monday, but the league leaders eventually managed to get their 20th win in 21 games. The Reds won by 10 (72...
Inside Sports
COMMENTARY
Time to get moving
More than two months have passed since the elections and the government has to stop running around in circles and adopt a program of specific reforms, with detailed calculations as to their ...
COMMENTARY
A competent crew is key
Greek politicians are mostly strangers to technocratic management and deft bargaining. The political system has regrettably unraveled the country’s public administration – a process set in m...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. All is well that ends well for Olympiakos
2. ND, PASOK say coalition signed up to tough terms
3. Greek defense minister heads to USA after controversy
4. Police find Xeros’s bomb-testing spot
5. Judges send 32 to trial for kickbacks in submarine deal
6. Greek, Chinese FMs discuss deepening countries’ ties
more news
Today
This Week
1. Greece optimistic on deal with euro area next week
2. Opposition renews calls for minister to resign over legal cases
3. Greek foreign minister explores deepening of ties with China on Beijing visit
4. Stathakis against scrapping tax breaks for islands
5. Fed's Bullard: Grexit would be a Greek issue, not a euro issue
6. New Xeros safe house found near Athens, police say
Today
This Week
1. Next Monday is D-Day for state funds
2. Total victory is unattainable
3. EU asks Greece for more reforms to speed talks on bailout
4. PM faces Merkel amid race to detail reforms
5. New book by ex-US diplomat delves deeper into the recesses of Greek terrorism
6. Some more equal than others
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2015, H KAΘHMEPINH All Rights Reserved.