Government under pressure
The political system is under pressure; of that there can be no longer any doubt. Appearances by political figures on television have all but stopped, while even the most voluble among them have been reduced to relative silence. Television interviewers are showing a marked preference for entertainers rather than getting involved in the tough issues of the day. Suddenly, following the charges pressed against media baron and business tycoon Socrates Kokkalis, everything seems to have changed. All those wonderful plans, great and small, from the emergence of a great center-left to the controversy over licenses for one-armed bandits that had been monopolizing public attention, have now been overshadowed by issues related to the case against Kokkalis. Initial bewilderment has been succeeded by numerous attempts at self-preservation and then outright withdrawal, as if people are trying to stay out of the public eye during a dangerous time. Revelations Statements from the two major parties are also few and far between, with few references to the burning issue itself and an unprecedented number of vague declarations of faith in the independence of the judiciary. And although most of the media have shrouded the case in a veil of silence, the revelations have shocked Greek society and there has been widespread discussion of the implications of the case. The government is only too well aware of this fact, and over the past few days has also been painfully aware of the pressure of public opinion. Its initial reaction was to attribute the entire affair to «competing interests» and to support the corresponding efforts of Kokkalis himself. This explains the references made by Prime Minister Costas Simitis to the distribution of funds from the Third Community Support Framework, which raised eyebrows among authorities who know that delays have been so great that there can be no question of even applying for these funds. As none of these efforts have been fruitful and the distinct impression remains that successive governments, particularly those of PASOK, have been extremely generous to the businessman in question, the government has hastened to seek another way out of the crisis. Suddenly, people wanting something from the government have been pressing their cases even more persistently. Ministers are under pressure from all sides, the unions have been aggressively advancing their own agenda and the General Accounting Office is inundated with work. Over the past few days, Economy Minister Nikos Christodoulakis has realized that even the debatable fiscal stability is under threat from these claims and the relaxed climate in most ministers’ offices with regard to handouts. Warning bells Christodoulakis says the dangers are very real and capable of putting the entire economy at risk. He has already been warned by the banks that several major business groups could go under by summer. The minister has made no secret of his fears and wants to avert as many of the negative effects on the economy as he can. He believes that the Kokkalis case, in combination with fiscal and other pressures, could create major tension within the economy, which he wants to protect by means of structural measures and policies. The minister believes that under the present circumstances the important thing is to secure fiscal stability and at the same time move ahead with major structural changes by June at the latest. Other Cabinet members have similar concerns and feel that the government is losing control, restricting itself to the role of administrator without any broader vision linking it to society. Just the other day, Public Order Minister Michalis Chrysochoidis emphasized in a speech in Veria that the role of politics needed to be re-evaluated. Chrysochoidis feels that at this stage it is important to deal with all problematic fronts, such as relations with the business lobby, the relationship between politics and the economy, and to make radical changes in the functioning of the economy, civil service and the State, if the country is to take advantage of the unique opportunities currently being offered it. That is why the issue of social security reform has been taken out of the cupboard and dusted off, and the long-awaiting taxation reform is to be presented for debate within the next few days. Taxation reform Although considered incomplete, the social security reform does provide a long-term formula for dealing with the problem, chiefly by introducing a universal retirement age of 65. At the same time as initiating a debate on major changes in income and business taxation, the Economy Ministry will also be dealing with 10 million pending taxation cases, covering about 700,000 businesses, manufacturers and the self-employed. Christodoulakis said that subsequent attention will be focused on the development law, establishing fresh incentives, and then on adjusting the job market, sector by sector, particularly where there are more serious problems. No one can guess whether the government will be able to carry out changes capable of shoring up the economy and providing even some semblance of a link with society again. The weight of recent events could produce the kind of upheaval that will be hard for the political system to contain. Concurrently there are other dangerous issues still pending, such as the fight against terrorism, which could have incalculable consequences. Perhaps this issue just might be the spark to ignite broader change in the entire political system which, although still fundamentally in place, might not be able to defend itself any more under the burden of revelations of such a sinister affair.
