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Greece Seeks Easier Terms

  • June 24th, 2012
  • Posted by 7thmin

greece-athens-and-parthenon4.jpgAfter the settlement reached in this month’s elections, 17.6.12, the new Greek government wants an easing of terms in its economic accord with the rest of the European Union and the IMF.

The coalition government is headed by the centre-right party, Nea Demokratia with 129 seats, and includes also the centre-left Pasok party, with 33 seats, and the Democratic Left with 17 — in a chamber of 300 deputies.

The left wing alliance, SYRIZA, is the official opposition, with 71 members.

Government leaders said this weekend they would be going to the European summit at Brussels, 28-29.6.12, with proposals to extend the terms of agreement by two years.

Such an agreement, as discussed to date, would include postponement or reduction of public service job cuts, imposition of new taxes and a limited rescheduling of debt.

Previous Greek governments, before elections held in  May and June, had signed up to conducting a tight austerity program, which has been associated with a deep and divisive recession.

In return they bought time for the country to settle debts and reorganise its state finances, through getting access to guarantee funds organised by the EU and the International Monetary Fund.

The same, main parties have been returned to government, but took heavy electoral losses to SYRIZA on the left, harvesting public outrage and despair.

Succeeding with a partial reprieve, though very difficult to obtain now from the European partners, would weaken the public movement in Greece against the government’s program.

Reference

European Council, home, Brussels. http://www.european-council.europa.eu/council-meetings.aspx, (24.6.12).
Maria Petrakis and Tom Stoukas, “Greece seeks at least two-year extension …”, Bloomberg, NY, 23.6.12.    http://www.bloomberg.com/news/2012-06-23/greek-government-to-seek-at-least-2-year-extension-to-bailout.html, (24.6.12).
ement with the rest of the

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