Titoli di Stato area Euro GRECIA Operativo titoli di stato - Cap. 1 (25 lettori)

[tommy271]

PM faces resistance on DEKO cuts

Some ministers edgy about attempts to slash costs at public enterprises, such as railway company

Prime Minister George Papandreou could be on a collision course with several members of his government over plans to cut costs at state-run enterprises, especially public transport companies, despite it being one of the main aims set out in the 2011 budget that the government submitted to Parliament yesterday.

The economic plan foresees spending cuts and tax hikes worth some 14 billion euros in order to reduce the public deficit to 7.4 percent of gross domestic product by the end of next year.

This will involve spending being slashed in a number of government departments. Finance Minister Giorgos Papaconstantinou said that money would also be saved at public companies. The Hellenic Railways Organization (OSE), for instance, is almost 11 billion euros in debt.

The content of the 2011 budget was discussed during a Cabinet meeting yesterday and Papandreou indicated that it must be one of his government’s priorities to stop the hemorrhaging of money at public transport companies and other similar enterprises, known as DEKOs. “They are absorbing a very large part of the sacrifices being made by Greeks,” he told his ministers.

Earlier in the week, the premier had told the BBC that he did not want to see any public sector employees fired in 2011 so Greece can keep to the targets it has been set by its eurozone partners and the International Monetary Fund. The government is examining using transfers to other civil service jobs as a way of removing workers from highly paid positions at OSE and other companies.

However, several ministers at the Cabinet meeting yesterday appear to be strongly opposed to efforts to make drastic cuts at these firms. “A different operational plan has to be drawn up for each DEKO,” said Labor Minister Louka Katseli. “We should not impose the troika’s decisions across the board.”

Deputy Foreign Minister Mariliza Xeno-giannakopoulou backed Katseli, who also received support from Transport Minister Dimitris Reppas.
“We have to stop this damaging discussion about possible job losses at DEKOs,” he said. “The troika has not asked for them, even in the case of OSE.” Reppas, who has suggested public transport ticket prices will go up next year, said he would be in favor of limiting the debts that each public enterprise can amass.

(Kathimerini.gr)

***
Questione ferroviaria e all'orizzonte la questione delle privatizzazioni.

 

[tommy271]

Tourism sector hails tax cut, anticipates positive knock-on effects



The Association of Greek Tourism Enterprises (SETE) welcomed the news of a tax cut for accommodation facilities, describing it as the first growth measure implemented by the Socialists since the introduction of last year’s austerity measures. ‘This will soon generate a positive secondary effect for the economy,’ it said.


(Kathimerini.gr)

 

[tommy271]

Aircraft, casino up for sale



Greece’s state asset sale plans for 2011 include the disposal of four airplanes and a stake in a casino, according to the Finance Ministry.
The government will complete the sale of four Airbus 340 aircraft in the first quarter of the year and will sell its 49 percent stake in the Mont Parnes Casino in the second quarter of the year, according to the ministry.
The country also plans to extend the Athens International Airport (AIA) concession and sell a 65 percent stake in state-run natural gas company DEPA.
Earlier this week, German airport operator Fraport said it would be interested in investing in AIA if Greece decided to reduce its holding in the airport.
The Greek state will also subsequently seek strategic investors to buy unspecified parts in its 99.81 percent stake in Hellenic Defense Systems SA, rail operator Trainose, which is wholly state-owned, and the Larco mining company, in which the state has a 55.19 percent stake.


(Kathimerini.gr)


***
Saldi di stagione ...

 

[tommy271]

Shrinking economy squeezed

Draft budget for 2011 targets reduction in deficit to 7.4 percent of output; public debt keeps rising

By Stelios Bouras - Kathimerini English Edition




Finance Minister Giorgos Papaconstantinou announced yesterday plans to squeeze 14 billion euros from Greece's rapidly shrinking economy in 2011, when the country expects to return to the bond markets. Presenting the final draft plan of the 2011 budget, Papaconstantinou said the money would come from higher taxes and spending cuts, including reductions to wages at state companies, in a bid to reduce the budget deficit to 7.4 percent of gross domestic product from 9.4 percent in 2010.

«It is a very difficult budget. It will continue on the course set by the 2010 budget,» he told reporters after submitting the draft to Parliament.

Last week's upward revision of the 2009 budget shortfall by the European Union's statistics service, Eurostat, has forced the government to further tighten its fiscal policy in order to bring the gap to below 3 percent of output by 2014, as stated in the agreement with the EU and International Monetary Fund. The previous 2011 draft budget, prepared last month, had targeted savings and further revenues of 8.2 billion euros.

Revenue growth will be supported by a hike in the 11 percent value-added tax rate to 13 percent, while the 5.5 percent VAT figure will be raised to 6.5 percent. In a bid to help sweeten the bitter pill, the ministry will lower the VAT rate on medicines to 6.5 percent, from 11 percent currently, providing some financial relief to heavily indebted pension funds. The tax rate applicable on hotels will also be cut to 6.5 percent from 11 percent to boost one of the economy's most vital sectors. On the cost side, funding to pension funds will be slashed and pensions will remain frozen.

The country's struggle to tame its massive budget deficit and lower public debt, seen as rising to 153 percent of gross domestic product in 2011 from 143 percent of GDP this year, is becoming increasingly difficult due to to the gloomy economic outlook.

Papaconstantinou admitted the economy will shrink by an annual pace of 4.2 percent this year, versus a previous estimate of 4 percent, and that it will contract by 3 percent next year.

In a bid to help stem plunging investment activity, the government backtracked on plans to reduce its public investment program, keeping it at 8.5 billion euros in 2011, unchanged from this year.

The sooner that Greece returns to the markets, the sooner the economy will return to growth, according to the minister, who reiterated plans to issue bonds in 2011. Greece, which has been shut out of the bond markets since May, had scheduled a return next year but the growing sovereign debt crisis in Europe along with the country's fiscal problems prompted some experts to forecast that this may not happen until 2012. [email protected]


Analyst comments
DIEGO ISCARO, IHS GLOBAL INSIGHT
“The revision to historical fiscal data, which is having an influence on this year’s figures, has forced the government to alter its targets. However, the new targets are not that far from what we had in the draft budget presented in October and are actually below the target included in the EU-IMF initial draft.
“Despite the fact that the revision will make the government miss this year’s target, the fiscal reduction made in 2010 – of around 6 percentage points – has been impressive, especially taking into account that it has been achieved in very challenging economic conditions.”

BEN MAY, CAPITAL ECONOMICS
“It is a pretty big extra squeeze. That suggests that they stand a reasonable chance of getting the deficit down from 9.4 percent of GDP to 7.4 percent next year, assuming we don’t have further negative surprises about the official deficit figures. It spells bad news for the economy. That additional squeeze means we’re going to see another very bad year in terms of weak economic growth. We think another fall of 4 percent next year is plausible.” (Reuters)

***
Commenti e dettagli del Bilancio preventivo per il 2011.

 

[tommy271]

Qui trovate altre discussioni ... ma in greco:

CapitalBlogs.gr

 

[Noloss]

Vi posto le chiusure di ieri degli spread/bund sul decennale. Dati Thomsom-Reuters.
Come vedete dai numeri, considerazioni analoghe a quelle di Mark.

Grecia 900 pb. (912)
Irlanda 559 pb. (597)
Portogallo 428 pb. (418)
Spagna 202 pb. (204)
Italia 156 pb. (157)

Qualcuno si ricorda il record subìto dalla Grecia sui CDS? (e la data, se possibile, grazie)

 

[tommy271]

Qualcuno si ricorda il record subìto dalla Grecia sui CDS? (e la data, se possibile)

I CDS erano andati oltre quota 1000 ...

 

[tommy271]

ΒΒΗ Says “Much To Like” In Greek 2011 Budget



Brown Brothers Harriman (BBH) says that there is much to like in the Greece’s 2011 budget, Dow Jones Newswires reports.

Strategist Marc Chandler says the country "remains committed to reducing the deficit to 7.4% of GDP in 2011 and has increased the savings to EUR5B from EUR2.2B in last month’s draft," while its economic assumptions seem fairly reasonable and don’t appear far from consensus market expectations.

"However, when all is said and done, as the primary deficit shows, Greece will still be living beyond its means next year, albeit by a smaller margin. The Greece situation is not resolved. The liquidity issue has been arguably adequately addressed, but not the solvency issue," BBH adds.

(Capital.gr)

 

[tommy271]

London-Based Greek Bankers Concerned On Greek Economy



London based Greek banking executives expressed their intense concern for the Greek economy, especially after the new review of data on GDP and deficit, as recorded in the final draft budget.

In an event organised by the Hellenic Bankers Association of the UK at the English capital, Leandro Galli, Head of European Rates Strategy of HSBC, John Stournaras, head of Athens-based think tank IOBE, and Notis Mitarakis, shadow minister of economy for the New Democracy opposition party, were ΄bombed΄ with questions on the country’s economic outlook.

"The numbers do not look good," Cristos Megalos, President of the Association commented.

"The government was slow to take action," John Stournaras said, adding that there are two categories of ministers: "There are those who are fully aware of the situation and understand what to do and those who do not seem to understand what is going on, and place themselves opposite the International Monetary Fund, arguing that it is the fund that dictates the measures.”

“Requests for investments of over EUR50 billion remain in the drawers of the ministries, due to the very strict environmental standards, which still - in the midst of crisis - apply in our country. Moreover, no one takes responsibility to coordinate colegislative ministries. I hope that now the “fast track” law” [concerning investments] will resolve these issues,” Stournaras said.

On the other hand, Notis Mitarakis categorically opposed to the possibility of debt restructuring. "Any temporary benefit from this development will be outweighed by the long-term negative consequences of restructuring."

“Even if Greece proceeds with restructuring, problems will remain," said Leandro Galli.

In terms of the new adjustment required, all agreed that the program resembles a marathon. "We are told to do more, apart from adjusting the primary deficit. I do not like it. Development is being neglected,” Stournaras said, adding that healthy Eurozone economies should also help tackle the debt crisis.

“We blame the Chinese because they do not take steps to reduce the current account surplus, and this is what we have to do with the Germans as well. The solution will be given by the surplus countries, "he said.

(Capital.gr)

 

[tommy271]

Athens Stocks Inch Lower



ATHEX has no apparent trend on Friday and consolidates at the 1,500 region.

Analysts say that developments surrounding Ireland will be in the spotlight while the market will digest the new measures included in the 2011 final budget.

“Yesterday΄s abrupt ascending reaction was long-waited, as the hyperbole witnessed during the sessions of Tuesday and Wednesday had to be corrected sooner than later in order for the market΄s retreat not to gain momentum. Aforementioned move was also assisted by hearsay related to the Greek State΄s wish to sell a further 10% of Hellenic Telecoms, with existing major shareholder Deutsche Telecom having the right of 1st refusal, as part of a greater privatization scheme. We remain positive, in general, anticipating the Athens market to continue its ascending reaction, albeit on a more mediocre basis, with the Index΄s next significant resistance level standing at the 1,525 units, where the market will provide us with some light as to a possible change of its short-term technical outlook. In this context, we expect the GI to open on slightly higher grounds today, possibly towards the 1,510 units (1st resistance level), and gradually rise towards the 1,520 units region, which consist today΄s 2nd resistance level,” Pegasus says in its morning report.

Across the board, the General Index drops 0.54% at 1,494.77 on a total turnover of 29.66 mil. euro

(Capital.gr)