Greece prepared to turn to IMF
Forse si chiude la vicenda a breve: la Greacia ha fatto quanto le hanno chiesto, la UE nicchia ancora e loro si rivolgono all FMI. Per cui forse la UE si decide ad intervenire. IMHO
*.*.*
Greece prepared to turn to IMF
By Kerin Hope in Athens, Gerrit Wiesmann in Berlin and Nikki Tait in Brussels
Published: March 3 2010 10:39 | Last updated: March 3 2010 21:36
Pensioners in Athens demonstrate against the new austerity measures announced on WednesdayGreece is prepared to turn to the International Monetary Fund for help if its European neighbours fail to provide the financial assistance it wants after announcing the
toughest spending cuts in decades.
George Papandreou, Greek prime minister, will on Friday tackle Germany’s chancellor
Angela Merkel during talks in Berlin before heading to Paris to meet Nicolas Sarkozy and then to Washington next week to see Barack Obama on an international mission to drum up support for the crisis-hit country.
His government is braced for another wave of strikes after it imposed a freeze on pensions on Wednesday, further cuts in public sector pay and increases in value-added tax and duties on fuel, alcohol and cigarettes.
Mr Papandreou said that the latest austerity package, the third in three months, fulfilled Greece’s commitment to its eurozone partners to bring its soaring deficit under control. The country’s debt crisis has caused turmoil in bond markets, with investors worried that it could spread to
other weak eurozone members.
“We have shown we can take difficult decisions. We are waiting for European support – the other side of the agreement,” Mr Papandreou said.
During a cabinet meeting, he told ministers that Greece could turn to the IMF for an emergency loan if its EU partners were unable to deliver adequate assistance, a senior government official said. Other eurozone countries have been adamantly opposed to IMF involvement.
Germany welcomed Greece’s decision to tighten fiscal policy but stressed financial aid would not be on the table when Mr Papandreou visited Berlin. Ms Merkel said the meeting “isn’t about aid commitments but about good relations between Greece and Germany”.
Hard times: austerity plan
● Immediate freeze on pensions
● More cuts for public sector salaries
● Sharp VAT increase
Officials in Berlin said that Germany considered Greece to be “liquid till the end of March” with the real test of confidence coming in late April or May when it has to roll over about €22bn of debt.
The European Commission responded to calls for tighter scrutiny of credit derivatives after the sell-off in Greek financial markets. It has summoned banks and regulators to a meeting this week to discuss regulation of sovereign credit default swaps , a form of insurance against the risk of default on government bonds.
Fierce reaction to budget measures
The announcement of an across-the-board pension freeze and a 30 per cent cut in annual Christmas and Easter bonuses paid to public sector workers triggered fierce reaction.
Several hundred pensioners broke through a police cordon to demonstrate outside the prime minister’s office while the cabinet meeting was under way.
“What are we supposed to live on? We can’t even seek help from our children because they’re facing unemployment,” said Stathis Anemoyiannis, a retired civil servant.
Adedy, the federation of public sector unions, announced another 24-hour walk-out for March 15. Separately, customs and tax workers, teachers, and staff at state hospitals said they would hold strikes this month.
“These are the toughest measures to be imposed since the second world war… they are one-sided and they will plunge the country further into recession,” said Spyros Papasypros, Adedy’s president.
The Commission endorsed the new Greek measures, saying the country was now on track to meet ambitious targets for budget deficit reduction this year and could count on EU solidarity.
”Greece’s ambitious programme to correct its fiscal imbalances is now on track,” José Manuel Barroso, European Commission president, said in a statement.
In an almost identical statement, Jean-Claude Juncker, chairman of the eurogroup of finance ministers, also praised the new plan.
”Full and timely implementation of fiscal measures, along with decisive structural reforms... is paramount,” Mr Juncker said. ”It is as well important for the overall financial stability of the euro area.”
Olli Rehn, the EU’s economics and monetary affairs commissioner, said he believed the Greek measures were – or could become – a turning point in the crisis. He said that he was particularly encouraged by Greece’s move to tackle expenditure side.
The commissioner, who was in Athens on Monday, added that he had “a very strong sense of the determination and unity in the Greek government to reform the country”.
Wednesday’s announcement comes as Greece prepares to
return to international markets to roll over about €10bn of debt due to expire in April.
The US Department of Justice is taking a closer look at trading against the euro. It has told hedge funds to preserve trading records and e-mails about euro-related derivative trades.