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Europe Daily Bulletin No. 10723
ECONOMY - FINANCE / (ae) greece

Decisive week for Athens

Brussels, le 05/11/2012 (Agence Europe) - On Wednesday, the Greek parliament will be voting on the new austerity package and the country's budget for 2013, but Greeks themselves have already reacted with strikes scheduled for the next few days. On Monday 5 November, Athens was hit by strikes on public transport and the media.

Greek MEPs are being asked to endorse savings of €13.5 billion in return for the next disbursement of international aid (more than €30 billion), required by 16 November so the country can pay its bills. On Sunday 11 November, the Greek parliament will vote on the 2013 budget.

Greek prime minister Antonis Samaras tried on Sunday to break down the final resistance to the new austerity measures forced upon a country weakened by the fifth year of recession in a row. He made it clear that ratification of the savings package and the budget were a precondition for putting a final end to the threat of Greece being forced out of the euro, saying that if Greece fails to remain in the euro, nothing else will make much sense. This was a message to parliamentarians in his own party and also, more urgently, to his coalition partners. The socialists in PASOK say they will not “gamble with the country's fate,” but the small Democratic Left party, Dimar, which backs the coalition government but does not have any ministers with portfolio, continues to refuse to back measures further undermining labour rights. Dimar has sixteen seats, and is unlikely to prevent introduction of the savings measures, but it can weaken the coalition government.

In an encouraging sign, the Greek parliament on Wednesday 31 October voted through a new privatisation law, agreeing to the sale of state shares in ports and other public services. This new round of privatisations is one of the 89 “key actions” that the country's international lenders have been requiring since the spring.

Commenting on Monday on the talks between the Greek government and representatives of the troika of lenders (the European Commission, the European Central Bank and the International Monetary Fund), the Commission said it could not say when the next troika report would be published. On Wednesday 31 October, Eurogroup urged Athens to conclude its talks with the eurozone finance ministers ahead of the Eurogroup meeting on 12 November (see EUROPE 10722). (EL/transl.fl)

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ECONOMY - FINANCE
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