Brussels, 19/06/2013 (Agence Europe) - On Thursday 20 June, the Eurogroup will be focusing on Greece, with special attention to recent events that have shaken the government coalition, further to the abrupt closure of the public broadcasting company, ERT (see EUROPE 10869).
“Surprised” by the temporary interruption of ERT programmes although reduction of the Greek public sector is an integral part of the agreement sealed with the Greek authorities, a eurozone source has said it is up to Athens to decide how to carry out the restructuring. Despite friction within the Greek government coalition further to the ongoing ERT saga, it took the view that the holding of early elections would be the “most unlikely outcome” and underlined the importance of political stability for keeping the adjustment programme on track. The governmental trio was to meet yet again, during the evening of Wednesday 19 June, to close the gap between positions held on the means for reopening and restructuring ERT.
Public redundancies. The same source felt that the most effective way of reducing the public deficit is “by far” to reduce the size of the civil service. Over recent years, public sector employment in Greece has “proliferated”, or even “mushroomed”.
Expressing the view that, on the budgetary level, Athens seems to be keeping to its commitments, the same source did not consider as “disastrous” the slowness of the privatisation process, which suffered a major setback last week with the failed sale of DEPA. Discussions in this respect with the “troika” of creditors were interrupted on Wednesday in order to “allow completion of technical work”, a joint press release from the troika reads, the donor representatives being expected in Athens again before end June. (EL/transl.jl)