The Greek government is walking on thin line
and it could upset the synergies between the two parties which compose the
administration. There is friction with the Troika with respect to new measures,
like more taxes, more cuts in pensions, amid a dispute that has arisen with regard to
the fiscal deficit for next year.
Government sources, the ministry of the
Treasury in particular, say that the deficit amounts to 500 million euros. The
Troika disputes this and says it will be about 2.5 billion euros. Furthermore,
the Greek government has made it clear before their arrival here, that they
will not take any new fiscal measures. For this year the projection is for a
budget surplus, the first ever.
The fine line which could disrupt the current
government consensus is on several serious measures that the Troika is
insisting upon. Besides the layoffs in the public sector, which is progressing,
the creditors insist upon to lift the ban of home foreclosures (see previous
article on this blog), the forced liquidation of the three defense companies, free market commercial leasing, where rents for
businesses should be freely negotiable, and the taxes on homes, which could
have deputies from both sides of the political parties that compose the
government, abstaining or not voting at all on the new tax home bill.
The scheduled meeting today (Nov 11) between
the Troika and the minister of the Development, will clear out the issue on the
foreclosures. The government is determined on its position that foreclosures
will not go on for those that have lost their jobs in the crisis. They are
determined to free foreclosures on those that have money but deliberately do
not pay their home loans, and also protect homeowners with one home only.
