Germany's chancellor has decided that Greece should hold a referendum on the euro together with next month's national elections! The news came from office of the Greek prime minister Panagiotis Pikrammenos who informed the leaders of the seven parliament parties on the content of the conversation between Merkel and Greek president Karolos Papoulias.
PM Pikrammenos contacted political leaders A. Samaras, Al. Tsipras, Ev Venizelos, Al. Papariga, N. Michaloliakos and F. Kouvelis and filled them in on the contents of the conversation held between the President and Chancellor Angela Merkel.
According to the statement of the prime minister's office, Mrs Merkel expressed her thoughts to the President about a referendum alongside with the Greek elections. The referendum would have to do with whether Greek citizens wish to stay in the eurozone...
After a long meeting on Sunday which will be continued on Monday the office of the Prime Minister issued the following statement:
Prime Minister and the political leaders agreed on key issues which are, among others:
1) The measures in 2012 to reduce public spending by 1.5% of GDP.
2) Ensuring the sustainability of supplementary pension funds.
Angela Merkel stated today that the next part of economic aid to Greece are going to be granted only if all the parties involved in the coalition government provide written guarantees of compliance with the 26/27 October agreement.
"The Greek issue is not settled yet... unfortunately the conditions are not in place for the payment of the next tranche,» Merkel said in a speech to the German Parliament on Wednesday.
As the pressure on the major Greek party leaders continues, New Democracy president Antonis Samaras has made clear that he will not sign such a statement. On the other hand, Mr Samaras is preparing a new letter to the Euro group, the Troika leadership and the EU based on the letter he sent on November 13 to European People’s Party (EPP). The content of the letter was the following:
Lucas Papademos will (you can never be 100% sure with these politicians) be the new Prime Minister of Greece. Mr. Papademos arrived to the Presidential Palace to join the meeting of the Political leaders with the President Karolos Papoulias.
The meeting between Papandreou, Samaras, LA.O.S party leader Karatzaferis and Karolos Papoulias at the presidential mansion started at 10:15 and is still under way. Mr. Papademos arrived at the Mansion around 12:00.
It seems that the two political leaders (former Rock Stars) are playing their music and expect from the Greek People to dance... Papandreou and Samaras are trying for a 4th day to agree on the person for the Prime Minister's position in the upcoming coalition government while Greek people, Europe and markets are ridden in a climate of uncertainty!
After Papandreou resignation the two political leaders had a meeting with President Papoulias and Mr. Karatzaferis (LA.O.S far right party leader) in order to announce the name of the new Prime Minister and the new government of unity. The meeting never ended. Mr. Karatzaferis left enraged and it looks like the two men clashed again.
In the meanwhile, Greek citizens feel uncertain and insecure. According, to the survey conducted for the Athens Chamber of Commerce and Industry (EBEA), 53% of Greeks believe that the October 27 deal will lead the nation into a further economic downturn. No more that 18% expects a recovery. In addition, according to data released by the Bank of Greece on Tuesday, Greek families and businesses withdrew over 5.5 billion euro in September. Within a month the total deposits decreased by -14% in comparison with 2010!
In Europe, Angela Merkel calls for "new Europe"! According to Reuters, German and French officials have pointed out strategies for a extended overhaul within the European Union designed to establish a more integrated and perhaps smaller euro zone!
Despite of these, the two room-mates of Amherst College of Massachusetts still struggling to agree on something, and they put Greece, Greek people and probably the EU into real danger.
Strange games by Papandreou and Samaras! Many members of both political parties are opposed to their leaders!
After Mr. Papandreou's resignation from the Prime Ministers position, Mr. Papandreou and Mr. Samaras are discussing with President Papoulias. Filippos Petsalnikos (current President of Greek Parliament) seems that is going to be the new Prime Minister but many members of both PASOK and New Democracy parties are against their leaders' choice.
They believe that the selection of Filippos Petsalnikos has to do with the desire of former PM Papandreou to control the political developments in his party. Filippos Petsalnikos is a close associate of Mr. Papandreou and he was one of the few referendum supporters.
Leader of LA.O.S party Mr. Karatzaferis has left enraged the meeting of political leaders.
"There a thing called national dignity. I have consistently outlined that, in order to defend the Greek economy and the euro, the implementation of the October 26 arrangement is inevitable,» Samaras said and he added:
"I won't allow anyone to question the statements I have made.»
According to information from the European Commission, the European Economic and Monetary Affairs Commissioner Olli Rehn, has immediately replied to Mr. Samaras by saying that
" If the EU does not receive the requested signatures, Greece will not get the 6th tranche”.
Greek party leaders are still battling to agree on a new person for the prime minister's position, while the rest of the Greek nation and the EU still waiting for an agreement on a unity government which will try to save the country's finances and end the chaos that threatens the euro.
Although, it seemed like the agreement on the new government would be reached without delay, we still do not have a conclusion after days of wrangling.
Up to now, they have decided that a "100 day" government needs to be established to drive a 130 billion euro bailout for Greece through parliament and lead the country to elections in February.
Let's hope that they will step aside their personal ambitions and take the best decision for the future of Greek people.
Papandreou and Samaras agreed on a coalition government – L.Papademos will probably be the new Prime Minister
The new government will implement the 26th October agreement and lead the country to elections with possible date the 19th of February 2012.
PM Papandreou will not lead the new government and the person that will probably replace him will be the former Vice President of the ECB Lucas Papademos.
Official sources report that George Papandreou may announce his resignation right after today's cabinet meeting that starts the procedures for the coalition government.
A meeting of the political leaders is expected probably tomorrow.
"Negotiations for a coalition government will start as early as possible" were the words of Prime Minister George Papandreou.
“Yesterday the government obtained a vote of confidence. Today I went to the President to inform him regarding my determination to form a national coalition government. The new government must focus on the October 27 agreement, which is a vital for Greece in order to stay in the eurozone. Procedures and conversations will start at the earliest possible time” he added.
PASOK government received a vote of confidence after Prime Minister's speech in front of the parliament. PM Papandreou promised to start conversations with all the opposite parties in order to form a government of unity.
Mr. Samaras, the leader of the main opposition party (New Democracy) has stated earlier today that will only accept a government of unity which will lead the country into elections in six weeks.
PM Papandreou and his finance Minister Venizelos have made clear that the new government will not lead Greece to elections until the end of February!
It is quite unclear which will be the political developments in Greece the next days, since none of the political leaders seems to be ready to cooperate for the benefit of the nation.
Conversations are planned to take place among Pasok and New Democracy representatives in order to form a transition government. Earlier today, many PASOK members reacted negatively to Pm George Papandreou’s attempt to make a referendum on whether Greece should continue in the EU.
According to information government officials are going to discuss with members of New Democracy party in order to establish a new government. Earlier today, New Democracy leader Antonis Samaras mentioned that he is ready to discuss the possibility of cooperation which will lead to elections in the near future.