“Important decisions which need to be taken on a European level depend first and foremost on us,” Papandreou told his ministers last night, according to an e-mailed statement from his office in Athens. “We need to show our dedication to reaching the goals.”
Parliament HurdleGreece’s measures, which require parliamentary approval, aim to secure disbursement of an 8 billion-euro loan payout this month and a second rescue of 109 billion euros agreed to by EU leaders on July 21. Under the proposals, the deficit this year would be 8.5 percent of GDP, compared with the 7.6 percent target previously agreed with the troika. Next year’s gap is seen at 14.7 billion euros, according to an e-mailed statement from the finance ministry last night.
Outline of the approved steps that Papandreou's Admin agreed to suggest that those measures will cut the budget deficit for 2012 to 6.8% vs the budgeted 6.5% set with the Troika, earlier in July.
It is probably what the humbled Greek govt pushed against the wall can achieve in the face of the harsh austerity pie the Greeks have to swallow.
This plan is presumably negotiated with the Troika implicit approval but must still need to pass Greek Parliament approval.
The Greeks must deliver in their half of the court according to what was agreed in July (in spirit, they have) before the troika can consider changes that can alleviate the harsh conditions meted out.
In spirit, they have, becos there are many moving parts, harsh austerity meant negative growth and shrinking GDP which exacerbates the deficit calculations. Nobody, not even those in the Troika can estimate the effect on the GDP arising from the changing austerity measures, so the 6.8% (vs 6.5%) should be acceptable....
That the 6.8% cannot be met and is being implicitly approved, meant that the troika acknowledges that there must be changes to the July agreement or to the existing Euroland setup; in order to rule out another round of default scares - which is what is bringing the markets to her knees....
Expanding the EFSF? Leveraging the EFSF? More Haircuts on the Lenders?
What would be brought back onto the table?