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18/06/2011 | Greece's political crisis - A long day in Greece

The Economist Staff

FOR aspiring Socialist cabinet ministers, anxiously clutching their mobile phones in anticipation of a call from the prime minister’s office, it was an interminable day. George Papandreou had promised to announce a sweeping reshuffle of his government on Thursday in an attempt to reinvigorate Greece’s battle to stave off default. But the timetable has now slipped by 24 hours, at least.

 

One possible reason for the delay was that Mr Papandreou found himself unexpectedly forced to defend his handling of the debt crisis at an emergency meeting of MPs in his party, the PanHellenic Socialist Movement (Pasok). It was convened by Vasso Papandreou, a former European commissioner (and no relation of the prime minister). Typically blunt, Ms Papandreou, a fierce critic of European Union and IMF programmes intended to put Greece’s economy back on track, said that the austerity measures had failed and told Mr Papandreou he should sack a group of his personal friends who are also members of his cabinet.

Another was the reluctance of high-profile politicians to accept a portfolio in a government that may survive only a few months, or less. In particular the finance minister’s job, which means overseeing a new EU-IMF package of painful reforms, is a poisoned chalice. With Greece stuck in recession and the official unemployment rate above 16%, George Papaconstantinou, the incumbent, has become a liability.

It was only after turning it down twice that Evangelos Venizelos, the ambitious defence minister and a possible future contender for the party leadership, finally accepted the position of finance minister. The lack of enthusiasm for such a senior post suggests that senior Pasok figures are not convinced the latest reform package will work.

Socialist deputies who enjoy cosy relationships with the public-sector unions have been roaming the corridors in parliament complaining about plans for €50 billion ($70 billion) of privatisations. One of them, representing a northern Greek constituency where the state electricity utility is the biggest employer, has already announced he will vote against the package when it comes up for approval, at the latest in early July.

Other dissidents threaten to withhold backing for a vote of confidence in the new government, expected early next week. Mr Papandreou is still in command of his party—he received a standing ovation today—but his slim majority means it would only take six defections to bring the government down at either vote.

If the government does collapse, Mr Papandreou will have to call a snap election. Fed-up voters would probably stay away from the polls. Greece would be unable to draw the next €12 billion slice of its EU-IMF loan due in July, raising the prospect of a technical default.

Greek officials talk bravely of a bridging loan being arranged by the EU and IMF to tide the country over until a new national-unity government could be formed. Yesterday Mr Papandreou discussed with Antonis Samaras, leader of the opposition conservative New Democrats, the possibility of stepping aside and the pair jointly appointing a team of technocrats to run the country, perhaps with Lucas Papademos, a respected former deputy president of the European Central Bank, as prime minister.

But within hours colleagues and advisers had talked Mr Papandreou into dropping the idea. A disappointed-sounding Mr Samaras said today that a one-off opportunity had been lost. The result has been to scare off economists and bankers who had already been thinking about offering their services. It seems that Greece’s politicians will have go it alone after all.

The Economist (Reino Unido)

 



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22/03/2009|
27/01/2009|
27/01/2009|
27/01/2009|
17/01/2009|
17/01/2009|
17/01/2009|
17/01/2009|
17/01/2009|
17/01/2009|
11/01/2009|
06/12/2008|
06/12/2008|
06/12/2008|
06/12/2008|
23/11/2008|
23/11/2008|
16/11/2008|
16/11/2008|
04/11/2008|
04/11/2008|
03/11/2008|
03/11/2008|
24/10/2008|
24/10/2008|
24/10/2008|
24/10/2008|
15/09/2008|
15/09/2008|
15/09/2008|
15/09/2008|
15/09/2008|
15/09/2008|
06/09/2008|
06/09/2008|
05/09/2008|
05/09/2008|
05/09/2008|
05/09/2008|
01/09/2008|
01/09/2008|
01/09/2008|
01/09/2008|
22/08/2008|
22/08/2008|
17/08/2008|
17/08/2008|
16/08/2008|
16/08/2008|
28/07/2008|
28/07/2008|
28/07/2008|
28/07/2008|
28/07/2008|
28/07/2008|
19/07/2008|
19/07/2008|
24/05/2008|
24/05/2008|
03/05/2008|
03/05/2008|
29/04/2008|
11/02/2008|
05/01/2008|
09/12/2007|
18/11/2007|
10/11/2007|
10/11/2007|
06/11/2007|
06/11/2007|
06/09/2007|
26/08/2007|
25/08/2007|
11/07/2007|
16/06/2007|
16/06/2007|
10/06/2007|
10/06/2007|
19/05/2007|
19/05/2007|
19/05/2007|
19/05/2007|
24/04/2007|
24/04/2007|
14/04/2007|
14/04/2007|
05/04/2007|
05/04/2007|
05/04/2007|
28/02/2007|
28/02/2007|
05/02/2007|
05/02/2007|
04/02/2007|
04/02/2007|
04/02/2007|
04/02/2007|
04/02/2007|
04/02/2007|
29/01/2007|
29/01/2007|
29/01/2007|
29/01/2007|
11/01/2007|
11/01/2007|
11/01/2007|
11/01/2007|
27/12/2006|
27/12/2006|
27/12/2006|
27/12/2006|
27/12/2006|
27/12/2006|
20/12/2006|
20/12/2006|
17/11/2006|
30/09/2006|
28/07/2006|
12/04/2006|
12/04/2006|
12/04/2006|
06/03/2006|
21/02/2006|
17/02/2006|
31/01/2006|
10/01/2006|
28/12/2005|
31/10/2005|
26/09/2005|
29/08/2005|
11/08/2005|
08/08/2005|
24/06/2005|
24/06/2005|
24/06/2005|
03/04/2005|
03/04/2005|
03/04/2005|
03/04/2005|

ver + notas
 
Center for the Study of the Presidency
Freedom House