March 25, 2011

Papaconstantinou "There is no class war in Greece"

The French financial newspaper Les Echos has an interview with Greek Finance Minister Papaconstantinou about the current situation for Greece and the social unrest following in the wake of the collapse, bailout and austerity plans. They asked if the Papandreou government has a plan B, and Papaconstantinou responded that there isn't an alternative (paraphrased below from the french language translation via Google):

"...Our strategy is based on three points: to achieve a surplus in 2012, to continue our efforts to encourage economic recovery and, of course, to implement the privatization program.

Regarding privatization efforts: The project is outlined to take place over five years and includes defined objectives year after year, and the procedures for determining actual values.

The profitable sale of some of these assets will allow Greece to avoid wage cuts and tax increases. In 2012, the privatization program is expected to generate about 2 billion.

Papaconstantinou stated that the way they have chosen is hard and is a 'marathon' race, but already positive effects are gradually being reached. 'From the end of 2011," he says,"development will resume, we will have left behind the worst of the difficulties.

The last quarter of 2010, GDP was hit hardest, but the effect will be less in 2011, the expected amount to be -3%, but in 2012 an increase should occur of 1% to 2%.

"…2013 will be the "crucial year" because international support will stop. With the structural reforms implemented Greece can count on substantial growth opportunities. "We are now measuring changes that would take decades to happen in other states."

Questioned about the fear of increasing social instability, Papaconstantinou said "there is no class war, which many in the media have yet to understand."

"The Greeks had a very difficult 2010. 2011 will be as difficult. There are strikes, demonstrations. But what is interesting is that Greeks understand the need for the changes made."

"…Positive signs have already emerged. For four months, our exports increased from 30 to 40%."

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