Greek premier proclaims end to austerity in policy statement

[webfact]

Greek premier proclaims end to austerity in policy statement
DEMETRIS NELLAS, Associated Press

ATHENS, Greece (AP) — Greece's new Prime Minister Alexis Tsipras set his leftist government on a collision course with Greece's creditors Sunday, proclaiming an end to the era of austerity and "five years of bailout barbarity."

Tsipras presented his government's policy statement to Greek lawmakers which included, as he had forewarned, all the promises made by his radical left party, Syriza, in its manifesto before last month's election.

The government "has taken the irrevocable decision to stick fully to its pre-election commitments," Tsipras said, indicating that he would not compromise on his party's positions.

By demanding a "bridge agreement" that would give Greece and its creditors time to negotiate a new debt deal much more favorable to the country by June, Tsipras appeared to stick to an approach that got short shrift from European Union partners in a series of meetings that Tsipras and his finance minister had with European officials this past week.

"If our (EU) partners are willing, we can agree (on a bridge agreement) tomorrow morning," Tsipras said.

But this would mean the rest of the EU abandoning its declared policies and giving in to Syriza's demands.

"The (bailout deal) has been abolished by popular mandate," Tsipras said, referring to the two deals that have kept debt-ridden-Greece solvent and provided a historically unprecedented 240 billion euros ($271.4 billion) in assistance.

This aid also went with austerity policies that shrank Greece's economy by a quarter and resulted in record unemployment, with more than a quarter of the workforce jobless.

Having come to power as a result of a popular backlash against these measures, Tsipras geared his speech completely toward a domestic audience, insisting that it is the EU that must return to its "founding principles of solidarity, social cohesion, growth and democracy."

"We declare categorically, we will not negotiate our history. We will not negotiate this people's pride and dignity," said an emotional Tsipras as he concluded his speech.

The current bailout deal runs until the end of February, but Tsipras said the government is "not entitled to ask for an extension," while blasting the previous government for purposely rejecting an EU proposal to extend the deal to June so that a Syriza-led government would face tight deadlines.

"They burned the crops and blew the bridges," Tsipras said of the previous conservative-socialist coalition government.

Syriza's own program includes measures to provide relief for the poor, such as free meals, free electricity and free health care; relief for the middle class by abolishing an unpopular property tax and replacing it with a tax on very large property; and sops to his supporters, such as the abolition of university reform and a re-establishment of the state TV and radio broadcaster that was shut down in 2013 and replaced by a slimmed-down version. But a pledge to raise the minimum wage to pre-crisis levels, once promised as the first measure to be implemented by the government, will be done in two stages and not realized until 2016.

Tsipras insisted that his government's budgets would be balanced, save for the debt servicing needs. On the debt, while his original demand for a minimum 60 percent "haircut," or write-off, has been rejected by Greece's creditors, he has presented other proposals, such as issuance of low-interest "perpetual bonds," maturity extensions and deferrals of payments that would have the same effect. He said the EU should have no problem accepting his pledges to tackle corruption and tax evasion and reform the state administration.

Greek lawmakers will debate the policy statement and hold a confidence vote at midnight Tuesday.

Greece faces three crucial European Union meetings in the coming days: an emergency meeting of Eurozone finance ministers on Wednesday, a summit of EU leaders Thursday, and another Eurozone finance ministers meeting on Feb. 16. It has been given a virtual ultimatum to present a program compatible with the bailout deal by that latter meeting; the European Central Bank has applied additional pressure by refusing to accept Greek bonds as collateral after Feb. 11, forcing Greek banks to seek funds from a, more expensive, emergency liquidity mechanism.


-- (c) Associated Press 2015-02-09

[PepperMe]

Here starts the first default in the Eurozone bailout fiascoes.

Greece throws a major spanner in the worlds biggest ponzi scheme.

I hope they come out smiling.

[BudRight]

Let's see what he says after Grexit.

[wabothai]

When you default on loans, the creditor has through court of law the right to take your assets. Simple as that.

Is Greece going to take on the rest of Europe?

[manarak]

the new Greek premier is a buffoon.

his newest idea is now to ask Germany for reparation payments for damages in WW II.

[car720]

When you default on loans, the creditor has through court of law the right to take your assets. Simple as that.

Is Greece going to take on the rest of Europe?

The best thing that the Greeks could do would be to send 300 Sparans in loin cloths.

[Plan B]

the new Greek premier is a buffoon.

his newest idea is now to ask Germany for reparation payments for damages in WW II.

Which Germany has blatantly refused to pay.

So, what's your problem with that exactly?

[Plan B]

When you default on loans, the creditor has through court of law the right to take your assets. Simple as that.

Is Greece going to take on the rest of Europe?

The best thing that the Greeks could do would be to send 300 Sparans in loin cloths.

What are you, a comedian?

[h90]

the new Greek premier is a buffoon.

his newest idea is now to ask Germany for reparation payments for damages in WW II.

no that is the idea from the previous government.

And it is not stupid, because whatever is to pay for in Europe, the Germans pay. It works that way the last 10-20 years.

[tartempion]

Here starts the first default in the Eurozone bailout fiascoes.

Greece throws a major spanner in the worlds biggest ponzi scheme.

I hope they come out smiling.

Yep.back to free water, free electricity, free public transportation and don't ask them to pay taxes, I would be smiling also

[elgordo38]

When you default on loans, the creditor has through court of law the right to take your assets. Simple as that.

Is Greece going to take on the rest of Europe?

Why then do so many bond holders take a hair cut in the restructuring process.

[Mosha]

Agree on a Bridge Agreement. I wounder if he's heard the Greek Bridge Joke?

[ggold]

When you owe so much to the banks you own the banks! Not saying Greece will get it all it's own way but Merkel et all will have to give some way. But it looks like Greece will be the first to go followed by the other southern states later in the year. The end of the Euro is Nigh!

Edited February 9, 2015 by ggold

[bassman]

Greece has already "restructured" their debts previously and seriously stiffed their bond holders, while agreeing to the terms set previously. A nation of scammers, don't think they will have an easy way forward. Portugal, Spain and Ireland have done some restructuring and well on their way to recovery. No sympathy for the con artist of the current government or the population that supported them. Makes many African nations appear to be better managed.

[Plan B]

Greece has already "restructured" their debts previously and seriously stiffed their bond holders, while agreeing to the terms set previously

What really happened was they virtually bankrupted state pension funds while the regular Greek bond holder lost everything just because they trusted their government.

A nation of scammers, don't think they will have an easy way forward.

Speak for your own shitty nation.

Portugal, Spain and Ireland have done some restructuring and well on their way to recovery.

You really don't have a clue of what you're talking about, do you?

No sympathy for the con artist of the current government or the population that supported them.

Nobody asked for your sympathy.

Makes many African nations appear to be better managed.

Can't argue with that.

[Ulic]

The Greeks still have not learnt. It is voting for parties like this that promise free free free

everything that has put them in the position they find themselves in. Europe should show

them the door write off there debts and impose a 40% tax on Greek imports. Bring in laws

to prevent banks from making loans to countries that have defaulted on debt repayments

in the last 50 years. No more loans to Argentina, Greece etc.....

[Somtamnication]

Truly amazing, these Greeks. After years of corruption, raiding state coffers, they still want help but on their terms. Surreal!

[SheungWan]

The Greek premier can proclaim what he likes but all the buffoonery is predicated on a permanently outstretched begging bowl.

[englishoak]

I heard Greece is going to register itself as an official charity... the idea is everyone donates to you and being a charity you dont have to pay any taxes and it can be run by volunteers. It'll only cost 60 or 70b a year

Oh wait a moment...................

Edited February 10, 2015 by englishoak