Presenting his government’s programme to parliament, Prime Minister Lucas Papademos declared that implementation of all of Greece’s obligations under its EU-IMF bailout is a necessary condition for Greece to remain in the eurozone.

 

There was nothing at all new in the premier’s address, delivered in the subdued, uninspiring tones of a lifelong technocrat. It was a recitation of Greece’s obligations under the existing medium-term programme, punctuated by rallying cries designed to rally support behind the unprecedented austerity measures.

 

The main targets include proceeding rapidly with implementation of: the unified civil service wage schedule, the labour reserve (with its 30,000 layoffs), labour deregulation, privatisation, opening all closed shop professions, reforming the judicial system (with stress on speeding up cases and out-of-court settlements), and overhauling public administration.

 

“I assume the premiership in the toughest moment in the country’s recent history. Such situations are handled only when all forces of the nation are united,” he said, in a national call to arms.

 

“The country can be saved. It is up to us,” he declared.

 

Papademos said Greece must receive the next 8bn euro loan instalment by December 15, in order to cover expenditures until the end of the year.

 

He noted that the new memorandum will be based on the fifth update of the existing bailout terms.

The new loan contract, which is expected to demand that state assets are put up as collateral, must be ratified by the end of the year.

 

While aknowledging that the previous government had met all the requirements for the new tranche, he said that confirmation of the commitment is now necessary to ensure disbursement. That, he said, requires that the party leaders in the coalition to sign a written commitment. Papademos defended this as a reasonable requirement, set by countries whose taxpayers are contributing to Greece’s loans, so as to ensure that restructuring and adjustment are actually taking place.

 

ND leader Antonis Samaras on November 14 reiterated that he has no intention of signing such a pledge, which he views as a humiliating affront to national dignity, since he has already declared his support for Greece’s prior commitments.

 

Papademos announced that his government will push 24 active employment programmes.

He underlined that ensuring the viability of pension funds will be a top priority. It was unclear if that will mean fresh pension cuts, as many expect.

 

Papademos reiterated the need to quickly absorb 14bn euros in EU development funds (ESPA), especially in infrastructure projects (such as highways).

 

Defending the role of the European Commission task force (which will have expansive powers in ensuring implementation of the memorandum), Papademos said its role will be important in restructuring public administration and cutting red tape, to lure investment and bolster competitiveness.

 

Papademos said his government is the guarantor of implementation of the October 27 bailout deal and of the private sector involvement in the related debt writedown.

 

“Remaining in the euro is the only choice,” Papademos said, noting that the Greek people understand the benefits of staying in the eurozone, as all surveys show.

 

He maintained that faithful implementation of the memorandum will eventually reverse the recessionary trends.

 

“The youth must have the opportunity to live and prosper in their own country,” he said