PM searching for a pick-me-up
The government appears to be pinning its hopes on overturning the negative mood sparked by the mounting economic problems by focusing on a range of measures it intends to take to boost social benefits and growth. Government spokesman Giorgos Petalotis said yesterday that several such steps would be announced over the next few days in the buildup to Prime Minister George Papandreou’s keynote speech at the annual Thessaloniki International Fair on September 11, where he will set out his government’s economic policy. PASOK is hoping that now Greece is on track to reduce its deficit, in line with its agreement with the European Union and the International Monetary Fund, it will have some room to develop economic policies that are not constrained by the demands of the EU-IMF memorandum. Given that the austerity measures it has taken so far have proven unpopular and a number of economic indicators, such as unemployment and growth, are showing negative signs, the government wants to unveil policies that are aimed at helping the less well-off members of society and which will boost growth. «We are wiping away and leaving behind all the hurdles that kept Greece back – bureaucracy, lack of transparency and patron-client relations – and we are steadily building a new growth model for the country,» said Petalotis. However, the government spokesman made it clear that Greeks should not expect to hear Papandreou announce a series of handouts during his speech at TIF, as has been customary for many prime ministers in the past. «We are not taking the populist route, announcing measures that our economy cannot withstand,» he said. Sources said that PASOK is hoping the cost of most of the measures it wants to present next month will be financed by the National Strategic Reference Plan (ESPA), which distributes funding from the EU to various schemes. The ADEDY civil servants’ union warned the government yesterday that it would return to strike action over the fall unless the government responds to its demands for better pay.
