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Re: USE ME: B3 - ECON/GREECE - Governmental situation is evolving

Released on 2011-03-05 18:00 GMT

Email-ID 1177721
Date 2011-06-15 18:11:44
Lots of talk that a cabinet reshuffle is coming... might mean that Papa-C
is out (the finance minister). If Papa-D stays, however, then it is a
really lame concession.

On 6/15/11 10:35 AM, Michael Wilson wrote:

needs to include the line at the bottom about potential elections

On 6/15/11 10:26 AM, Benjamin Preisler wrote:

combine all the way to the bottom with the parts from STRATFOR sources

PM and ND leader discuss all-party government, sources claim
15 Jun 2011 (google says about 26 mins ago)
Prime Minister George Papandreou held talks with main opposition New
Democracy leader Antonis Samaras on the telephone on Wednesday, after
a round of telephone calls with the leaders of the other political
parties in Parliament. Their conversation lasted roughly 20 minutes.

While an earlier official announcement by ND had refused to disclose
the content of their talks before Papandreou had expressed his
position, unnamed sources within the party [the ND] said that the
prime minister had described the situation as extremely difficult and
that he was prepared to consider either an all-party government or a
broader alliance government.

The same sources said that Samaras did not reject the proposal but
made it clear that this could not work with Papandreou as prime
minister. To this, always according to ND sources, Papandreou
apparently replied that he was not concerned about whether he was
prime minister.

Other sources within the party announced that there would be a second
telephone communication between the two men later on Wednesday

Samaras has apparently made it a condition that there is a substantial
renegotiation of the terms of the Memorandum for the loans to Greece,
in order to agree to an all-party government.

The ND leader, who has been in continuous contact with his closest
aides since the morning, is expected to head to his party's
headquarters in a short while. (ANA)

PM talks with Samaras on the phone
15 Jun 2011 (google says about 1 hour ago)

Prime Minister George Papandreou held talks with main opposition New
Democracy leader Antonis Samaras on the telephone on Wednesday, after
a round of telephone calls with the leaders of the other political
parties in Parliament.

Their conversation lasted roughly 20 minutes and ND refused to reveal
any information concerning their talks before the prime minister
addresses the public.

Samaras, who has been in continuous contact with his closest aides
since the morning, was expected to head to his party's headquarters
after the conversation with Papandreou. (ANA)

Tsipras calls for immediate elections in phone call with PM
15 Jun 2011 (google says about 2 hours ago)

Coalition of the Radical Left (Syriza parliamentary alliance)
parliamentary group leader Alexis Tsipras on Wednesday called for
immediate general elections as the only way out for the country,
during a telephone discussion with Prime Minister George Papandreou,
according to party sources.

Papandreou called Tsipras after an extraordinary meeting with
President of the Republic Karolos Papoulias earlier in the day, in the
context of a round of phone calls to all political party leaders.

Sources said Papandreou reiterated his government's and his own
personal determination that the Medium-Term Fiscal Strategy Framework
programme will be passed by parliament, to which Tsipras replied that
Syriza remained firm in its stance that the Memorandum and the
Medium-Term programme are catastrophic for the country, and that the
only way out, and to the benefit of stability in Greece, is immediate
recourse to general elections.

The same sources said that neither a new meeting of the Council of
Political Party Leaders nor a one-on-one meeting with Papandreou were
put forward during the phone discussion.

Tsipras will make statements immediately after the prime minister's
address to the nation later on Wednesday. (ANA)

PM meets with President, rumours abound
by (AthensNewsWeb) 15 Jun 2011 (google says about 3
hours ago)
Prime Minister George Papandreou met with the President of the
Republic Karolos Papoulias, on Wednesday noon, stating that this is a
"historic moment", while Greek journalists cancelled their 24-hour
nationwide strike, as rumours abound about the possibility of a
coalition government or snap elections.

According to government sources, the prime minister will continue on
Wednesday his round of telephone contacts with the political party
leaders after his extraordinary meeting with Karolos Papoulias, adding
that Papandreou had spoken only with Communist Party of Greece (KKE)
leader Aleka Papariga and Democratic Left leader Fotis Kouvelis before
the meeting.

This clarification comes as earlier on Wednesday, a statement by
Papandreou before the meeting with Papoulias that he was in contact
with the party leaders to seek consensus sparked denials of such
telephone contacts by ND and Syriza.

Papandreou, the sources continued, would make an address to the people
later on Wednesday. The government sources left open all prospects,
but for the time being ruled out snap elections.

Earlier, Pasok MP Ntinos Vrettos asked for the government to resign so
that a new one would be formed of publicly acclaimed experts and

On Tuesday, Florina MP Giorgos Lianis tendered his resignation as a
member of Pasok's central committee. Lianis is keeping his parliament
seat and will continue to serve as an independent, leaving the ruling
Pasok party with 155 MPs.

In his resignation letter addressed to the Speaker of the Parliament
and to Prime Minister George Papandreou, Lianis stressed that he does
not believe anymore in the government's economic policy and that "we
[the government] have failed and we are forced to hide the truth from
the people".

Lianis, who started his career as a journalist, was first elected to
parliament on Pasok's ticket in 1989 and he has served as deputy
culture minister from 1993 to 1996.

Earlier on Tuesday, Pasok MP for Kozani Alekos Athanasiadis in a radio
interview said that he would vote against the medium-term programme.

"I will not vote for the medium-term programme and I assume my
responsibilities," Athanasiadis said.

The government on Thursday tabled in parliament a medium-term fiscal
strategy framework for the economy envisaging a new round of severe
austerity measures designed to bring in overall revenues of 28.259
billion euros by 2015, as well as a 50 billion euros privatisation
programme. The programme is scheduled to be put to vote in the
300-member chamber on June 28.

ND denies reports of Samaras meeting with PM aide
15 Jun 2011 (google says about 5 hours ago)
Main opposition New Democracy categorically denied on Wednesday
rumours appearing on several blogs and websites of a meeting on
Tuesday between ND leader Antonis Samaras and a representative of
Prime Minister George Papandreou.

In a statement, ND press officer Yiannis Michelakis called the rumours
"absurd" and unworthy of denial.

ND further denied any telephone contact whatsoever between Samaras and
Papandreou. (ANA)

On 06/15/2011 03:53 PM, Benjamin Preisler wrote:

STRATFOR sources in Greece:

Papandreou is in contact with other political leaders for some kind
of broader consensus, maybe even some form of coalition government.
Tthe elections scenario is also at the forefront if no consensus is
A PASOK MP Mr Dinos Vrettos, asked today for a total reshuffling of
the government, putting well known personalities from a broader
spectrum in the new government.

Papandreou in talks with Samaras about a coalition governement. They
are looking at the possibility of a "national salvation" government
without Papandreou as a prime minister. A prerogative of such a
governement will probably be a renegotiation of the austerity
measures. There being no time for bargaining now, first they would
pass the measures through parliament and then try to renegotiate
some of the measures (taxes mostly).

Marko Papic

C: + 1-512-905-3091


Benjamin Preisler
+216 22 73 23 19


Benjamin Preisler
+216 22 73 23 19


Benjamin Preisler
+216 22 73 23 19

Michael Wilson
Senior Watch Officer, STRATFOR
Office: (512) 744 4300 ex. 4112

Marko Papic
Senior Analyst
+ 1-512-744-4094 (O)
+ 1-512-905-3091 (C)
221 W. 6th St, Ste. 400
Austin, TX 78701 - USA