"We will stick to the euro at any cost"

Dramatic tones but with determination from Papandreou

 

"Our first priority is to save the country from bankruptcy. And we will do whatever is necessary to make her stand on her own feet", said prime minister George Papandreou during his speech at the TIF, clarifying that he will continue the policy of ruptures, of reforms and changes, even if it is causing profound social reactions and political conflicts.

To avoid any doubt that he will insist on this policy without a second thought, Papandreou said: "Whenever we have discounts or setbacks we find them in front of us. The eurozone’s current situation and the international economic system, leave us no choice than to stick closely to our commitments. And we will not allow Greece to become the scapegoat for Europe’s problems."

"We took the decision to give a battle to avoid bankruptcy, a disaster for the country and the citizens, by sticking to the euro," he said, and added: "We have a long way ahead. But we are on the right track. Not only for fiscal consolidation, but also a development that will allow us to count on our own strength." The prime minister admitted that the effort "meant and still means difficult decisions. It meant and means necessary sacrifices, righteousness of course, but still sacrifices.

We heard a lot for magic solutions and conspiracies; an easy and convenient for-some- denial of reality. Nothing was easy and nothing is. So, together, we gave and are still giving a titanic struggle. The guiding principle for any decision we make is our national interest."

Papandreou said: "The situation is very difficult for everyone. I know what it means for low and middle incomes. They are compressed, companies are struggling to survive, and the recession creates despair and unemployment. Workers, entrepreneurs, freelancers, people who work hard, pay their taxes, respect the rule of law, are roughly tried today. And all reasonably ask: Is there really hope? Will Greece succeed? Yes, there is hope. Yes, we will succeed. But the exit from the crisis will not come without effort, will not come if we do not work together."

The PM set two questions: If the country can succeed and if there is someone who does not understand that for quite a while now we were carelessly building castles in the sand rather than exploiting our comparative advantage? "Does anyone doubt that we need to change everything if we want to survive, and also build a better country - not because some foreigners impose it upon us, but for our national independence and dignity and for our children?", said the prime minister and wondered if "anyone doubts that Greece should maintain its European orientation and stay within the euro area."

Referring to the decision of July 21, he said that Europe has taken a decisive step towards strengthening its cooperation, and to create new tools for addressing the debt crisis. With the decisions, he continued, "we have secured:

    * the coverage of most of our borrowing needs until 2020 instead of 2014
    * enormous reduction in liabilities in future years, with the extension of the debt repayment period in 30 years instead of 5
    * lending rates consistently below 5% on average, which means a lot less interest on the backs of taxpayers for the coming years
    * the private sector’s involvement, which will result in reducing the net public debt in nominal terms, at 12% of GDP, that is 26,1 billion euros
    * possibility for debt repurchase through the mechanism



These are unique decisions in the European history. We do not have the right to leave this attempt unfinished. Because if we do, than all of our sacrifices will have been in vain. And we are determined to guard this agreement at any cost. Thus, our first priority is the full implementation of the decisions of July21", Papandreou stressed among other things.