From the PM's point of view, over-taxation, the suffocation of the middle class, and the dramatic plunge in public investment are not particularly problematical.
The Bank of Greece rang the alarm bells over the danger of fiscal derailment due to Greece’s Council of State rulings which deemed unconstitutional earlier pension cuts and the abolition of holiday bonuses.
We make mistakes and sometimes unpardonable ones, Deputy PM Yannis Dragasakis told Parliament about arrangements on resolving non-performing loans.
A resolution of non-performing loans that were issued for borrowers to buy their primary residence was necessary.
Dimitris Tzanakopoulos said that lack of protection from foreclosure was a strategic choice of both New Democracy and Pasok because 'in the world of corrupt vested interests which they defend, the weak and vulnerable are not entitled to protection'.
The report states that discussions on the framework of protection from home foreclosures show that key parameters that had been set for the new arrangement have been completely met.
The two sides agreed that the maximum tax value of the protected property will be 250,000 euros and the maximum value of the remainder of a loan for which a home was used as collateral will be 130,000.
The current protection ceiling for primary residences – between 180,000 and 280,000 euros – is viewed as unrealistic by both the banks and creditors.
The government is signaling that it is all right if creditors are dissatisfied with the fact that it will not be able to meet a series of existing commitments by a 15 February deadline.
Merkel said that in public administration there has not been sufficient progress, despite the fact that more generally there has been progress on the reform front.