The meeting was also attended by Finance Minister Gikas Hardouvelis, Labour Minister Yiannis Vroutsis, Administration and eGovernance Minister Kyriakos Mitsotakis and Deputy Finance Minister George Mavraganis, AMNA reports.

Exiting the Maximos Mansion Hardouvelis said he briefed the two political leaders on the negotiations in Paris. “It went well. We had progress. We did not close the issues. We continue,” he said, while regarding the possible extension of the current programme he said: “there could be one for a very short period of time for technical reasons.”

The government appears certain that there will be an agreement with the troika by the end of the year. A source close to the Prime Minister stated that “those who invest in catastrophe will be disappointed as there was no wreck or destruction in Paris.”

Negotiations with the troika will continue via teleconference calls in the coming days.

Most of the haggling has been over a projected fiscal gap in the 2015 budget, protothema.gr notes. Failure to strike a deal by the December 8 deadline means that the Greek government won’t be able to keep its pledge of quitting its bailout programme by the end of 2014.

The main issues of discontent are:

- A Finance ministry official pinpointed the “number one” issue being the fiscal gap for 2015. A Greek official said that “the timetable is very tight.” Meanwhile, a European source said that the troika would like to see the new law for debt settlement in 100 installments to be scrapped altogether.

- The troika is not satisfied with structural changes in social security thus far and is seeking to see pensions immediately reduced. They also want the pension age to be lifted but believe that this should be done gradually over a five-year period.

- Troika wants businesses to be excluded from the recent law that allows for debt settlement in up to 100 installments.

- Troika believes that there should be a common salary chart for the public sector or, at the very least, a reduction of “extra” bonuses and overtime.

- International creditors are seeking to have VAT rates increase and for VAT exemptions on some islands to no longer apply. They want the reduced 6.5% and 14% VAT rates for items that are considered basic needs to be lifted.

- The troika would like to see Greek labour law to include mass dismissals and changes to the way decisions for strike action are structured as well as changes to the law on unions.

Sources said that discussions with the troika had not resulted in a date being set for the return of troika’s representatives to Athens for a review prior to the Eurogroup meeting on December 8. Nonetheless, the extension of the bailout has yet to be discussed.

The markets have been negative concerning Greece’s early exit from the program with Greek government bonds having slumped and Greece’s 10-year bond close to 8%.

According to Kathimerini, an email sent to the Finance Ministry by European Commission representative Matthias Mors, and leaked in the Greek media yesterday, referred to the troika’s doubts about the credibility of the government’s plan for overhauling the three firms while they are still in operation. Instead, the troika proposed liquidation for EAS and ELVO and, in Larco’s case, the possible splitting of the firm into two before its attempted sell-off. “The proposed restructuring plans are in our view not viable or realistic,” the e-mail said. “In our view, the option of closure/liquidation must be considered for all three companies,” it added.

Earlier in the day, Finance Minister Yannis Stournaras said the liquidation of the companies over a period of five years would “be more valuable to the state” than bankruptcy. He said the government would try to avert a scenario involving staff being laid off without compensation, claiming that “at least certain parts of the businesses are valuable.”

Enet.gr presented the text of an email sent by the troika to the government rejecting the latter’s proposals to restructure state-owned Hellenic Defence Systems (EAS), Hellenic Vehicles Industry (Elvo) and mining company Larco.

The email was sent my Matthias Mors, the European Commission’s representative in the troika, to the ministries of finance and defence on Monday evening. The email has as follows:

“Thank you very much for forwarding the restructuring plans for the three companies. Please find a detailed reaction from our side with the conclusion that the proposed restructuring plans are in our view not viable or realistic and do not guarantee a sustainable solution from the economic efficiency, budgetary and state aid points of view. In our view, the option of closure/liquidation must be considered for all three companies (as reflected in the language of the MEFP/MoU [Memorandum of Economic and Financial Policies/Memorandum of Understanding] and the public announcement in July). In this context, any liquidation should not be conditional on indemnities going beyond legal requirements or on a redeployment of the work force.

LARCO: Our main concern for LARCO is that in your proposal the tendering processes for the two asset clusters are not fully independent from each other (for the privatisation of the smelter and the mines, respectively), thus involving business continuity without addressing the fundamental state aid concerns (the transaction is structured in such a way that there is a high probability that the same investor will acquire both tendered assets and will thus be liable to pay back the State aid). Moreover, the potential investors are required to maintain employment in an over-staffed organisation that has been loss-making since 2008. This is an objective which is not commensurate with long-term viability of the company and is creating additional financial risks.

The alternatives for the government should be either to sell the asset and expect from the buyer to pay the state aid back (as mentioned in the Almunia-Rehn letter) or to sell separately the Agios Ioanis/Larymna concession and the remaining Larco assets in an unbundled fashion, without giving the investor any specific option to acquire all assets or liquidate them otherwise (if they do not find buyers). In this context, the assessment of the alternatives would be facilitated if you could provide us with pre- and post-restructuring financial accounts.

HDS [Hellenic Defence Systems, EAS]: You are envisaging EUR 144 million of State funds to the military activities that would result from the split between civil and military activities of HDS, additional to the already inherited liabilities from the past. The proposal is basically calling for a rather generous early retirement and exit scheme, which would have implications in terms of fiscal space and the programme. Given the fiscal space constraints and the dependence of the company on domestic orders, we believe that this is not a viable solution and the company should be liquidated. If a case could be made from a national defence objective perspective, this has to involve a substantially downsized/restructured company which is domestically oriented. It has to be seen whether at such lower scale (given lower revenues but possibly high fixed costs) it makes sense from an economic point of view to keep the company on the market or whether one should just to proceed with outright liquidation.

ELVO: The special liquidation plan is more costly compared to bankruptcy. For example, if the company is liquidated EUR 13.5 million are needed for severance payments; however if the company continues to function under special liquidation regime it will need EUR 27.5 million to run operations until the conclusion of the current backlog contracts.

The assumption in your analysis that the shareholder’s losses will stop upon the completion of the backlog contracts and that the company may win further contracts allowing thus the completion of the development plan is not realistic and does not guarantee any security related to the viability and future of the company. In conclusion, we consider that an outright bankruptcy of the company is the most desirable and realistic solution.

We look forward to receiving a new improved version of the restructuring/liquidation plans for the three companies, which take into account our comments/suggestions.

Best regards, Matthias”

According to AMNA, in statements made by the two leaders afterwards, the U.S. President expressed the view that Greece’s efforts to exit the crisis cannot be focused only on austerity but require growth and creation of new jobs. Obama spoke of the deep friendship existing between the two countries, making special reference to the Greek-American community.

Obama’s comments to the media in the Oval Office regarding the urgent need to tackle unemployment in Greece, which reached 27.6% in May according to figures published yesterday, met with Samaras’ approval. The Greek prime minister nodded as the US president made his point, Kathimerini notes.

According to primeminister.gr, addressing the media after the meeting, US President Barack Obama said:

“Our government owes a great debt to Greece, our form of government. The Greek-American community here are incredible businesspeople and political leaders and community leaders and great friends of mine. And that bond that extends beyond governments but goes to our peoples I think is what makes Greek-American relations so special.

Prime Minister Samaras comes here at a time when I think we’re all aware Greece is going through incredible challenges. And so far, the Prime Minister has taken some very bold and difficult actions to initiate the structural reforms that can help reduce the debt burden that Greece experiences but, even more importantly, can unleash the incredible talents of the Greek people so that they’re effectively competing in this new world economy.

We had an extensive discussion about the challenges that remain, and I’m confident that Prime Minister Samaras is committed to continuing on these structural reforms. What we also agreed to is that in dealing with the challenges that Greece faces, we cannot simply look to austerity as a strategy. It’s important that we have a plan for fiscal consolidation to manage the debt, but it’s also important that growth and jobs are a focus because we know from history that those countries that are growing, those countries where employment is high and people are increasing their productivity and feel as if the economy’s moving forward, those countries have an easier time reducing their debt burdens than countries where people are feeling hopeless.

And I think Prime Minister Samaras is committed to taking the tough actions that are required, but also, understandably, wants to make sure that the Greek people see a light at the end of the tunnel.

And what I expressed to him is that the United States wants to continue to be helpful and supportive in what will be a challenging process. But we’re confident that Greece can succeed. And, you know, the stakes are high for not only Greece but also Europe and the world economy.

We also discussed the strong bilateral military and intelligence cooperation between our two countries. Greece is a NATO ally. They have worked with us in preventing terrorist threats from actually happening. We have partnered on a whole range of issues. They are host for some of our very important military personnel and assets, and we are very grateful to them for that.

And we also had an opportunity to discuss the general environment around the Mediterranean, in the Balkans. As the Prime Minister put it, sometimes it’s a challenging neighborhood. And Greece can play an important stabilizing role and partnership role as we address issues in the Middle East, in North Africa, as we address issues in the Balkans.

You know, there is a great opportunity as we speak for the decades-long conflict and tensions that exist in Cyprus to be resolved.

And I think we’re both encouraged by the messages that have been coming out of the Greek and Turkish Cypriot communities. And we’re going to be, I think, working very closely together to see if we can make progress on those fronts.

So this has been an excellent conversation. You know, we are very proud of the friendship and partnership that we have with the Greek people. We want to be as helpful as we can during this period of challenge, and we’re confident that the Prime Minister recognizes what needs to be done and is going to be working very hard to accomplish it.”

According to the previous source, Prime Minister Antonis Samaras said: “…We did have a very good conversation with the President and analysis on different areas.

I first of all want to say that our two peoples and our two countries have been more than allies. Not only did they fight next to each other throughout their history, always for a noble cause, but they cherish and they support the same values, like freedom, democracy and independence. So it’s good to be here.

In terms of the economy, yes, we’ve gone through thick and thin. The sacrifices made by the Greek people are huge, but they’re not going to be in vain because what we now need is development of jobs and growth. Of course, we are going to do what has to be done as far as structural changes are concerned, but our emphasis has to be on growth and on the creation of new jobs, especially for the youth, because as I told the President, in Greece, the unemployment for the youth has reached an incredible number of 60 percent, and total unemployment of 28 percent.

And the Greek people have sacrificed more than a quarter of the GDP only the last four years. So by definition, emphasis is on growth creation.

But the other thing I want to say is that if Greece succeeds – and it will succeed – our success story is going also to be a European success story. And I believe this is very important.

On the other hand, we are trying to do as much as we can to stabilize a very destabilized environment where we live. I believe that the region has many problems. We are going to try and solve as much as we can, establish this cooperation, which I think is important, on the areas that you have described, being always an advocate of international law wherever there are problems around. I believe that the problems have to do with illegal immigration, internal turbulence in various countries and even, unfortunately, the problem of terrorism.

And I think that there is a lot of synergies that we can have together in order to try and solve, as much as we can, those problems, including, as you said, the problem of Cyprus, which, after the new proposals of the Greek President, opens up a window of opportunity as long as we always, as I said, abide by the international laws and the decisions of the United Nations.

I would also like to say that I told the President that we have found huge energy resources in our great region. Cyprus, Israel and Greece can realign those resources in order to be able to satisfy the European demand, especially for natural gas.

And last but not least, I told the President that we will try to do as much as we can during the Greek Presidency in the first semester of next year with the help of the Italian Presidency that will follow in order to be able and conclude the trans-Atlantic Trade and Investment Partnership, which I think is very important, because as you know, Mr. President, Europe and the U.S. together, in this trade, account, as you’ve said before, more than 50 percent of the world GDP.

And therefore, it’s important, especially for Europe, to liberalize that potential and create new jobs, because I think jobs for everyone is the number one priority, especially to our youth, because everything we’re doing has to do with your younger generation…”

Government sources see the meeting between Samaras and Obama as a vote of confidence from the US in Greece’s premier at a time when his coalition is under considerable pressure at home. A White House official told Kathimerini that the US government believes the Samaras government “is working very hard in challenging conditions.”

According to a White House announcement, Samaras and Obama will discuss American support for the government’s economic reform efforts, trade negotiations, Cyprus, defence cooperation, counterterrorism and security issues in Syria and north Africa.

The last Greek prime minister to visit the White House was George Papandreou, who met with Obama in March 2010, enet.gr notes.

The rhetoric suggesting the replacement of ‘Grexit’ with ‘Grecovery’ is nice, albeit lacking political and – most importantly – real life substance.

Truly, psychology is a great part of economic progress and an essential ingredient of a success story not only in national politics, but at individual level too. However, the critical question, whose answer could dictate the strategic target, is: whose psychology needs improvement? Foreign investors’, local politicians or the people’s?

Greeks are usually extrovert and communicative. Even in the last three years, during which they have lost a great deal of their income and almost 3 out of 10 are out of a job, there’s a lot of talk amongst citizens regarding their problems and limitations, incomes lost; they cite even specific figures to illustrate their point; they are not even embarrassed to mention restrictions they have placed upon their lives in order to cope: less vacation, less dining out, even less consumables.

These are some of the talks they prefer to have face-to-face. Online, they prefer to curse politicians.

Since 2010, Greek Facebook has been transformed from a social platform of triviality into a forum for the exchange of serious, bitter and primarily personal views on the crisis.

Government and politicians’ behaviour rarely escape scrutiny and criticism in the social networks’ realm. These days, common sense and the wisdom of the masses seem to be the Prime Minister’s staffers primary adversary.

Amongst the most cursed statement online is former PASOK minister Theodore Pangalos’ saying that all Greeks are responsible for the deficits and the national debt. “We ate the money together,” he said, causing a media frenzy, attracting all sorts of negative comments (and the occasional yogurt attacks) from people seeing their salaries and pensions trimmed.

If Pangalos’ statement has an iota of truth, then what could follow this perspective may get more consensus amongst weary Greeks; namely, a phrase like: “we need to recover all together”. What does this mean? It does not mean, of course, returning pensions and salaries at their original levels; even Alexis Tsipras knows that this case is cold. Neither that problems would vanish over night.

It simply means that improvements in psychology should be recorded across the board, horizontally, in the same manner income cuts were introduced by recurring austerity measures. Either this means street safety, elimination of red tape, grassroots entrepreneurship or favorable personal debt settlements for those in need or even a real boost of pubic sentiment through credible information via an efficient and honest governmental communication strategy, citizens really need something solid to continue.

It should be noted here, that one of the biggest omissions and eventually strategic mistakes of Samaras’ government is that, even today, after a year in power, the Greek West Wing continues to lack a modern government website that could set the agenda straight and really explain the crisis to citizens. Unfortunately, this is something Maximos Mansion staffers fail to acknowledge for a series of reasons. One reason is a superiority complex that characterises those who believe they can control people through old style manipulative techniques. Another is the lack of strategic thinking and knowledge as regards the digital economy, and most importantly, its significance for social capital, namely people and their connections, on Facebook and elsewhere.

The quite recent draft bill for the interim Public TV organisation verifies the strategic choices that keep an unexplained distance from the digital realm and quite evidently, from the Greek youth.

To be fair, however, to those guys who took over the task of keeping the Greek boat afloat in the middle of an unprecedented social and economic storm, I should note that thinking – and of course acting – politically in the context of the crisis is an unbearable task; especially when you are an old dog refusing to learn new tricks. At the same time, the fact that political personnel wishes to maintain the perks of clientelism and the patronage system makes the whole effort a quite messy process.

Citizens are not asleep anymore. The great sleep occurred during the last 30 years, in what Greeks call ‘Metapolitefsi’ to indicate the post-Junta period of calmness and peace. Nowadays, old style partisan behaviour is laughed at on social networks and the awareness effect backfires on the face of the communicator.

The creation of a success story that could expand across the country and eventually persuade foreign decision makers is not one that will start from the top, despite the increase of foreign direct investments. The national success story will be the result of a series of smaller ones, which will emerge from all over the country in different fields Greece holds a competitive advantage. These stories could cover any field that requires innovative decision-making and intellectual breakthroughs. These success stories will be the result of citizens taking things in their own hand; in cooperatives or individually.

Greece is characterized by an abundance of resources, what economists call ‘external economies’, which (even excluding the hydrocarbon saga) constitute a vast amount of unexplored GDP on land, in the air and at sea.

What is missing is an honest way to put all things together in a coherent and inspiring saga, away from the misery of partisan priorities and corporatist interests.

Dr. Demetris Kamaras is the Editor of Alyunaniya.com

“The negotiation is in full swing taking note of all prior actions needed to be included in an omni-bill intended to be tabled to Parliament on Monday,” the sources said.

Key cabinet ministers attended yesterday afternoon a new meeting with the troika representatives, chaired by Finance Minister Yannis Stournaras.

According to government sources, the presence of ministers at the finance ministry indicates an effort to complete the negotiations with the troika as quickly as possible.

Greece has three days to reassure its lenders it can deliver on conditions attached to its international bailout in order to receive the next tranche of aid, four euro zone officials said to Reuters.

There is a general dissatisfaction with progress in Greece when it comes to reforming its public sector, such as tax and custom collection or health care services, a senior euro zone official involved in negotiations said.

“All agreed that Greece has to deliver before the Eurogroup on Monday. That’s why they must present again on Friday,” a second source said. Link

However, European Commission yesterday denied media reports according to which Greece had been given three days to settle pending issues of its current review by the troika of lenders mission in Athens before jeopardising the disbursal of its next loan tranche.

Simon O’Connor, a spokesperson for European Commission Vice President Olli Rehn, said that the only truth in the reports is that in order for the Eurogroup to be able to reach a decision or an agreement this coming Monday, talks in Athens must be through earlier.

“We have set no deadline,” O’Connor said on behalf of Rehn, referring to the Reuters report. He said the Commission does not comment on ongoing negotiations.

Asked whether the next loan tranche of EUR 8.1 billion will be released in further installments, O’Connor said that in the last six months, the usual practice is to disburse the loans in installments, depending on the political terms agreed upon.

He argued that the government is not closing down the public television but creates a truly public television noting that “the new broadcaster will be given to the Greeks as soon as possible,” protothema.gr writes.

He referred to the consolidation efforts carried out in a milder manner, as he said, but “all failed” because the benefits were so institutionalized that any change would have been practically impossible.

The PM attacked ERT’s unionists, which he said has imposed silence in the media noting that the “last few months there was no case where an important foreigner would come to Greece to support our efforts and not fall upon a “random” ERT strike. They were on strike whenever something important and optimistic was taking place.”

As he pointed out, now that the sinful ERT is closed the hypocrisy that brought Greece to this point is erupting. “We have nothing against the employees. I am referring to the circuits that were draining ERT and now do not want to lose their privileges. All employees will be compensated in the most generous way.”

“What you saw these past few days are the last spasms of a regime of privileges,” Samaras added.

Meanwhile, employees of ERT remain in the courtyard of the building protesting against the closing of Greece’s public television. An estimated 7,000 to 10,000 people remained inside and outside the premises of ERT Tuesday night, protothema.gr reports.

Banners and flags of various factions and organizations and collectives of organization were waving alongside each other.

A protest rally is expected to be held today. Meanwhile, officials of the public television appeal to citizens to come to Mesogeion to support them.

“There has been no agreement,” between Prime Minister Antonis Samaras, PASOK leader Evangelos Venizelos and Democratic Left leader Fotis Kouvelis on the draft bill, the same sources added, but clarified that discussion on other issues on agenda was productive.

A date for a new meeting was not set, while the source reassured that there has not been a confidence issue toward minister of Justice Antonis Roupakiotis.

Deputy Interior Minister Haralambos Athanasiou yesterday said the government’s commitment to combat racism doesn’t require new legislation but amendments to existing laws, enet.gr writes. International human rights groups have expressed strong support for the proposed reform, alarmed at a surge in racially-motivated attacks against immigrants and the rise of the Golden Dawn party.

Meanwhile, Finance Minister Yannis Stournaras expressed his optimism that “things are obviously better” and predicted that the country will recover by the end of the year or early 2014. He said that at the end of 2013 or early 2014 the first signs of recovery will show, but he called for caution about the pressures for easing the programme and the impact they can have in Greece’s efforts for a debt haircut in 2014.

“We are still at the beginning”, he said, “and I am worried because I feel the pressure to ease up. What do they want? To relinquish the perspective of achieving a primary surplus this years that will allow us to negotiate a debt haircut in 2014?” The greatest pressure regard exemption of specific categories of public sector employees from the government’s unified payroll.

According to tovima.gr, Samaras is going to negotiate deals with representatives of top Chinese firms such as Cosco, China Development

Bank, the national railway and telecommunications companies. These deals involve the exchange of technical know-how in networking and infrastructures.

Speaking at the Beijing Academy of Arts, Samaras stated that “Greece is China’s natural gate to Europe” and that “I would not be here if Greece hadn’t changed its course”. The PM explained to Chinese students that the austerity measures were necessary since the debt had increased in excess and that the Greece’s main problem is unemployment. He expressed his hopes in tourism and the estimated 17 million tourists to help rejuvenate the economy.

In his speech Samaras emphasized the importance of developing long-term strategic ties between Greece and China. The two countries have a shared notion of history, noted Samaras, adding that he would like China and Greece to have a common future. He added that there was ground for collaboration in the fields of infrastructure and tourism, among others, Kathimerini informs.

While speaking on state Chinese television network, the Premier spoke of the two countries having marked history “in eons and millennia, when others count their history in decades” and highlighted the global importance of historical Greek and Chinese figures such as Confucius and Plato.

According to AMNA, Chinese companies desire involvement in Greece’s infrastructure sector, Chinese Premier Li Keqiang said yesterday after talks with Antonis Samaras. The two premiers discussed all aspects of Greek-Chinese relations during their meeting, especially economic cooperation and long-range strategic plans.

Following their talks, a number of agreements and protocols were signed by the Greek side and the Chinese government.

“We are global shipping powers and we can cooperate in many areas. Since 2010 there has been heightened cooperation, while Chinese companies desire to become active in the infrastructure sectors. We will take action to boost commercial transactions, with the target of increasing the volume of transactions to EUR 8 billion in 2015,” the Chinese premier said during a dinner for the Greek mission.

Referring to geopolitical issues, Li noted that China is Greece’s ally in the Cyprus issue and asked for Athens’ help in improving China’s relations with the European Union, especially in light of Greece’s upcoming stint in the EU presidency in the first half of 2014.

He also asked Athens to reduce bureaucracy and simplify the process for issuing visas. Responding, Samaras noted that the new investment law made provision for fast-track procedures that will make Chinese investment easier, adding that the Greek government “is here to look at everything, step by step, and facilitate our cooperation.”

Specifically, they discussed expanding the activity of the Chinese container company Cosco at the main port of Greece, Piraeus, and the possibility of Chinese investment in Greek railroads and regional airports and ports.

A recent piece of legislation that envisaged new Ministers’ Deputies posts in six ministers has triggered new discussions on the matter. The government has announced that the new positions will be in the Ministries of Administrative Reform, Justice, Public Order, Tourism, Shipping, Macedonia-Thrace and Education-Culture. Officially it is argued that posts were created to match new organisational charts of ministries.

At the same time, opinion polls continue to suggest a relative tie between ND and SYRIZA.

According to media writings, Prime Minister Antonis Samaras understands that time is running out and he is now faced with dilemmas that should give urgent answers.

It is clear that the PM was not entirely pleased by all of his Ministries, so this way he can provide a solution, as well as appease PASOK’s request for greater participation in the government, tovima.gr writes.

By creating these new positions the Prime Minister will be able to introduce a number of his trusted partners, without having to replace any of the current ministers. That way he can reinvigorate the government and take advantage of the fresh perspective of new members, without any delays.

This is especially important for Ministries on tight timetables, such as the Ministry of Labor. The Minister can now focus on the public sector dismissals program, while his soon-to-be-appointed deputy will assist in other matters.

Based on the introduction of the new spots, many estimate that a wider cabinet reshuffle might happen after Easter. After all, both the Prime Minister and his government partners Evangelos Venizelos and Fotis Kouvelis have agreed that changes are necessary.