Letter to the Heads of the European Council, European Commission, the Eurogroup, thw ECB and IMF

PRIME MINISTER
PRESS OFFICE
Athens,  November 30, 2011

Prime Minister, Lucas Papademos, sent the following letter to the heads of the European Council, European Commission, the Eurogroup, the European Central Bank and International Monetary Fund, Herman van Rompuy, Jose Manuel Barroso, Jean-Claude Juncker, Mario Draghi And Christine Lagarde (29 November):

On 11 November 2011, a new government was formed in Greece, supported by three political parties, PASOK, New Democracy and LAOS. The new government won a vote of confidence with a large majority in the Greek Parliament.

As agreed at the meeting of the leaders of the three supporting parties held under the chairmanship of the President of the Hellenic Republic, the main task of the new government is “to implement the decisions of the Euro Summit of 26 October, 2011 and the associated economic policies.”

The government is strongly committed to fulfilling this task. In particular, it will (i) fully implement the measures described in the current economic programme; (ii) conclude a sustainable and credible new EU-IMF multiannual programme, and (iii) finalise a sovereign bond exchange with the voluntary participation of the private sector (PSI), which will contribute to the financing and sustainability of Greek debt.

The government is determined to continue the process of fiscal consolidation and structural reform in order to secure sound public finances and improve the country’s international competitiveness. Since May 2010, substantial progress has been made to this end. Nevertheless, a lot more has to be done to reverse the adverse debt dynamics and establish conditions that foster financial stability, sustainable growth and job creation. In particular, confidence has to be restored and the forces of innovation, investment and growth have to be strengthened. In this way, social cohesion will also be enhanced.

Participation in the euro area ensures the preservation of price stability, promotes financial and economic stability and facilitates the implementation of the deep and broad reforms required for the revival of the economy. The Greek people recognize the need for a major economic and institutional transformation and they overwhelmingly support euro area membership, which they perceive as crucial for the success of this effort.

The government will take all measures necessary in order to implement the decisions of the Euro Summit of 26 October 2011 and achieve the objectives of the economic programme, which is crucial for improving the long-term welfare of the Greek people.