The Prime Minister and the leaders of the three political parties supporting the government met in order to jointly decide on the main elements of the agreement with the troika regarding Greece’s new economic program in the framework of the new loan agreement.

The Prime Minister and the political leaders agreed on main issues, including:

1) The adoption of measures, in 2012, aiming to reduce public spending by 1.5% of GDP.

2) Safeguarding the viability of auxiliary pension funds.

3) Addressing the competitiveness deficit by taking measures including the reduction of wage and non-wage labor costs, aimed to support employment and promote economic activity.

4) The recapitalization of banks through a combination of measures that safeguard public interest and ensure the banks’ managerial autonomy.

The Prime Minister and the political party leaders will meet again tomorrow to conclude their talks on the content of the program.

Greece is steadily aiming at the consolidation of good neighbourly relations with the former Yugoslav Republic of Macedonia and will continue to work to this end.

In this framework, Greece has supported the European course of Skopje in many cases.

However, a prerequisite for the full normalisation of our relations is to reach a mutually acceptable solution to the name issue. The continuing provocations do not contribute to the consolidation of good neighbourly relations and mutual confidence.

Greece remains steadfast regarding these positions also after the Judgment of the International Court of Justice.

Our country is ready to continue the negotiations in order to solve the name issue erga omnes, under the auspices of the United Nations.

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.

>> Watch the video.

>> Photographic material.

As you all know, on the 26th and 27th of October we took crucial historical decisions for Europe and for the eurozone. These decisions of course also were crucial and are crucial for Greece. I believe in the many benefits they have for Greece: benefits for growth, benefits for lowering the burden of debt on the Greek people, benefits for a strong package of support for the next few years, where we can actually put our house in order and make Greece a viable economy.

These decisions of course come with responsibilities. And there are important responsibilities. This will change the future, not only today but of the future generations. Positive.

But of course there are many that disputed these positive aspects, and I felt that it was important that the Greek people make a decision on these important developments and the decision we made in the Council of October 26th. It’s their democratic right, and the Greek people I believe are mature and wise to make the decision that is to the benefit of the Greek people and the country.

We are part of the eurozone. Being part of the eurozone, we are very proud, and being part of the eurozone is both having many rights but also many obligations. And I believe it’s crucial that we show the world that we can live up to our obligations. We can live up to these obligations, and this is crucial for our future participation in the eurozone.

So I informed my counterparts that, after consulting with the Cabinet in Greece yesterday, that we could move the referendum as soon as possible, organise it as soon as possible, and we believe that we can have a referendum possibly on the 4th of December.

I will be returning to Greece and consulting of course with my counterparts in the other parties, the leaders of the other parties of the opposition, to inform them of the discussions we have had and of course of the importance of these decisions that we are taking.

I believe that the Greek people, as I said, are wise and capable of making the right discussions, for the benefit of our country. And a positive decision, a positive decision by the Greek people, is not only a positive decision for Greece; it is a positive decision for Europe.

JOURNALIST: What did Sarkozy and Merkel tell you?

MR. G. PAPANDREOU: I informed them that we need to have a wide consensus, because the programme we are facing is difficult, is difficult in implementation, but I believe the Greek people want us to be a strong partner in the euro, in the eurozone, a strong partner in Europe, and that this is at stake. This is at stake.

It’s not the moment to give you the exact wording, but the essence is that this is not a question only of a programme. This is a question of whether we want to remain in the eurozone. That’s very clear. That should be clear to everyone.

I believe that this will be a positive outcome. I believe the Greek people want us to remain in the eurozone, and I believe that this referendum will show so.

JOURNALIST: And if they say no, do you have plan? If they say no?

MR. G. PAPANDREOU: I want to say that we will have a yes.

JOURNALIST: Can you tell us if you are confident the Parliament is going to approve the referendum?

MR. G. PAPANDREOU: First of all, we have, as you know, a confidence vote by Friday, and so then this is our first battle.

JOURNALIST: Are you confident about that? Are you going to win the confidence vote?

MR. G. PAPANDREOU: Well, I do hope so, but obviously this is a democratic process.

JOURNALIST: Without EUR8 billion, will you go bankrupt?

MR. G. PAPANDREOU: Ah, you are now talking about the sixth tranche. Well, of course that is if everything goes well, which we hope everything will go well in the referendum. It’s quite a few days before the sixth tranche is needed to pay up salaries and pensions and so on.

So I believe that, as the programme is as we have the roadmap, that the dates we have are in accordance with the positive disbursement of the sixth tranche.

JOURNALIST: Are you 100% sure about the referendum?

MR. G. PAPANDREOU: I have said over and over again in Greece that we need a wider consensus. I have tried for a wider consensus with all the parties. I have talked many times with the leaders. And if there is a wider consensus, obviously we would not need a referendum. But this wider consensus did not exist.

But I do believe there is a wide consensus amongst the Greek people. And that’s why I want the Greek people to speak. And the Greek people will speak soon. Thank you.

Our challenge today is not simply to save the euro; Ιt’s to safeguard the ideals we cherish so much in Europe: peace and cooperation amongst our nations, social cohesion and solidarity without prejudice amongst our people.

And, from our side, the Greek people are making a superhuman effort to put our house in order, to make our economy confident, viable, prosperous, and create a better future for the Greek people, for our country.

Now is the time for the European leadership collectively to take decisions to end the uncertainty and the crisis, turn the page and make sure we make a big step forward for the better future and prosperity and security of our people in Europe.

Greece is proving again and again that we’re making the necessary decisions to make our economy sustainable and more just. We’re proud people, we demand respect to what we’re doing and we’re doing what we need, with great pain, to make Greece a different country;

But the crisis is not a Greek crisis, it’s a European crisis so we as Europeans need to act decisively and effectively.

>> Watch the video.

Greece has, again and again, made decisive moves, not only to be on track with its programme, but to make our economy, which is our goal, a sustainable one, a competitive one, a more just economy.

But now is the time for Europe, for collective decisions in Europe, because over the last period we have seen a growing lack of faith by our citizens, not only Greek citizens but a European-wide lack of faith of the citizens of Europe, in our governance structures, in the fact that we are moving into a Europe which is seeing the cohesion undermined, economic cohesion, political cohesion and social cohesion, being undermined.

And that’s why the challenge we have is a European challenge and not simply a Greek one, and is a challenge which is not just for the future of Europe but for the existence of Europe.

In the next few days our decisions are historical. They have to be decisive, and they have to create a Europe of cohesion and move beyond the prejudices to a Europe where we work together in solidarity. Thank you very much.

>> Watch the video.

J. C. JUNCKER: Good evening. I am in Brussels today, in order to prepare the European Council of the 23rd of October. I had a meeting this morning in Luxembourg with Commissioner Olli Rehn, then a meeting with the President of the European Council, Herman Van Rompuy, and then I had a meeting with my good friend, George Papandreou. We were discussing all the relevant issues, noting with great satisfaction that the Slovakian Parliament has voted in favour of the EFSF this afternoon, which paves the way to further steps to be taken.

I made it perfectly clear in all the meetings I had today, and mainly with the Greek Prime Minister, that all those who are speculating that Greece could be obliged to leave the euro area are misled in their judgement. This will not happen, as it will not happen that we will have to face a Greek default. Everything will be done in order to maintain the financial stability of the euro area. We will be helpful as far as we can to Greece; we’ll be given the Troika report by mid-next week, and on the basis of the compliance report and of the debt sustainability report, we’ll take under exam during a special meeting of the Eurogroup all these elements in order to prepare the European Council of the 23rd in the best way possible.

I don’t know all the elements of the reports that will be given by the Troika, but I am really optimistic that we’ll decide to have the sixth tranche being launched.

G. A. PAPANDREOU: Thank you, Jean-Claude. As you said, this is a time when we have very important challenges ahead of us, and I would also like to salute the decision of the Slovak Parliament. It shows that even though in very difficult decisions and very complex decisions we have the will, in the end, to make the necessary decisions to move forward.

Amongst them of course are the decisions we are making in Greece. We are committed to make major changes in our country, because we have great potential, although this potential has been in the past mismanaged.

But that’s why the Greek people want these changes, so that we go to a viable, sustainable economy, one that is competitive, one that is also just and transparent.

And I had a very good discussion with Jean-Claude about the preparations and the necessary work needed for the next few days, so that we do have a successful meeting on the 23rd of October. This is, I think, our challenge, but it is also, as you have said, one I think we can meet in the best of ways.

QUESTION: How much do you think will be needed? Will your plan then be bigger than 159?

J. C. JUNCKER: I don’t want to speculate around this kind of questions. All these things will be dealt with in the course of the European Council.

It’s not mainly about figures. It’s mainly about content. We need a straightforward plan, and I am optimistic that we will be able to decide on a plan.

QUESTION: But if we need more than 21% PSI, then that’s more than 50 PSI.

J. C. JUNCKER: We are discussing these things.

>> Watch the video.

>> Photographic material.

Good afternoon,

Our Summit on the 23rd of October is challenged to decide on a comprehensive and a lasting solution to the crisis in the Eurozone.

After my meeting with President Van Rompuy I can assure you that we are moving forward to meet this challenge.

And this comprehensive package will include issues such as the need for deeper economic cooperation, integration and governance, the strengthening of the EFSF and the strengthening of the European banking system.

A crucial element is to make the necessary decisions concerning Greece, building on our recent summit conclusions of July 21st.

We need to ensure confidence and calm in the markets.

We need to lead to sustainable growth and investment.

Because Greece has great potential but this potential has in the past been mismanaged.

That is why we are moving ahead with major reforms.

Radical changes that we are implementing throughout the Greek economy and in the public administration to guarantee competiveness, productivity, growth, transparency and social justice.

In this respect the recent statement by institutional partners shows the positive momentum we have achieved.

As I have told President Van Rompuy: It is the Greek people that want change. We want to change in Greece. And however painful we are committed to make these changes. In the best interests of the Greek people. Defending their right for a better future a most prosperous and just future.

Again – we are all now aware that we also must tackle flaws in the institutional design of Eurozone.

So I’d like to add my voice to those who believe in a deeper and stronger Europe – such as the 96 personalities who yesterday called for a European solution.

This is the task – but I am more optimistic that there is a new will to live up to this common challenge for Europe.

So I believe we can make this crisis an opportunity for success both in Greece and in Europe.

Thank you very much.

>> Watch the video.

I had a very constructive discussion with President Sarkozy on the ongoing crisis. I want to make it very clear that Greece is determined – I myself, our government, the Greek people are determined to make the necessary changes. We are making sacrifices and we will live up to our part of the decisions we have taken, our responsibilities, making all the necessary reforms, first of all because we want to change Greece and make Greece a competitive, socially just and transparent country.

I also told President Sarkozy that I would be very happy for him to send, and any country who wants, to send experts to see what we are doing, in full transparency, so that the people know the changes we are making and the efforts we are all doing, the sacrifices the Greek people are making to change our country.

Finally, I wanted to thank Nicolas Sarkozy for his ongoing support during this whole crisis these last two years and of course the support of the French people. It has been absolutely vital. It is recognized by the Greek people, and it is giving us the necessary time to make these changes so that Greece can be a better and a different country, for the benefit not only of the Greek people but of all of Europe.

Thank you.