Premiere for new Hellenic Parliament
Welcome to the weekly round-up of news by Kathimerini English Edition. The three-day opening parliamentary debate culminated with a vote of confidence in the new government of Kyriakos Mitsotakis. As expected, the government carried the day with the 158 votes of New Democracy parliamentarians and with all opposition parties voting against. In his speech, Mitsotakis spoke of the “fourth cycle” of Greece’s modernization and presented his government’s vision for the next four years, calling it a “multidimensional reform”. The prime minister emphasized social issues, and among measures presented to parliament were increases to both the minimum and median wage, a reduction of social security contributions, increases in the family allowances of civil servants, and the extension of the “Youth Pass” program. Mitsotakis also tackled Greece’s health sector, a hotly debated issue in the pre-election period, by announcing the creation of a new emergency team of 250 motorcycle-based rescuers and the hiring of 800 staff for the ambulance service. The future of Greece’s higher education system was also an important issue this week, with New Democracy reaffirming its intent to recognize non-public universities. The prime minister called upon PASOK leader Nikos Androulakis to “put end to this Greek peculiarity of a state monopoly on higher education”. Minister of State Makis Voridis called Greece’s system an “unbearable insanity”. in an interview with Bloomberg this week, the prime minister also announced that the government plans to legalize same-sex marriages at some point during his term . “Greek society is much more ready and mature”, he said. As expected, all opposition parties used the occasion to attack the government and set out their own stall for the next four years. SYRIZA, represented for the first time by the new head of the parliamentary group Sokratis Famellos, disputed the government’s claims of success and focused on high energy costs and unemployment. He also stated that the government would fail in carrying out its pledges. Spotlight
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The moment of truth for a potential opening of a new chapter in Greek Turkish relations – with the encouragement of influential allies like the US and Germany – has arrived. On Wednesday, the Greek prime minister will meet the Turkish president, for the first time in 16 months, at the NATO summit in Vilnius. The effort for a “restart” will be comprehensive: there will also be meetings between the new foreign and defense ministers of the two countries. Greece is looking forward to a real and long-lasting improvement in relations with its neighbor, but the ball is in Turkey’s court. If it decides it has more to gain in terms of its relations with the US and the EU, and from reengaging with all its neighbors in the region, instead of promoting a vision of dominance through the “Blue Homeland” doctrine, things could improve rapidly. Following the positive atmosphere created by Greece’s immediate and sincere reaction to the earthquake in Turkey, and the recently reconfirmed political strength of Mitsotakis and Erdogan, the present set up offers an opportunity. Agreeing on the need for de-escalation and the quick implementation of confidence building measures could be the relatively easy first steps. Obviously, Greece’s sovereignty and sovereign rights cannot be the subject of discussion or negotiation. But the delimitation of the continental shelf and exclusive economic zones are issues of major importance that the two neighbours can and should resolve through recourse to the international court of justice. Once this process has moved along, the bilateral as well as the regional puzzle will be very different, offering many opportunities for further progress that seem impossible today. |
| CHART OF THE WEEK |
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| ECONOMY IN A NUTSHELL |
| “The Athens Exchange (ATHEX) general index closed at 1,278.30 points, decreasing by 0.02% from last week.” |
| “The return to investment grade remains the main priority of the Greek government, something that was confirmed in the first parliamentary sessions this week. Finance Minister Kostis Hatzidakis stated that that the government’s goal was to bring public debt below the 140% of GDP threshold by 2027.” |
| “The government has indicated that it will implement reforms to the short-term letting sector in Greece. The sector, comprising almost 145,000 homes, has ballooned with the state revenues generated by it having grown tenfold in just four years. Information indicates that the government proposes differentiating between management companies and private owners.” |
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