Greek PM promises to “draw blood” to salvage economy

Greek Prime Minister George Papandreou launched a 48-hour “charm offensive” at last week’s World Economic Forum in Davos, Switzerland, reassuring Europe’s banks, bond traders and business press that his government is prepared to do whatever it takes to reduce by three quarters Greece’s budget deficit, currently running at 12.7 percent of GDP.

Papandreou, leader of the social democratic PASOK (Panhellenic Socialist Movement) did his best to maintain the charade that his government’s deficit reduction program, including deep wage and job cuts, was a war on corruption. He told reporters that Greeks must, “clean the slate, get it out in the open, put in rules and regulations so we move away from this negative legacy”.

However, the prime minister’s language, far from disguising PASOK’s real target—the working class— signalled to those assembled at Davos that the Greek government was determined to push through the savage austerity measures needed. “This may draw blood from us all,” Papandreou told reporters, “but…we need to make this change”...

Papandreou’s promise at Davos to avoid default at all costs has done little to dampen expectations that the European Union (EU) will eventually step in to bail-out the Greek government. This funding could come into play in the event that bond markets remain sceptical about Greek debt reduction strategies or in the event that mass protests against government cuts undermine political stability...

http://www.wsws.org/articles/2010/feb2010/gree-f02.shtml

More offensive than charming.