Prime Minister George Papandreou last week gave the first real indication of a possibility of emergency measures being taken by the government to kick-start the reeling economy, describing the country’s burgeoning debt as a potential threat to “national sovereignty.”
In unusually strong statements made during a Cabinet meeting, Papandreou described public debt, which is projected to reach 130 percent of gross domestic product next year, as “the biggest threat to national sovereignty since the restoration of democracy,” referring to the fall of the military dictatorship in 1974.
The premier cast the blame for this situation squarely on the shoulders of the previous conservative government, saying that New Democracy had “exposed Greece to its international creditors.”
But, Papandreou said, his PASOK administration “was determined to do everything necessary to control the massive deficit, to restore fiscal stability and promote growth so Greece can get back on its feet.”
The premier’s comments were widely interpreted as an attempt to lay the groundwork for the introduction of emergency measures to lick the economy into shape, as pressure from the European Union, the European Central Bank and international ratings agencies intensifies.