In return for asking for more time for the fiscal adjustment program, the government is to offer the faster merger of public sector organizations and the sale of state assets. Samaras had been keen to announce the privatization of the Hellenic Railways Organization (OSE) but there are still a number of legal problems to overcome before the government can be in a position to do this. Instead, the coalition may look to lease the license for Athens International Airport. Monday’s leaders’ meeting was attended by Finance Minister Yiannis Stournaras, his deputy Christos Staikouras and Development Minister Costis Hatzidakis.
Sources said it was decided that Greece would not push at this stage for its 50-billion-euro bank recapitalization to be funded directly by the European Stability Mechanism, rather than by public debt. The government believes the eurozone would not be willing to accept such a move, as proposed for Spanish and Irish banks, at this stage but that the issue may come back into play at a later stage.