Both the PM and finance minister are anxiously awaiting the arrival of IIF head Charles Dalara today and of troika on Friday. In view of these critical contacts, Papademos and Venizelos are in constant communication in order to determine their policy towards the demands of both sides. The government has four main great problems: The deficit that seems to be exceeding even the revised target of 9%, the new measures (although there is a commitment that there won’t be any), the haircut of Greek bonds and the release of the 6th tranche. 

In conversation they had early this morning, they recorded that despite the derailment of the deficit to 9% (perhaps even higher) new tax measures are not to be taken. 

"There are measures that the previous government adopted. Beyond that some have been partially adopted and some not at all. They will be implemented now. There is no provision for new measures that have not been voted already," said the PM according to reports. 

Venizelos spoke yesterday with European Commissioner Olli Rehn, IIF Managing Director Charles Dalara and with IMF. Discussions on the side of the EC and IMF focused on the upcoming troika review, while with Dalara on the start of the implementation of the October 26 agreement. The heads of troika will come to Athens and start the process of examining the prerequisite actions, which will decide on the release of the 6th tranche before December 15. 

Finally, it should be stressed that the discussions on the haircut of Greek bonds begin today in Frankfurt. The representative of the Greek side is Petros Christodoulou, the head of the Public Debt Management Agency (ODDI