The real nightmare of the government lately is the risk that Greece might not fulfill its obligations due to disagreements between government partners. Lucas Papademos, having seen George Papandreou on Saturday, is thinking of calling for a meeting with the three leaders along with the finance minister. A meeting which will give the final government decision on wages, supplementary pensions and other structural changes. The PM wants a shared decision, so that there will be no surprises in the votings.
He has made sure to clarify that there is no room for negotiations with our lenders. In order for them to give the next tranche of 89 billion, they want to impose their own terms; both in the PSI and also the creation of conditions to increase the competitiveness of Greek economy. Papademos used the characteristic phrase, "there are no red lines."
The question now is, how much can the political system withstand, as it is in fact the one thing that is facing society. The parliamentary groups of PASOK and ND are already in turmoil. Many members say they will not vote for action on minimum wages and the bonuses of private sector workers.
The ministerial cabinet is meeting today to discuss issues of the development ministry and to show that the government deals with other matters apart from the memorandum and the new loan agreement.