Crucial week for Greek economy

   

    The week beginning on Monday will be crucial for the Greek economy, as the EU College of Commissioners (European Commission plenary) is due to release its recommendation on the new Greek Stability and Development program on Wednesday. Equally crucial is the anticipated release of the budget revenues for January, on which will depend whether the measures decided by the government will be accelerated or applied later.

    Prime minister George Papandreou and finance minister George Papaconstantinou waged a veritable communications 'battle' over the past week to restore the Greek economy's lost credibility and reverse the negative climate, in a flurry of interviews with the international media on the sidelines of the 40th World Economic Forum (WEF) in Davos, Switzerland, and in the premier's address to the Forum.

    A plus in, and boost to, the effort were the votes of confidence forthcoming from the European Commission and the European Central Bank (ECB) in statements by Commissioner for economic and monetary affairs Joaquin Almunia and ECB president Jean-Claude Trichet, who categorically denied speculation of Greece defaulting and/or withdrawing from the eurozone, which brought a substantial decline in the Greek bond spread that had risen dramatically in the wake of default/withdrawal rumors.