Greek PM pledges swift implementation of Stability Program

ATHENS, Jan. 21 (Xinhua) -- Greece's Prime Minister George Papandreou stressed on Thursday that there is no more time to lose, pledging a swift implementation of the country's revised Stability and Growth Program, as expected by EU partners and international markets.

"We are determined to succeed," Papandreou said, addressing the first Economic and Social Policy Council meeting of his new government, which will be monitoring the progress of measures and policies announced as part of the Program presented in Brussels earlier this week.

Greece has promised to lower its huge budget deficit from the current 12.7 percent of GDP to less than 3 percent, which is the EU limit, in three years.

Also on Thursday at a Financial Times-sponsored conference on the future of Greece's banking system, Finance Minister George Papaconstantinou said that the Stability Program might be difficult to achieve, but is feasible and realistic.

"Greece can handle its financing needs alone. We have not asked for financial support. We need no saviors," the minister stressed.

Minister of Economy, Competitiveness and Shipping Louka Katseli also expressed optimism that Greek economy will start recovering by 2011, in her address at the same economic forum.

The key to solving the current international crisis is the understanding that the financial system is closely connected to the banking system and the support of one system's competitiveness will benefit the other too, the minister noted.

"We all sail on the same vessel," Katseli stressed, adding that in 2010 the government intends to speed up investments and business functioning procedure, strengthen exports and competitiveness.

But some Greek analysts are not that optimistic. In an open letter sent on Thursday noon to Prime Minister Papandreou, the country's Institute of Economic and Industrial Studies warns that Greek economy and Greek society are at a critical phase.

Experts warn that if the challenging fiscal crisis will not be addressed quickly with bold measures and drastic policies, and if there will not be enough reductions to overspending in the public sector, the financial crisis will soon turn into a social crisis too.