Monday

10th May 2021

Greece hoping for peaceful launch of EU presidency

  • Greece's EU presidency comes as the country shows fragile signs of recovery from its economic and social crisis (Photo: gr2014.eu)

The European Commission's top brass is set for a muted reception on Wednesday (8 January) as the EU executive gathers in Athens for the launch of Greece's six month presidency of the EU.

After more than four years of near constant crisis, recession, and a tough austerity programme enforced as part of a €240 billion bailout, public support for the EU is low.

Read and decide

Join EUobserver today

Become an expert on Europe

Get instant access to all articles — and 20 years of archives. 14-day free trial.

... or subscribe as a group

A Gallup poll published Wednesday showed that approval for EU leadership among Greek citizens is at 13 percent, down from 32 percent in 2010.

Wary of the prospect of public protests, Greek authorities have imposed an 18 hour ban on protests in the centre of Athens on Wednesday in a bid to ensure that the launch passes peacefully.

On Wednesday morning the national parliament and government buildings were surrounded by baton wielding riot police.

The presidency comes with Greece potentially at a turning point.

The country that still best symbolises the eurozone's sovereign debt crisis expects to see a return to economic growth in 2014 after six years of recession that has wiped out more than 25 percent of the country's economic output.

Greece is now running a healthy current account surplus. Meanwhile, it is getting closer to being able to return to finance itself on the markets. Interest rates on ten-year Greek bonds now stand at 8 percent compared with 13 percent this time last year.

Prime minister Antonis Samaras says that Greece will continue its 'comeback' in 2014. The unemployment rate - currently the highest in the EU at 27 percent - will start to fall this year, he said.

But its recovery, both economic and political, is still perilously fragile. Greece's debt level stands at around 180 percent of GDP and most analysts believe that Athens will need either an extra loan or a debt write-off worth around €10 billion at some point over the next six months.

According to finance minister Yannis Stournaras, the annual income of the average Greek worker has fallen by 35 percent.

The governing coalition of centre-right and centre-left parties also holds a slim parliamentary majority and the awareness that public tolerance of further austerity measures is close to breaking point.

Opinion polls put the leftist Syriza party fractionally ahead of the centre-right New Democracy with 22.5 percent and 20 percent respectively, while support for the neo-Nazi group Golden Dawn party stands at 11 percent, leaving them in third place.

Meanwhile, the once dominant socialist Pasok party is struggling on 5 percent, less than three years after it held a parliamentary majority.

Syriza promises that it would tear up the Memorandum of Understanding agreed between the Greek government and its creditors and put in place a new 'National Programme' marked by public works and higher taxes on the wealthy.

Aside from making further progress as its bailout package enters its second phase, completing the single resolution mechanism for banks will be the main legislative priority for the Greek presidency.

Ministers agreed their position on new rules to wind up failing banks in the final week before Christmas, but negotiations with the European Parliament will start this week.

News in Brief

  1. Report: Czech minister plotted to bury evidence on Russian attack
  2. Putin promotes Russia's 'Kalashnikov-like' vaccine
  3. Coronavirus: Indian variant clusters found across England
  4. UN report encourages EU methane cuts
  5. EU court upholds ban on bee-harming pesticides
  6. Israeli tourists welcomed back by EU
  7. EU duped into funding terrorist group, Israel says
  8. Brussels prepares portfolio of potential Covid-19 treatments

EU now 'open' to vaccine waiver, after Biden U-turn

The European Union is now ready to discuss the proposal to waive temporarily intellectual property rights for Covid-19 vaccines - following the historic decision by Washington in favour of easing patent rules.

Stakeholders' Highlights

  1. Nordic Council of MinistersNordic Council enters into formal relations with European Parliament
  2. Nordic Council of MinistersWomen more active in violent extremist circles than first assumed
  3. Nordic Council of MinistersDigitalisation can help us pick up the green pace
  4. Nordic Council of MinistersCOVID19 is a wake-up call in the fight against antibiotic resistance
  5. Nordic Council of MinistersThe Nordic Region can and should play a leading role in Europe’s digital development
  6. Nordic Council of MinistersNordic Council to host EU webinars on energy, digitalisation and antibiotic resistance

Latest News

  1. EU ambassadors flock to Red Square for Putin's parade
  2. MEPs win battle for bigger citizens' voice at Conference
  3. Hungary gags EU ministers on China
  4. Poland and Hungary push back on 'gender equality' pre-summit
  5. EU preparing to send soldiers to Mozambique
  6. EU now 'open' to vaccine waiver, after Biden U-turn
  7. EU mulls using new 'peace' fund to help Libyan coast guard
  8. Poland 'breaks EU law' over judges, EU court opinion says

Join EUobserver

Support quality EU news

Join us