Greek PM Presents Gov't Policy Agenda, Pledges Bailout Implementation

Greek Prime Minister Alexis Tsipras addresses Parliament on government policy statements in Athens, Greece, on Oct. 5, 2015. [Photo: Xinhua/Marios Lolos]

Greek Prime Minister Alexis Tsipras presented his left-led government's four-year policy program on Monday, pledging the full and swift implementation of reforms and commitments undertaken under the third bailout agreed with international lenders this summer.

In parallel, he promised his government will introduce measures to soften the impact from the new round of harsh austerity policies Athens accepted in order to avert default and Grexit and resolve the six-year debt crisis.

Addressing the parliament plenary for the first time after the Sept. 20 snap general elections the 41-year old premier acknowledged that in coming months and years the Greeks will face more challenges. However, he expressed confidence over the successful outcome.

"Our vision can be realized despite difficulties during this parliament's term," Tsipras said, requesting legislators' support to stabilize the economy, secure debt relief, reform the state, address corruption and restore social cohesion.

"The restoration of economic stability and return to growth, the substantial debt relief and public administration reform combined with combating corruption and bureaucracy are the government's priorities," he stated.

The Greek leader stressed that this "road map" of his radical left SYRIZA party's ruling coalition with the right-wing Independent Greeks, was the only way to exit the crisis.

Arguing that during his first term in office from January to August this year the government managed to safeguard Greece's economic stability and put an end to discussions over a Grexit, he noted that the new bailout, despite difficulties, gives breathing space to the country to return to growth.

According to Tsipras and his cabinet ministers, within the next 20 months liquidity could be restored and Greece could be able to resume borrowing from international financing markets.

In the first half of 2016 the country could start returning to growth, the Premier said, if his government's first top goals will be achieved.

The focus at the moment was to secure a positive review of the bailout by Greece's international creditors in coming weeks without delay to clear the way for the recapitalization of the Greek banking sector and the discussion on debt relief by the end of this year, he said.

Athens needs to move fast and decisively, as timetables are tight. Shortly before Tsipras' address, Greek Finance Minister Euclid Tsakalotos discussed during a Euro Group meeting a list of more than 40 prior actions Greece needs to seal by mid October to unlock the first two billion euro aid tranche.

A second list of actions that will unlock a further one billion euro bailout loan must be concluded by mid November.

After the conclusion of the first review, the government will also focus on measures to attract more foreign investments to boost competitiveness and help create a new growth model, according to Tsipras.

He pledged the establishment of a new development bank to support tourism, shipping, agriculture, energy and other key sectors of the Greek economy, as well as a new stable and fair taxation system.

The confidence vote to the new government has been scheduled for Wednesday evening.

The two coalition partners jointly hold 155 seats in the 300-member strong assembly and no surprises were expected.

After a U-turn from his previous anti-bailout rhetoric and the agreement on the third bailout, Tsipras was re-elected in September on a mandate to implement the new three-year 86-billion euro worth program, as well as a parallel program to ease the pain for the most vulnerable social groups through the introduction of alternative measures to those in the memorandum of equal fiscal impact.

For example, during Monday's policy statements speech, he announced the suspension of a controversial planned introduction of 23 percent VAT in private education at least until the draft budget will be voted in parliament in November.

Beyond the economic crisis, the Greek Prime Minister also referred to the ongoing refugee crisis, stressing that "we need to work hard to show that solidarity and hospitality are not utopias, but are fundamental principles of the European Union."