MNI INTERVIEW: Syriza Claim Success On Progressive Agenda

--Syriza Official Defends Party's "Dual Strategy" To MNI

--Looks Confidently At 2019 Greek And European Elections

--Opposition Says Syriza's Policy Keeps Economy Below Its Potential 

By Jean Comte

     ATHENS (MNI) - The Greek government continues to pursue a progressive

agenda despite the various austerity measures currently under implementation,

Yiannis Bournous, Syriza's head of European policy, told MNI.

     "We are pursuing a dual strategy: complying with the memorandum of

understanding, while expanding social services and welfare state," Bournous

said.

     Strengthening the welfare state constitutes the core of the left-wing

party's progressive agenda. It includes three major strands of work: better

protection of people below the poverty threshold, improvements in the public

health system, and an upgrade of the public education system.

     "We hired 5,000 officials in the health system, we provided means for the

2.4 million Greeks who have no social insurance, and we started to develop a

network of local medical centres," he said.

     "And in September 2017, every public school started the year with all

teaching books delivered and a full staff -- that was actually a small

revolution, it usually never happens before December."

     The government has put forward a set of positive figures, including

expected 2% GDP growth in 2017, which could reach 2.4% in 2018.

     Unemployment is expected below 23% in 2017 -- its lowest level since 2012.

The draft 2018 budget tabled earlier this week plans a primary record surplus of

E6.671 billion, which will be used to support vulnerable households according to

Greek media reports.

     The opposition is not convinced though, claiming that these political

choices are keeping the economy below potential.

     "Greece has the potential to reach an annual 4% GDP growth per year -- not

2% or 2.5%," a senior source from New Democracy told MNI. 

     The conservative party is arguing in favour of a radically pro-business

agenda: a reduction of E1.9 billion from the tax burden, balanced by a 2 billion

euros cut in public spending. In parallel, the party plans to reform the product

and service market, and to "aggressively" promote privatisation.

     ELECTIONS AHEAD

     Both parties are already preparing for the next national elections, planned

for 2019 -- along with municipal, regional and European votes. Current polls

clearly give the advantage to New Democracy, credited with 30 or 35% of the

vote, whereas Syriza is between 15 and 17%.

     Bournous nevertheless hopes that Syriza can stay in power. He is counting

on the 15% of voters who are undecided turning to the left-wing party when

seeing the success of the "dual strategy" and its implementation of the

progressive agenda.

     But New Democracy said that further austerity measures are waiting down the

line -- a E5.1bln package entailing further cuts in pension's according to the

source.

     Syriza might therefore be trapped between calling snap elections with

negative polls, or waiting for further austerity measures to kick in and lose

further popularity, the source suggested.

--MNI Brussels Bureau; +44 203-865-3851; email: tara.oakes@marketnews.com

--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com

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