by Calculated Risk on 8/24/2012 01:29:00 PM

From the Athens News: Merkel lays down the law

“We expect Greece to deliver all that has been promised,” Merkel declared. In remarks that were unusually sharp for a joint news conference, she stressed that Berlin has heard words in the past but now expects deeds.

The tough talk contrasted sharply with the head of state honours and diplomatic smiles with which Samaras was received on his first official visit, complete with red carpet and band.

Merkel said that Samaras’ visit is a sign of the “very close ties” between the two countries, only to add later that each side had lost credibility in the eyes of the other and that trust must be regained.

“Our aim is for Greece to remain in the eurozone, despite all the problems that exist,” Merkel said, noting that the euro is more than a currency, that it is the embodiment of European unification.

Moreover, Merkel noted the tremendous sacrifices that the Greek people have made over the last years, underlining that the weaker classes have borne the brunt of austerity and that those who profited during previous years of prosperity have not done their part.

The remark was a thinly veiled barb against the handling of austerity measures by successive Greek governments, which have done nothing to combat rampant tax evasion among the higher income brackets, opting instead for repeated horizontal wage and pension cuts.
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For his part, Samaras pledged that his government will pursue reforms on a strict timetable and that he is determined to “bring results”.

“I am certain that the troika report will signal that the new coalition government will deliver,” he said.

“We are eliminating two deficits at once – the country’s budget deficit and the credibility deficit,” he said.

But the prime minister underlined that “a revival of the economy and growth is of crucial importance to meet our obligations soon”.

Here is a transcript in Greek from the Greek government.

And a google translation.