The head of conservative New Democracy, Antonis Samaras, sent a letter on Wednesday to the heads of the country’s foreign creditors, saying that he was committed to the terms of a new debt deal.

Foreign creditors had demanded the written guarantees from both leaders in the coalition government as a prerequisite for releasing crucial rescue funding to ensure the country does not default in March.

Samaras wrote that his party is “committed” to the “objectives and key policies” of the country’s new loan deal with its foreign creditors, the European Commission, the European Central Bank and the International Monetary Fund, adding that he would remain committed irrespective of the outcome of early elections, expected in April. “If Nea Demokratia wins the next election in Greece, we will remain committed to the program's objectives, targets and key policies,” Samaras wrote in a letter addressed to ECB President Mario Draghi. The same letter was sent the heads of the EC and IMF.

The ND leader noted however that “policy modifications might be required to guarantee the full program’s implementation.” But he said his party would only propose “viable policy alternatives, strictly within the framework outlined by the program, so that the achievement of its objectives will not be put at risk.”

The leader of Socialist PASOK and former prime minister George Papandreou sent a similar letter on Wednesday confirming his commitment to the conditions of the debt deal.

There had been no real doubt surrounding the provision of a similar pledge from Papandreou, who signed Greece’s first bailout with creditors in May 2010. “From our side we will fulfill our commitments as agreed upon,” Papandreou wrote in his letter.

Both party leaders emphasized the importance of promoting competitiveness and growth alongside deep structural reforms and additional austerity.

Full text of Samaras’ letter:

As I have already stated in my letter to you of November 23, 2011, my Party, Nea Demokratia, is committed to the Stabilization Program's objectives and key policies and to their successful implementation. The same holds, of course , for the MoU/MEFP, which was voted last Sunday by the Greek Parliament via a large majority of MP's. In particular my Party is committed:

• To promote competitiveness and growth, support the deep structural reforms in the labor, product and service markets and the ambitious privatization plan under the program. The agreed adjustment of labor market parameters, will hopefully give a strong upfront impetus to promote employment and economic activity. This is especially true for an economy already in deep recession for many years and whose unemployment level is well over 20%.

• To restore market confidence and fiscal sustainability, while protecting the vulnerable members of the population. We support upfront implementation of structural spending measures and continued efforts to control spending and prevent arrears, already reaching 3% of GDP. Indeed, bold revenue reforms should deliver a fairer distribution of the tax burden and should stem tax evasion.

• To help secure financial stability. We support the implementation of the program's comprehensive banking sector strategy, through stronger resolution and financial oversight framework and banks' recapitalization plans, which are aimed both at ensuring the promotion of public interest and at respecting banks' business autonomy.

We are obviously committed to a rapid implementation of the official sector and PSI financial strategy with our European partners. This will help Greece achieve its targeted fiscal sustainability objectives and provide the necessary financing to support our country's adjustment and reform efforts.

If Nea Demokratia wins the next election in Greece, we will remain committed to the Program's objectives, targets and key policies as described in the MoU/MEFP.

As I have already stated in my previous letter (of November 23, 2011), we continue to give "great emphasis to allowing for prompt recovery, so that public revenues generated will help us achieve the targets set". Indeed, prioritizing recovery along with the other objectives, will only make the Program more effective and the adjustment effort more successful. Therefore, as my previous letter underlines, policy modifications might be required to guarantee the full Program's implementation. And, once again, we intend to bring these issues to discussion along with viable policy alternatives, strictly within the framework outlined by the Program, so that the achievement of its objectives will not be put at risk.


Sincerely,

Antonis C. Samaras
President of Nea Demokratia