Greece’s new conservative government admitted on Monday it is still calculating the total cost of the August 13 to 29 Olympics, but insisted it will pay for multiple budget overruns.
”We do not have a clear picture,” Finance Minister Giorgos Alogoskoufis said. ”We will have many meetings until we have a clear picture at the end of the month.”
The conservatives, who ousted the long-governing socialists in March 7 general elections, are currently reviewing all the previous government’s budget figures, including Olympic costs.
Monday’s warning came after the Finance Ministry sharply revised the public deficit upward to a predicted 2,95% of the country’s gross domestic product. In its Budget for 2004, the previous Socialist government had estimated the deficit at 1,4% of gross domestic product in 2003 and 1,2% in 2004.
Government officials last week said overruns were discovered at many Olympic projects and that the government’s overall games budget is likely to exceed the targeted $5,6-billion.
”We will impose fiscal discipline but, I repeat, we will not derail the priority which our country has for Olympic games,” Alogoskoufis said.
The finance minister granted the release of $671-million to cover Olympic construction costs and overruns, with the immediate payment of $60-million for urgent needs during the Easter period.
Olympic costs are under pressure from urgent venue delays and massive spending to provide security.
”We will have many headaches up until the Olympic Games,” chief Athens organiser Gianna Angelopoulos Daskalaki said after reviewing the course of Olympic projects with Premier Costas Caramanlis.
But she added: ”As long as we stay on top of things, working with passion and in a positive way, them we believe things will go well.”
Also on Monday, the Health Ministry said it is planning to hire about 9 500 additional workers over the next year to the country’s state-run National Health System, largely to cover increased demands for the Olympics.
Adding to the strain on the new government, labor unions are pressing for above-inflation pay hikes this year and proper jobs for thousands of contract workers employed by public services.
Protesting contract workers rallied in downtown Athens on Monday, carrying replicas of torches used by relay runners to transport the Olympic flame. — Sapa-AP