Venizelos has said the Greek economy will contract a lot more than originally predicted, possibly by over 4. 5 percent this season. The deeper recession is likely to hurt Greece's capability to meet the fiscal targets set out in an austerity program essential for the country to continue receiving rescue loans from a global bailout.
Speaking during an interview on Real Radio, Venizelos said Greece was in talks with representatives in the International Monetary Fund, European Commission and European Main Bank, known collectively as the ``troika, '' who're in Athens on a regular inspection visit.
Venizelos, who had been to meet with the delegates later Wednesday, said the federal government would not seek extra time to meet it's deficit-cutting targets.
``We are not asking for any kind of extension. We are holding a joint discussion and evaluation from the macroeconomic data, the depth of the recession and also the causes that lead to a deeper recession, '' Venizelos stated.
Describing the next four months to the end from the year as ``very dynamic, '' the minister said that simply because statisticians predict a deeper recession than originally believed, ``it doesn't mean we have to accept which with defeat. We can make efforts to restrict the recession. ''
Venizelos said the troika was ``rightly'' raising the problems of structural reforms that would open up marketplaces, free up professions to more competition and fight bureaucracy.
The minister also dismissed rumors that the actual prime minister might call early elections.
``The last thing the country needs right now is early elections, '' Venizelos said.
Greece has been kept afloat by a (euro) 110 billion ($158 billion) package of bailout loans in the IMF and other European Union countries that make use of the euro.
A second bailout of (euro) 109 billion was decided on July 21, but it has run into potential problems after among the contributing countries, Finland, demanded collateral in return because of its participation in the rescue. Another four countries have said that they'll also seek the same terms if Finland is actually granted collateral.
The minister insisted Greece had acted strictly prior to the eurogroup _ the eurozone's finance ministers _ in establishing the Finnish deal. He noted in the previous that Helsinki, which saw a nationalist, anti-bailout party win a substantial section of the vote in elections earlier this season, was not going to sign up to the bailout with no collateral deal.
He stressed that the discussions involved only cash collateral instead of property.
``We are speaking about guarantees of the financial nature, which do not create a problem within the stability program for the Greek economy, '' Venizelos stated.
His comments came as Prime Minister George Papandreou met using the country's central bank governor, George Provopoulos, two days after Greece's second and third largest banks announced plans to merge in order to better withstand the financial crisis.
The merger associated with Eurobank and Alpha Bank will create Greece's greatest bank, and will see a (euro) 500 million ($720 million) investment from the Qatari investment fund, Paramount Services Holding Ltd.
Describing it like a ``very important first step in the restructuring from the banking system, '' Provopoulos said more such modifications could lie ahead.
``This heralds other changes, that will create a very positive picture in the financial sector, which of course has suffered the consequences from the financial crisis, '' Provopoulos said.