NEWS

Greek gov’t tweaking growth plan amid EU worry over benefits

TAGS: Economy, EU, Privatizations

A growth plan being drafted by the government, and which is expected to be made public at a Eurogroup summit scheduled for April 27, aims to boost structural and economic reforms and kick-start a lagging privatization program, but creditors are said to be concerned about tax breaks and other benefits also said to be in the works. 

One European official expressed concern about plans to reduce certain taxes and boost the minimum wage, noting that the fiscal impact of such changes has not been calculated and could throw Greece’s tenuous economic recovery off course.

Greece’s creditors are also displeased with authorities for a lack of independence in the public sector and have pulled them up over the practice of putting political allies in key posts.

The situation in the civil service is of particular concern with general elections due to be held next year as “vested interests” might exploit the state of affairs to gain privileges, European Union officials have warned.

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