Friday April 25, 2014 Search
Weather | Athens
21o C
15o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Last major austerity package, says eurozone official

 Head of Euro Working Group says funding and debt sustainability should not cause undue concern
Euro Working Group president Thomas Wieser is seen here in a file photo. [Council of European UnioN]

The economist at the heart of eurozone negotiations, Euro Working Group president Thomas Wieser, has told Kathimerini that Greece will not need another major austerity package like the one it will be implementing next year unless the adjustment process is derailed by adverse domestic developments.

Wieser, who heads the group of technical experts that advise finance ministers and leaders, believes that some 9 billion euros in spending cuts and tax hikes next year will represent the last consolidation package of such size.

“Greece will not need another big austerity package because the bulk of the consolidation measures needed have already been taken,” he said.

Wieser emphasized, however, that if budget targets are not met next year due to slippage on the government’s part, rather than a deeper-than-expected recession, then the automatic mechanism Greece has agreed with its lenders will apply and more cuts will be made.

The government has agreed to implement some 9 billion euros over the 2014-16 period as well.

Wieser also played down concerns regarding a funding gap in the Greek program and about whether public debt will be viable at the end of it.

The Austrian said that Greece’s eurozone partners and the International Monetary Fund have ensured that Athens will be fully funded until the end of 2014 and that if there is a need for more financing to be found, that will be discussed next year.

With regard to debt, which Greece’s lenders want to reduce to 124 percent of GDP by 2020, Wieser said that an official sector haircut will not be needed.

“Greek debt will be reduced to the level of Irish debt today and to the level of Italian debt for many years,” he said. “I do not hear, though, anyone asking for a haircut on Irish or Italian debt. Some people insist Greece needs it for their own reasons, others because they want to make money, others because they want to avoid the reforms the country has to make.”

Wieser identified entrenched interests in Greece that might resist the reforms the government wants to make as they biggest threat to the country’s adjustment program.

ekathimerini.com , Saturday December 22, 2012 (14:33)  
Work at new Athens cultural center gathering pace
Greece makes request for debt relief as loan tranche approved
New court to deal with major crime, graft cases
More than 20,000 protests since 2010 bailout
Ellaktor lands major Doha metro project
Ellaktor subsidiary Aktor has secured the biggest construction project ever obtained by a Greek company abroad by signing the contract for the study and construction of the Gold Line Undergr...
World seeks produce from Greece
Honey from Greece is considered a worthy wedding present in Japan. Elsewhere in Asia, gifts of Greek melons are wrapped up in packaging normally associated with jewelry. This country’s fish ...
Inside Business
SOCCER
4,000 officers to police Greek Cup final
Police says it will ban mass gatherings in central Athens amid heavy security measures planned for Saturday's Greek Cup final between Panathinaikos and PAOK at the Olympic Stadium. More than...
BASKETBALL
Never underestimate the Greek hoopsters
Olympiakos and Panathinaikos, who between them have won the last three European crowns, won again at home on Wednesday to take their Euroleague play-off series with Real Madrid and CSKA Mosc...
Inside Sports
COMMENTARY
At the mercy of fools
The death of a young man at an Easter lunch in a village near Rethymno on Crete and the very serious injury of an American guest at a Resurrection ceremony on Santorini must not be forgotten...
COMMENTARY
Putting the party above the country
The case of Sabiha Suleiman, the Roma activist whose candidacy for the European Parliament was announced by SYRIZA only to be withdrawn shortly afterward, is an illustration of the leftist o...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Ellaktor lands major Doha metro project
2. World seeks produce from Greece
3. Eurobank opens book for capital increase
4. Gov’t presents its growth model for the coming years
5. Work at new Athens cultural center gathering pace
6. Greece makes request for debt relief as loan tranche approved
more news
Today
This Week
1. Ellaktor lands major Doha metro project
2. Putting the party above the country
3. Three missing from cargo ship that went down off Crete
4. Central Athens cleanup a sign of Greece's turnaround
5. Strong card in debt talks
6. Samaras meeting with Dimon key to Greek return to bond markets
Today
This Week
1. Greece startup leaders say they can’t break jobless cycle alone
2. Ground-breaking Good Friday mass signals thaw in Cyprus
3. Mayoral candidates clash over Athens mosque plans
4. Putting the party above the country
5. Government looks to kick on
6. Greece offers to help find Turkish F-16 lost in 1996
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2014, H KAΘHMEPINH All Rights Reserved.