Thursday October 23, 2014 Search
Weather | Athens
22o C
16o 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)  
Samaras to represent Anastasiades at European Council meeting
Cyprus president to sit out EU summit due to high blood pressure
Strong winds hamper sea travel
Cyprus seeks EU response over Turkey´s EEZ violation
Arrivals show increase in January-June 2014 period
International travelers coming to Greece were up by 15.6 percent compared to 2013, according to a report released by the Hellenic Statistical Authority, ELSTAT, on Thursday. The report refer...
TBEX brings together 800 travel bloggers in Athens
Over 800 travel bloggers and writers were expected to meet in Athens on Thursday, the first day of the TBEX Europe 2014 conference, an annual gathering of travel industry professionals. Besi...
Inside Business
SOCCER
Roberto´s heroics make Kasami´s goal count
Pajtim Kasami’s goal and Roberto’s heroics in goal saw Olympiakos claim one of the biggest wins in its history on Wednesday downing Italian champion Juventus 1-0 to boost its chances of reac...
SOCCER
Third-division Iroditos punished heavily after fan death
Greek third division team Irodotos has been docked 15 points and ordered to play 10 matches behind closed doors following the death of an Ethnikos Piraeus supporter, the Hellenic Football Fe...
Inside Sports
COMMENTARY
Defusing a crisis
The crisis in Cyprus is escalating rapidly and defusing it is an extremely delicate and complicated procedure that will inevitably lead to losses for the weakest of the two sides. The course...
EDITORIAL
PM needs to step up
The public perception of the government is anything but good right now. The coalition is projecting an image of discord and constant disputes show that key ministers are unable to stay on th...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Samaras to represent Anastasiades at European Council meeting
2. Arrivals show increase in January-June 2014 period
3. Cyprus president to sit out EU summit due to high blood pressure
4. Strong winds hamper sea travel
5. TBEX brings together 800 travel bloggers in Athens
6. Roberto´s heroics make Kasami´s goal count
more news
Today
This Week
1. TBEX brings together 800 travel bloggers in Athens
2. Strong winds hamper sea travel
3. Cyprus president to sit out EU summit due to high blood pressure
4. Arrivals show increase in January-June 2014 period
5. Samaras to represent Anastasiades at European Council meeting
6. At least 11 banks to fail European stress tests, three in Greece, report says
Today
This Week
1. Coalition shooting itself in the foot
2. Istanbul skyscraper casts shadow over Greece's banking ambitions
3. Greece’s closed society is central to its current malaise
4. The past, present and future of the Greek debt crisis
5. Greece must stick to reforms, says Schaeuble
6. At least 11 banks to fail European stress tests, three in Greece, report says
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2014, H KAΘHMEPINH All Rights Reserved.