Monday Jan 26, 2015 Search
Weather | Athens
15o C
9o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Athens to ask for easier fiscal targets

 Primary surplus should allow government to negotiate less stringent set of goals for years to come

By Sotiris Nikas

Armed with the 2013 primary surplus – which according to Finance Minister Yannis Stournaras will create quite a stir when it is announced – the government is putting pressure on the eurozone to launch discussions regarding a new restructuring of the Greek debt before the European Parliament elections in May.

As soon as Eurostat officially announces the difference between Greece’s revenues and expenditure for last year, in the last 10 days of April, the Greeks will formally start discussions on the issue of lightening the country’s debt. The Finance Ministry is currently working behind the scenes to ensure that the eurozone does not postpone the start of those talks until after the May 25 elections.

Greece also intends to discuss the relaxation of the fiscal adjustment through a change in the targets set for future primary surpluses. Ministry officials say that the targets set in the bailout agreement are practically impossible to attain, as they provide for a primary surplus of 3 percent of gross domestic product in 2015 (up from 1.5 percent this year), and as much as 4.5 percent in 2016 – i.e. about 9 billion euros. That level should be maintained for the following four years so that the state debt goes down to 120 percent of GDP by 2020.

Taking into account that the eurozone will take some action to lighten Greece’s debt, ministry officials say it is an opportunity for the fiscal adjustment targets to change, too. Either way there is no scope for new tough fiscal measures in expenditure (salary or pension cuts) or in revenues (new taxes). Therefore the government says the debt restructuring must be combined with a new road map for fiscal adjustment, given also that Greece exceeded all expectations in 2013.

Before the negotiations on the debt can start, Greece must discuss with its creditors how the funding gap for 2014 and 2015 will be covered, as it adds up to an estimated 13 to 15 billion euros. The eurozone intends to issue a new loan to that amount, with Athens prepared to accept that as long as it does not come with any new fiscal measures attached. Otherwise the two sides will associate the new loan with the implementation of structural reforms.

ekathimerini.com , Friday February 7, 2014 (22:12)  
Greek bonds slip on Syriza victory as ECB buying mutes contagion
ECB cannot agree to debt relief for Greece, board member says
Talks with troika the main test
Fiscal gap from revenues at 2.3 bln euros
Tsipras forges anti-austerity coalition in challenge to EU
Greek Prime Minister-elect Alexis Tsipras forged an anti-austerity alliance within hours of his election victory, challenging European peers with a declaration that the era of bowing to inte...
Finnish PM says ready to discuss bailout extension for Greece
Finland is ready to discuss extensions for Greece's bailout program if its new government can commit to existing agreements and promised structural reforms, Prime Minister Alexander Stubb sa...
Inside News
SOCCER
Olympiakos overcomes depleted OFI at Iraklio
Easy though it may seem, Olympiakos’s 3-0 win at depleted OFI Crete was rather difficult on Saturday, but was enough to keep the Reds on top on Saturday, as they have maintained their two-po...
BASKETBALL
Tremendous Spanoulis sweeps Laboral Kutxa
A hot second half was enough for Olympiakos to undo visiting Laboral Kutxa and score its fourth win in as many games at the second round of the Euroleague on Friday. The 76-64 final score wa...
Inside Sports
COMMENTARY
SYRIZA´s win will test institutions
Greece was at an impasse, with a government that did not believe in what it was doing and an opposition that declared with passionate intensity that whatever the government did was wrong and...
COMMENTARY
The challenge for Tsipras and others
A few years ago, an associate of mine who had met with Alexis Tsipras when the young politician was running for Athens mayor told me how impressed he had been by his confidence. Tsipras was ...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Tsipras forges anti-austerity coalition in challenge to EU
2. Greek bonds slip on Syriza victory as ECB buying mutes contagion
3. ECB cannot agree to debt relief for Greece, board member says
4. Finnish PM says ready to discuss bailout extension for Greece
5. Tsipras moves to form anti-austerity government after crushing victory
6. Greek Elections 2015: The day after | LIVE
more news
Today
This Week
1. SYRIZA heads for historic victory but without majority
2. Greek Elections 2015: The day after | LIVE
3. SYRIZA's win will test institutions
4. Tsipras moves to form anti-austerity government after crushing victory
5. Finnish PM says ready to discuss bailout extension for Greece
6. SMART WATER Project: Outputs and conclusions of the final conference
Today
This Week
1. Greek Elections 2015 | LIVE
2. Grexit the only way out of ‘valley of tears,’ says Hans-Werner Sinn
3. Greek Elections 2015 | LIVE
4. No debt writedown or rolling back of reforms for Greece, says Finland's Stubb
5. Greeks fork out nearly 5 pct of their incomes on telecom services
6. QE exclusion a ‘de facto Grexit’
Advertiser Link
SMART WATER Project: Outputs and conclusions of the final conference
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2015, H KAΘHMEPINH All Rights Reserved.