Wednesday Jan 28, 2015 Search
Weather | Athens
13o C
7o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Bailout measures have been worth 31 pct of GDP

By Sotiris Nikas

Greece has taken measures worth almost 63 billion euros since entering the bailout era back in 2010, through which it has achieved a fiscal adjustment of 27 billion euros, according to data presented to the international press this week by Finance Minister Yannis Stournaras on the occasion of Greece assuming the rotating presidency of the European Council.

These measures, including those already voted for 2014, are almost evenly spread between expenditure cuts and revenue hikes, making Greece the country with the greatest fiscal adjustment in the eurozone.

In the five years from 2010 to 2014 inclusive, Greece has taken measures worth 31 percent of the country’s gross domestic product, or 62.92 billion euros. The program has proved to be front-heavy, as the year with the most measures was 2010, when they totaled 19.07 billion euros, or 8.6 percent of GDP. In 2011 the measures amounted to 18.24 billion, or 8.8 percent of GDP, which was on the wane. The measures adopted have had a direct impact on the economy, with GDP shrinking from 231 billion euros in 2009 to 222 billion in 2010 and 208.5 billion in 2011.

Over time, the need – as well as the scope – for new measures has decreased, with the smallest measures taken for 2014 (3.86 percent). However it was in 2013 that a major change to the fiscal policy mix occurred: While from 2010 to 2012 Greek governments took more measures increasing taxes than cutting spending, the current government decided last year to drastically reduce state expenditure and increase its revenues to a lesser degree. Consequently, in 2010, Greece took measures cutting spending by 8.35 billion euros and boosting revenues by 10.72 billion, while in 2013 spending was cut by 8.09 billion while the targeted revenue growth was just 2.13 billion. The same policy is continuing in 2014. In total, from 2010 to 2014, expenditure measures amounted to 33.31 billion euros while those to increase revenues came to 29.61 billion euros.

The figures point to the conclusion that for every 1 billion euros’ worth of measures Greece takes, its primary surplus improves by 430 million euros. They also prove that the impact of the recession has been greater than expected in the effort to streamline the country’s public finances, as a large part of the measures taken have not fetched the anticipated results – i.e. the well-known problem of the fiscal multipliers that were not calculated correctly at the start of the streamlining process.

ekathimerini.com , Thursday Jan 9, 2014 (22:43)  
Greek tourism rise outshines global gains
Dritsas announces cancellation of OLP sale
Electric shock in energy industry
Property levies inflict serious blow to housing market
Police looking for two more suspects in Xeros case
Two people arrested last week on suspicion of being accomplices of Savvas Xeros and assisting him in plans to help members of the Conspiracy of the Cells of Fire terrorist group escape from ...
Tsipras unveils anti-austerity cabinet
Greece’s new SYRIZA-led coalition government was sworn in on Tuesday with economist Yanis Varoufakis taking the crucial post of finance minister in a slimmer cabinet including members of the...
Inside News
SOCCER
PAOK strikes deal with Portugal´s Ricardo Costa
PAOK announced on Tuesday its agreement with Portuguese international defender Ricardo Costa. The Thessaloniki club added that the player is expected on Wednesday to undergo a medical test a...
BASKETBALL
Basket League favorites survive challenges on the road
PAOK consolidated its position in the top three of the Basket League with a triumph at AGO Rethymnou on Saturday, while Olympiakos and Panathinaikos emerged victorious from their tough away ...
Inside Sports
COMMENTARY
Greece, where everyone´s a winner
Whether a tradition or simply a bad habit, we have trouble finding a loser in any electoral race, a party leader who will openly concede defeat without trying to mitigate it with excuses. Th...
EDITORIAL
Political faux pas
Democracies have rules and institutions that must be respected and served by all who represent them. Most people can appreciate that politicians who have worked hard for the past two-and-a-h...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. PAOK strikes deal with Portugal´s Ricardo Costa
2. Greek tourism rise outshines global gains
3. Dritsas announces cancellation of OLP sale
4. Electric shock in energy industry
5. Property levies inflict serious blow to housing market
6. Uncertainty on new tax system
more news
Today
This Week
1. Greek Elections 2015: Forming a government, Part 1 | LIVE
2. Greece, where everyone's a winner
3. Three days of mourning declared over death of two Greek pilots in Spain
4. Greek uncertainty weighs on low-rated eurozone bonds
5. Political faux pas
6. Europe stocks fall from seven-year high; Greek bonds drop
Today
This Week
1. Greek Elections 2015 | LIVE
2. SYRIZA heads for historic victory but without majority
3. Greek Elections 2015 | LIVE
4. Greeks fork out nearly 5 pct of their incomes on telecom services
5. Unsupervised voting
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.