Saturday November 22, 2014 Search
Weather | Athens
18o C
10o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Athens to ask for austerity relief

 If measures are taken to ease the debt, there should be no need for primary surpluses to reach 4.5 pct of GDP

By Sotiris Nikas

The government is planning to raise the issue of changing the fiscal targets when talks on the sustainability of the Greek debt begin at the end of August, in an effort to loosen fiscal policy after a long period of austerity.

A senior Finance Ministry official acknowledged on Tuesday that the issue ranks high on the government’s agenda. Although he said that the subject “has not been raised nor discussed” with the country’s creditors, he poignantly added that “everything will become part of the negotiations on the debt.”

The official further added that there will be five parameters that must be reviewed in examining the sustainability of the debt:

The macroeconomic scenario – i.e. the course of the gross domestic product: The better the economy gets, the smaller the debt-to-GDP ratio will become. The ministry expects GDP to perform even better than expected this year thanks to the payment of outstanding debts to the private sector.

The funding gap: The Greek program has its funding secured for the next 12 months, but what happens after that will have to be examined, and the question is: At what cost?

The fiscal targets: The size of the primary surpluses will go a long way toward determining the level of the debt’s annual reduction, as the bigger the surplus, the more funds Greece will have to repay debt.

The course of the privatizations program: The revenues from the sell-offs have been factored into the repayment of the country’s debt. If the projected revenues are not collected, then the debt will not be reduced as planned.

The eurozone decisions regarding the further lightening of the Greek debt.

In this context, when talks start in August and provided that the eurozone does take new measures to ease Greece’s debt, the government will request a change in the fiscal targets set. According to Athens, since projections for the course of the debt will point to a faster reduction in the coming years thanks to the new measures, there will be no need for securing primary surpluses of 4.5 percent of GDP from 2016 to 2020.

ekathimerini.com , Tuesday May 13, 2014 (22:45)  
Fitch keeps Greek rating at ‘B,’ outlook stable
More cash for banks with same papers
Growth to fuel rise in revenues
Commercial property draws interest from investors
Cyprus on agenda in Biden visit to Istanbul
The prospects for the resumption of stalled peace talks on Cyprus and the issue of energy security were among the matters discussed on Saturday by US Vice President Joe Biden and Turkish gov...
PASOK nixes Papandreou leadership challenge
The junior coalition partner PASOK rejected over the weekend a proposal by the party’s former leader and ex-premier George Papandreou for the party to call an emergency congress and a subseq...
Inside News
INTERVIEW
Tokyo hopes to change the world
The 2020 Summer Olympic and Paralympic Games in Tokyo will serve as a springboard for the rebuilding of Japan’s image and economy following the triple blow of the earthquake, tsunami and nuc...
BASKETBALL
Big win for Greens, tight one for Reds
Panathinaikos scored a crucial as well as emphatic away win at Turow on Thursday that should see it qualify from its tough group to the top 16 of the Euroleague, while Olympiakos saw off vis...
Inside Sports
COMMENTARY
Is Europe paying attention?
Barack Obama brought hope to the entire world when he was elected president of the United States in 2009 and then again in 2012 for a second term. During his first visit to Europe, marked by...
EDITORIAL
A reasonable agreement
Greece cannot and should not allow itself to be left without a safety net to make up for any funding needs that may crop up after the end of the year. Without such protection it would be at ...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Cyprus on agenda in Biden visit to Istanbul
2. PASOK nixes Papandreou leadership challenge
3. Troika tests gov’t nerves as budget rift persists
4. Climate change to hit farming, Greek coastline
5. Piraeus nightclub shooting leaves 3 seriously injured
6. London court to rule on extradition of former judge
more news
Today
This Week
1. Fitch keeps Greek rating at ‘B,’ outlook stable
2. Climate change to hit farming, Greek coastline
3. Piraeus nightclub shooting leaves 3 seriously injured
4. PASOK nixes Papandreou leadership challenge
5. Troika tests gov’t nerves as budget rift persists
6. Cyprus on agenda in Biden visit to Istanbul
Today
This Week
1. Double quake on Atalanti fault line rattles Greek capital [Update]
2. Greece and Poland switch roles as young Greeks head to vibrant Eastern European country for better prospects
3. Constructively disrupting the Greek start-up ecosystem: What will the impact be?
4. Anti-junta uprising anniversary to be marked amid tight security
5. Biden heads to Istanbul amid tension over Cyprus EEZ violation
6. Carlsberg takes control of Greek brewer Olympic Brewery [Update]
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2014, H KAΘHMEPINH All Rights Reserved.