Tuesday Jul 29, 2014 Search
Weather | Athens
31o C
24o 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)  
More than 120,000 households to receive special benefit
Greece names fifth privatization agency chief in four years
Great margin for growth in exports
Parliament’s Budget Office says third bailout may be needed
World’s largest solar boat on Greek mission
The world’s largest solar boat, the catamaran PlanetSolar, will embark on a Greek mission to find one of the oldest sites inhabited by man in Europe, an organizer said Monday. Starting on Au...
Municipal engineer dies in Thessaloniki following workplace accident
A 47-year-old mechanical engineer working for the Municipality of Thessaloniki died on Tuesday at the northern port city's AHEPA hospital due to injuries sustained on the job on July 21, the...
Inside News
VOLLEYBALL
Volleyball national team second in European League
Much as the national volleyball team tried to repeat in the finals of the European League the feat it had achieved in the semifinals, it failed to overturn the advantage Montenegro had got f...
SOCCER
Ranieri says he has little to change in Greek national team
The Hellenic Football Federation (EPO) presented Claudio Ranieri as the new Greece coach for the next couple of years, after the Italian manager signed his contract in Athens on Friday. “I l...
Inside Sports
COMMENTARY
Through insecurity comes optimism
Prime Minister Antonis Samaras recently expressed his optimism regarding the quota of 180 Parliamentary deputies required for the election of Greece’s next president, in order for the countr...
EDITORIAL
Futile policy
The policy that Israel has been pursuing vis-a-vis the Palestinians is wrong and futile. Current tactics have failed to resolve the security issue and, at the same time, they are rapidly dra...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. World’s largest solar boat on Greek mission
2. More than 120,000 households to receive special benefit
3. Municipal engineer dies in Thessaloniki following workplace accident
4. Tsipras discusses Cyprus with Anastasiades in Athens
5. Venizelos to meet Nimetz in Athens
6. Archaeological council bans international climbers´ gathering at Meteora
more news
Today
This Week
1. Greece names fifth privatization agency chief in four years
2. Archaeological council bans international climbers' gathering at Meteora
3. Venizelos to meet Nimetz in Athens
4. Tsipras discusses Cyprus with Anastasiades in Athens
5. Municipal engineer dies in Thessaloniki following workplace accident
6. More than 120,000 households to receive special benefit
Today
This Week
1. Climber dies in Mount Olympus fall
2. Unequal after death
3. Greek sovereign debt at 174.1 percent of GDP in first quarter
4. Hedge fund Dromeus turns Greek tragedy to triumph with 160 pct gain
5. Quadriplegic woman on life support 'dies due to unpaid power bills'
6. Front-line threats
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2014, H KAΘHMEPINH All Rights Reserved.