The Institute of International Finance is expressing concern regarding whether the government to emerge from the May 6 election will be willing to apply the fiscal adjustment program Athens has agreed to with its creditors.
Although there is no clear reference to Greece in the IIF’s review of the global economy, the Institute does express its worries about economic developments in the country using a diagram.
It brands as “key” for the future of Greece whether the election results will bring about a new government that can continue the application of the economic program agreed with the European Union and the International Monetary Fund, and says emphasis must be placed on four main pillars.
These are the progress in meeting fiscal targets and whether additional measures for 2013 and 2014 are taken, the new government’s composition, how well the agreed structural reforms are implemented, and the prospects of a rebound by the end of the year. The IIF argues that unless a rebound starts before the end of 2012, it is clear that 2013 will be another year of recession for Greek economy.