ECONOMY

Athens foresees smaller fiscal gap

Sources close to Finance Minister Yannis Stournaras say the calculations made by the European Commission’s Directorate-General for Economic and Financial Affairs, headed by Olli Rehn, regarding additional measures needed for 2015-16, concern a fiscal gap expected to amount to 4.2 billion euros and not 8 billion – as some reports have suggested – as the gap does not amount to 1.6 percent of GDP in 2015 plus 2.2 percent in 2016, but rather a total of 2.2 percent by 2016.

The same sources also expressed the ministry’s optimism that no new measures will be required then as this is an adjustment that can be covered via a 5 percent increase in general government revenues in 2015 and 2016.

Athens estimates the 2015-16 fiscal gap at just 2.4 billion euros.