ECONOMY

Troika convinced Greece has to shut down ELVO and EAS, sources say

Brussels – The troika is convinced that Hellenic Defense Systems (EAS) and Hellenic Vehicle Industry (ELVO) need to be shut down, sources in Brussels have told Kathimerini.

Greece’s lenders do not believe it is possible to save the two state firms as they are a drain on public finances, in contrast to other European countries, where companies in the defense industry are profitable.

Sources also said that the troika will insist on fiscal measures in 2014 that are certain to meet their targets so that Greece meets the primary surplus goal it has been set. Greece’s lenders are not insisting that these be horizontal cuts to wages and pensions but that the savings have to come from fiscal, rather than structural, measures. There will have to be spending cuts amounting to 2 billion euros, sources said.