ECONOMY

SYRIZA official: ‘Greek’ solution will be sought if deal not reached with creditors on debt

Yiannis Dragasakis, SYRIZA’s economic policy chief, has told the Europolitics website that the leftists will seek a “Greek solution” to the country’s debt problem if it is elected to power in next month’s elections but fails to win round European partners.

Dragasakis insisted on the need for a European debt conference but said that a refusal by the country’s European partners to proceed with such a move would prompt the leftists to seek a solution for the debt which is “exclusively Greek.”

The size of Greece’s debt must be reduced, Dragasakis said, adding that the final sum could be discussed. A way forward would be to determine that public debt should not exceed 60 percent of gross domestic product (Greece’s debt-to-GDP is currently around 175 percent of GDP). This would qualify a large number of other eurozone member states for debt relief, he said.

SYRIZA’s economic policy chief added that a SYRIZA government would have until July to reach a deal with creditors before serious liquidity problems arise. In the months before summer, the government could pay the International Monetary Fund and European Central Bank by issuing T-bills, he said.