Brussels cuts growth forecast after Tsipras measures

Brussels cuts growth forecast after Tsipras measures

The European Commission has further reduced its forecast for Greek growth in 2019, setting the bar at 2.1 percent according to its summer estimates, down from 2.2 percent in its spring report in May.

Speaking at the presentation of the summer forecasts on Wednesday, European Commissioner for Economic and Monetary Affairs Pierre Moscovici reminded that the country’s creditors have over the last few days warned Greece of the risk that the target for a primary budget surplus of 3.5 percent of gross domestic product may not be attained this year, after measures introduced in May by former prime minister Alexis Tsipras.

The failure to meet the primary surplus target could mean that creditors will exercise pressure on the new government for fresh measures over the rest of the year.

Moscovici, who on Wednesday spoke on the telephone with Greece’s new finance minister, Christos Staikouras, said that there are commitments from the 2018 agreement, but also that Greece has entered a new phase and that creditors must respect the democratic process.

Subscribe to our Newsletters

Enter your information below to receive our weekly newsletters with the latest insights, opinion pieces and current events straight to your inbox.

By signing up you are agreeing to our Terms of Service and Privacy Policy.