France, Germany said to agree on easing Greek budget targets
German Chancellor Angela Merkel and French President Francois Hollande acknowledged “the necessity” to lower primary surplus targets in phone talks about a debt deal Wednesday with Prime Minister Alexis Tsipras, Greek sources said.
The three leaders “agreed on the necessity of lower primary surplus [targets] and of an immediate solution” between Athens and its creditors to free up 7.2 billion euros ($8 billion) in frozen bailout aid in exchange for reform and austerity commitments by Greece.
A lower required primary surplus — a states budget surplus prior to debt financing — would allow Athens to respect promises to voters to increase public spending, and has been a main sticking point in negotiations. [AFP]
