EU willing to discuss easing of Greek budget targets

·

The European Union’s new economy commissioner says Greece’s bailout lenders are willing to discuss a request by Athens to ease strict budget targets that would help speed up the country’s recovery.

While visiting Athens Thursday, Paolo Gentiloni said discussions could begin as soon as next month to ease the targets that were imposed to ensure Greece continues with its cost-cutting reforms and repays rescue loans provided between 2010 and 2018 by other eurozone members and the International Monetary Fund.

Gentiloni, who assumed office on Dec. 1, said the Commission was waiting for the results of an inspection into Greece’s public finances carried out last month in conjunction with the European Central Bank, a eurozone bailout fund, and the IMF.

“I think that there are all the (right) conditions to have a good report, and a good report could pave the way to decisions, and also to open the discussion about the possibility to change our targets on surplus,” Gentiloni, a former Italian prime minister, told reporters in Athens.

As part of its commitments to bailout lenders, Greece has pledged to maintain a high primary budget surplus — the annual state balance before debt servicing costs — worth 3.5% of annual GDP through 2022.

But the Greek centre-right government wants to lower that target, starting next year, arguing that the country can now tap bond markets at historically-low interest rates as its credit rating approaches investment grade.

Bailout lenders had previously been reluctant to discuss Athens’ request, fearing it could undermine the country’s reform commitment and ability to repay bailout loans as Greece struggles with a massive national debt of around 180% of GDP.

Christos Staikouras, the Greek finance minister, said the commissioner’s remarks were a vote of confidence in the seven-month old pro-reform government.

“We are regaining confidence at home and abroad … the economy is improving and stabilising,” Staikouras said. “Greece is returning to normal.”

Sourced by: AP News

greek film festival sydney new

Advertisement

Share:

KEEP UP TO DATE WITH TGH

By subscribing you accept our Terms of Service and Privacy Policy.

Advertisement

Latest News

The man for all jobs: How a Greek migrant turned setbacks into 7-figure success

When Christof Mantzanas stepped off the plane in Melbourne on 10 March 2015, he had just $1,000 in his pocket.

Jimmy’s Kitchen brings authentic Greek hospitality to The Rocks

Sydney diners can now experience the warmth, flavour, and soul of a traditional Greek taverna without the flight to Greece.

Greek Community of Melbourne enhances safety with defibrillator training seminar

The Greek Community of Melbourne (GCM) took a notable step towards enhancing community safety by organising a defibrillator training seminar.

Wills without the Trojan War

After nearly 15 years in the legal industry, I’ve lost track of how many matters I’ve worked on involving family disputes over estates.

From tech to health: Greek Australians driving innovation in 2025

Australia’s Top 100 Innovators celebrate those who turn setbacks into breakthroughs. This year, three Greek Australians are among them.

You May Also Like

Kosta Papoulidis releases first ever Pontian album by an Australian-born musician

Kosta Papoulidis has released the first ever Pontian EP album to be made by an Australian-born musician titled ‘To Vrad so Ouranon.’

Professor Maria Kavallaris looks into how COVID technology can lead to new cancer cures

Professor Maria Kavallaris from the Children’s Cancer Institute says mRNA technology was the future for the treatment for cancer as well.

Zelenskyy says Putin must be ‘sick’ to attack Odesa during Mitsotakis visit

Ukrainian President has said that Russian President Putin must have been “sick” when he launched a strike on Odesa during Mitsotakis visit.