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

Advertisement

Share:

KEEP UP TO DATE WITH TGH

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

Advertisement

Latest News

From Metallica to Maritime: The many lives of Greek shipping tycoon Harry Vafias

Though Greek shipping tycoon, Harry Vafias, spends much time working, it certainly isn't a case of 'all work and no play.’

‘I want them to know their word matters’: Peter Georgiou stands against gender violence

Peter Georgiou, a real estate agent from Rushcutters Bay and father of four-year-old twins Leila and Lola, believes change begins at home.

Thessaloniki’s Byzantine walls to shine with new light project

Thessaloniki’s iconic Byzantine Walls are set to be illuminated under a major cultural initiative announced by the Greek Ministry of Culture.

Greek World Heritage Cities face rising climate threats

Iconic Greek cities—Athens, Thessaloniki, Corfu, Rhodes, and Patmos—face serious climate threats, according to a new UNESCO-backed report.

Are apps like Duolingo enough to learn Greek, or do we need a tutor?

For many people who want to learn conversational Greek, an app, can be a very useful addition to your program.

You May Also Like

Greek Foreign Minister reiterates solidarity with Ukraine in meeting with President Zelenskyy

Greek Foreign Minister, Nikos Dendias, reiterated Greece's "unwavering solidarity" with Ukraine during a meeting with President Zelenskyy.

Kon Konstantaras to make history as coach of first Greek women’s football team in Australia

Kon Konstantaras is set to make history this weekend as he prepares to coach the first Greek women’s football team.

St George Greek Orthodox church in Rose Bay opposes council’s proposed heritage listing

The Board of St George Greek Orthodox Church in Rose Bay have opposed Woollahra Council's proposal to list the church for heritage protection