Greek government to impose a “general cutter”

2 December 2016
60 Views

In hopes to dispel any rumours of a negative outcome of Monday’s EuroGroup meeting and appease the markets and possible investors in the Greek economy, the Greek government is signalling that it is close to an agreement with its creditors on the completion of the second review on the Greek bailout program. At this juncture the most likely scenario is that the December 5 EuroGroup meeting will only be one step in reaching a deal on the second review and not the much desired full agreement the government hopes for, as the participation of the IMF on the program is stop up in the air. A government source said that the second review would close without the imposition of any new measures, stressing that the claims by major opposition leader Kyriakos Mitsotakis that the negotiations were uncertain would be disproven. The Greek government has already proceeded to adopt measures that would close the 2018 fiscal gap, satisfying the European part of the creditors, while the issues of mass layoffs and collective bargaining are still pending. At the same time ii is exploring ways to meet the lenders’ demands for high GDP surplus targets for 2019 and 2020 in such a way that it can avoid specifying the measures. According to sources, the government is prepared to introduce the “cutter”, as was done ion the previous review, in order to achieve the agreed upon targets in the event it fails to reach a 3.5% GDP surplus for the two years. In this way it is trying to avoid the pressure by the IMF of imposing more austerity measures for that period, while assuaging public concerns that the fiscal gap will be covered through a rise in revenue and growth instead of more spending cuts or tax hikes. The government wants a deal in December to avoid prolonging economic volatility and thus be included in the ECB’s quantitative easing plan.

You may be interested

The full IMF programme for Greece
FINANCE
shares37 views
FINANCE
shares37 views

The full IMF programme for Greece

makis - Jul 21, 2017

The IMF published its new programme on Greece on Thursday, which was approved on principle by the organisation’s board of…

President Pavlopoulos extends support to Kos Mayor
POLITICS
shares44 views
POLITICS
shares44 views

President Pavlopoulos extends support to Kos Mayor

makis - Jul 21, 2017

The President of the Hellenic Republic, Prokopis Pavlopoulos expressed his deepest sorrow for the victims of the Kos earthquake in…

Kos earthquake: Turkish victim identified as Sinan Kurtoglu
GREECE
shares69 views
GREECE
shares69 views

Kos earthquake: Turkish victim identified as Sinan Kurtoglu

makis - Jul 21, 2017

The name of the Turkish national killed in the earthquake on the island of Kos is Sinan Kurtoglu. According to…

Leave a Comment

Your email address will not be published.