Parliament Budget Office warns about premature optimism over Greek Economy

2 November 2017
111 Views

Speaking in the House today, the head of Parliament’s Budget Office warned the government not to create great expectations concerning both the exit from the Greek bailout programme and the growth of the Greek economy.
Panagiotis Liargovas said that a “clean break” from the lenders’ control over the economy is way too optimistic a target, comparing the end of the bailout programme next August to the “start of a honeymoon,” and all the problems associated with it.

“Personally, I would avoid using the term ‘clean exit’ from the programme, because there will still be supervision over the Greek economy, just not as strict as it is now,” he said referring to the optimism relayed by the government.

Liargovas claimed that the country’s upcoming run to the bond market might be successful, but even then, it will come at a high price, interest rate wise. It will also be totally dependent on the IMF/EU deal over Greek debt relief.

Referring to the third and last bailout review which kicked-off last month, he said that a timely conclusion to the negotiations is tied to the credibility of the government’s economic policy, which is dependent on implementing bold reforms.

Liargovas mentioned three targets for the government’s economic agenda in the near future: a new negotiation over the country’s projected primary surplus (on which all parties agree), a re-imagining of the government’s policy of surpassing surplus targets for the sake of social dividends, and a new road map for the next bond market run, so that there would be no unfeasible expectations over an end to fiscal adjustment.
Finally he predicted that even after 2021, the country would have to sustain unfeasible yearly primary surpluses, at least until 2060.

You may be interested

Turkish deputy-Prime Minister accuses Greece of oppressing religious minorities in latest Turkish tirade against Greece
GREECE
shares71 views
GREECE
shares71 views

Turkish deputy-Prime Minister accuses Greece of oppressing religious minorities in latest Turkish tirade against Greece

makis - Nov 17, 2017

Turkish Deputy Prime Minister Bekir Bozdag accused Greece of imprisoning Muslim Imams, despite the country being a member of the…

Greek PM says country would rely on itself to face flood disaster
POLITICS
shares87 views
POLITICS
shares87 views

Greek PM says country would rely on itself to face flood disaster

makis - Nov 17, 2017

Greek PM Alexis Tsipras thanked European countries for offering to help after the flash floods in western Attica, Wednesday, which…

US meteorologist explains deadly storm that flooded Greek towns
GREECE
shares106 views
GREECE
shares106 views

US meteorologist explains deadly storm that flooded Greek towns

makis - Nov 17, 2017

“When the Atlantic hurricane season begins to quiet down in late October and November, it’s time to cast an eye…

Leave a Comment

Your email address will not be published.