Greek government to impose a “general cutter”

2 December 2016
557 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

Greece & France signed the Rafale agreement – A proposal is expected by Athens for French frigates
GREECE
shares17 views
GREECE
shares17 views

Greece & France signed the Rafale agreement – A proposal is expected by Athens for French frigates

makis - Jan 25, 2021

The agreement on Rafale fighters was sealed with the visit of the Minister of Defense of France to Athens, for…

Infectious Disease Committee ‘green light’ re-opening of high schools on February 1st – The measures from January 25th
GREECE
shares76 views
GREECE
shares76 views

Infectious Disease Committee ‘green light’ re-opening of high schools on February 1st – The measures from January 25th

makis - Jan 22, 2021

The experts of the Committee of the Ministry of Health gave the “green light” on Friday for the opening of…

EU teleconference Summit: Concerns over Covid-19 mutations and delay in vaccines
GREECE
shares59 views
GREECE
shares59 views

EU teleconference Summit: Concerns over Covid-19 mutations and delay in vaccines

makis - Jan 22, 2021

PM Mitsotakis’ proposal for a European vaccination certificate, which would facilitate travel without the need for a coronavirus test for…

Leave a Comment

Your email address will not be published.