Greece on track for 2018 primary surplus target, EU says

Record ID: 165940

  • Title: Greece on track for 2018 primary surplus target, EU says
  • Date: 26th January 2017
  • Summary: BRUSSELS, BELGIUM (RECENT - JANUARY 25, 2017) (REUTERS) VARIOUS EXTERIORS OF EUROPEAN COUNCIL BUILDING
  • Embargoed: 9th February 2017 16:23
  • Keywords: EU Greece bailout Dombrovskis Dijsselbloem IMF Mocovici euro
  • Location: BRUSSELS, BELGIUM
  • City: BRUSSELS, BELGIUM
  • Country: Belgium
  • Topics: European Union,Government/Politics
  • Reuters ID: LVA00160PY24N
  • Aspect Ratio: 16:9
  • Story Text: Greece outperformed its fiscal targets last year and is likely to meet fiscal goals this year, putting it on track to meet its primary surplus target in 2018, European Commission Vice President Valdis Dombrovskis said on Thursday (January 26).
    Achieving a budget surplus before debt servicing of 3.5 percent of economic output in 2018 is important because the eurozone may grant Athens further debt relief if Greece attains and keeps this level for several years.
    "The economic situation in Greece is gradually improving. It is expected that also last year's economy performed slightly better than our previous forecasts and Greece has substantially outperformed on last year's fiscal targets, is going to meet this year's targets and we need to finalize the work on outstanding measures in 2018," Dombrovskis told reporters before a meeting of eurozone finance ministers.
    He also said the eurozone still wanted the International Monetary Fund (IMF) to fully participate in the bailout for Greece, the third since 2010, downplaying reports that - unlike in the previous two programs - the eurozone was now ready to go it alone with Athens.
    The head of eurozone finance ministers Jeroen Dijsselbloem added that the IMF was also fully committed to remain part of the programme.
    "I spoke to (IMF Managing Director Christine) Lagarde quite recently and she reassured me that the IMF has still strong intentions to remain part of the programme and to take that step and to participate to the programme in full," he said.
    The latest Greek bailout, the third since 2010, started in the middle of 2015 and is due to end in mid-2018.
    Responding to comments by Ted Malloch, reported by media to be the likely new United States ambassador to the European Union, who has told the BBC he would short the euro because the single currency "could collapse" in the next 18 months, The EU's economy Pierre Moscovici said the euro currency was not going to collapse, neither now nor in 20 years.
    "I don't think this is a very informed judgement, the euro is not going to collapse, neither in 18 months, not in 10 years, nor in 20 years, We have a single currency, which is a major factor of unity among us, it is no use trying to divide the Europeans, But we need to strengthen the eurozone, we need to complete the eurozone, we need to deepen the eurozone. And that is something which is going to be addressed by the Commission, in a white paper that will be delivered in order to prepare the 60 years anniversary of the Treaty of Rome. We will disappoint those who see us already dead," he said.
    A eurozone official said there was "a good chance" finance ministers meeting on Thursday could agree to send negotiators back to Athens so that a deal approving completion of the latest bailout reforms could be reached in February.
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