Greece says lower primary surplus targets beyond 2018 will help boost competitiveness

Record ID: 77131

  • Title: Greece says lower primary surplus targets beyond 2018 will help boost competitiveness
  • Date: 28th November 2016
  • Summary: ATHENS, GREECE (NOVEMBER 28, 2016) (REUTERS) PEOPLE SEATED AT ECONOMY CONFERENCE GREEK FINANCE MINISTER, EUCLID TSAKALOTOS, RISING FROM HIS SEAT AND WALKING TO PODIUM (SOUNDBITE) (Greek) GREEK FINANCE MINISTER, EUCLID TSAKALOTOS, SAYING: "I think the Greek government has implemented the bailout to the letter. We have implemented all the agreed reforms, we have negotiated in the best way things we felt were irrational, or that we did not feel were socially (acceptable). It (Greece) cannot take any more measures (just) because there is a disagreement between the IMF and some European countries." TSAKALOTOS AT PODIUM (SOUNDBITE) (Greek) GREEK FINANCE MINISTER, EUCLID TSAKALOTOS, SAYING: "Let's agree to lower the primary budget surplus targets to 2.5 percent from 3.5 percent, and the Greek government would commit that the full one percentage point difference, the fiscal room it will create, will be allocated solely to tax relief for small and medium-sized companies to boost competitiveness." TSAKALOTOS AT PODIUM (SOUNDBITE) (Greek) GREEK FINANCE MINISTER, EUCLID TSAKALOTOS, SAYING: "Without concluding the second review there will not be a solution on debt, without a solution on debt we won't be able to be included in quantitative easing, without quantitative easing we will not be able to regain market access by the end of 2017 or at most the beginning of 2018." TSAKALOTOS WALKING DOWN FROM STAGE/ AUDIENCE APPLAUDING ECB EXECUTIVE BOARD MEMBER, BENOIT COEURE, ADDRESSING AUDIENCE (SOUNDBITE) (English) ECB EXECUTIVE BOARD MEMBER, BENOIT COEURE, SAYING: "All stakeholders in the Greek adjustment programme realise that there are serious concerns about the sustainability of the Greek public debt. As you are all well aware, the discussion is currently ongoing in the Eurogroup and (concerning) the short-term, medium-term, and the long-term measures needed to secure the sustainability of Greek debt. We are looking forward to a solution that can reassure markets, restore confidence in the sustainability of public debt in an uncertain macroeconomic environment, allow the full involvement of the IMF in the programme which as I've always said, would enhance the programme's capability." COEURE AT PODIUM (SOUNDBITE) (English) ECB EXECUTIVE BOARD MEMBER, BENOIT COEURE, SAYING: "To bring the programme to a successful conclusion and to restore market access for the sovereign on a lasting basis, it is above all essential that the Greek authorities continue to show a serious commitment to the goals and measures taken under the programme. Only if this happens can all stakeholders be confident that reforms will not be reversed and in fact will be strengthened after the programme, therefore further supporting the potential for growth of the Greek economy." COEURE WALKING DOWN FROM STAGE/ AUDIENCE APPLAUDING
  • Embargoed: 13th December 2016 16:22
  • Keywords: Greece economy debt bailout EU IMF ECB
  • Location: ATHENS, GREECE
  • City: ATHENS, GREECE
  • Country: Greece
  • Topics: Budget/Taxation/Revenue,Government/Politics
  • Reuters ID: LVA0015AD0RIF
  • Aspect Ratio: 16:9
  • Story Text: Lower primary surplus targets after 2018 would help Greece cut taxes and boost competitiveness, finance minister Euclid Tsakalotos said on Monday (November 28) urging Greece's EU lenders to conclude a key bailout review and grant it debt relief.
    "I think the Greek government has implemented the bailout to the letter. We have implemented all the agreed reforms, we have negotiated in the best way things we felt were irrational, or that we did not feel were socially (acceptable). It cannot take any more measures (just) because there is a disagreement between the IMF and some European countries," Tsakalotos told an economy conference in Athens.
    He said that Greece's targets for its budget primary surplus - which excludes debt servicing costs - could be lowered to 2.5 percent of national output beyond 2018 from the current level of 3.5 percent, a proposal which EU lenders have so far rejected.
    Tsakalotos said the fiscal gains from a reduced surplus would go towards tax relief for small businesses, thus boosting competitiveness.
    ECB Executive Board member Benoit Coeure told the same conference that Athens must stick to the terms of its rescue programme to pass the review, but acknowledged that there were serious concerns regarding the sustainability of Greece's public debt.
    "We are looking forward to a solution that can reassure markets, restore confidence in the sustainability of public debt in an uncertain macroeconomic environment, allow the full involvement of the IMF in the programme which as I've always said, would enhance the programme's capability," Coeure told the audience.
    The International Monetary Fund has yet to decide whether it will participate financially in Greece's bailout.
    A long-standing rift between the EU and the IMF on the country's medium-term fiscal targets has also clouded Greek hopes for a swift conclusion of the review.
    EU Commissioner for Economic Affairs Pierre Moscovici is also expected to deliver a speech later on Monday.
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