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> Economy

Tsakalotos drops bombshell: Lenders require additional measures for 2019-20

FinMin admits for first time

Newsroom November 28 04:52

Speaking at the Greek-American Chamber of Commerce conference on “Time of the Greek Economy,” Greek Finance Minister Euclid Tsakalotos officially acknowledged that that the creditors are pushing for additional measures for 2018 and on.
He said that it was neither fair nor reasonable for the IMF and other countries who don’t want to reduce the target for the primary surplus from 3.5% to 2.5%, to seek a compromise at Greece’s expense and at the same time push for additional measures for 2019 and beyond.
He also proposed a compromise with the countries that were against the relief measures, according to which, the primary surplus target would be reduced from 3.5% to 2.5% of the GDP and the Greek government would pledge to spend the entire 1% margin of difference on tax relief for SMEs or specific sectors and on promoting competitiveness.

However, he did not clarify whether the proposal had been made yet and if so, what answer he may have received.
He did argue, however, that the fiscal gap the institutions see in achieving the 3.5% primary surplus for 2018 has fallen to 0.1% of the GDP.

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