Less than a year after Greece escaped the shackles of its bailout program, it runs the risk of going rogue.
The latest round of tax cuts and handouts announced by the Greek government mean that Europe’s most indebted state will probably miss an agreed target for a budget surplus excluding interest payments, the head of the euro-area’s crisis fund said. The shortfall will deteriorate further next year, Klaus Regling warned after a meeting of the bloc’s finance ministers in Brussels.
Greece pledged to maintain a stellar fiscal performance in perpetuity in order to bring its mountain of debt into a downward path. The 3.5% primary surplus through 2022 is a condition attached to its debt relief deal, as the country’s own contribution to lightening its burden.
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writers: Nikos Chrysoloras twitter