European Commission on Tsipra’s benefits: The cost will be over 1% of GDP

The additional benefits for 2020 will have a fiscal impact of 1.2 billion or 0.6% of GDP


Tsipra’s benefits and the debit arrangements in up to 120 installments have their toll according to the European Commission’s report that was made public on Wednesday morning. The budgetary costs is estimated to be more than 1% of GDP (1.9 billion euros) this year.

It is also stressed that, according to the projections of the European institutions, these measures “jeopardize the achievement of the agreed target of a primary surplus of 3,5% of GDP in 2019 and in the years to come” and it is noted that the extent of the divergence will depend on the course of debt settlements.

With regard to the additional benefits announced by the government for 2020, the institutions note that the government has provided a partial estimate of a fiscal impact of 1.2 billion or 0.6% of GDP but there is no final assessment of the measures because they have not been voted yet.