A new analysis report conducted by the European Central Bank shows that at this phase the Greek government must proceed to government spending cuts and not to impose new tax and contribution hikes, as the government proposes. In the meantime, though, the Greek government and the prime minister himself criticize the representatives of the lenders claiming that they have not said clearly what measures are required so as to complete the evaluation of the Greek program.

ECB report describes the Greek government’s problem, saying that even though it has already decided to impose new measures of 5.7bln euros (mainly tax and social contributions hikes), these are not sufficient to achieve primary surpluses in the coming years.

According to the report’s authors, the benefits from the taxes are only temporary. Instead they propose government spending cuts until Greece’s economy is back to growth.