The Head of European Support Mechanism (ESN) Klaus Regklingk warns that the public finances in Greece are deteriorating and that Greece could even have a primary deficit.
In his interview to German newspaper Handelsblatt Klaus Regklingk states that the new measures that the Greek government wants to implement, threatens to hamper competitiveness and may lead the budget back into deficit.
According to Head of European Support Mechanism was expected to record a fiscal surplus this year, but “this primary surplus is slowly vanishing”.
Furthermore, Klaus Regklingk stressed that “Due to increased government spending and tax revenue reduction, Greece could even have a deficit this year”.
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