New austerity measures at the horizon

November 2017

Talks between the Greek government and the technical staff of the country’s creditors began on Thursday, with the focus on fiscal, banking, labor, privatization and energy issues. The discussions will gather pace from Monday, when the chief representatives of the creditors arrive in Athens.

The technical experts visited the State General Accounting Office on Thursday to start sifting through state budget figures and assess whether the primary surplus targets for this year (1.75 percent of gross domestic product) and next (3.5 percent of GDP) can be attained.

The revenue shortfall recorded to date has sent some negative signals to eurozone capitals, and sources from the creditors speak of concerns regarding the course of the next fiscal year. They have not ruled out the discussion of additional measures, although this is clearly the competence of the heads of missions as of next week.

In its 2018 draft budget, the government sees the revenue hole both this year and next being plugged with revenues from superannuation contributions.