An article in today's Frankfurter Allgemeine, mentions that the 2014 budget belies an unfathomable, as of yet, fiscal gap, noting that it will have to be altered so that the Troika can finalize the round of negotiations in January, citing an announcement from Brussels.
The article states that the 'primary surplus' is the result of accounting shenanigans explaining the skepticism of lenders, citing as an example several billion owed to suppliers not included in the budget. At the same time, it adds, that structural reforms are not enforced.
The article says the creditors are putting up with this in light of upcoming European Parliament elections, but concludes that without a new haircut the crisis will not end.
The same lime, more, or less, is toed by media group taz which features an article which notes: “Greece changes tactics, but the aim remains the same. The only thing different is the argumentation. Greeks are now appearing not as victims of a failed, but as an example. Therefore, the budgetary surplus is transformed into a weapon. Theoretically, therefore, Greece could freeze payments on old debt. It could bear the wrath of Europe, because the state would not depend on credit to operate.”
Meanwhile the Financial Times, in a report penned by Kerin Hope, note that the PM is facing strong pressure from within his party and a slim majority in parliament, and may not heed lenders asking for further efforts. As is stated, Mr. Samaras may be less inclined to succumb to lenders' demands now that he has achieved a primary surplus.
This according to the report could see the PM returning to the anti-memorandum stance he had before his ascent to the premiership. The article quotes historian Thanos Veremis who notes that given Mr. Samaras' proclivity for break-ups, one cannot rule out an about-face. The article also quotes an unnamed minister who refers to dangers stemming from Mr. Samaras' distribution of the primary surplus.
- Greek state budget showed primary surplus of 595 million euros in Jan-March
- Mitsotakis, Gentiloni agree discussion can start on reducing Greece's primary surplus targets
- Greek state budget shows primary surplus of 5.755 billion euros in Jan-Oct
- Greek budget recorded primary surplus of 4.479 billion euros in Jan-Sept
- PM Mitsotakis discusses fiscal prospects and primary surplus targets with European Commissioner Moscovici
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