The government is heading to Thursday’s Euro Working Group of senior eurozone finance ministry officials – who will decide on pension cuts and other measures to be taken by Athens – armed with the statistics of a “magical” primary budget surplus of 6.46 billion euros. At the same time, warnings about a possible fiscal derailment continue unabated.
EKathimerni reports that primary surplus figures announced on Wednesday by the Finance Ministry were borne out of the market’s deprivation of liquidity through the freeze on tax rebates and the insufficient execution of the Public Investment Program. This appears to be the government’s final move to show its creditors it will achieve a considerably higher budget result than the target of 3.5 percent of gross domestic product, not only this year but also in 2019.
However, an increasing number of experts are expressing concern over fiscal instability in the next few months, mainly due to the upcoming elections, with the president of the Hellenic Fiscal Council (HFC), Panayiotis Korliras, adding his voice on Wednesday to that of the European Commission and just this week the Parliamentary Budget Office.