Dombrovskis: Lower Greek primary budget surplus targets would be 'unproductive'

ΕU Commission vice-president Valdis Dombrovskis on Thursday dampened hopes on the part of the leftist Greek government over a possible reduction in primary budget surplus targets through 2018.

Nevertheless, he expressed optimism that Greece can reach a primary budget surplus goal of 1.75 percent, as a percentage of GDP, in 2017. That target would come amid a predicted GDP growth of up to 1.7 percent.

In statements circulated by the German news agency MNI, Dombrovskis added that the IMF’s recent “pessimistic” forecasts are not justified, while saying that the EU still considers that the Fund will actively participate in the third Greek bailout.

Returning to the issue of primary budget surpluses, something which European creditors have primarily insisted on, the Commission vice-president said a possible modification of goals at this stage would be “unproductive”.