A new “package” of austerity measures by the current Greek government is apparently on the horizon in order to bridge disagreements with the country’s institutional creditors, whose representatives return to the recession-plagued country at the end of this week.
One major target is to record a primary budget surplus of 3.5 percent of GDP for 2018, with no agreement so far between the two sides over how to achieve this.
By all accounts, the leftist Greek government must take measures equaling 3 percent of GDP, i.e. five billion euros, all amid a stagnant economy and heightened political uncertainty.
The latest “target date” to achieve a first review of the “Greek program” (the third consecutive bailout program) is April 22, as talks so far between government officials and representatives of the “quartet” – Commission, ECB, ESM and IMF – have made gradual progress, at best, since the beginning of the year.
The month of May is also projected to see a significant decrease in the state’s available cash reserves.
As such, an agreement to achieve the first review is expected to be accompanied by tax hikes and pension reforms (mostly downwards), details of which have been repeatedly leaked and circulated in the media.
The “quartet’s” top representatives return to Athens on April 2, with talks again resuming on Monday, April 4.
