A report by the Hellenic Fiscal Council (HFisc), an independent administrative authority established in 2014 under the second memorandum, on Thursday referred to significant risks that jeopardize the Greek economy's macro-economic forecasts.
Specifically, the HFisc's spring report warns the country's political leadership that the following risks should be taken into serious account, including:
- Greece's adaptation to the post-memorandum period
- continued high unemployment and an exacerbation of the demographic problem
- unforeseen repercussions from critical geopolitical developments in Iran, the eastern Mediterranean, Syria and Turkey
- Political instability in Italy, as a possible source of uncertainty
- A negative impact on private consumption from continued restrictive tax measures, as well as a negative impact on exports and its effect on GDP.
The council, nevertheless, said this year's fiscal target of a 3.5 percent primary budget surplus (as a percentage of GDP) is attainable, referring to an increase in collection of indirect taxes, social security contributions and the public investment program.
