MOF: “The report doesn’t contain 7.7 billion euros for new measures”
"Nowhere in the report (assessment of Greek fiscal adjustment program) 7.7 billion euros for new measures appear. Nowhere new taxes or more cuts in wages and pensions are provided" the Ministry of Finance said in a statement, on the occasion of reports by the press on new austerity measures in the coming years.
Particularly the Ministry of Finance announced the following: "The same circles who claimed that the country won't meet its fiscal targets, constantly alarmists, who cultivate a climate of fear and destruction that querulous and annihilate the national effort, now, a few days after admission, internationally, that the country has achieved high, sooner than expected, primary surplus, see new austerity measures for years. They simply don't know how to read the tables or are "blinded" by the opposition disposal. Nowhere in the report appear 7.7 billion euros for new measures, nowhere new taxes or further cuts in salaries and pensions. The truth is: 1st. The country has entered a long period of high and sustained primary surpluses.
According to the report, our country:
• Accomplished primary surplus of 0.8% of GDP in 2013, exceeding objectives and allowing for social dividend distribution.
• It's estimated that it will achieve its fiscal targets and this year. The primary surplus is estimated at 1.6% of GDP in 2014.
• It's estimated that it will achieve a primary surplus of 1.9% of GDP in 2015, 2.6% of GDP in 2016 and 3.6% of GDP in 2017.
2nd. Future budget gaps don't add up. They never showed up in troika, in accordance with the methodology followed. Predictions of Troika, to achieve even higher primary surpluses (which will then lead to budgetary gap), are dealt with structural interventions not related in any way to pay and pensions. And another thing: these interventions, if needed in the first year, will be covered in following years. Therefore they won't add up to 7.7 billion euros, except for those who don't understand...
3rd. The Greek Government considers that the satisfactory performance of this year's budget, the implementation of structural interventions and the gradual improvement of liquidity after the reset of the State and Greek banks in the markets, in conjunction with the wider development initiatives that will be announced in the immediate future will nullify whatever budgetary gap currently exists for the coming years. As the Greek government forecasts have been verified the last two years, the same will happen now".
