x

Economy

After Years of EU Scrutiny, Greece Promises Balanced Budget

October 3, 2022

ATHENS — Greece has promised to return to a budget surplus in 2023, submitting its first spending blueprint in 12 years that is not under the direct scrutiny of European bailout lenders.

Finance Ministry officials said Monday that Greece was planning to return to a primary surplus — the annual balance before debt servicing costs — of 0.7% of gross domestic product in 2023 from a primary deficit of 1.7% of GDP this year.

Achieving a balanced budget was a key demand from lenders during three successive international bailouts between 2010 and 2018 funded by European Union institutions and the International Monetary Fund. A so-called enhanced surveillance monitoring program of Greek public finances by European lenders expired earlier this year.

Deficit rules in the 19 countries that use the euro currency were suspended in 2020 due to the COVID-19 pandemic, but budgets remain under pressure due to high energy costs and additional defense spending — both related to the war in Ukraine.

“The 2023 budget is being prepared under conditions of extremely high uncertainty, regarding geopolitical developments at a global level,” Finance Minister Christos Staikouras said.

Budget forecasts, he said, are subject to change due to “geopolitical challenges” including the war in Ukraine, supply of natural gas to Europe, energy and fuel prices more broadly and European monetary policy.

The European Commission, the EU’s executive arm, wants to reform fiscal rules, making them more growth friendly, before they are due to be fully implemented again in 2024.

Under budget figures submitted to Greece’s parliament Monday, growth is expected to be 2.1% next year, and debt-to-GDP reduced further to 161.6%, from over 200% in 2020.

The growth forecast for 2022 was revised upward to 5.3%, thanks in large part to a better-than-expected tourism season this year.

Staikouras said the budget provided for a 1 billion euro ($978 million) cash reserve — above planned support for businesses and households to cope with energy bills — to address potential additional price increases.

 

RELATED

ATHENS - Voters should see the whole picture when they go to cast their ballot in the European Parliament elections on June 9, Prime Minister Kyriakos Mitsotakis said in an interview on Thursday.

Top Stories

Columnists

A pregnant woman was driving in the HOV lane near Dallas.

General News

NEW YORK – Meropi Kyriacou, the new Principal of The Cathedral School in Manhattan, was honored as The National Herald’s Educator of the Year.

Video

Over 100 Pilot Whales Beached on Western Australian Coast Have Been Rescued, Officials Say

MELBOURNE, Australia (AP) — More than 100 long-finned pilot whales that beached on the western Australian coast Thursday have returned to sea, while 29 died on the shore, officials said.

CALIFORNIA - The University of Southern California canceled its main graduation ceremony and dozens more college students were arrested at other campuses nationwide Thursday as protests against the Israel-Hamas war continued to spread.

NEW YORK  — The third day of witness testimony in Donald Trump's hush money trial concluded Thursday after Trump's lawyers got their first chance to question a witness on the stand.

ATLANTA — As Donald Trump seeks a return to the White House, criminal charges are piling up for the people who tried to help him stay there in 2020 by promoting false theories of voter fraud.

ATHENS - Voters should see the whole picture when they go to cast their ballot in the European Parliament elections on June 9, Prime Minister Kyriakos Mitsotakis said in an interview on Thursday.

Enter your email address to subscribe

Provide your email address to subscribe. For e.g. [email protected]

You may unsubscribe at any time using the link in our newsletter.