FRANKFURT (MNI) – Greece is well on the way towards reducing its
fiscal deficit to below the 3%-of-GDP maximum permitted under EU budget
rules, Finance Minister Giorgos Papaconstantinou said in an interview
published Wednesday.
Papaconstantinou told German business daily Handelsblatt that the
latest 2009 deficit ratio is “the whole truth.”
“We do not have any more skeletons in the closet,” he continued.
“We have once more precisely re-calculated, taking into account hospital
debts including higher expenditures and revenue losses of last year.
That is now a solid basis for the deficit reduction of the coming years.
By end-2012 we will push the shortfall under 3% of gross domestic
product.”
Papaconstantinou denied any knowledge of reports that the EU
Commission is not satisfied with Greek consolidation measures, saying
that the stability program to be presented shortly will include both an
exact assessment of the volume of this year’s measures and specifics
about medium-term reforms.
Greece needs “no bail-out action,” he claimed, “because we know
what has to be done now.”
“In spite of the high spreads, we can borrow money more cheaply now
than a year ago,” he continued. “The markets are already acknowledging
that we have the political will and a program for deficit reduction.”
“Discussions about rescue actions are not helpful now,” he added.
–Frankfurt bureau tel.: +49-69 720142. Email: dbarwick@marketnews.com
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