The Prospects of the Greek Economy

(GREEK NEWS AGENDA)     Addressing institutional investors in London (February 10-11), Economy and Finance Minister Yiannis Papathanassiou presented the prospects of the Greek economy. Papathanassiou stressed that the government’s economic policy remains absolutely focused on controlling and further reducing the fiscal deficit and repeated that the state projection of the 1,1% growth rate is realistic and therefore the deficit can be reduced to below 3% by 2011. From 7.5% of the GDP since 2004, the fiscal deficit has this year dropped to 3.7%. Concerning other fiscal indices, Papathanassiou said that expenditure will be contained and the aim is to save €500 million for 2009. Overall, 35% of the amount needed to consolidate and pay for the country’s needs for 2009 has by now been easily secured. Referring to the increased spreads detected in state bond market, Papathanassiou pointed out that Greece managed to overcome the adverse climate. He further commented that the burden of  spreads derived to some extent from an ambience created by unjustified rumours concerning the viability of the euro currency, the Greek economy’s course, or Greece’s and other countries’ future in the eurozone. Ministry of Economy and Finance: Speech of the Minister of Economy And Finance on the prospects of Greek economy & Update of the Hellenic Stability and Growth Programme 2008-2011 (January 2009) ; Greek News Agenda: Ecofin Discusses European Economies; Bloomberg: Greek Minister Says Bond Spreads Not Justified as Debt Shrinks