Greece beats 2012 deficit targets

According to an official announcement issued on January 10 by the Ministry of Finance, Greece has beaten budget and primary deficit targets for 2012.
The data indicate a state budget deficit of €15.908 billion, compared to a target of €16.312 billion deficit. The report on government budget execution also showed a primary deficit of €3,684 billion, as opposed to a target of €4.577 billion.
Compared to the previous year, the budget deficit fell by €6.866 billion, while the primary deficit is also lower by €2.742 billion, with the state budget balance shrinking by 30.1% compared to 2011.This was due to drastic expenditure cutbacks, which counterbalanced a shortfall in revenues attributed to the reduced inflow of funds from the EU toward the Public Investment Programme.
State budget spending was €355 million lower compared to the target fixed in the national budget.
In a related development, Haris Theoharis head of Finance ministry’s General Secretariat of Information Systems was also appointed to the post of permanent a General Secretary for state revenues, it was announced on January 9.
Ministry of Finance: Announcement on 2012 Budget Execution (in Greek) & Report on 12-month Budget Execution (in Greek); Greek News Agenda: Primary Budget Record Surplus
(GREEK NEWS AGENDA)

Informal meeting of ECOFIN Council (Wrocław, 16-17/9/2011) – Participation of Greek Finance Minister, E. Venizelos

Government Vice-President and Finance Minister Evangelos Venizelos attended informal Eurogroup and Ecofin meetings in Wroclaw, Poland, on September 16-17. Speaking to reporters following the meetings, Venizelos said he briefed the Council over decisions taken by the Greek government to achieve fiscal targets for 2011 and 2012, and towards reaching primary budget surplus the soonest possible.

Venizelos said that it is a common position within the Eurozone that all decisions taken during the July 21 EU Summit must be fully implemented and stressed that “an international environment has been fuelling uncertainty, which affects the implementation of Eurozone decisions and our policies’ performance, ones aimed at dealing with the debt crisis. This vicious circle must end.” 

Meanwhile, following a meeting of the governmental committee in Athens, yesterday, chaired by Prime Minister George Papandreou , Venizelos said that the Government takes full responsibility for the implementation of the agreed programme, but this responsibility must be also taken by all European institutions, all member-states, because the July decisions, the decisions of the European Council have an existential significance for the Euro Area.

Polish EU Presidency: Presidency Communique on the informal meeting of the ECOFIN Council
(GREEK NEWS AGENDA)

Επίσκεψη ΑΝΥΠΕΞ Μαριλίζας Ξενογιαννακοπούλου στη Βαρσοβία (12/5/2011)

Η αναπληρωτής υπουργός Εξωτερικών Μαριλίζα Ξενογιαννακοπούλου πραγματοποίησε χθες επίσημη επίσκεψη στη Βαρσοβία, κατά την διάρκεια της οποίας συμμετείχε στη «Συνάντηση Φίλων Πολιτικής Συνοχής» και συναντήθηκε με τον πολωνό υφυπουργό Ευρωπαϊκών Θεμάτων Mikolaj Dowgielewicz.
Η συνάντηση Υπουργών Εξωτερικών και Ευρωπαϊκών Υποθέσεων («Συνάντηση Φίλων Πολιτικής Συνοχής») πραγματοποιήθηκε με πρωτοβουλία της Πολωνίας, η οποία θα ασκήσει την επερχόμενη Προεδρία της ΕΕ. Συμμετείχαν εκπρόσωποι από 14 χώρες μέλη της ΕΕ, με σκοπό τον συντονισμό της κατάρτισης του κοινοτικού προϋπολογισμού και την εξασφάλιση χρηματοδότησης της κοινοτικής πολιτικής της συνοχής.
Η συνάντηση διοργανώθηκε εν όψει της παρουσίασης από την Ευρωπαϊκή Επιτροπή στα τέλη Ιουνίου του πολυετούς προγράμματος της ΕΕ για τον κοινοτικό προϋπολογισμό.
Η αναπληρωτής υπουργός Μ. Ξενογιαννακοπούλου συμμετείχε στη συνάντηση με στόχο την οικοδόμηση του ρόλου της Ελλάδας στο θέμα του κοινοτικού προϋπολογισμού και των δημοσιονομικών προοπτικών της ΕΕ.
Μετά το πέρας της ανωτέρω συνάντησης, η αναπληρωτής υπουργός είχε γεύμα εργασίας με τον πολωνό επίτροπο της ΕΕ για θέματα προϋπολογισμού Janusz Lewandowski.
Το απόγευμα πραγματοποιήθηκε διμερής συνάντηση ανάμεσα στην αναπληρωτή υπουργό Μ. Ξενογιαννακοπούλου και τον πολωνό υπουργό Ευρωπαϊκών Θεμάτων Mikolaj Dowgielewicz. Οι δύο υπουργοί συζήτησαν για τις προτεραιότητες της Πολωνικής Προεδρίας στην ΕΕ, τις αποφάσεις που σχετίζονται με την σταθερότητα της ευρωζώνης, καθώς και για θέματα μετανάστευσης και την πολιτική γειτονίας.

Deficit down by 46%

According to the preliminary data available for the state budget implementation for the first six months of 2010, on a fiscal basis the deficit presented a 46% year-on-year decline against a targeted 39.5% in the government’s economic policy programme.

The fiscal result of the first six months of 2010 is due to both restriction of expenditures and revenue increases. Nevertheless, these do not yet fully reflect all fiscal measures included in the government’s programme for 2010.

Furthermore, ordinary budget expenditures declined by 12.8% year-on-year against a targeted 5.5% reduction and primary expenditures decreased by 12.7% against a targeted 5.4% annual decrease.

Hellenic Stability & Growth Newsletter: June 2010

(GREEK NEWS AGENDA)

PM George Papandreou Interview at “Politique Internationale”

Few countries have suffered from the global economic crisis as much as Greece. Not only did it feel the full force of the financial earthquake, but it also found itself under attack by international speculators. Today, as the IMF and the European Union prepare to help, the country is licking its wounds and trying to understand how things got so bad. George Papandreou is not the last to ask the question. Elected prime minister in October 2009, the leader of the Pan-Hellenic Socialist Movement (PASOK) is fiercely critical of the previous center-right New Democracy administration, which he believes is guilty of setting up a system of cronyism and of knowingly underestimating the public debt and budget deficit. But the new head of government is an energetic man. In this exclusive interview, he outlines his strategy for resolving his country’s daunting problems. http://www.politiqueinternationale.com/revue/article.php?id_revue=127&id=901&content=synopsis

Government announced austerity plan

PM: “Sacrifices will Bear Fruits”

The government announced yesterday an additional set of measures bound to slash the double-digit public deficit.
Speaking yesterday at a Cabinet meeting, Prime Minister Papandreou said that the emphasis is now shifting to what the European Union will do. 
The new measures aim at bringing into public coffers some €4.8 billion, amount which corresponds to 2% of the country’s GDP.  

Pay Cuts

In particular, the new measures include a 30% pay cut of public sector’s supplements allocated annually, and a 12% across the board cut of public servants’ benefits. Moreover, subsidies to public entities and their social security funds will be reduced by 10%.
Any additional remuneration in the public sector will be trimmed by 50%, and compensation for overtime work will shrink by 30%.

Executive bonuses in the public sector will be abolished and the Public Investment Budget will be curtailed by 5% (€500 million). As of 2011, the ratio for public sector hirings will be one for every five retirees.

Taxation

VAT is expected to rise at all cases by an average 1% to 2% and an extra levy on fuel, cigarettes, liqueur and luxury products will be imposed.
A one-off tax of 1% on personal incomes above €100.000 will also be introduced, together with a 15% rise in taxation of offshore companies’ real estate property.
Kathimerini daily: Further Cuts and Tax Hikes Announced
(GREEK NEWS AGENDA)

PM Papandreou interview on BBC

(GREEK NEWS AGENDA) “Greece is not looking for an EU bailout but for political support from its European counterparts” said Prime Minister George Papandreou in an interview yesterday on BBC One, on the sidelines of his visit to London.
“Give us the time, give us the support – and I’m not talking about financial but political support – in order to show you that what we’re saying is being implemented and we are credible again,” stressed Papandreou, emphasizing on the fact that Greece needs to borrow at the same rate as other countries.
Meanwhile, speaking to “Der Spiegel,” Papandreou expressed confidence that Greece can achieve its target to reduce its budget deficit by implementing serious economic reforms.
BBC News: Greece ‘not looking for bailout,’ Papandreou tells BBC  

PM George Papandreou at the World Economic Forum

(GREEK NEWS AGENDA) Speaking as part of a panel – that also included Spanish Prime Minister Jose Luis Zapatero and European Central Bank President Jean-Claude Trichet – at the annual World Economic Forum taking place in Davos, Switzerland (January 27 -31), Prime Minister George Papandreou said that Greece would not leave the euro area and would use the discipline of membership to slash its budget deficit and make long-delayed structural economic reforms. “The answer is very simple. We went [to the market] for borrowing two days ago and we were five times oversubscribed. We’re not looking for money from anywhere else…” said Papandreou. He outlined an ambitious goal to reduce the deficit by four points this year and bring it below 3% by 2012, through measures taken as part of Greece’s Stability and Growth Programme (SGP).  The premier held a meeting with EU Economic and Monetary Affairs Commissioner Joaquin Almunia yesterday, and the discussion focused on Greece’s SGP in light of the report that the European Commission will be submitting on February 3, on Greece.  European Commission President Jose Manuel Barroso – speaking in Brussels on Thursday – stressed the need for the greater coordination of economic policies in the EU, emphasising that economic policies are not only a national issue, but European as well. Referring to Greece specifically, he expressed the conviction that the Greek government must be supported in its effort to fulfil its commitments in the framework of the SGP.  See world reports – BBC.co.uk: Davos 2010: Greece denies a bail-out is needed; Reuters.com: Greece says being targeted as euro zone “weak link”

Economist Joseph Stiglitz to visit Athens

(GREEK NEWS AGENDA) Economist and Nobel laureate Joseph Stiglitz is invited to participate at an open debate, titled “Discussion and debate with Joseph Stiglitz: in or out of the economic crisis?,” organized by the Economist and Hazlis & Rivas conferences, on February 2. 
Prime Minister George Papandreou will inaugurate the conference with an opening address, focusing on the government’s effort to fulfil the twin aim of monetary restructuring and growth.
Ministers, the leader of the opposition New Democracy party, Antonis Samaras as well as representatives of business associations will also participate at the conference.
Meanwhile, Stiglitz has contributed an article (January 25) in the ‘Comment is Free’ section of The Guardian, under the title “A principled Europe would not leave Greece to bleed,” urging Europe to show support for the honesty and integrity of Greece’s government and its efforts not only to bring the budget under control, but to increase transparency of the entire budgetary framework and to reduce corruption.

Finance Minister Interview in “Der Spiegel”

(GREEK NEWS AGENDA)      Greece has no current need for credit and the excessive pessimism of the financial markets is unjustified, Finance Minister George Papaconstantinou told German weekly Der Spiegel, in an interview. He added that while Greek spreads had soared this week, they would narrow once again, when Greece had proven that it was doing all it could, to improve the country’s financial situation. “We are in a very serious fiscal situation, we have debts with a dangerous dynamic,” said the minister. “But we have a new government that clearly recognizes the problem. With our savings programme, we will reduce the deficit in the coming year by 3.6 percentage points.” Papaconstantinou further said that there was no reason for Greece to ask for help from the International Monetary Fund. Instead, it would solve its problems inside the European Union and according to the bloc’s rules. Greece would release a new bond at the beginning of January, he concluded.  On Friday, Greek Prime Minister George Papandreou said Greece would meet its debt obligations and planned to reduce its budget deficit to below 3 percent of GDP within four years, sending bond yields lower. Today, the premier is expected to announce the measures, his government plans to implement, following talks with representatives of labour unions and business groups. Foreign and Currency News: Greece has no urgent credit need – Greek Finmin

Finance Minister on Greek Economy

(GREEK NEWS AGENDA) The new government “will do what is required to be consistent with the need for a medium-term reduction of the budget deficit,” Finance Minister George Papaconstantinou stated, after a downgrade in Greece’s credit rating by Fitch rating agency.
He also dubbed unrealistic the scenario of Greece resorting to the assistance of the International Monetary Fund.

Giving an interview about the issue yesterday on CNN , Papaconstantinou stressed that “the government is putting together very quickly a number of initiatives and measures to reassure the markets and our European partners that we are serious about reducing the deficit […].”
“There is a movement on all reforms fronts,” something that will restore Greece’s credibility.
Kathimerini daily: Fitch rating downgrade upsets markets

Eurozone Focuses on Greece

(GREEK NEWS AGENDA) Greece has failed to take the necessary measures to cut its fiscal deficit, according to the directions offered last spring by the EU Council, the European Commission (EC) announced on Wednesday, before recommending that the country be placed under excessive deficit procedure of Article 104(8) of the Treaty of Maastricht.

Responding to this, Finance Minister George Papaconstantinou said that the government is determined to restore the credibility of its macro-economic statistics and reduce its large fiscal deficit.In its autumn forecasts, released last week, the EC sees Greece’s budget deficit remaining above 12% of GDP through 2011 – at 12.2% in 2010 and 12.8% in 2011. “We do not share the EC’s projections that see the deficit over 12% in the coming years. This projection was made without taking into account the change in policy,” said Papaconstantinou, who believes he can lower the budget deficit to below 10% next year. “We are changing policy and this will be reflected in the next budgets,” he said.
Kathimerini daily:Eurozone concerned about Greece

Greece in ECOFIN: Adding Numbers Up

(GREEK NEWS AGENDA)   Minister of Finance George Papaconstantinou participated at the European Council Economic and Financial Affairs meeting in Luxemburg (October 19-20).  The minister acknowledged that the budget deficit for 2009 will creep up to 12.5% of GDP, a figure which has been also confirmed by the Bank of Greece.  One third of this significant increase can be attributed to the economic crisis – GDP contracted by 1.5%, investment dropped by 20%, tourism by 15% and shipping revenue by 20%.  The rest can be equally attributed to expenditure excesses, as well as the revision of the way by which the deficit is measured.  Papaconstantinou is ready to negotiate a three-year extension for deficit curbing with the possibility of a further one-year extension.  “The first step is to decrease the deficit to a single digit figure” for 2010, said the minister. The government has pledged to present the Commission with a revised three-year Stability and Growth Programme (2008-2011).Thirteen out of sixteen countries of the eurozone will be put under EU deficit supervision. The European Commission estimates that public finances for all eurozone members will begin to recover by 2011 at the latest.  European Commission: Driving the European Recovery 

Greek Business Matters

♦ 2009 Budget Progress

(GREEK NEWS AGENDA)   Following the end of the first semester of 2009, the government, true has re-evaluated the consequences of the global crisis on Greek economy and the national budget, as well as the predictions concerning growth prospects in 2009.  After evaluating the data, it emerges that certain sectors of the economy, mainly private consumption and exports, will experience a downturn worse than predicted in the updated Growth and Stability programme. However, Economy and Finance Minister Yannis Papathanssiou believes the Greek economy will enter a recovery phase towards the end of the year, and will definitely record positive growth rates in 2010, as he stated during a recent press conference (25.6.2009).  Ministry of Economy and Finance: Tables on the 2009 Budget Progress

♦ HEPO: New Website 

The Hellenic Foreign Trade Board (HEPO) is officially responsible for implementing the export policy of Greece. The organization focuses primarily on designing and coordinating activities for firms to expand their business into foreign markets, promoting best-practices in line with the national export policy, as well as encouraging and assisting SMEs in entering international markets. With the goal of reinforcing the efforts of Greek companies to expand their activities to foreign markets, HEPO implements a further innovative and ambitious initiative, titled “Greek building materials,” & “Greek building services.”  The initiative is incorporated into the framework of the country’s broad exporting policy set by the Ministry of Economy and Finance and concerns the overall promotion of the sectors of construction, building materials, equipment, and related services. For information, visit HEPO’s new website

Eurozone: Greece exceeds Growth Average

(GREEK NEWS AGENDA) In the wake of the informal meeting of the Heads of State and Government of the European Union on November 7 in Brussels, the European Commission issued its autumn economic forecast 2008-2010 yesterday, revealing the gloomy influence of the financial crisis on the European economies.  According to the data, economic growth rates for the European Union should be 1.4% in 2008 (1.2% for the eurozone), half what it was in 2007, and drop even more sharply in 2009 at 0.2% (0.1% for the eurozone).  Greece’s growth rate remains resilient, topping all Eurozone economies’ GDP growth. Greece’s growth rate for 2008 is estimated at 3.1% in 2008 dropping by 0.9% since 2007, all due to a slump in private consumption and a decline in corporate investment, according to the European Commission. For 2009, predictions foresee a drop at 2.5% and 2.6% at 2010.

Greek Public Budget Balance

In terms of the country’s fiscal deficit, it was 3.5% of GDP in 2007 and was expected to fall to 2.5% (2008). The Commission’s forecast shows that it is expected to fall to 2.2% in 2009 only to rise again to 3% in 2010.

Inflation in Greece

After its soaring 2008 levels, inflation will fall to 2.5% in 2009 for the European Union and 3.5% in Greece. In 2010, it will succumb even further with 2.2% in the EU and 3.3% in Greece.    European Commission: Forecasts for member states- Greece