Brussels, 01/03/2010 (Agence Europe) - After a meeting in Athens with the Greek finance minister, Georges Papaconstantinou, EU Economic and Monetary Affairs Commissioner Olli Rehn said that Greece must come up with supplementary measures to decrease its public deficit by 4% of GDP in 2010. He said that the risk of macroeconomic changes in the market are genuine and further consolidation measures are required to be sure of achieving the objective of cutting Greece's deficit this year. Papaconstantinou said that the Greek government would do everything, including new measures, to ensure the public deficit is decreased to below 4% of GDP in 2010.
After his meeting with the finance minister, Rehn held meetings with the Greek economy and competition minister, Louka Katseli, the deputy prime minister, Theodore Pangalos, the governor of the Bank of Greece, Georges Provopoulos, the prime minister, Georges Papandreou, and the labour minister, Andreas Loverdos.
Last week, the European Commission sent experts to Greece on a fact-finding mission, including representatives of the European Central Bank (ECB) and the International Monetary Fund (IMF), to assess implementation of the planned budget tightening measures. Media attention since then has focussed on the announcement this week of a rise in VAT and increased duty on alcohol, cigarettes and fuel and further cuts in public sector pay.
At the upcoming ECOFIN Council meeting in Brussels on Tuesday 16 March 2010, EU economics and finance ministers will be examining whether new public spending cuts should be imposed on Greece, in addition to those already announced (cuts in public sector pay, a freeze on recruitment in the public sector and increasing the retirement age).
Luxembourg's prime minister, Jean-Claude Juncker, is quoted in the Monday 1 March 2010 edition of Handelsblatt as saying that Greece does not need any aid from the IMF. He said that Greece had no option but to stick to its debt reduction target. On 28 February 210, the German Chancellor, Angela Merkel, said that Germany would not be giving Greece any aid, calling on it to fulfil its duties. (L.C./transl.fl)