Brussels, 17/09/2013 (Agence Europe) - On Tuesday 17 September, the Greek prime minister, Antonis Samaras, used his trip to Brussels to hold meetings with the presidents of the European Commission, the European Council and the European Parliament to point out a problem of perception of a third aid plan that Greece might require in the autumn of next year.
He says that the extra aid should be viewed in the light of the agreement with the eurozone in November 2012 whereby the country's international lenders would provide the backing needed for the country to return unaided to the money markets, as long at its fully complies with the aims of the structural adjustment programme.
If Greece is obtains further support, it will not be because Greece “ failed, but because Greece has been successful”, says Samaras. The president of the Commission, José Manuel Barroso, says that the work done by the Greek people is paying off and the programme is on track. He refused to feed speculation about potential new aid, preferring to await the conclusions of the next troika visit (European Commission, European Central Bank and International Monetary Fund), due to arrive in Athens this week, but said it was clear to everyone that the country's public finances would need to be looked at: “Their efforts are paying off. Of course, if needed, the programme will be adapted”.
Despite recent positive developments, “the economic situation is still fragile, and it is time to roll up our sleeves”, added Barroso, stressing the need to implement structural reforms and speed up the privatisation programme.
Greece will take over the Presidency of the Council of the EU from Lithuania on 1 January 2014 and the Greek prime minister pointed out that 2014 would also be the year that the country returned to growth. “Greece is reversing the trend; recession forecasts better than expected; we have achieved patience, dignity and persistence”.
On Tuesday morning, Samaras met with the president of the European Parliament, Martin Schulz, who said there were “signals that we are not yet in a situation of solution, but there is light at the end of tunnel”. The primary budget surplus for 2013 will be a reality, he said, and if so, then “I think we should give the country a chance to show that the efforts are really there and further decisions should be taken in the light of the real economic development and of the possible recovery of the country”. Details of Greece's budget situation will be published in the spring of 2014, information the eurozone needs before it decides whether to grant an additional easing of the country's debt burden, for which the emergence of a primary surplus has been set as a precondition.
At the moment, simply writing off some of Greece's debt seems to be out of the question, but a reduction of interest rates on its loans might be possible.
Samaras said that the two men had agreed to put the priority on policies to boost growth and job creation. On the previous day, at an event jointly organised by Greek newspaper Ekathimerini and the International Herald Tribune, Samaras said the country would return to pre-crisis growth levels by 2019.
In Brussels, the Greek prime minister also met with the president of the European Council, Herman Van Rompuy, late on Tuesday afternoon.
Budget gap. The Commission forecasts a budget gap of 2% of GDP in 2014, but Reuters quotes a government source as saying that a good tourist season this year might lead to better-than-expected results. (EL/transl.fl)