PM Samaras: Greece will not need new bailout for 2014 fiscal gap

“Greece will not need a new memorandum or new amounts to cover the fiscal gap of 2014,” Samaras said, “we will keep to the framework of the agreements already in effect.”
Commenting on the results of the meeting, the Greek side said it was satisfied and emphasised the Chancellor’s friendly attitude, also reflected in her public statements, as well as the German side’s clear

recognition that Greece has moved forward and made progress.
Responding to questions, the premier said that he did not want to give details about Greek talks with the representatives of the troika of lenders, as they are “still in progress” but said he was “optimistic we will soon have results and, I believe, the troika’s statements confirm this assessment.” He reiterated that he was not in Berlin to negotiate with the troika.
He did, however, rule out any further cuts to wages and pensions and reiterated that 70 percent of any surplus will go toward covering social spending needs. The Greek premier also emphasised the government’s intention to press ahead with structural reforms, in addition to focusing on fiscal policy.
“In terms of the fiscal adjustment programme, we have met our targets,” Samaras said, “I would like to remind you that the primary surplus has been set as a target for 2014.”
Samaras added that in terms of structural changes “we have covered a lot of distance, and we will do even better,” noting that “there will be significant benefits from the improvement in competitiveness.”
Speaking about reforms, the Greek premier said their effect was already becoming apparent, as “the trade balance has evened out after decades. Everything is being carried out with tremendous sacrifices by the Greek people, while more needs to be done. But we are entering a recovery phase after seven years – we are seeing the light at the end of the tunnel, and this will strengthen the resolve of the Greek people. The primary surplus is the first significant sign of an exit from the crisis and the start of recovery.”
The Greek premier said his talks with Merkel had covered the current agenda for reforms, the hundreds of interventions that need to be made for market deregulation and the actions that must be taken to remove obstacles and distortions in order to boost competitiveness.
“We spoke about the Greek development fund, to the liquidity of which Germany’s KfW has agreed to contribute. We discussed reforms in the education and health sectors. We also discussed future perspectives that are opening up with Greece’s EU presidency,” he said, thanking the chancellor and Greece’s other EU partners for their support.
“Greece’s journey will be completed and will be a success for Europe as well,” Samaras stressed.
Asked about the statements made by the head of the Eurogroup Jeroen Djisselbloem concerning Greece, Samaras pointed out that these were contradicted in the business report issued by the Organisation for Economic Cooperation and Development (OECD) and that a lot was happening in terms of structural reforms.
He also added that, after April 2014, there would be a discussion on lightening Greece’s debt burden in accordance with a relevant decision made by the Eurogroup in 2012.
Asked whether this might lead to a relaxation in austerity measures, Samaras stressed that he believed in growth: “If I look back, I believe that we should have done less on the fiscal side and more on the structural [reforms] side. Now, however, we will meet our commitments and distribute 70 percent of the primary surplus. The government is working 24 hours a day so that the country can exit memorandum programmes and the troika can depart.”
The Greek prime minister will remain in Germany in order to address a conference organised by the German media enterprise “Suddeutsche Zeitung” on Saturday, where he may meet German Finance Minister Wolfgang Schaueble.

Merkel: recognition for Greek sacrifices

On her part, Merkel acknowledged the sacrifices made by the Greek people in the effort to exit the crisis and said she saw “light at the end of the tunnel”. The chancellor predicted a good outcome in the ‘tough but feasible’ negotiating process with the troika and expressed hope that Greece will enter its presidency of the European Council without the burden of negotiations.
Referring to Greece’s obligations, however, Merkel underlined that Greece must implement all its commitments and stressed that the next tranche of bailout loans will be given on this basis. While recognising the progress made by Greece, especially the achievement of a primary surplus, she noted that this was a ‘dynamic development’ but only one parameter in terms of releasing the next bailout tranche.
At the same time, the German chancellor urged all sides “see the glass half full” and not always assume the worst.
Asked about the financial gap after the end of Greece’s bailout programme in 2014, Merkel said the issue would be examined after the summer, in order to also include any revenues in the calculation. She predicted that the gap “will not be huge” but ruled out any relaxation of commitments that must be met by Greece.
“However, the reforms are broader and Germany offers its support within the EU framework as well as on bilateral level, as with the task force on local administration issues. An investment bank is being set up. We also discussed what stage Greece’s negotiations with the troika are at, and the prime minister reassured us that Greece will meet its commitments,” Merkel noted, promising Germany’s support for Greece’s EU presidency in the first half of 2014.

source: ΑΜΝΑ