European Stability Mechanism (ESM) managing director Klaus Regling on Saturday appeared to backtrack slightly from his initial position regarding a surprise holiday bonus announced by the Greek premier for pensioners, saying the measure is not expected to change fiscal targets in 2017 and 2018.
His statements were carried in the Spanish mass daily “El Mundo”.
Regling, who is also the CEO of the European Financial Stability Facility (EFSF) and is considered close to Berlin’s positions, said the institutions have concluded that Alexis Tsipras’ announcement last week did cause concern. However, he added that the one-off bonus of 617 million euros is not expected to significantly change fiscal targets over the coming two-year period.
A tweet, in fact, by the ESM, at @ESM_Press read: #Regling: #Greek fiscal policy measures not expected to change projected outcomes in 2017/18. #ESM Member States will now decide what to do
After the initial surprise, Eurozone officials mostly expressed annoyance over the fact that the leftist Greek government did not previously consult with creditors over the spending spree.
