Influential Bank of Greece (BoG) Gov. Yannis Stournaras struck again on Tuesday, a day into the official pre-election season, saying he forecasts that the Greek state will meet a 3.5-percent primary budget surplus for the ongoing year – a critical commitment vis-a-vis its European creditors.
Speaking at a one-day investment seminar, the one-time finance minister prior to 2015 and considered as one of the outgoing Tsipras government’s biggest “gadflies”, he estimated the fiscal figure to reach 2.9 percent of GDP for 2019.
“The BoG’s forecast, based on available figures so far, is for a primary budget surplus (as a percentage of GDP) to reach 2.9 percent,” he underlined.
In more-or-less synchronizing with repeated statements by poll-leading Kyriakos Mitsotakis and the latter’s center-right New Democracy (ND) party, Stournaras said high primary budget surplus targets restrain economic growth, saying Athens should renegotiate the fiscal targets.
“Reducing the primary budget surplus goal to a more realistic level, compared to the current 3.5 percent of GDP until 2022, assuming it is combined with more reforms and privatizations, does not necessarily equal higher public debt, but quite possibly lower (debt),” he said.
The gap between the 3.5 percent goal and Stournaras’ 2.9 percent forecast is calculated at 1.1 billion euros.
