European Stability Mechanism (ESM) managing director Klaus Regling dampened hopes in Athens on Tuesday of lower primary budget surplus targets after 2018, when the current third bailout is due to conclude.
Regling was in Athens along with EU Commission President Jean Claude Juncker on the same day as 7.5 billion euros were being disbursed into Greek state coffers.
In statements, Regling said a primary budget surplus goal of 3.5 percent of GDP in 2018 should continue afterwards as well.
The “day after” the third bailout ends has emerged as a major point of contention in discussions between creditors over the recent period, with the IMF, for instance, directly challenging the notion that the Greek state can continue to post such fiscal performances. A recent study by the Fund over the Greek debt’s sustainability based its findings on a figure of 1.5 percent per year after 2018.
Bank of Greece (BoG) Gov. Yannis Stournaras echoed the Fund’s assessments shortly afterwards, saying the figure for annual primary budget surpluses should hover at the 2-percent mark.
The very issue, in fact, primary budget surplus targets, dominated Stournaras’ morning meeting on Tuesday with Regling.
