Mitsotakis to Regling: We will respect fiscal target commitment; 7-yr bond issue a vote of confidence for Greek econ

Tuesday, 16 July 2019 21:29
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Greek Prime Minister Kyriakos Mitsotakis reiterated on Tuesday afternoon that his new center-right majority government will respect fiscal targets agreed to by the previous leftist government with the country's European creditors.

Mitsotakis' statement, in fact, came during a meeting at the Maximos Mansion government house with visiting European Stability Mechanism (ESM) Managing Director Klaus Regling.

While in the opposition, and even after an election victory on July 7, both Mitsotakis and several top New Democracy (ND) cadres pointed to reduced annual primary budget surplus targets - as a percentage of GDP - as necessary for the country's continued economic recovery.

As widely expected, Mitsotakis said structural reforms will be a key to achieving higher growth rates and more "fiscal space", a phrase borrowed from the previous leftist Tsipras government, which used the term to justify extraordinary social spending.

On his part, the powerful head of the Eurozone's emergency bailout fund merely noted that the ESM is a long-term partner of Greece, and is willing to assist the Greek government in its effort to boost competitiveness and sustainable long-term growth.

Both men also underlined their common volition for continuous and productive cooperation amid a framework of mutual trust.  

In a related development, a statement by Mitsotakis, posted on the Greek prime minister's official Twitter account, referred to Tuesday's successful issue of a seven-year bond by the Greek state: "I would like to congratulate the Public Debt Management Agency and the Ministry of Finance on the issuance of a 7-year bond at a record low yield of 1.9%. This is a vote of confidence in Greece’s growth prospects."


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