According to Reuters, Greece’s budget gap this year will be at least one percentage point of gross domestic product higher than the 7.6 percent agreed in its emergency loan program, only a quarter of which is due to a deeper than expected recession, according to a source close to the EU inspectors.
This could make it impossible for Greece to satisfy the inspectors, unless Athens offer something else in compensation.
“It is clear there is no way they can make up for that in 2011 because there is only three months left,” the euro zone official said. “But compensation has to be there, and there can be no revision of the general targets that are defined within the program.”
“There can be absolutely no question of revising any of the targets, the dates by which they need to be achieved, there can be absolutely no question of that.”
Euro zone officials preparing the next meeting of European Union finance ministers on Sep. 16 discussed the Greek budget slippage on Monday and there was growing exasperation with the inability of Athens to deliver on agreed measures.”We need a very clear explanation of how this is going to be delivered because we are getting sick and tired of having the same discussion every three months,” the official said.
“The reassurances we need are not just some numbers on paper … We need clear signals that they are capable of that — capable and willing,” the official said.This will mean Greece will have to take action in the next few weeks, rather than just making more promises.
“Euro zone ministers will only agree to release the next tranche if they believe that this time Greece will deliver,” a second euro zone official involved in the talks said.
Officials said Greece had roughly a month to convince the European Union, European Central Bank and International Monetary Fund inspectors that it was serious about its obligations, before the next disbursement is to take place.
(source: reuters)
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