Greek Prime Minister Alexis Tsipras told Reuters that there is a possibility for growth this year and a partial return to the bond markets in 2017.
Tsipras gave an exclusive interview to Reuters, explaining the path the Greek government is drawing to exit the economic crisis.
The Greek prime minister said that state revenues and revenues from tourism may contribute to the economy growing by 0.2 to 0.4 percent this year, well above Eurostat’s forecast for a 0.3 percent contraction. He also said that Greece is likely to meet the 2.7 percent primary surplus target for 2017, since the government managed to meet the 2016 target.
Tsipras expressed the hope that Greece will be included in the European Central Bank’s Quantitative Easing program for 2017. He said Greece’s ability to issue bonds next year, and fully return to the bond markets in 2018, depends on the creditors’ approach to debt relief.
Regarding Germany and its refusal to discuss debt relief before Greece completes successfully the three-year bailout program, the Greek prime minister said that debt easing “will change the ability of a country that has gone through quite a lot to actually have a sustained recovery.”
On the second bailout program review that is currently in the negotiations stage, Tsipras said he expects that it will be completed by the end of October. Its completion requires several tough reforms, and Tsipras argued that the toughest reforms have been completed in the first review.
“From here on, each review will be crucial, but easier than the last one,” he told Reuters. “We are rushing … to be in a position to conclude the milestones at the end of September, start of October, at the scheduled Eurogroup, so at the end of October to be able to conclude the second review.”
The second review includes the thorny issue of unpopular labor reforms. However, Tsipras appeared optimistic. “I don’t think we will have a difficulty in reaching a compromise on these issues,” he said.
Finally, Tsipras said that his government was expecting a clear signal from creditors in May that the crisis was over, but the reply was “we disagree on the debt measures, wait until the end of the year.”
“That is unfair for Greece,” he said. “I am convinced our partners understand that and (by) the end of the year they will give a solution to allow us into QE which will subsequently pave the way for a successful exit of Greece to the markets.”
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