Greece Could Miss Target On Bailout Actions; More Austerity Ahead



The Greek government could soon be under pressure to consider additional reforms and measures to achieve the agreed fiscal targets of the bailout deal, Greek media reports.

The representatives of Greece’s international creditors are currently in Athens in preparation of Friday’s parliament vote on a series of prior actions related to the bailout package . Greece’s supreme legislative body must ratify these prior actions if the debt ridden country is to receive 2 billion euros of bailout funds.

Greek media reports that the issue stems primarily from the International Monetary Fund, which is concerned that Greece’s fiscal targets for 2015 and 2016 will be unreachable under the currently prescribed policies. The fund is reportedly estimating that Greece will be unable to reach its primary deficit goal of 0.25% of GDP. The anticipated shortfall amounts to about 400 million euros as the country is expected to reduce its deficit only to a 0.5% level from the current 1.5% level.

The potential prognosis for this anticipated target miss is additional austerity measures and reforms in 2015 and 2016.

Realnews reports that members of the country’s General Account are trying to convince international creditors in Athens that the measures that will be legislated by the end of 2015 and the country will achieve the fiscal targets.


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