ESM Chief Regling Says Greek Primary Surplus Targets Could Be Reduced

Chief of the European Stability Mechanism (ESM) Klaus Regling indicated on Friday that the European Institutions might consider reducing Greece’s primary surplus targets beginning in 2021.

Speaking during a press conference just before the crucial Eurogroup meeting coming up in Helsinki, the ESM chief reminded the audience that the Greek government has pledged to achieve a 3.5 percent primary surplus both for 2019 and 2020.

In brief, Regling said that if Greece’s growth rates exceed predictions and the borrowing cost of the country are reduced even further, then the targets for the Greek primary surplus for 2021 could be reviewed.

It is noted that this is the first time a European official has ever indicated that the Eurozone might allow Greece to reduce its admittedly high primary surpluses before 2022.