Athens News Agency: News in English, 05-12-15

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From: The Athens News Agency at <http://www.ana.gr/>

CONTENTS

[01] Government on Iraq election

[02] Updated Stability and Development Programme

[01] Government on Iraq election

Deputy government spokesman Evangelos Antonaros made the statement on the occasion of general elections in the strife-torn Middle East country.

[02] Updated Stability and Development Programme

The new programme forecasts that rates of growth will continue to increase combined with a reduction of the public deficit and public debt as employment rises and unemployment falls.

Alogoskoufis said that the government's chief concern in 2005 had been to achieve satisfactory rates of growth and thus avoid a recession, noting that this effort will continue in 2006.

Rates of growth are forecast to reach around 3.8 pct of GDP in 2006 and 2007, rising to 4 pct of GDP in 2008. According to the minister, the increased growth is expected to result from rising growth rates throughout the European Union and also the continuing structural reforms to the Greek economy.

The Programme also sees a gradual decline in inflation, which is expected to close at 3.5 pct in 2005 and then drop to 3.2 pct in 2006 and 3pct in 2007, finally reaching 2.7 pct in 2008.

Alogoskoufis underlined that inflation was one of the more serious problems for the economy, because of its repercussions on the real economy.

The Programme forecasts a drop in unemployment from a 10.4 pct average for 2005 to 9.8 pct in 2006, 8.9 pct in 2007 and 8 pct in 2008.

The public deficit is seen dropping from 4.3 pct of GDP in 2005 to 2.6 pct of GDP in 2006, 2.3 pct of GDP in 2007 and 1.7 pct of GDP in 2008. At the same time, the public debt as a percentage of GDP is forecast to fall to 104.8 pct of GDP in 2006, 101.1 pct of GDP in 2007 and 96 pct of GDP in 2008.

Alogoskoufis described the forecasts in the programme as "moderate" and said that it contained one set of figures based on a "realistic" scenario and another set of figures based on a more unfavourable scenario.

It will also incorporate tax reductions for individuals for 2007 and envisaged increases to the OGA farming pensions and the EKAS low-pension supplement that will be given in two installments (in 2007 and in 2008).

The minister also referred to an increase in tax revenues from VAT, which came to 9.3 pct in October and 11.6 pct in November and said that the finance ministry was preparing a campaign to combat tax evasion and to make the public aware that tax evasion concerned everybody.

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