Athens Macedonian News Agency: News in English, 17-02-13

Athens News Agency: News in English Directory - Previous Article - Next Article

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

CONTENTS

[01] Greece must continue its efforts to build a 'success story', says EU Commissioner Moscovici

[02] Kotzias received by Vietnamese PM during visit to Vietnam

[03] ND's Mitsotakis meets Merkel, stresses that Greece belongs in Europe's 'inner core'

[01] Greece must continue its efforts to build a 'success story', says EU Commissioner Moscovici

Moscovici noted that after years of recession, something that we could call 'success story' return to growth rates is now being built in Greece. "It is of vital importance that this effort continues in order to avoid creating a new crisis in the midst of a recovery process of the economy in Greece," he said.

The French commissioner stressed that the future decisions for Greece should not be based on pessimistic scenarios but on the figures presented today by the European Commission according to which the performance of the Greek economy is better than expected.

He said that Greece has made efforts and reforms and the results are already visible and fruitful adding that Greece's partners should act repespectively.

Finally, he expressed his hope for "a rapid conclusion of the second review" ahead of 20 February's Eurogroup.

Greek economy is showing "signs of recovery", the European Commission said in its winter forecasts for the period 2016-2018, released on Monday.

The Commission stressed that following completion of the first review of the EMS programe, "the Greek economy is gradually growing" and "public finances perform better than expected".

The Commission forecasts that the country's real GDP will reach 0.3 pct in 2016, "reflecting an improvement in business and consumer confidence," after the repayment of state arrears to the private sector and the completion of the first review. The European Commission, forecasts that Greek economic recovery will accelerate in 2017 -on the condition of a timely completion of a second review of the programe- reaching 2.7 pct based on improving financial conditions and a gradual lifting of capital controls. It also envisages a rise in private consumption and investments to 3.1 pct in 2018.

The Commission sees an improvement in the country's labour market in the last two years. Employment grew 2.4 pct on average in the first 10 months of 2016 and was projected to rise by an average rate of 2.2 pct by 2018. Unemployment is projected to fall to 23.4 pct of the workforce in 2016, from 24.9 pct in 2015, "helped by reforms in the labour market setting flexible employment forms and wages".

"Downward risks" that could affect forecasts are related, mostly, with uncertainty over completion of the second review, outside factors such as geopolitical and economic tensions on a global and regional level and a refugee crisis.

The country's fiscal deficit is expected to fall to -1.1 pct of GDP in 2016, to remain stable in 2017 and to turn into a surplus of 0.7 pct of GDP in 2018. The Commission expects Greece to significantly overshoot its target for a primary surplus to 2.0 pct of GDP in 2016, from a target of 0.5 pct of GDP. The report said that Greece will achieve a goal for a primary surplus of 1.75 pct of GDP in 2017 and noted that a strong revenue performance in 2016 "based on an ongoing reform of revenue administration" will also help to achieve goals in 2018.

The Commission said there were some downward risks related with the possibility of a smaller performance of fiscal reforms in 2017 because of a delay in completing the second review of the programe. It noted that Greek authorities were expected to adopt a medium-term fiscal package of 2018-2021, which includes necessary adjustments in fiscal policies to safeguard achievement of a goal for a primary surplus of 3.5 pct of GDP in 2018.

The Commission envisages that the country's public debt will rise from 177.4 pct of GDP in 2015 to 179.7 pct in 2016, but to begin falling from 2017 onwards. Introduction of short-term measures by the ESM in 2017 and 2018 was expected to raise the borrowing cost in the short-term, but to lowered it in the long-term and to reduce the debt repayment programe.

[02] Kotzias received by Vietnamese PM during visit to Vietnam

Diplomatic sources said the Vietnamese premier referred to the importance resolving differences peacefully and of observing the UN Convention on the Law of the Sea. He said he had instructed his cabinet to swiftly deal with issues relating to the signature of an agreement with Greece for avoiding double taxation and to encourage business ties between the two countries. Among others, he said it was important to facilitate trade transactions, imports and exports, noting the need to eradicate bureaucratic obstacles and ensure access to information.

Kotzias presented the Vietnamese premier with an invitation from Prime Minister Alexis Tsipras to visit Greece. The Greek minister highlighted the importance of an agreement for avoiding double taxation and to promote collaboration and the contractual framework in shipping cooperation. Kotzias noted that Greece could act as Vietnam's gateway into the EU.

[03] ND's Mitsotakis meets Merkel, stresses that Greece belongs in Europe's 'inner core'

In statements after the meeting, Mitsotakis said that he had "conveyed some images regarding the difficult times for Greeks, after seven and more years of economic and social crisis," as well as the fact that the vast majority consider Greece's place in the heart of Europe non-negotiable.

"We say a clear-cut no to a return to the drachma and those pushing such scenarios. Greece is and will remain a member of the Eurozone," he stressed.

The current government's delays and u-turns were "leading our creditors to have excessive demands," Mitsotakis added, while Greek society was paying a heavy price of the failure of Greek Prime Minister Alexis Tsipras to implement the bold changes Greece needs, many of which had no fiscal cost.

"The Tsipras government has no plan for the economy's growth, for attracting investments, for creating jobs in the private sector," Mitsotakis noted, while its incompetence and dogmatic attitudes had also created "dangerous situations" with regard to the refugee and migration crisis.

"More than ever, the country now needs a national plan for regrouping and reorgarnisation. I expressed our determination to make Greece a normal European state. Austerity without prospects and constant uncertainty are not what the Greek people deserve," he said.

The meeting between Merkel and ND's leader was held at the headquarters of the CDU party in Berlin and lasted for approximately an hour. Mitsotakis and Merkel spoke privately for about 20 minutes, after which they were joined by delegations from both sides. During the meeting, Mitsotakis outlined his party's economic programme for extricating Greece from the crisis and expressed his concern about the state of the Greek economy.

Sources said that Mitsotakis emphasised the immense problems for Greek society, especially unemployment and poverty, saying that the pace of reforms and changes must be accelerated. ND's leader also outlined his ideas for his party's programme of reforms in a number of areas, including public administration, education and justice, while stressing that "ownership" of the reforms was the most vital element for Greece to overcome the crisis.

On the refugee and migration issue, Mitsotakis asked for Berlin's political and practical support, though conceding that there had been delays in things that should have been done.

On Monday afternoon, ND's president will meet with CDU MPs in the German Parliament.

Athens News Agency: News in English Directory - Previous Article - Next Article