- ISIL creates all-female brigade to terrorize women into following Sharia law
- ISTOOK: Obama wants to be impeached
- Obama to Latin leaders: Help with border
- Military bans troops from Baptist church event honoring ‘God’s Rescue Squad’
- ‘Pocket drones’: U.S. Army developing tiny surveillance tools for the next big war
- Belgian cafe posts sign: Dogs allowed, but Jews stay out
- Gen. Dempsey: Pentagon studying Russian readiness plans not viewed ‘for 20 years’
- John McCain: Botched, two-hour execution of murderer is ‘torture’
- House GOP ready to move border bill
- Bomb squad called after live WWII artillery washes on Cape Cod beach
Greek government plans no new austerity measures
Question of the Day
“We will not need any new measures,” he said during a news conference a day after making his annual speech on the economy on the sidelines of a trade fair in northern Greece, and he reiterated that Greece did not plan to restructure its debt — a move that he said would have been “catastrophic” for the economy.
In exchange for 110 billion euros ($140 billion) in rescue loans over three years from the International Monetary Fund and some European Union countries, Greece has implemented strict fiscal control in an effort to reduce the budget deficit from 13.6 percent of annual output in 2009 to 8.1 percent this year.
Unions have been angered, however, by austerity measures that have included cutting salaries and raising taxes.
Asked whether Greece might ask for an extension of the EU-IMF package beyond its 2013 end date, Mr. Papandreou said the government did not intend to ask for an extension and even could leave the program early if good progress was made.
The year 2013 “is truly the end of this process,” Mr. Papandreou said. “The faster we complete the major reforms in our country … the sooner we will be able to exit these restrictions. That could even happen before 2013, provided we do well.”
The government’s main challenge now is to boost revenue, which is lagging behind targets, although the shortfall is offset by better than expected performance in spending cuts.
According to the latest figures released by the Finance Ministry last week, net revenue increased 3.3 percent in the first eight months of the year, against a target of 13.7 percent for the year. However, spending fell by 12 percent from January to August, compared with an end-year target of 5.8 percent.
Mr. Papandreou acknowledged that revenue shortfall was a problem, but he said that overall “we are ahead of our targets.”
“I have every confidence that by the end of the year … we will have achieved the 40 percent reduction of deficit,” he said.
IMF and EU inspectors are due in Athens next week to review Greece‘s progress in overhauling its economy, while the country is due to receive a second installment of loans worth 9 billion euros ($11.45 billion).
Greece is relying on the loans to refinance its debt, as the interest rates demanded for its long-term government bonds on the international market are so high they have essentially locked the country out of the market. Investors are demanding about 9 percent more interest for Greek 10-year government bonds than they do for the equivalent German benchmark bonds.
Mr. Papandreou said financial markets had reacted to Greece‘s troubles in a “moblike” manner in keeping the country’s borrowing costs so high, and that this showed the EU-IMF package was necessary to restore confidence in Greece‘s economy.
“I am confident that this confidence that is growing will have a strong impact on the markets” and therefore on bringing down borrowing costs, he said.
TWT Video Picks
President wants everyone but himself to pay more
- 'Pocket drones': U.S. Army developing tiny spies for the next big war
- ISTOOK: Obama wants to be impeached
- 'We're coming for you, Barack Obama': Top U.S. official discloses threat from ISIL terrorists
- Ted Nugent loses second casino gig for 'racist remarks'
- NAPOLITANO: What if our democracy is a fraud?
- Obama orders Pentagon advisers to Ukraine
- Ohio university quiz implies atheists are naturally smarter than Christians
- White House readies for House GOP impeachment push: 'Foolish' to ignore
- Afghan who killed three U.S. Marines in 2012 to serve over 7-year prison sentence
- EDITORIAL: Obama's 'economic patriotism' means higher taxes
Obama's biggest White House 'fails'
Celebrities turned politicians
Athletes turned actors
20 gadgets that changed the world
Fighting in Iraq