The Deputy Minister of Finances Christos Staikouras was invited to speak last night at an event organized by the Center of Planning and Economic Research (KEPE), where he referred to the necessity of “stronger tools” to address the Greek debt.
Also present at the event were KEPE President Nikos Philippas and SYRIZA MP and economist Giorgos Stathakis, while journalist Alekos Lidorikis coordinated the discussion. Former Minister of Finances Philippos Sachinidis, who was also invited, warned that a seventh year of recession would be catastrophic if measures promoting growth are not introduced.
In his speech Mr. Staikouras explained the government’s plans; after Eurostat confirms the primary surplus, which is expected in April, Greece will demand a debt reduction from its partners, in accordance with the November 2012 Eurogroup decisions. The Deputy Minister explained that the government is “pursuing a direct and clear solution to the problem” and that “there are realistic solutions and techniques. Stronger tools might be necessary”.
The journalists present at the event posed many questions to the Deputy Minister, who was enigmatic in his responses but did not rule out a potential debt “haircut”. When asked if he meant debt “haircut” by “stronger tools”, Mr. Staikouras responded that “we are still negotiating”. He also refused to comment on the troika’s 2-billion-euro budget gap estimation for 2014.
Later in the event Mr. Stathakis professed that the bailout deals failed, since the fiscal shock they created was not offset by a growth agenda. Mr. Sachinidis on the other hand asserted that “the cycle of fiscal reform has been completed”, emphasizing the need to focus on developing growth strategies which will encourage the Greek economy to become more extroverted and competitive.
