The much-touted return of the troika in Athens has not turned out to be as the Greek side expected, as the IMF, ECB and EU representatives have apparently increased their demands for more austerity.
According to Finance Ministry officers participating in the negotiations the troika, they “suddenly raised the issue of the 2014 budget gap, which had not been addressed at last Monday’s Eurogroup”.
Based on what the officers have told To Vima, the troika raised the issue for two reasons. They are concerned about the fiscal impact of the raises for uniformed officers, which were announced earlier in the year. This includes the
Additionally, they are worried about the so-called “carry over”; the troika estimates that while remarkable and noteworthy, Greece’s efforts in 2013, which will be carried over in 2014, are simply not enough to cover the budget gap.
Furthermore, the creditor representatives are worried that if the Greek government carries out its intended distribution of the primary surplus (the so-called “social dividend”), then the primary surplus’ long-term viability will be case in doubt. This concern also explains why the government has attempted to lower expectations about the distribution of the surplus.
