In firm grip of recession: debt crisis raises Greece back – n-tv.de NEWS

 Economy
 

 Wednesday, August 12, 2015

 
 
 

 
 The way out of the recession was only of very short duration: According to EU figures, the economic crisis of the country will shrink this year and next. The government in Athens on the other hand sees the situation more optimistic than Brussels.
 

 
 

Greece slips according to data from EU circles back into a deep recession: Its economy will shrink this year by 2.3 percent, in 2016 will decline in gross domestic product by 1.3 per cent expected, reported from EU circles in Brussels. 2014 Greece had first done in six years out of recession.

The Greek Economy Minister Giorgos Stathakis had already said before, the economic crisis of the country will go through “a small recession” this year. Already in 2016 they will but return to a growth path. So the EU is not optimistic: they counted aloud EU circles so that the Greek economy will grow only in 2017 again – but then by 2.7 percent. For 2018, therefore an increase in the gross domestic product by 3.1 per cent is expected.

Greece is under acute threat of a bankruptcy and is in urgent need of a new international bailout. The government in Athens has already made with its lenders a principle agreement on a third aid package. The utility has yet to be approved by the Greek Parliament and the Euro-finance. Several national parliaments like the Bundestag must confirm the agreement yet.

In addition to painful tax increases, spending cuts and economic reforms the bailout beinhalteversuch also “strong measures to support growth,” it said in EU circles. The return to economic growth will strengthen the financial position of the government in Athens.

issue of government bonds

The agreement on the budgetary guidelines provides, inter alia, that the country next year must achieve a primary surplus of 0.5 percent of gross domestic product and increase this to 2018 to 3.5 per cent. The primary surplus is the budget balance excluding debt service. This agreement is intended to give Athens some leeway to stimulate growth and theoretically also to reduce its huge debt burden.

Greece attended this Wednesday with the issuance of new government bonds 1,137,500,000 euros a. For securities with a maturity of three months 2.7 percent interest rates are according to the Greek debt agency (PDMA) due – as already in the issuance of bonds a month ago. Other bonds are to be issued on Thursday. De facto extended Athens so that bonds that are due on Friday.

timetable for privatization

From the long-term target privatization proceeds amounting to 50 billion euros to Greece generate 6.5 billion euros in the next three years. This target was “ambitious, but not unattainable,” it said in EU circles. For the time after that more revenues are expected. In addition to the sale of state property it should also go to other sources of revenue such as the award of concessions.

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In the next few decades Greece will achieve revenues of 50 billion euros by mid-July, according to the resolution of the Summit of the euro countries. Major investors are interested in state ownership, it said in the EU. The political uncertainty in Greece had previously been but a hindrance.

A special working group will now examine which assets could be sold as such and political interference can be prevented. At the end of the year, a statement is expected. The Greek authorities were “very, very anxious” that it does not come to panic selling and that together get as much money through the privatization, it said. In the short term, according to Greece from EU circles make especially the approval of regional airports to make money.

  Source: n-tv.de
 

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