Euro zone worried Greek measures may threaten agreed surplus target

FILE PHOTO: European Stability Mechanism Managing Director Klaus Regling attends a news conference at the Ministry of Finance in Nicosia
FILE PHOTO: European Stability Mechanism Managing Director Klaus Regling attends a news conference at the Ministry of Finance in Nicosia, Cyprus November 2, 2017. REUTERS/Yiannis Kourtoglou/File Photo

May 16, 2019

BRUSSELS (Reuters) – Euro zone finance ministers are worried that recently announced Greek measures could threaten the 3.5 percent of GDP primary surplus target this year, the head of the euro zone bailout fund Klaus Regling told a news conference on Thursday.

Greek lawmakers on Wednesday approved tax breaks and bonuses for pensioners in the crisis-hit nation days before elections, rowing back some austerity mandated by international bailouts.

The package brought by the left-wing Syriza administration includes an annual payment for 2.5 million pensioners, a reduction in a sales tax on basic foodstuffs and a cut in tax rates on electricity and gas bills.

(Reporting By Jan Strupczewski)

Source link