Greece might soon need a third financial aid program from its Eurozone peers, the German weekly Die Zeit reported Wednesday, citing unnamed financial and government sources.
As Greece has fallen behind the goals of the consolidation and reform program agreed with the EU and the IMF, especially regarding tax revenue and privatisation proceeds, discussions are underway in the EU to give the country more time to reduce its deficit, the paper said.
In order to extend the deficit-reduction timetable, Greece would need tens of billions more in aid, Die Zeit said. The German parliament might already have to deliberate on a new program this summer.
Eurozone officials have told MNI that if the new Greek government shows sincere commitment, “some adjustments could be made to the bailout program.”
The sharp deterioration in the country’s growth outlook leaves room to extend the period for the consolidation effort, one source noted. The working scenario has been for an extension of two years, which means Greece would have to bring its deficit down to 3% of GDP by 2016 instead of 2014, the official said.
“It is a well known secret in Brussels that the E130 billion second bailout program won’t be enough,” another source said
(source: Die Zeit, mninews)
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