Greece will have a budget surplus before interest costs in 2013, a year ahead of schedule, giving Prime Minister Antonis Samaras leverage to prod euro-area creditors for more help in lowering its debt burden.
The primary surplus will rise to 2.8 billion euros ($3.8 billion) in 2014, or 1.6 percent of gross domestic product, after a surplus of 340 million euros this year, according to the 2014 draft budget, Alternate Finance Minister Christos Staikouras told reporters in Athens. The overall deficit will be 2.4 percent of GDP both this year and next, according to the budget, which was submitted to parliament today.
“This budget was drafted in an environment of gradual macroeconomic and fiscal stabilization,” Staikouras said. “It takes into account the first positive signals, seen in 2013, which were the result of Greek society’s great sacrifices.”
Under a 240 billion-euro financial rescue program from the euro area and International Monetary Fund, Greece had to eliminate the primary deficit this year and post a primary surplus of 1.5 percent of GDP in 2014.
(source: Bloomberg)
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