A report by Greece’s Parliamentary Budget Office for the first quarter of 2014 contests the key points of the country’s economic “success story” and claims the government’s medium-term fiscal plan is overly optimistic. The 59-page report claims that the Greek government should revise its targets concerning the primary surpluses in the next four years.
According to the report, the return of Greece to the international bond market was successful as it is expected to boost Greek economy, to reduce the borrowing costs both in the public and private sectors, to attract foreign investors and to enhance the negotiations concerning the relief of the Greek debt. However, Greek financial policy will remain subject to eurozone rules on budget supervision.
The Parliamentary Budget Office believes that talks on debt relief should begin as soon as possible, as the EU has started reconsidering its initial decisions on financial management and debt issues.
The report strongly rejects the notion that the government’s policy of tackling tax evasion will have any discernible increase in state’s revenues, and that any gains are due mostly the introduction of new taxes and increasing the rates of existing ones.
Finally, main opposition, SYRIZA was accused of having created a false dilemma: for or against the memorandum.
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