Athens Macedonian News Agency: News in English, 15-06-03

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From: The Athens News Agency at <http://www.ana.gr/>

CONTENTS

[01] There is no Plan B for Greece, EU Commissioner Moscovici says

[02] SYRIZA parliamentary group to meet to discuss the deal

[03] We are not far from reaching a deal, Dijsselbloem says

[04] Greek economy to grow by 0.1 pct in 2015, 2.3 pct in 2016

[01] There is no Plan B for Greece, EU Commissioner Moscovici says

"Our aim is a stronger Greek economy within the framework of the eurozone," Moscovici said in an interview with the Cyprus news agency.

Moscovici underlined that they work so that a Grexit is avoided.

"We work," the European Commissioner said, "day and night for a single solution to help the country overcome some major challenges and difficulties," and expressed the hope that a deal will be reached in the coming days.

[02] SYRIZA parliamentary group to meet to discuss the deal

"The decision was taken together with the prime minister," he added.

"We did not have a mandate to meet all our pledges immediately ... We will be judged in a four-year period," Filis noted.

"The government will do its best to reach a deal that will break the vicious circle of austerity and recession ... Elections are not needed in the current reality, but what is needed is for the agreement to pass in the Parliament," he added.

[03] We are not far from reaching a deal, Dijsselbloem says

He also said that some in Europe are extremely optimistic over the consequences of a Greek exit from the eurozone.

Dijsselbloem, who is also the Dutch Finance Minister, noted that there is no a specific proposal, but a wide package on budget, public administration, pensions and the labour market.

Asked whether the European side intends to make a compromise in order to reach a deal, he talked of a "misunderstanding" and that both sides will have to meet halfway.

The Eurogroup chief said that the budgetary package should be a "correct" one, as it was agreed with the previous government.

"Time is running out ... Until now, Greece has been able to pay its debts, but this becomes increasingly difficult. I have also repeatedly said that it is the responsibility of the Greek government to meet its obligations on time. This is not our work. Meanwhile we are making progress, but slowly," Dijsselbloem stated.

[04] Greek economy to grow by 0.1 pct in 2015, 2.3 pct in 2016

The unemployment rate is projected to fall to 25.7 pct of the workforce this year and to 24.7 pct in 2016, from 26.5 pct in 2014, while the inflation rate will remain in negative territory in 2015 (-1.4 pct) before rising to 0.3 pct in 2016. The country's fiscal deficit is projected to fall to 3.4 pct of GDP this year and to 2.8 pct in 2016, from 3.6 pct in 2014, while the public debt will rise to 187.9 pct of GDP this year, easing slightly to 187.6 pct in 2016, from 184.1 pct in 2014.

The OECD noted that economic growth will remain weak in 2015 because uncertainty related with the reform program and a deteriorating liquidity condition have undermined business confidence and investments. For 2016, economic growth will be more dynamic and unemployment will ease as exports and investments are projected to recover along with a reform effort, although the economy will remain in a deflation trend this year.

"The debt burden will remain very high and fiscal sustainability demands the continuation of restrain policies for some time. Fiscal policy must focus on a small primary surplus. Reforming the tax system and tax collection are necessary to boost revenues, while further reforms on the pension system could hep in containing spending," OECD said in its report.

"Structural reforms to reduce hurdles in competition and investments could boost exports and create more high-quality job positions, while reforms in social policy must focus on a fair distribution of costs and benefits from an adjustment policy. Investment recovery will depend on the return of business confidence and the rate of implementing structural reforms. It is necessary to improve access to credit that's why it is crucial to stabilize the banking system and to resolve the non-performing loans issue," it noted.

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