The need for new fiscal measures will be determined after the current troika review is complete, in December or January, while the Eurogroup head Jeroen Dijsselbloem clarified that a debt haircut is out of the question.
Mr. Dijsselbloem explained that Greece is making a remarkable effort for a primary surplus and that the measures to reduce red tape and deregulate the closed professions are coming into effect, brining balance to the economy and growth – just like in Portugal. He did however note that there should be no doubt that the public sector and tax policy have a long way to go.
The Eurogroup president reiterated the Eurogroup’s commitment to provide further help, on condition that Greece continues to meet targets. Regarding new measure, both Mr. Dijsselbloem and Commissioner Olli Rehn essentially postponed the discussion until December, when the current troika review is complete.
When asked why the review is taking such a long time, Mr. Rehn quipped that “Greece is never easy” and explained that the ball is in Greece’s court. Finally, Mr. Dijsselbloem stressed the fact that there will be “no support” for a haircut, claiming that there are other ways to tackle a possible debt problem in 2014.
