Clarification of Eurogroup decision on Greece's primary surplus
13.12.2016
Question for written answer P-009360-16
to the Commission
Rule 130
Nikolaos Chountis (GUE/NGL)
According to a decision taken by the Eurogroup on 25 May 2016, ‘Greece will meet the primary surplus targets of the ESM programme (3.5% of GDP in the medium-term)’.
The most recent Eurogroup meeting on 5 December 2016 confirmed this decision, noting that ‘the Eurogroup recalled that the primary surplus target of 3.5% of GDP reached by 2018 should be maintained for the medium-term’.
At the same time, IMF reports and statements by IMF officials indicate that, even with heroic efforts, the primary surplus target of 3.5% of GDP is unattainable and certainly unsustainable. A realistic goal for the IMF is a primary surplus of 1.5% on an annual basis; they have further pointed out that maintaining the 3.5% target will have negative consequences for economic recovery.
In view of the above, will the Commission say:
- 1.Since such decisions cannot be based on vague notions which are open to interpretation, what does it understand by ‘medium term’?
- 2.Has the Greek Government agreed to an annual surplus of 3.5% of GDP in the medium term?
- 3.How does it view the IMF's position that a surplus target of 3.5% of GDP is unfeasible and prejudicial for Greece's economic growth prospects?