Greece is on the path towards the goal of reducing the deficit, and the EU do not need to save her, - said Minister of Finance Giorgos Papakonstantinu (George Papaconstantinou).
"There is no actual need of salvation," - he said after a meeting of finance ministers in Brussels to review the plan to reduce Greece's largest budget deficit of the EU. "Greece has not requested to save her."
Compared with last year's deficit of 1.55 billion euros, preliminary data from the Ministry of Finance of Greece, 12 February showed a surplus of 574 million euros ($ 785 million) in January that resulted from the introduction of a lump-sum tax on corporate profits.
On Monday, the euro-zone finance ministers of Greece instructed to prepare a new program to reduce the budget deficit if the government can not ensure sufficient progress in reducing up to 16 March. Investors expressed their skepticism about the efforts of Greece by raising premiums on the debt already on the third day.
"There is no prepared specific additional measures", - said Papakonstantinu after it was announced that "sufficient government's efforts to reduce the deficit."
Higher value
The cost of borrowing to Greece has increased, and yield 10-year Greek bonds over German equivalents rose to 320 basis points from 305 basis points a day earlier. This is more than twice the difference in early November. Credit default swaps Greek government grew 15.5 basis points to 370 points, according to prices CMA DataVision.
Yesterday the finance ministers of Greece, said to be ready for inspection, to be held on March 16, making some higher value-added tax on luxury goods, energy and a reduced capital investment if the country fails to show substantial progress in reducing the deficit, equal to 12.7% GDP.
With officials from the EU and the ECB will leave for Athens for a few days to check the implementation of measures to reduce the deficit - said today Monetary Affairs Commissioner Olli Reh (Olli Rehn) at a press conference in Brussels after a meeting of ministers.
"We can help Greece to overcome difficult times, if Greece is ready to help itself decisive action" - said Rehn.
Three-year plan for Greece to reduce the deficit implies a decrease of 4% of GDP this year and move to the European limit of 3% by 2012.
"There is no actual need of salvation," - he said after a meeting of finance ministers in Brussels to review the plan to reduce Greece's largest budget deficit of the EU. "Greece has not requested to save her."
Compared with last year's deficit of 1.55 billion euros, preliminary data from the Ministry of Finance of Greece, 12 February showed a surplus of 574 million euros ($ 785 million) in January that resulted from the introduction of a lump-sum tax on corporate profits.
On Monday, the euro-zone finance ministers of Greece instructed to prepare a new program to reduce the budget deficit if the government can not ensure sufficient progress in reducing up to 16 March. Investors expressed their skepticism about the efforts of Greece by raising premiums on the debt already on the third day.
"There is no prepared specific additional measures", - said Papakonstantinu after it was announced that "sufficient government's efforts to reduce the deficit."
Higher value
The cost of borrowing to Greece has increased, and yield 10-year Greek bonds over German equivalents rose to 320 basis points from 305 basis points a day earlier. This is more than twice the difference in early November. Credit default swaps Greek government grew 15.5 basis points to 370 points, according to prices CMA DataVision.
Yesterday the finance ministers of Greece, said to be ready for inspection, to be held on March 16, making some higher value-added tax on luxury goods, energy and a reduced capital investment if the country fails to show substantial progress in reducing the deficit, equal to 12.7% GDP.
With officials from the EU and the ECB will leave for Athens for a few days to check the implementation of measures to reduce the deficit - said today Monetary Affairs Commissioner Olli Reh (Olli Rehn) at a press conference in Brussels after a meeting of ministers.
"We can help Greece to overcome difficult times, if Greece is ready to help itself decisive action" - said Rehn.
Three-year plan for Greece to reduce the deficit implies a decrease of 4% of GDP this year and move to the European limit of 3% by 2012.
Bloomberg
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