Troika: new measures 2 billion euro – Greek FinMin: No horizontal measures

Posted by in Economy

Greece’s lenders want new measures to save 2 billion euro in 2014, Greece rejects the idea saying that Greeks cannot afford more income decreases. Finance Minister Yiannis Stournaras -who recently claimed “the best political paper is the loan agreement” – insists that there cannot be any more “horizontal” cuts.

Horizontal

vs

Vertical

Chances are good that the new additional austerity measures would be vertical or diagonal then…

“Greece’s lenders are demanding that it will have to produce an extra 2 billion euros in savings in 2014 following a Eurogroup meeting in Luxembourg on Monday.

Kathimerini understands that Finance Minister Yannis Stournaras was told he will have to take more measures next year despite the government’s hopes that it would avoid such a move.

Following the talks, Stournaras insisted that Athens would not opt for any more “horizontal” cuts, affecting pensions and wages. The Greek finance minister also challenged the assertion made by European Central Bank executive board member, Joerg Asmussen, that Greece faced a “significant fiscal gap” in 2014.

“There is no significant fiscal gap,” Stournaras told reporters. “We do have fiscal challenges – always.”

Asmussen also said a financing gap of 5 billion euros to 6 billion euros has opened in the second half of 2014 under Greece’s international rescue program and euro-area central banks wouldn’t roll over Greek debt to fill the hole.” (full article ekathirmerini)

Greek Finance Minister Stournaras – he, himself, personally – said that the financing gap for 2014-2016 would be “just 10.5 billion euro.”

Horizontal and Vertical

PS what are 10.5 billion euro in front of eternity? Just peanuts…

Diagonal

It’s all ‘road’ – it’s the perspective that changes.