Arab Today, arab today syriza economist greece cannot rebound without debt cut
Last Updated : GMT 00:35:45
Arab Today, arab today
Arab Today, arab today

Syriza economist: Greece cannot rebound without debt cut

Arab Today, arab today

Arab Today, arab today Syriza economist: Greece cannot rebound without debt cut

Giannis Dragasakis
Athens - AFP

Struggling Greece will never recover without a generous debt cut, despite what the country's creditors might think, the politician likely to become the next finance minister said Tuesday.
"To promote reforms one must settle the debt issue," Giannis Dragasakis, the senior economist at anti-austerity party Syriza who are favourites to win Sunday's general election, told AFP in an interview.
"The possibility of recovery is limited" because Greece is labouring under a debt of nearly 320 billion euros ($371 billion), or 175 percent of national output, he said.
Syriza, who have a steady lead of around three points in pre-election polls, are trying to strike a delicate balance between fiscal diligence and debt forgiveness.
The left-wing party's plan to renegotiate Greece's multi-billion bailout with the European Union and the International Monetary Fund is already raising hackles among the country's creditors.
IMF chief Christine Lagarde on Monday warned of "consequences" if European countries try to renegotiate their debts.
"Collective endeavours are welcome but at the same time a debt is a debt and it is a contract," Lagarde told the Irish Times during a visit to Dublin.
"Defaulting, restructuring, changing the terms has consequences on the signature and the confidence in the signature," she said.
However the IMF and EU required Greece to restructure its debt with private creditors in 2012 as part of its second international bailout, which has helped Athens repair its public finances.
Greece is now running a budget surplus if debt service costs are not considered.
The write down in the value of the debt to private creditors plus the 240-billion-euro rescue package means that Greece is now mostly into debt to the IMF and its eurozone partners, with the heaviest repayment period still some years off.
Dragasakis, a 68-year-old moderate who oversaw Syriza's economic blueprint, says the leftists are not just thinking about helping themselves.
"Our proposal does not solely concern Greek debt, but the problem of excessive debt facing many European countries," he said.
"It is necessary to adjust the debt because it is not currently sustainable. The Greek economy has suffered a disaster and its capabilities are currently limited."
Dragasakis is the only one of Syriza's leaders to have prior government experience, having briefly served as deputy finance minister in a five-month unity government in 1990.
He argues that debt reduction is essentially dictated by the euro convergence criteria -- the so-called goals signed in 1992.
"If we want to respect Maastricht goals -- which require that debt be reduced to 60 percent of GDP -- we see no other way but to examine the issue on a long-term basis through a conference. If there are other ideas leading to the same result, we would discuss them in a positive manner."
Syriza leader Alexis Tsipras has called for a conference of creditors and frequently refers to the London Conference in 1953 which cancelled German debt after World War II.
Dragasakis readily acknowledges however that reducing the debt will eventually mean little without reforms to combat endemic corruption in the Greek public sector and civil bureaucracy.
"Even if the debt were zero, we would have problems without the necessary reforms in the state and civil administration."
Syriza wants to erase over 50 percent of Greece's debt, and divert funds that are currently being used to repay bonds to help the country's economic recovery.
The party maintains that Greece's creditors will agree to renegotiate the bailout when faced with a leftist government elected with a strong popular mandate.

 

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today syriza economist greece cannot rebound without debt cut Arab Today, arab today syriza economist greece cannot rebound without debt cut

 



Arab Today, arab today
Arab Today, arab today Jordan airline suggests flyers 'talk'

GMT 11:59 2017 Friday ,24 March

Jordan airline suggests flyers 'talk'
Arab Today, arab today 5 Crafty Must-Have Limited-Budget Ideas

GMT 17:03 2017 Saturday ,25 March

5 Crafty Must-Have Limited-Budget Ideas
Arab Today, arab today Dozens dead in US-led Syria strikes

GMT 08:35 2017 Thursday ,23 March

Dozens dead in US-led Syria strikes
View News in Arabic - Business: اقتصاد دولي
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Yemen children dream of school

GMT 07:25 2017 Friday ,24 March

Yemen children dream of school
Arab Today, arab today MP submits a petition to dismiss university head

GMT 06:21 2017 Friday ,24 March

MP submits a petition to dismiss university head
Arab Today, arab today Salvage of South Korea's Sewol ferry

GMT 04:51 2017 Friday ,24 March

Salvage of South Korea's Sewol ferry
Arab Today, arab today Prepares to give stargazers an eyeful

GMT 13:38 2017 Monday ,06 March

Prepares to give stargazers an eyeful
Arab Today, arab today Audi RS 5 Coupe acquires new design

GMT 13:22 2017 Thursday ,23 March

Audi RS 5 Coupe acquires new design
Arab Today, arab today Renault Trezor wins design award

GMT 11:56 2017 Tuesday ,21 March

Renault Trezor wins design award
Arab Today, arab today Actress Mervat Amin reveals her role in new series
Arab Today, arab today 2017 already marked

GMT 15:25 2017 Tuesday ,21 March

2017 already marked

GMT 06:04 2017 Thursday ,23 March

Haifa Wahby bets on her new drama show

GMT 22:00 2017 Thursday ,23 March

Number of unwedded girls amounts to 2.5m

GMT 18:57 2017 Tuesday ,21 March

Accessories designer reveals her new collection

GMT 10:34 2017 Tuesday ,21 March

Mexico threatens to ditch US corn imports

GMT 13:26 2017 Friday ,24 February

Expresses Algerian history by woody figures

GMT 20:03 2017 Saturday ,25 March

Health expert warns from dust sensitivity

GMT 07:36 2017 Wednesday ,22 March

US, Britain ban laptops on flights

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons

GMT 19:27 2017 Saturday ,11 March

Boualsof launches "Priestess Kahina" collection
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday