European Commission: Greek debt remission is not possible – nrc.nl

President of the European Commission, Jean-Claude Juncker earlier this week in Brussels. Photo: AP / Geert Vanden Wijngaert

Economy

Regrooving of Greek debt is possible, but remission is not. That is the assessment by the European Commission last week made by the Greek request for a third aid package, writes Reuters. The position on the sustainability of the debt differs from that of the International Monetary Fund (IMF), which yesterday reported that debt relief must come.

According to the Commission reprofiling of debt or only possible if Greece specific reform measures that creditors have asked for. That concern included the tax and pensions.

Our economics editor Maarten Schinkel think it is no coincidence that the European Commission now comes with the evaluation, which has already been drawn up before a negotiation agreement with the Greeks concluded:

“This is a countermove. “No, remission is not necessary,” they like to say in response to the IMF. “Reprofiling is enough ‘.”

In the agreement that Greece early Monday morning after hours of discussions concluded with the EU stipulates that only reprofiling of debt is possible.

Both provide large increases in debt

The European Commission and the IMF, which release an evaluation was also added to that of the Commission, differences in the conclusion of the debt, but includes both large debt increases. The Commission wrote in its assessment that the Greek debt in 2020 increased to 165 percent of gross domestic product, which is forecast to fall to 150 percent. But these percentages apply only if Greece takes steps to do something about the debt. Otherwise, the debt can be even higher: 187 per cent by 2020 and 176 percent in 2022. The IMF predicts that the Greek debt has risen in 2022 to 170 percent of GDP

Dutch government has yet to respond today.

Tomorrow debating parliament on the new aid package for Greece. CDA MP Heermabrug suggested yesterday that the Dutch government has yet to officially respond to the parliamentary debate on the IMF report published yesterday. The NOS reports that House Majority meanwhile keeping with his desire.