Samaras, Barroso see 'light at the end of the tunnel' for Greece

“Greece meets the adjustment programme goals and any fiscal gap in 2015 and 2016 will be covered with structural reforms and with the support of the eurozone partners, not with additional austerity measures,” Prime Minister Antonis Samaras said here on Tuesday, soon after meeting European Commission President Jose Manuel Barroso.

The prime minister said that the fiscal gap is estimated to be 2.5 billion euros and noted that it will be covered via structural reforms that will have fiscal results. He also said that he is expecting the assistance of the European partners, pointing out that in November 2012 the Eurogroup pledged to further support Greece, if the country achieves a primary surplus. On the same subject, Barroso stated that it's no secret that Greece's fiscal needs, as well as a likely fiscal gap, will have to be reexamined.

Prime Minister Samaras noted that Greece is close to achieving primary surplus and that this year's recession will be smaller than anticipated. “It is proved that the sacrifices of the Greek people bear fruits,” he said, underlining that after six years of dramatic decline in the living standards of the Greek people, Greece is now recovering and its deficit in competitiveness is being covered. He also said that 75 pct of the structural reforms have already been implemented and the Greek programme is on the right track.

“Any uncertainty about Greece's future in the eurozone is now gone,” the prime minister said, underlining that next year Greece will achieve a “dual comeback in Europe”, namely, by taking over the EU Presidency in the first half of 2014 and through the reform of its economy

On his part, the European Commission president appeared optimistic saying that an exit from the tunnel is visible through the gradual return of economic growth to Greece. He noted that the implementation of the programme has already brought positive results, underlining that further efforts are needed because the economic situation remains fragile and there is no room for relaxation. He said that structural reforms will have to be promoted further and privatizations should be accelerated, putting an emphasis on the new taxation system and a modernization of the public sector. “Combating tax evasion is not just a tool to boost competitiveness; first and foremost is an issue of social justice,” he underlined.  

Barroso also emphasized the initiatives undertaken by the European Commission to combat youth unemployment, noting that they will take shape in early 2014 during the Greek EU Presidency. He also said that all those predicting Greece's exodus from the eurozone were proven wrong, adding that thanks to the leadership of Antonis Samaras and the efforts made by the Greek people all these belong to the past.  

Responding to a question on whether the troika will suggest the implementation of new measures in Greece, Barroso said that it is still early and that the European Commission is waiting for the troika's report. He noted, however, that when the European bodies suggest the adoption of tough measures, they are aware of the social impact but they believe that the adoption of such measures is necessary for Greece to be able to return to the markets at some point. 
He assured that the Greek programme is on the right track and is fully funded until mid 2014. He also underlined that the goal is to restore the markets' confidence in Greece, underlining that labour market reform in Greece is necessary to combat unemployment and boost competitiveness.

The European Commission president also noted that in previous years, Greece was lagging behind in the absorption of structural funds but now ranks fourth in terms of absorption rate.

Source: Athens News Agency