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A society committed to the notion that government is always bad will have bad government. And it doesn't have to be that way. — Paul Krugman
by Migeru (migeru at eurotrib dot com) on Sat Mar 14th, 2015 at 09:05:17 AM EST
What is the reason why the target goal is increasing with time - as opposed to being stable? The (non-existing) inflation correction?
by Bjinse on Sat Mar 14th, 2015 at 10:53:29 AM EST
[ Parent ]
No; steady progress to the unrealistic target of 4.5% primary surplus.

*Lunatic*, n.
One whose delusions are out of fashion.
by DoDo on Sat Mar 14th, 2015 at 10:57:41 AM EST
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The reason is that officially a 3% surplus is still the target for this year. Which won't happen.

BTW the economy in February and early March is in sort of a rebound. Not only tax collection has recovered impressively (and expected to soar in March as the new tax installment plan is implemented, hopefully collecting arrears that were given up on, soon - the government is hoping for an extra 2 billion by this summer), but consumer confidence is soaring on expectations of an end to both austerity and the decline of incomes. According to Alpha Bank, The CCI jumped to levels not seen since October 2009. Exports and tourism are benefiting from the Euro's decline. This is obviously a metastable situation

The road of excess leads to the palace of wisdom - William Blake

by talos (mihalis at gmail dot com) on Sat Mar 14th, 2015 at 09:12:23 PM EST
[ Parent ]
I was not a fan of Tsipras selling tactical retreat as a great victory but has he actually managed to talk up a slight recovery? On the face of it the humanitarian measures announced don't sound nearly enough to push up consumer confidence. Still, if the situation is not deteriorating than plan B can probably wait a bit. They'll only get one shot at it.
by generic on Sat Mar 14th, 2015 at 10:03:49 PM EST
[ Parent ]
In much the same way that a bubble will violently deflate once it stops inflating, an economy that has been operating under a tightening sanctions regime for five years will rebound once the sanctions stop getting worse.

- Jake

Friends come and go. Enemies accumulate.

by JakeS (JangoSierra 'at' gmail 'dot' com) on Sun Mar 15th, 2015 at 01:48:46 AM EST
[ Parent ]
bruegel
Revenues for the period January-February 2015 came in at 7.8bn compared to 8.8bn expected, 963 million still short of the target.

For the period of January-February 2015, state budget expenditures came in at 7.98bn against 8.8bn expected,  844 million below target, thus explaining the improvement in the primary balance(see Figure 2).

Of course the Greek government doesn't accept the target, but further cutting of expenditures is pretty worrying.

by generic on Wed Mar 18th, 2015 at 08:53:43 AM EST
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They are cutting expenditures because Greece wants to get through the short term funding squeeze until August without borrowing any more money.

A society committed to the notion that government is always bad will have bad government. And it doesn't have to be that way. — Paul Krugman
by Migeru (migeru at eurotrib dot com) on Wed Mar 18th, 2015 at 09:32:43 AM EST
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But don't shoiw this numbers that ND started this? or they had the same tactic.
by IM on Wed Mar 18th, 2015 at 09:41:19 AM EST
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Which numbers? The bruegel numbers from the link do not separate expenses for Samaras.
by generic on Wed Mar 18th, 2015 at 09:57:45 AM EST
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He was prime minister until 26th january, so his decisions should still be in there.
by IM on Wed Mar 18th, 2015 at 10:00:18 AM EST
[ Parent ]

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