Greece and creditors working on mechanism to foresee 2018 primary surplus target

Greece and its creditors are discussing a mechanism that would allow both sides to know before April 2019 if the country has achieved or missed its primary surplus target for 2018, a government official with knowledge of the ongoing negotiations told journalists on Tuesday.

The mechanism involves a forecast of data on how the year will end, the official said, without providing more details.

He also said the contingency mechanism already legislated expires in 2018, after which, if the 3.5 percent primary surplus target is exceeded, the positive measures taken by the government will be more than the negative ones. If the economy produces exactly 3.5 percent surplus, the government will take both positive and negative measures which will be legislated now, he said.

“As you know, I do not boast. I state the positive and the negative. Obviously I would consider that we don’t even have to open the discussion on pension cuts. I didn’t say there’s no austerity; I said there won’t be any additional austerity,” he told journalists.