Koutentakis: Greece will have to implement strict fiscal discipline from now on

Greece will have to continue to implement strict fiscal discipline even after its exits its adjustment program in August this year, the new head of the Parliament’s Budget Office, Frangiskos Koutentakis, told the Athens-Macedonian News Agency (ANA) in an interview on Saturday.

“The main issue is to realize that even after the exit from the program our country should henceforth adhere to strict budgetary discipline. Both current and future governments should manage public money with consistency and responsibly,” he said.

Asked about whether Greece should request a precautionary credit line when it completes its program, he acknowledged that a “clean” exit will mean borrowing more expensively, but will also return Greece to normalcy. “Every official weighs the costs and benefits of each choice differently,” he said.

Commenting on what type of reforms the institutions are referring to after Greece’s program ends, Koutentakis said they concern the regulatory frameworks of markets, spatial planning, management of non-performing loans and reforming public administration.

These reforms, he said, will modernize the economy’s operational framework and contribute positively to growth. “Their institutional frameworks have already been legislated, but their implementation will take time which is extended beyond the duration of the program,” he said.