State Budget Office: Budget execution and targets depends on the will to implement reforms

Budget execution and achieving its targets will depend on the will to implement reforms, Petros Kazakos, a member of the scientific commission of the Parliament’s State Budget Office said on Thursday.

Speaking in Parliament, Kazakos said: “I have no doubt there is a clear political will, even through the budget, to successfully implement a third memorandum, the third adjustment program,” adding that the successful execution of the budget will pave the way for an exit from the vicious circle of the past, a return to the markets, and a safeguard of liquidity for enterprises, “although we know that several of these actions envisaged in the budget could face hurdles”.

Kazakos said that a forecast for a 2,7 pct growth rate was debatable and it depended on factors which were not certain that would be fulfilled, such as the completion of the second review that would pave the way for inclusion in the QE program, improving economic climate and lifting capital controls. “We hope that finally the second review will be completed and we will sail in calmer waters,” he said.

Kazakos added that a 2.7 pct growth rate was based on an increase in private consumption, investments (expected to rise by 9.0 pct) and of course exports. “These forecasts are very favorable,” he noted.

He also referred to external risks, such as the Brexit, heightening tension in the eastern Mediterranean and the Middle East, and urged for a review of the tax policy mix. Commenting on a possible debt relief agreement, he said that such a deal could rapidly lift uncertainty.