The Minister of Finances Yannis Stournaras has submitted his 2014 budget proposal for discussion in Parliament, which, among others, predicts a marginal return to growth in 2014 (0.6% GDP), reducing the rate of unemployment to 24.5% and achieving a 2.995 billion euro surplus (1.6% GDP). The overall goal is to restrict the general government’s debts to 320 billion euros, about 174.8% GDP.
According to Mr. Stournaras the rates of unemployment and inflation are declining, while the economic environment is improving. These developments will result in a significant reduction of the cost of borrowing, which will help Greece achieve the fiscal goals it has set. Mr. Stournaras further claims that despite the public debt increasing “temporarily”, its rate of expansion is being restricted.