VP Dragasakis: Fiscal policy could relax after 2019 if Europe agrees to debt relief

Fiscal policy could relax as of 2019 and tax cuts may be introduced if Greece’s European partners agree to a debt relief scheme, government Vice-president Yiannis Dragasakis said on Wednesday, during an event organized by non-profit think-tank diaNEOsis.

According to Dragasakis, a debt reduction accompanied by a reduction of surpluses after 2018, would enable the country to pay less on debt and more on development, which will make the debt sustainable. “It is, therefore, a fair demand and mutually beneficial,” he said, adding that those who voluntarily associate this request with new obligations or even new bailouts do not do the country any good service.

“If a reduction of surpluses is achieved without additional measures, then we could draw up a three-year plan of targeted tax relief, with support for outward-looking and innovative businesses, and a strengthening of the welfare state,” he said.