Tsakalotos says government sees limited post-bailout oversight

In an apparent effort to acclimate the public with post-bailout realities, and after constant statements about a “clean exit” from the bailout, Finance Minister Euclid Tsakalotos has said that the government’s aim is “a programme of post-bailout supervision” based on commitments to lenders “which cannot be wrapped up for technical reasons before the 21 June Eurogroup, or the 28 August end of the programme”.

Tsakalotos said in an interview with the daily Efimerida ton Syntakton that the post-August supervision will not entail new fiscal terms, but rather oversight of implementation of commitments already undertaken by the government.

Tsakalotos noted that the market response to three Greek bond issues has been positive.

“The markets consider the successful exit from the programme almost as a given. Now, the growth strategy that we are presenting is essentially an attempt to create our own, comprehensive plan, which will be credible both for markets and for Greek society,” the finance minister said.

Debt servicing

As for a postponement of debt servicing, Tsakalotos spoke of a two-pronged approach.

The one is that after 2022, the long-term primary surplus will be around two-percent. The second is that by 2030, Greece’s financing needs must not exceed 15 percent, and 20 percent after 2030. “Hence, any solution must satisfy these two parameters,” he said.

Responding to main opposition New Democracy’s charges that pensions will be cut by 30 percent, Tsakalotos said, “Our growth plan is exactly the opposite. We take care of the middle and lower income brackets, and aim not to aggravate their situation. We are creating the fiscal space in order to achieve this,” he said, apparently alluding to a possible reversal of pension cuts, which creditors have ruled out.

Tsakalotos also ruled out the prospect of early elections. “Time is on the side of the government, and each month that passes is more difficult for our opponents, not for us,” he said.