December 14, 2016

IMF: Greece needs no more austerity

The International Monetary Fund says it is against more austerity in Greece and rather seeks to call for a modern welfare system in the debt-hit eurozone country

Two senior IMF officials rejected claims that the fund was seeking to force more austerity drive in Greece. The head of the European Department Poul Thomsen and chief economist Maury Obstfeld wrote in an article that the IMF had advised Greece not to increase its budget surplus.

They wrote that the Greek government’s further spending cuts were contrary to IMF’s suggestion. The officials added that Greece’s move was in line with European institutions as well as to ensure that its surplus would reach three- and half percent of GDPin 2018.

The article appears as the IMF and the eurozone are struggling to find common ground on the third bailout. The IMF had played a major role in two previous rescue packages for Greece.


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