by Nikos Countis
The governmental majority in the Greek Parliament (SYRIZA-ANEL) is ready to vote in favor of the austerity measures that will give the green light to the Eurogroup to conclude the 2nd review of the 3rd Greek Macroeconomic Adjustment Program.
The main characteristic of the conclusion of the Review is the agreement between the creditors and the Greek government about the medium-run primary surplus goals. Contrary to what the Greek government had supported in the past, the primary surplus goals of 3.5% of GDP will have to be retained until 2021. That is after the formal completion of the 3rd Greek Program that ends in 2018.
The conclusion of the 2nd review will impose to the Greek society new austerity measures of 5.3 billion euros, on top of the already legislated (and some of them already implemented) measures of 8.6 billion euros from the 1st Review and the August 2015 Program. In total, for the period 2015-2021, the 3rd Greek Program would have imposed 14 billion euros of austerity measures.