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Bloomberg
Greece’s government is forecasting 2.8% economic growth in 2020, which it says puts it on track to meet a budget target agreed with creditors while still enacting tax relief measures.
The creditors, however, have warned that the cost of polices to which Prime Minister Kyriakos Mitsotakis’s government has committed will create a shortfall of up to 900 million euros
($988 million) towards meeting the target of a primary surplus at 3.5% of gross domestic product for 2020.
Greece’s finance ministry insists the target will be met and sees a primary surplus of 3.56% of GDP next year.
The two sides are set to continue talks to bridge the gap until October 15, when Greece and other EU members must submit budget plans for 2020.
The government’s budget plan “secures fiscal space to reduce taxes and promote growth while at the same time covering the fiscal gap inherited by the new government for 2020 (as well as this year),†Deputy Finance Minister Theodoros Skylakakis said in an emailed statement on Monday.