BERLIN (MNI) – The trajectory Greece’s debt lies mainly in the hand
of the Greek government itself, the European Central Bank said in its
latest monthly report, released Thursday.
The central bank noted that long-term debt projections are
invariably subject to considerable uncertainty. Yet, “a key conclusion
remains unaffected by these caveats: debt dynamics largely depend on
factors that are under the control of the Greek government,” the ECB
stressed.
“If the government decides to implement all fiscal and structural
policy measures it has committed to in full and if it maintains an
ambitious reform agenda over and beyond the current programme horizon,
with a view to supporting long-term potential growth, the debt-to-GDP
ratio can be brought on a downward path,” the central bank asserted.
The ECB reminded that an extended period of unrelenting fiscal
discipline and major structural reforms is possible and not
unprecedented in Europe.
“It requires a strong political consensus and determination to
achieve a durable fiscal and macroeconomic turnaround, to regain
competitiveness and to ensure that the programme remains on track,” the
ECB said.
–Berlin bureau: +49-30-22 62 05 80; email: twidder@marketnews.com
[TOPICS: MT$$$$,M$$CR$,MGX$$$,M$X$$$,MFX$$$,M$$EC$]
