Petsas: Lagarde's statement on lower primary surplus targets a positive development

A statement by European Central Bank (ECB) President-elect Christine Lagarde on reviewing the primary surplus targets for Greece and reducing them to 1.5-2.0 percent is a positive one, government spokesman Stelios Petsas said on Thursday in an interview with Skai radio, expressing hope that she will continue to have the same view when she becomes ECB president.

The government spokesman made it clear that since 2016 Kyriakos Mitsotakis had set a target of reducing primary surpluses to 2 pct, adding that in a series of public appearances he had stressed that the country should initially gain credibility and then request lower surpluses.

"The target is to reduce primary surpluses to 2 pct by 2021," he said, while stressing that once a climate of confidence is established and the reforms have proceeded, "we will then discuss with our partners on how to take advantage of the buffer, as leaving it unused is not the best solution."

He also noted that the government has already started a dialogue with the European institutions through a letter sent by Finance Minister Christos Staikouras some weeks ago, while the prime minister is constantly raising the issue in his contacts with foreign leaders.

Petsas noted, however, that the business world appears to be responding to the new government's initiatives, as confidence and optimism in the market are high.

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