Wednesday April 1, 2015 Search
Weather | Athens
14o C
09o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Greece made largest fiscal adjustment, says EU paper published 'by mistake'

By Nikos Chrysoloras

Brussels - Greece performed the largest fiscal adjustment in the eurozone between 2011 and 2013, according to a research paper by the European Commission’s Directorate-General for Economic and Financial Affairs, which was apparently published by mistake on Monday.

The paper, which examines the systemic impact of deficit reduction programs, was taken down from DG ECFIN’s site and Twitter account a few hours after being published but Kathimerini has a copy of the study and proof that it was published.

A Commission spokesman told Kathimerini that the paper was a draft and had been published “by mistake”. He added that the study would be published “in the coming weeks” and that research papers “don’t represent Commission positions.”

The study, titled “Fiscal consolidations and spillovers in the euro area periphery and core” says that: “By far the largest fiscal consolidations have taken place in Greece, 9 percent of GDP on the basis of the change in the structural balance over these three years.”

“Portugal has also undertaken large consolidations, close to 7 percent of GDP, while the adjustment in Ireland amounted to 4 percent over these years,” adds author Jan in ‘t Veld.

The basic academic conclusion of the paper is that the simultaneous adoption of adjustment programs in the eurozone made it more difficult for periphery countries, like Greece, to achieve fiscal balance and regain competitiveness.

“Spillovers from consolidations in Germany and core euro area have worsened the overall economic situation. A temporary fiscal stimulus in surplus countries can boost output and help reduce their current account surpluses,” the author argues in his abstract.

Even though Greece’s current account balance improved by 2.3 percent of GDP during the period in question, Germany’s also improved by 0.6 percent, meaning that Germany essentially continued to compete against the eurozone periphery and pile pressure on the already struggling economies of the south.

The projections in the research paper suggest that the contraction of Greece’s economy would have been 2 percent smaller during the last three years if fiscal adjustment programs were not applied at the same time throughout the eurozone.

The negative impact of these programs on fiscal multipliers is most pronounced in Italy and then Greece, with a factor of 0.9. The author says the impact would have been smaller if the adjustment programs focussed more on revenues rather than spending.

ekathimerini.com , Tuesday October 22, 2013 (12:24)  
Fitch downgrades ratings of four Greek banks
Paris, Berlin see Greek-Russian courtship as sideshow
JPMorgan says Greek bond pessimism is overdone
Sarantis SA to buy Ava’s rights in Greece from Procter & Gamble
Greek anti-establishment protesters occupy buildings, enter Parl´t grounds
Anti-establishment protesters occupied several public buildings in Greece and briefly entered the grounds of parliament in Athens on Wednesday, calling for the release of jailed members of a...
Greek panel begins campaign for WWII reparations from Germany
A Greek parliamentary committee set up by Prime Minister Alexis Tsipras's government to demand reparations for the Nazi occupation of Greece began work on Wednesday, in a move likely to heig...
Inside News
BASKETBALL
AEK could get a wild card to the Euroleague
AEK shows capable of climbing as high as third in the Basket League, as its 16-point home win over third-placed Aris on Sunday confirmed it can challenge both Aris and PAOK to the first spot...
SOCCER
Cyprus soccer eyes reunion after 60-year divorce
Turkish Cypriot soccer officials on Monday vowed to press ahead with attempts to reunite with the Cyprus Football Association, (CFA), triggering a political storm on the ethnically-split isl...
Inside Sports
COMMENTARY
Going his own way
While up until the last election we had become accustomed to referring to the coalition government led by Antonis Samaras as one featuring a split personality, no political psychoanalyst cou...
EDITORIAL
Righting the wrongs
A country that wants to move forward should study and deal with its past mistakes in a mature and responsible manner. Greece was hit by an unprecedented debt crisis and it came to the brink ...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Fitch downgrades ratings of four Greek banks
2. Paris, Berlin see Greek-Russian courtship as sideshow
3. JPMorgan says Greek bond pessimism is overdone
4. Sarantis SA to buy Ava’s rights in Greece from Procter & Gamble
5. Greek anti-establishment protesters occupy buildings, enter Parl´t grounds
6. Greek panel begins campaign for WWII reparations from Germany
more news
Today
This Week
1. Going his own way
2. Finance Ministry officials to discuss talks progress as EU pushes for action [Update]
3. Athens aims to tighten ties with Russia
4. Spike in migrants reaching Lesvos
5. Greek economy minister sees deal with EU/IMF on reforms next week
6. Buffett says Greek exit from euro ‘may not be a bad thing’
Today
This Week
1. Next Monday is D-Day for state funds
2. Eurogroup unlikely to be held soon to discuss Greek reforms
3. Moscow expects progress from Tsipras visit
4. Some more equal than others
5. Greece to present reforms by Monday, says gov't spokesman [Update]
6. Greece optimistic on deal with euro area next week
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2015, H KAΘHMEPINH All Rights Reserved.