–2-Yr Extension For Greece Would Cost E16-18 Billion
–Cost Of Extending Greece Target Timeline Could Rise
–Greece Fiscal Consolidation “Completely Derailed”
By Angelika Papamiltiadou
ATHENS (MNI) – A one-year extension of the timeframe for Greece to
meet its fiscal targets would add an additional E10 billion to the cost
of its bailout program, and extending it by two years would add another
E6 to E8 billion on top of that, a senior EU official told MNI.
He said the estimates are based on the latest assessment of the
Troika — the European Commission, European Central Bank and
International Monetary Fund — and on preliminary figures the Commission
has on the month-to-month execution of the Greek budget.
“The [cost] figures could go up further after the forthcoming
inspections of the Troika,” the official cautioned.
“The Greek fiscal consolidation process has completely derailed.
The Commission and the IMF have known this since April. An additional
one or two years are needed,” he added. He noted that the extension
would have been granted earlier this year when the Commission evaluated
national budgets. “But politics in Greece put the plan on hold.”
The official said that talks taking place behind closed doors are
focusing on “how to finance the fiscal derailment of Greece, since
Germany, Finland and the Netherlands oppose a third bailout package or
even increasing funds in the second bailout,” which is worth E130
billion.
