This year Europe will sink into a deep crisis with a GDP decrease of around 1.5% on average. This intensity of the situation will not leave Greece untouched. Meanwhile the European Commission report, which came out on Monday, is expected to have very “pessimistic” forecasts for the country.
More precisely, the Commission states that the GDP increase for 2009 is only 0.2%, when the expected increase was 2%. This percentage does not insure against the crisis hit and the surplus for 2009 will form at around 3.5%.
On Monday, the economic affairs commissioner Joaquin Almunia stressed that the biggest problem Greece has is not the danger that it can be put under supervision but the low solvency of its markets, which will make the application for state loans program harder by increasing the price.
The government will have to deal with insurmountable obstacles when executing the 2009 budget. The government was impatiently expecting the report, in order to go onto realizing the three year stabilization program. It had to determine, which of the three alternative scenarios it will have to offer, and as it seems it will be the most unpleasant one.
On Monday, the new minister of Economy and Finance Yannis Papatanasiou is leaving for Brussels, in order to meet commissioner Almunia. The Minister’s other task is to determine how the EC evaluates Greek politics to primary support the weaker ones and then to apply the fiscal politics. According to his conclusions and Almunia’s remarks, Minister Papatanasiou will decide what the next steps will be for issuing aid for the ones in need and the new plans for the social policies.