Brussels contains gov't plans for handouts

The European Commission's compliance report on Greece is scuppering government plans to make handouts out of excessive primary surpluses. The report was published on Wednesday, ahead of a crucial Eurogroup meeting on Thursday that is expected to decide on a number of issues concerning Greece.

The report makes a specific reference to the tax cuts and the social handouts the government has been promising as a result of using up the so-called "fiscal margin" - the excess of the primary surpluses from 2019 - saying that such interventions have not been taken account of by the creditors, who will need to give their approval in the context of the 2019 budget.

The measures are expected to include tax reductions for bolstering growth and targeted social measures, the report states, "but the details of that package have not been specified," it adds referring to the so-called...