Primary surplus plans feed speculation about handouts

The midterm fiscal plan for the next four years provides for primary surpluses far above the target of 3.5 percent of gross domestic product, reaching up to 5.19 percent in 2022. This opens the door for government handouts ahead of the next general election.

According to the estimates of the Hellenic Fiscal Council, which has assessed the Medium-Term Fiscal Strategy Framework for 2019-2022, the primary surplus overrun is expected to reach 111 million euros this year, before rising to 866 million in 2019, 1.29 billion in 2020, 2.11 billion in 2021 and 3.58 billion euros in 2022.

The excessive primary budget surpluses - the outcome of overtaxation so far and the upcoming reductions to pensions and the tax-free threshold in the next couple of years - are already feeding political expectations for handouts.

Alternate Finance Minister Giorgos Houliarakis told SYRIZA...