Regling: Eurozone concerned Greek tax measures, handouts threaten agreed targets

Eurozone creditors are concerned that Greek pension payments and social handouts and the scraping of already agreed tax reforms put the agreed primary surplus target at risk, the head of the eurozone bailout fund Klaus Regling said on Thursday.
Eurozone creditors and Athens agreed last year when Greece was exiting its last bailout that the country would keep a primary surplus - the budget balance before debt servicing - at 3.5 percent of GDP until 2022.

"We are concerned that the fiscal measures adopted last month put the fiscal target of the primary surplus of 3.5 percent of GDP at risk," Regling told a news conference, adding he took note of the Greek government's statement it would reach the primary surplus target despite these measures.

Greek lawmakers approved in May tax breaks and bonuses for pensioners before elections in earl July, rowing back some...