Eurogroup rules out any talk of primary surplus target reduction

Discussion on Greece was brief at Monday's Eurogroup, but the council of eurozone finance minsters sent a clear message to Athens that creditors are ready to cooperate with the new government while warning that the handouts announced in May by the previous administration are putting growth and fiscal targets at risk.

While creditors would not likely accept a reduction to the primary surplus target, set at 3.5 percent of gross domestic product, they would discuss the suspension of the tax-free ceiling reduction if targets are met in other ways. The key discussion is now anticipated at the September 13 Eurogroup, which will address the damage efforts for the primary surplus target caused by the outgoing government's handouts.

"Obviously developments in Greece are extremely important to us," said the head of the European Stability Mechanism, Klaus Regling. He noted that...