Merkel insists on high primary surplus targets

German Chancellor Angela Merkel appeared opposed Wednesday to any potential change to Greece's economic reform program, signaling the difficulties that center-right Prime Minister Kyriakos Mitsotakis is likely to face in fulfilling his pre-election pledge to bring down the country's high targets for primary budget surpluses and create the necessary fiscal space to deliver on promised tax cuts.
The reaction from Athens was muted, with sources noting that the government will pursue its aim to lower primary surplus targets once it has gained the trust of its partners and the markets by spurring growth.
Speaking at a news conference with Finland's Prime Minister Antti Rinne, Merkel also said she agreed with eurozone finance ministers, who discussed the Greek program on Monday, that no change was needed to Greece's bailout program, which foresees a primary surplus target of 3...

Continue reading on: