Greece's fiscal targets may be set to ease

The Eurogroup council of eurozone finance ministers will on Thursday consider suspending Greece's obligation to achieve a primary budget surplus of 3.5% of gross domestic product.

As a eurozone official said on Wednesday, "there is no doubt that Covid-19 is changing what it is rational for ministers to expect from Greece. The fiscal targets for Greece in 2020, and possibly 2021 too, will be assessed in a different light." The same official refused to comment on the possibility of a permanent reduction of targets, saying this is something that "has not been discussed."

Thursday's Eurogroup will discuss the sixth enhanced surveillance report and the possibility of the disbursement of the third tranche of eurozone central banks' earnings from Greek state bond holdings (SMPs and ANFAs).
The same source said the report records that the Greek authorities may have...

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