The target for a primary budget surplus of 3.5 percent of gross domestic product does not apply anymore, Finance Minister Christos Staikouras assured after Monday's Eurogroup teleconference, as the eurozone finance ministers aimed at maximum flexibility to tackle the impact of the coronavirus epidemic.
The coronavirus epidemic is likely to infect the budget and the tax breaks planned for this year concerning the Single Property Tax (ENFIA) and the solidarity levy.
The government appears to be putting aside its plans for the further reduction of ENFIA and the gradual abolition of the solidarity levy for now due to the consequences of the virus on the economy.
The government's negotiations with the country's creditors are focused on five fronts, as Athens seeks to secure additional fiscal space so it can implement tax breaks and handouts in accordance with its policy. Among the government targets for this year are cutting the solidarity levy and the further reduction of the Single Property Tax (ENFIA).
Prime Minister Ludovic Orban said on Thursday that he understands the concerns expressed by the Fiscal Council regarding the possible increase of the budget deficit, but assured that "there is no risk" for this to happen in 2020.
It is evident from a series of public statements that the new government is viewed positively by the representatives of Greece's creditors and European partners as they expect better cooperation and more steadfast reform policies.
Nevertheless, the first positive signals do mean that creditors are prepared to change the basic targets of economic policy.
The government submitted Greece's 2019 budget - the first in the post bailout era - to Parliament on Wednesday, saying it seeks to redress injustices against weaker social strata.
Moreover, Alternate Finance Minister Giorgos Houliarakis told lawmakers that it does not include legislated pension cuts planned for January.