Eurogroup to discuss EFSF leveraging, Greek reforms
Baku, October 3 (AZERTAC). Euro zone finance ministers will discuss ways to leverage their EFSF bailout fund on Monday and put pressure on Greece to implement agreed structural reforms to try to get its economy growing again, euro zone officials said.
Finance ministers from the 17 countries sharing the euro meet in Luxembourg after Athens acknowledged it would miss fiscal targets set as conditions for continued emergency funding this year from the European Union and International Monetary Fund.
Greece said on Sunday that the budget deficit this year would be 8.5% of GDP, missing a 7.6% target agreed in the bailout that saved it from bankruptcy. It would also miss next year`s deficit target in terms of percentage of GDP -- 6.8% instead of 6.5 -- but would meet it in nominal terms.
Athens blames its failure to meet EU/IMF deficit targets on the worse-than-forecast contraction of the economy, while its lenders say failure to push through structural reforms is also largely to blame.
"We will be pressing the Greek finance minister to do some more tough talking about the implementation of reforms at home," said one euro zone official involved in the preparation of the meeting.
"Greece would be well advised not only to announce but also to implement reforms," the official said.
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