Bankruptcy risk without debt easing

Parliament's State Budget Office (PBO) warned on Monday that the country will continue to face the risk of bankruptcy unless there is a serious easing of the national debt, adding that tax policy needs to change because it is hampering growth.

The PBO's quarterly report stresses that the lightening of the debt is necessary because interest payments will soar after 2020: In the six years from 2021 to 2026, 84.3 billion euros will be required for interest payments alone, according to data from the Public Debt Management Agency.

"Without a serious lightening of the debt Greece will be bankrupt," argues the office headed by Professor Panagiotis Liargovas. It is also in favor of Greece being relieved of the obligation to achieve very high primary budget surpluses that are asphyxiating the economy, generating a vicious cycle of recession.

High taxation is seen as a risk...