EC warns of fiscal derailment, says handouts to cost 6 bln euros

Greece is faced with the serious risk of a large-scale fiscal derailment, according to the third enhanced surveillance report published by the European Commission on Wednesday. 

The EC's report stressed that the government's recent handouts are putting Greece on a course that will jeopardize the achievement of the agreed primary surplus target of 3.5 percent of gross domestic product this year and beyond.

All in all, the total cost of the handouts over the two-year period 2019-20 comes to 6 billion euros.

The Commission also said that the report would have been much harsher if the country wasn't in the midst of a pre-election period as it is standard practice for the EC not to get involved in the domestic political battles of its members.

In a news conference on Wednesday, Commission Vice President Valdis Dombrovskis lauded the fact that Greece was among...