Klaus Regling

Plans by the new government in Greece to lower taxes, the impact this would have on the economy and the existence of sufficient fiscal space in order to achieve the primary surplus target of 3.5 percent of gross domestic product will be discussed when the institutions return to Athens in September, European Stability Mechanism (ESM) Managing Director Klaus Regling says in an interview with Kath

By George Gilson

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.

There will be room for changes to Greece's fiscal policy on the condition that targets are achieved, was the message reportedly conveyed by European Stability Mechanism (ESM) Managing Director Klaus Regling to Greece's new Finance Minister Christos Staikouras during their meeting Monday in Athens.

The newly-elected Greek government's reform drive is welcome but the country must respect its post-bailout commitments, the head of the eurozone's bailout fund said on Tuesday.

Finance Minister Christos Staikouras is to meet at the ministry on Monday at 3 p.m. with Klaus Regling, the managing director of the European Stability Mechanism (ESM).

Prime Minister Kyriakos Mitsotakis is having a meeting at his office with Finance Minister Christos Staikouras and his three deputies - Apostolos Vessyropoulos, Thodoros Skylakakis and George Zavvos - about the government policy statement to be made in Parliament next week and the new tax bill, which is expected to cut some income and indirect taxes, although probably not as much as the new gov

The head of the European Stability Mechanism (ESM), Klaus Regling, has left open the prospect of Greece not lowering its tax-free threshold as it agreed to with creditors, but Regling also signaled that the incoming Greek government's aim of lowering of primary surplus targets is at the moment hardly a sure thing.

Discussion on Greece was brief at Monday's Eurogroup, but the council of eurozone finance minsters sent a clear message to Athens that creditors are ready to cooperate with the new government while warning that the handouts announced in May by the previous administration are putting growth and fiscal targets at risk.

European Stability Mechanism chief Klaus Regling reiterated on Thursday the eurozone's doubts over Greece achieving a primary budget surplus equal to 3.5 percent of gross domestic product after the handouts recently voted by Parliament.