ECB Provopoulos: Greece Needs Bold, Medium-Term Reform Plan
ATHENS -(Dow Jones)- Greece urgently needs to develop a medium-term program to
cut its deficit and tackle its debt burden or risk years of economic stagnation,
European Central Bank governing council member George Provopoulos said Tuesday.
Speaking to the Greek parliament, Provopoulos said the international economic
crisis has laid bare Greece's many structural problems, among them the country's
ballooning deficit--forecast to hit 12.7% of gross domestic product this year--
and rising public debt.
"For this reason, a medium-term restructuring plan is needed that will include
both bold and necessary reforms," said Provopoulos, who is also governor of the
Bank of Greece. "It is completely clear that the situation cannot continue. We
know that, our European Union partners know that, and the markets know that--now
is the time to act."
His remarks reiterate previous statements made in the Bank of Greece's recent
interim monetary policy report, which the central bank released earlier this
month.
Nevertheless his comments follow a growing chorus of criticism by EU officials
in recent weeks over Greece's ballooning fiscal gap and its shoddy statistics.
Greece recently revealed that its budget deficit this year will be more than
double what the country had forecast just two months earlier.
Since revealing the size of its deficit last month, international credit
ratings agency Fitch has cut its rating for Greece to A- from A, while rival
agency Moody's has cut its outlook for the country.
Web site: www.bankofgreece.gr
-By Alkman Granitsas, Dow Jones Newswires; +30 210 331 2881; alkman.granitsas@
dowjones.com
(END) Dow Jones Newswires
11-24-091041ET
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