Greek Central Bank Fires Warning Over Risk of Missed Budget Target

Greece’s central bank governor has warned that a package of pre-electoral handouts due to take effect next week could derail the country’s budget target agreed with its bailout creditors, the Financial Times reported. Yannis Stournaras’s warning came as parliament on Wednesday approved hastily prepared measures that the leftwing Syriza government hopes will boost its popularity ahead of EU parliament elections on May 26. The package of cuts in value added tax and a pension bonus would cost around €1bn, according to the finance ministry. Speaking to the Financial Times on Thursday, Mr Stournaras said first-quarter budget figures indicated that the primary surplus — which excludes debt service costs — declined by 0.5 per cent of gross domestic product compared with the same period in 2018. Read more