Europe Must Take ‘Hard’ Look at Greek Debt Level, OECD Head Says
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Greece may fall into an economic trap by continuing to narrow its budget deficit and reduce domestic prices without winning extra debt relief, said Angel Gurria, secretary-general of the Organization for Economic Cooperation and Development.
“In the macro numbers, Greece is delivering,” Gurria told reporters today in Athens while presenting an OECD survey of Greece. “The option, of course, is to look at the existing debt and to say: ‘is this consistent with a return to growth, even in the presence of successful policy transformations?’ And what we are saying here is: ‘Let’s take a hard, realistic view’ and ask ourselves whether it is sustainable.”