Economics
Greece Risks Sanctions From Creditors on Tsipras Surplus Cut
- Euro-area lenders are anticipating a breach of fiscal pact
- Possible sanctions could come at debt review this fall
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Greece’s euro-area creditors are open to sanctioning the country for a potential breach of debt obligations over a proposal to lower its annual primary surplus, according to people familiar with the discussions.
Creditors expect the planned reduction of the primary surplus to 2.5% of gross domestic product to result in a violation of the agreement that requires a 3.5% surplus, said the people, who asked not to be identified because the talks are private. They took notice of Prime Minister Alexis Tsipras’s announcement when they were in Greece this week to review reforms, the people said.