Commission confirms Greece received primary budget surplus

The European Commission said on Wednesday (23 April) that Greece has met its budget goals and has recorded a primary budget surplus of 0.8% (€1.5 billion) of gross domestic product (GDP) in 2013.

Greece’s surplus was a key condition for its international lenders – the European Commission, the European Central Bank and the International Monetary Fund. A primary budget surplus opens the way for negotiations on adjusting the terms of its bailout.

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Discussions on debt relief for Greece “may begin in the summer and may continue into the autumn”, Simon O’Connor, European Commission spokesperson for economic and monetary affairs, said.

According to O’Connor, Greece’s surplus is “a reflection of the remarkable progress Greece has made in repairing its public finances since 2010”.

The figure for Greece’s budget is positive only after excluding €19.2bn for the recapitalisation of Greece’s banks and interest payments on its debt. The deficit would otherwise be 12.7% of GDP, up from 8.9% in 2012.

Figures published on Wednesday by Eurostat, the EU’s statistical office, show that Greece reduced its budget deficit from 6.2% of its gross domestic product (GDP) in 2012 to 2.1% of GDP in 2013.