Middle-Term Fiscal Strategy Framework

The Middle-Term Fiscal Strategy Framework anticipates measures totalling 22 billion euros for the 2012-2015 period, so that the fiscal deficit will be limited below 3 percent of GDP at the end of 2014 and in parallel for the public debt to be controlled.

These fiscal policy axes for the next four years that will be ratified in Parliament in mid-May were delivered on Wednesday by Finance Minister George Papaconstantinou to the representatives of the Popular Orthodox Rally (LAOS) party, the “Democratic Alliance” and the “Democratic Left” in meetings held at the Finance ministry.

The Middle-Term Framework incudes:

-Conservative macroeconomic predictions

-A basic scenario with projections of revenues and expenditures for the state and the other state agencies.

-A description of permanent fiscal interventions, timetables and quantitive targets.

-Annual maximum limits for expenditures for every ministry and targets for other agencies.

-Fiscal interventions for the General Government following the interventions.

-Longterm projections of the debt.

-Sector intervention plans in such sectors as public enterprises, the other legal entities of public law and the special accounts, tax evasion, the payroll of the public sector, public administration, social and defence expenditures.

According to the Middle-Term Framework, the 22 billion euros will concern by 2/3 the expenditures and by 1/3 the revenues.