Contingent measures and debt issue to blame for failure of agreement

The so-called contingent measures and the debt issue were the reasons why the Greek economic staff and the institutions did not reach an agreement, a eurozone official told ANA-MPA on Wednesday.

Greece and the institutions, he said, have agreed on all measures of the package that correspond to 3 percent of GDP. However, they have not agreed on contingent measures (2 percent of GDP) that the institutions are asking to be implemented in case the 2008 fiscal targets are not met.
The same official said that the “huge discrepancies” between the institutions and Greece on debt is another reason why the Eurogroup will not take place on Thursday as it was planned.

As he said, the institutions need to examine all the options of debt relief based on the latest economic figures released by Eurostat.