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Greece readies painful 2016 budget

Monday, October 05, 2015 - 01:35

Greece will unveil a painful 2016 draft budget later on Monday meant to satisfy international creditors. As Ciara Lee reports, Athens expects the economy to stay in recession next year before returning to growth in 2017, in line with the estimates by the country's lenders.

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Parliament finally reopened in Greece over the weekend. And lawmakers taking their oath were gearing up for a challenging week ahead. They're to unveil a painful 2016 draft budget aimed at satisfying international creditors. Athens needs to implement reforms by mid-November if it is to qualify for its next tranche of bailout funds. They include reforms on tax and pensions. As well as healthcare, the financial sector and public services. James McCormack is from Fitch Ratings. (SOUNDBITE) (English) JAMES MCCORMACK, FITCH RATINGS, SAYING: "The difficulties ahead for Greece are quite pronounced in terms of growth outlook in the fiscal challenges and obviously when growth is declining the debt ratios continue to climb. So we're going to see government debt to GDP go up again next year." Prime Minister Alexis Tsipras wants to recapitalise Greek banks as soon as possible and launch talks with euro zone governments on debt relief in a bid to lure back investors and eventually regain market access. ETX Capital's David Papier. (SOUNDBITE) (English) ETX CAPITAL TRADER, DAVID PAPIER, SAYING: "I think there is going to be a lot of changes within the government with certain reforms before investors will feel comfortable putting large sums of money back into Greece." Tsipras will face a confidence vote on his four-year programme on Wednesday. The Greek economy is expected to shrink over two percent this year and 0.5 percent next year. But increasing tourism revenues and stronger than expected data are improving the longer term outlook. And the country's creditors say if Greece sticks to its reforms, growth could return in 2017.

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Greece readies painful 2016 budget

Monday, October 05, 2015 - 01:35