By George Georgiopoulos
ATHENS, April 24 (Reuters) – Greece’s economy will contract a deeper than expected 5 percent this year, the country’s central bank chief said on Tuesday, piling more pressure on to a citizenry already battered by crippling austerity and record joblessness.
The projection topped a previous forecast the central bank made in March, when it projected the 215 billion euro economy would contract 4.5 percent after a 6.9 percent slump in 2011.
Twice bailed-outÂ GreeceÂ is in its fifth consecutive year of recession.
Speaking to shareholders at the central bank’s annual assembly, George Provopoulos, also a European Central Bank Governing Council member, urged strict adherence to reform and fiscal adjustment commitments Greece has agreed with itsÂ euro zoneÂ partners, saying they were needed to return the economy to sustainable growth.
Athens is under pressure to apply more fiscal austerity to shore up its finances as part of a new rescue package agreed this year with its euro zone partners and the International Monetary Fund (IMF) to avert a chaotic default.
Its continued funding under the 130 billion euro package will hinge on meeting targets.
Provopoulos warned that Greece’s euro zone membership was at stake if it failed to follow through on its pledges, especially after national elections next month.
“If following the election doubts emerge about the new government and society’s will to implement the programme, the current favourable prospects will reverse,” he said.
Greece is set to pick a new government on May 6, with the two main parties in the current coalition seen barely securing a majority in parliament, according to the latest opinion polls.
To read more, visit:Â http://www.reuters.com/article/2012/04/24/greece-cenbanker-idUSL5E8FO4VU20120424
Don’t let the MSM censor your news as America becomes Great Again. Over 500,000 Americans receive our daily dose of life, liberty and pursuit of happiness along with Breaking News direct to their inbox—and you can too. Sign up to receive news and views from The 1776Coalition!
We know how important your privacy is and your information is SAFE with us. We’ll never sell
your email address and you can unsubscribe at any time directly from your inbox.