New Europe — More good surprises from the Greek economy were in store by Eurostat.
Last weekend, the ECB announced the results of its stress tests. The baseline scenario speaks of a worse-case €14.4 bn shortfall and a baseline scenario of €4,4 bn capital shortfall. Initially, the €86 bn Greek bailout agreement had set aside €25 bn to recapitalize Greek lenders.
This Friday, Eurostat announced that Greek recession in the third quarter – when capital controls were imposed – was limited to 0,4% and that there would be an annualized 0,5% recession, that is, much less than 1,4% forecasted by the European Commission.
It should be recalled that the austerity package attached to the bailout program was designed with a 3% recession scenario. Therefore, these news could also mean an easing of demands made on behalf of the creditors by the Eurogroup.
