Greece needs more time to introduce austerity measures to reduce its massive state debt and keep the Hellenic economy afloat, but is not seeking extra loans from its European partners, Prime Minister Antonis Samaras said on Wednesday.
“All we want is a little air to breathe to bring the economy into motion and increase state budget revenues. More time does not automatically mean more money,” Samaras told German daily Bild in an interview published on Wednesday.
The interview was published ahead of Samaras’ talks with Jean-Claude Juncker, the head of the Eurogroup of finance ministers later on Wednesday, to review progress in Greece’s planned spending cuts.
The talks will decide whether Greece will receive its next portion of loans worth 31.5 billion euros ($39 billion). Failure to receive the bailout funds may cause Greece to default on its massive public debt and exit the eurozone.
Under the terms of the bailout agreement signed with the troika of international lenders, Greece needs to convince its creditors it can cut 11.5 billion euros ($14.3 billion) from the state budget within the next two years to be able to receive the much-needed loans. The Greek government is seeking a two-year extension to the austerity deadline.
"We have to kick-start growth in order to cut our deficit,” Samaras said, adding living standards in the country had plunged by 35 percent in the past three years and Greece’s return to the drachma would signify a fall in these standards by a further 70 percent at least.
