Spiegel on Greece: Zero surplus, 20 billion euros budget gap!

Following Friday’s downgrade of Greece’s creditworthiness by Fitch, the German magazine Spiegel reports that “by freezing reforms a new hole totalling billions in Greece’s budget is formed”.

Furthermore, the German magazine maintains that the new leftist government will post a zero primary surplus in 2015.

According to Spiegel, experts estimate that the new “black hole” in the Greek state budget will reach 20 billion euros, due to the Tsipras government’s backtracking on reforms signed off by the previous government.

Last year the Samaras government had announced a primary surplus goal of 3% of GDP for 2015, but according to Reuters this will evaporate, whereas the economic situation has deteriorated from January onwards.