Wednesday, February 6, 2013
Greece’s Pre-Summit Homework
Wall Street Journal
February 6, 2013
We’re a day away from the kick-off of the European Union leaders’ meeting to decide (or fail to decide) the gross sum and distribution of the bloc’s budget for 2014-2021. All eyes will be on the big players — the U.K., Germany and France – but one little EU member state is coming well-prepared to fight its corner: Greece.
Prime Minister Antonis Samaras will carry with him a report prepared by consultancy Roland Berger and seen by Real Time Brussels, which works out how much slashing EU funding to Greece for the next seven-year period could cost in terms of economic output and jobs.
Mr. Samaras has warned that, because of the way EU funding allocation is calculated, Greece is set to lose about 30% of its financing compared to the previous seven-year period. Greece got €20.4 billion for 2007-2013 period, but as the budget discussions stand now, is likely to receive only around €14 billion in the new round.
According to Roland Berger, every euro invested in Greece through the EU’s cohesion or other development programs will generate €1.45 to €2 in economic output, depending on whether Greece’s economy starts growing again as expected.