The European Commission has announced its reduced forecast for Greek growth from 2.5% to a mere 0.5% on the 5th May during its Spring economic forecasts, and the forecast also sees Greece’s debt-GDP ratio increase to a worrying 180%. The announcement comes as the country’s bailout crisis heightens and talk of a Greek exit from the EU increases. Nevertheless, Pierre Moscovici, European Commissioner for Economic and Financial Affairs, emphasised in a press conference after the announcement that both the EU and the Greek government want Greece to stay in the Eurozone.
Among the reasons for the decision to downgrade the forecast was the decision to call an ad hoc Greek election last year which the EU says halted growth due to economic uncertainty. The downgrade also comes just one day before the ECB makes a decision as to whether they should continue providing Greek banks with financial assistance. Meanwhile the Greek ministers have renewed efforts to sway EU officials to continue to give bailout support to the country as the Government’s cash reserves run dangerously low.